According to Reuters website, Hu an trailing PE is 6.4 compare to the industry and sector av. Of 23 and 27 respectively. In terms of Price to sales is 0.79 compared to industry and sector av of 1.55 and 1.89. Price to cash flow us unfavorable as Hu an is expanding fast and I think could be the reason why the stock price is consolidating. More valuation ratios can be found at
www.reuters.com/finance/stocks/financial...ights?symbol=HACH.SI
Next, Philip and cimb has profit forecast of 147 m rmb and 174 m respectively. Can Hu an beats these forecast? Hu an has 9 mths profit of 134m. Exceeding Philip target is a given. Now how about the lofty target by cimb? Last yr 4th q profit for Hu an is 36 m, assuming Hu an keep to that, Hu an would have meet it's target. Given 4th q is a seasonal strong quarter and from Hu an q3 statement, Hu an's inventory and receivables are almost double that of 2009, there is reason to be optimistic that all forecasts will be exceeded. At 34.5 cents, I thought Hu an is at a good entry price. All the are just short term valuation analysis, have not gone into the long term growth prospect yet. All in all, the growth stock is worth a second look
Hu An Cable's TDR in Taiwan has gone underwater, which is surprising considering that the management had said that the Taiwanese can better appreciate the business than Singaporean investors. Investors can however take heart that SEAVI Advent has a very positive view on Hu An Cable and took a stake in the company. At the end of the day, we just have to wait for quarterly results to tell us if this business really can climb the heights or .....cannot make it.
oh no wonder the price in sg side is falling. I really like this stock and believe that it is in a good growth area.... if mgt can execute their aggressive growth plans... then this is a potential multibagger... the fact that seavi bought in 0.42 provides some form of confidence.... staying vested.
Hu an is on it's expansion trail again. The news can be found in CNA website and the edge. all these are good publicity for investor awareness. Read below SINGAPORE : Mainboard-listed Hu An Cable Holdings will build a copper rod plant in Jiangsu Province, China for about S$17.5 million. This will triple its annual production capacity to 21,000 tonnes by next September. Hu An will also hold a public tender to build a new production facility called a vertical melt furnace, for over S$13 million. This will allow it to produce three major copper products - rods, standard wires and stranded wires. These are the primary raw materials used to make the group's wire and cable products. The facility will be located on land which was recently acquired by the group for about S$4 million. "Currently, China is still facing the problem of inadequate domestic supply of primary copper products. However, due to the concerns of pollution from the copper smelting process, the Central Government has tightly controlled any increase in supply of such copper products and has stopped issuing new licences," said Dai Zhi Xiang, CEO and executive chairman of Hu An Cable. He added: "We are amongst the few players in China who have obtained the licence to produce these products, and this allows us to have a priority in tapping into the huge demand for copper products in China." The three major products from the new plant will both be used internally and sold to other wire and cable manufacturers. By increasing its upstream copper rod capacity, it will allow the Group to better manage the supply of raw materials for its wire and cable products. The Group targets to achieve the utilisation rate of 55 per cent in 2011 and 63 per cent in 2012. The total investment of RMB 88.9 million for the acquisition of land, the construction of the new plant and acquisition and installation fees of the machinery and equipment will be fully funded by the proceeds raised from company's issuance of Taiwan depository receipts in October.
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