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CHT advised that its performance for 3Q07 is adversely affected by the following:
- the reduction in the rate of value added tax export refund from 11% to 5%
- appreciation of the Renminbi against the US$ in 3Q07; and
- rising cost of petrochemical-based raw materials and prevailing challenging business conditions.
The Group expects to announce its unaudited 3Q07 results in the second week of Nov '07.
This stock is not very liquid. Expect more sell down to go....
My entry price is 58c if it really comes.
Going to chiong today? UOBKayhian price target $1.22!!!
CHT HOLDINGS
OLDINGSA Potential Chinese 3M
As a major producer of specialty adhesive tapes, CHT Holdings is a direct
play on the fast-growing automobile sector in China and overseas. Given
strong car demand and the 13.5% CAGR in disposable income per capita in
China, major foreign car manufacturers are expanding their operations in
China. CHT's acquisition of technological know-how through its JV with
Plymouth Rubber Co Inc and its low production costs are its key competitive
advantages.
�� Dominant player in supply of adhesive tape to China's automobile
sector. CHT is the biggest integrated PVC adhesive tape producer in
China. Its customers include top-tier car and electronic product
manufacturers in China and overseas markets. Management expects
automobile adhesive tape to account for 70% of its total revenue in 2009,
up from the 50% in 2006. (Revenue CAGR for 2000-05: 33%).
sector. CHT is the biggest integrated PVC adhesive tape producer in
China. Its customers include top-tier car and electronic product
manufacturers in China and overseas markets. Management expects
automobile adhesive tape to account for 70% of its total revenue in 2009,
up from the 50% in 2006. (Revenue CAGR for 2000-05: 33%).
China. Its customers include top-tier car and electronic product
manufacturers in China and overseas markets. Management expects
automobile adhesive tape to account for 70% of its total revenue in 2009,
up from the 50% in 2006. (Revenue CAGR for 2000-05: 33%).
�� Vertical integration and technological transfer from Plymouth
enhances CHT?s global competitiveness. The company manufactures
key intermediate raw materials and equipment, capturing the margins at
every stage of the adhesive tape production process. Strong technological
support from its association with Plymouth Rubber enabled CHT to
secure product certification by world-class first-tier automobile
manufacturers (eg Delphi, Lear, Ford, Volkswagon, Sumitomo) and
supply contracts with them.
enhances CHT?s global competitiveness. The company manufactures
key intermediate raw materials and equipment, capturing the margins at
every stage of the adhesive tape production process. Strong technological
support from its association with Plymouth Rubber enabled CHT to
secure product certification by world-class first-tier automobile
manufacturers (eg Delphi, Lear, Ford, Volkswagon, Sumitomo) and
supply contracts with them.
key intermediate raw materials and equipment, capturing the margins at
every stage of the adhesive tape production process. Strong technological
support from its association with Plymouth Rubber enabled CHT to
secure product certification by world-class first-tier automobile
manufacturers (eg Delphi, Lear, Ford, Volkswagon, Sumitomo) and
supply contracts with them.
�� Stable margins due to price inelastic demand. To automobile
manufacturers, the cost of tapes used in harness wiring (less than 0.1% of
total cost of the cheapest car in China) is insignificant. CHT raised
product prices by 5% recently to offset raw material cost increases in
1H06, thereby preserving a gross margin of around 30%.
manufacturers, the cost of tapes used in harness wiring (less than 0.1% of
total cost of the cheapest car in China) is insignificant. CHT raised
product prices by 5% recently to offset raw material cost increases in
1H06, thereby preserving a gross margin of around 30%.
? Valuation and risks. CHT is a quality play trading at undemanding
FY2006 PE. Risks include oil price hikes, cessation of tax provileges,
and inability of Plymouth to fulfil its procurement guarantee due to
unexpected circumstances. We initiate coverage with a BUY
recommendation. Our target price is $1.22.
FY2006 PE. Risks include oil price hikes, cessation of tax provileges,
and inability of Plymouth to fulfil its procurement guarantee due to
unexpected circumstances. We initiate coverage with a BUY
recommendation. Our target price is $1.22.
I agree with you Livermore too
This company is a small cap stock but looks like a good company from the published info, the net profit margin of nearly 20% is quite impressive.growth in the last few years has been quite strong too and the PE based on full year 2005 is only 6.7 and the estimated PE based on 2006 earnings is less than 5. is very sure it looks undervalued. but somehow investors are not playing this stock. maybe public awareness of this stock is low due to its low profile.
CIMB has a price target of $1.20. what do you guys think?
For thinly traded stocks, use FA because TA doesn't work at all.
I agree with you Livermore...
Trading is actually very a very tricky thing even for a pro. The markets are not so easy to tame after all. Pros have heartaches, punters have heartaches and investors too have heartaches (investors have to ride the long roller coasters till they lose patience and let go, then a few months later, they see their stocks have gone much higher).
Those who bought a lot of properties from stock market profits are those who betted big. If one doesn't bet big, how can that one have big stock market winnings to buy a few properties? So if they betted heavily, they will win heavily. In this context, no one will find betting small the least appealing. Including those skillful traders who win 7 times out of 10. These latter will eventually 'realize their past mistake' in betting small and they too will want to make it big instead of 'wasting time'. It is all a matter of the environment, you see.
I lost out gains because I go in, go out and in the end when I got out some stocks flew so high until I now "heartache". I just want to invest in something I believe have growth prospects in the next few years and then I go to "sleep".
I share with you an article later by the options trader guru from Singapore, Clarence on looking at the S curve to know when to invest in growth stocks.
I believe TA does help too so it is not which method (FA or TA) is better than the other
So it appears when it comes to 'thinly traded' stocks, all the TA indicators/formulae are rendered impotent and the FA masters reign supreme. :)
I know TA people don't like this stock because of its low volaume But take a good hard look at this stock and its valuations. I got this message from SGX website :
The Board of Directors of CHT (Holdings) Ltd ("the Company") wishes to announce that the Company has been named one of Forbes Asia Magazine's 200 Best Under Billion Enterprise in Asia for 2006.
The annual rankings by Forbes Asia Magazine recognise successful listed companies in Asia and the Pacific with revenue under $1 billion a year, for their sustained growth in sales, return on equity and earnings.