Last Friday, closed at 11.80 Taiwan side, which is 41.80 Singapore cents (after adjusting 1 TDR = 1.25 ordinary shares). The Taiwanese also dont appreciate this stock although SEAVI seems very hot on it. This is puzzling. Who is the better investor?
awesome news.... things are looking up for Hu An... expecting the FY10 results to exceed analysts target to prompt a further re-rating of this stock... vested and holding on to it tight....
Hu An has disappointed investors so far, as it is trading slightly below IPO price of 42 cents. Hu An is not a trader's stock but a fundamental investor's buy. SEAVI is in this stock for the long haul because China is going big on power infrastructure as the country modernises.
The order flow into big players like HU AN will be good, so it's a stock to hold for the good gains - not just 5% buy today sell on contra. Buy to hold for months or even more than a year because the gain could be very worth the holding = 50%? 100%
It has a pretty impressive closing at 0.42 today which is the ipo price... lets see if it is able to go above it tomorrow... anyway cimb has set a 0.64 price target for hu an
Short term catalyst will be it's full year earning report. Hu an cash cycle is very long, which sometimes stretch over 2 quarters. This is the norm for the infrastructure industry. Hence the earning visibility of Hu an might not be as clear as other companies. Yet few ppl realized that q4 is traditionally the strongest quarter for Hu an. As mentioned my earlier forum. Beating it's own q4 earnings last year will enable it to meet or better cimb earning targets. I also agree with the management that not many ppl understand it's business. If u look at Hu an purely by it's financial ratio, u will be caught in a dilemma as in it has impressive PE. Ratio compared to its industry or peers but it's operating cash flow and short term debt ratio is less than impressive. It's profit margin is only average compare to the industry, so what's so compelling to buy? They don't realize Hu an is fast expanding and is recycling it's profits straight into expansion plans. And that its margins is affected by its copper sale business which has lower margin. Is this expansion too aggressive and risky? Well, I am vested and am willing to take the risk barring any earning shocks from the 4th q. It's strong growth momentum should be a positive signal that they are heading in the right direction.
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