Hengxin Tech   

Hengxin on uptrend?

What has the mobile handset business got to do with cable business? Longcheer is in a totally different business from Hengxin. Wonder if DBS analyst (or whoever responsible for banding Longcheer with Hengxin) knows what he/she's talking about!

 

Since DBS pegged its price target based on Longcheer's valuation, if Longcheer gets downgraded, Hengxin may be downgraded too.

 

Do you all think that China Techfaith recent fall and bad outlook on Longcheer will affect this counter? Some analysis pls?

 

The total value of the new order wins announced over the past few days is about RMB30.5m, less than 5% of sales expectations for the year. The overseas order is a small but positive one for Hengxin. However, DBS has lowered its price target from $0.73 to $0.62, pegged to 12x FY06 blended earnings. This target multiple is aligned  with its target valuation for Longcheer, another Chinese mobile handset play.



However, if Longcheer gets downgraded (see Longcheer thread), Hengxin may be downgraded too.

 

Latest developments look good..  Hope it corrects more in this correction so that I can collect some at lower price!

 

Hengxin secured its first major overseas contract worth RMB 2.5 m with Korea-listed Taihan Electric. This testifies to the quality and reliability of its 3G-compatible products.

 

Hengxin is indeed a very good yield making company.  But do take note that they offer credit for their clients.  Which means they offer deliver of goods without collecting the money from customer first.  This si something we ought to look into when buying I guess.

 

70% of Hengxin's gross profit is underpinned by RF coaxial cables sale. Hengxin is a category leader in this field with 35% share of China's total demand for RF coaxial cables. Its competitive positioning is double that of its nearest competitor, US-based Andrew Corp.



2007 is the year of 3G for China. Chinese telcos will spend an estimated RMB200 b in the capacity expansion to upgrade their network to handle existing GSM and new 3G network services. Whichever 3G platform (i.e. Siemen's TD-SCMA or UMTS) that China settles on, Hengxin will benefit because its products are omni-compliant.



Fast capacity ramp and the issuance of 3G licences in China are mid-term trigegrs for a re-rating. Buy on weakness.

 

Dear All

Many thanks to all for your advices/inputs.

Just like tanwk3, I was similarly eyeing it at .35 cts or thereabout some times back.  And I do agree that its risky to buy at 0.51/share.

So it would be better to keep off for the time being. 

 

Hengxin started trading on 11 May 2006. Offer size was 84 million shares, comprising 79 million placement and 5 million public shares. IPO price was 25 cents. Its NTA is only l3.2 cents.  The pre-IPO investors have not unloaded their shares because of the lock-up period.  It is advisable to accumulate progressively on  weakness and sell on strength.  Please don't  target to sell at  its historical high as it's usual for most stocks to "seesaw" before reaching their previous or  new highs.     

 

Hengxin got a huge project recently. FY06 result should be better than FY05

 

Hengxin is the biggest maker of RF coaxial cable in China. There was a feature on it in the business times on 30 June

 

i was eyeing it when it was at .35 but it seems that it doing pretty well.

as a communication supplier in china i see the company has a very good prospective... just that .51 was too high a price which I am worried as mentioned by hikitty due to the pre-IPO.

Hengxin have reached .35 due to the off selling of the pre-IPO no sure if anymore of these holders still around.

 

Should have to be too worry about that. Company fundamentals are more important.

 

Be careful of China stocks.  Once the pre-IPO investors dump their shares after the lock-up periods (usually six months after listing dates ), their prices may be affected (extracted from Straits Times report dated 24 June 2006 by Goh Eng Yeow). This dip would likely affect those which are still trading at "dizzy" premiums to their respective IPO prices despite the recent dip. Beware of the "invisible manipulators"  waiting to unload!  .Why must those stocks still enjoy such "dizzy" premiums? Tread cautiously!   

 

FY06 earning should remian strong. Good for longer term.

 

Hi Galaxy65

Are you confident of this counter? I was eyeing it last week at 0.495.

And thank you very much for your recommendation on the various softwares in another thread.

 

do you think this will still be a good buy to invest long term? seem slike the price is already .51 from today closing.

 

it's the largest manufacturer of coaxial cables in the China market

 

what does this company do?