Phillip cuts Hu An Cable target price

Stock Name: Hu An
Company Name: HU AN CABLE HOLDINGS LTD.

Research House: Phillip Securities

Price Call: BUY

Target Price: 0.19

Phillip Securities cut its target price for Hu An Cable Holdings to $0.190 from $0.275 and kept its ’buy’ rating, citing smaller expected revenue and lower copper prices.

Shares of Hu An were unchanged at $0.134. They have gained 18.6% since the start of the year, compared with the FT ST Industrials Index’s 16.6% rise.

Hu An had said its net profit for the first half of the year fell 37.8% from a year ago to 38.7 million yuan.

The company underperformed most of its peers in terms of revenue growth and net profit margin, Phillip said in a report.

The brokerage cut its forecast revenue for the second half of the year and first quarter of 2013 by 25%, due to lower-than-expected volumes for its cable and wire business in the second quarter.

Hu An Cable Holdings Ltd: Earnings surprise!

Stock Name: Hu An
Company Name: HU AN CABLE HOLDINGS LTD.

Research House: CIMB

Price Call: BUY

Target Price: 0.38

BUY; TP: S$0.38

• Maintain Buy with increased target price of S$0.38. Using the same multiple of 6.0x P/E and an increased CY 13 EPS of S$0.063, based on reduced estimates for interest expense, we derive an increased target price of S$0.38. This translates to a total upside of 157% including FY12 dividends. We still maintain our view that Hu An is grossly undervalued.
• FY11 net profit would have been in line with our estimates had we not been overly conservative with our projection for 4Q11 interest expense. We have accordingly, readjusted our assumptions for this and raised our forecast for CY13 EPS.
• We continue to favour Hu An for its >15% ROE, high dividend yields (6.7 ' 9.1%) for FY12-FY14, cheap valuation and its direct exposure to China's strong demand for infrastructure expansion.
• The company Chairman will be giving a presentation to CIMB clients during CIMB's Corporate Focus Series event on 13 March, 12:30 pm (be sure to sign up!); followed by an analyst briefing in the afternoon.

Source: CIMB TRADER AM 02 March 2012

Hu An Cable Holdings rated 'buy' by Phillip Securities

Stock Name: Hu An
Company Name: HU AN CABLE HOLDINGS LTD.

Research House: Phillip Securities

Price Call: BUY

Target Price: 0.39

Phillip Securities Research in a July 1 research report says: "Hu An Cable's comparable performance means that it is unlikely to be another Chinese fraud, which usually outperforms peers by a big margin.

"High raw material prices and labour rates, together with a melee of competition at the low-end of market, reduced volumes of peer group. But moving to the high-end helps. Wire & cable industry leaders are confident their industry will outgrow China's GDP growth for the next 10 years.

"We added quarterly forecasts for 2011 and extended annual forecasts to 2020. We estimate Hu An Cable's present value (PV) to be $801 million. Its current market cap is only $250 million. However, as we understand the performance of this peer group, we only expect it to trade to 55% discount to PV. This means an immediate target price of 39 cents. MAINTAIN BUY."