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Li HENG

Nokita
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22-Nov-2008 14:37

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Purchaser of Li Heng shares	Date of purchase	No. of shares purchased	Value/share (S$)	Total value (S$)
David Loh, substantial shareholder	16-10-2008	8,000,000	n.a.	n.a.
Chen Jianlong, exec chairman	15-10-2008	2,900,000	0.2711	786,100
	14-10-2008	2,100,000	0.2956	621,000
	13-10-2008	3,800,000	0.252	958,000
Proud City Management Limited	10-10-2008	686,000	n.a.	n.a.
Upper Win Investments	10-10-2008	2,814,000	n.a.	n.a.
Chen Feng, CEO	10-10-2008	686,000	0.265	182,000

Looks like the stock is holding up at where David bought.

source: http://www.nextinsight.com.sg/content/view/664/60/

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dcang84
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20-Nov-2008 13:08

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Tks. Looks as if they are beating to their own drums, oblivious to market sentiment. Does it look cornered??

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AK_Francis
Supreme

20-Nov-2008 10:38

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Yells: "Happy go lucky, cheers."

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Its business is in chemical fibre technologies. First listed in SGX 12 Mar 08, at S$ 0.80cts, now 26 cts. Merely 32.5% deeps in value. Not bad liao, as compare to other coys.

Its 1H ended Sep ds yr, saw earnings rose 19.2%, giving 7.46 cts RMB interim div.

dcang84 ( Date: 20-Nov-2008 10:15) Posted:

I notice this counter super solid, unshakeable. When everyone goes down, they are the only ones in the green. Wat's up? Anyone?

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dcang84
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20-Nov-2008 10:15

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I notice this counter super solid, unshakeable. When everyone goes down, they are the only ones in the green. Wat's up? Anyone?

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jackjames
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14-Sep-2008 11:39

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the next date to watch, Sep 17. after dividend paid..

jackjames ( Date: 11-Sep-2008 10:36) Posted:

history low at 0.485 now.. important date to note is tomorrow is Ex date.. dividend is so huge !!!! 0.015... that is about 3.1 % yield !!! WOW... but, personally, i think the share price will start to drop furthere after tomorrow.... better stay away today....

usually, this kind of fat dividend is just lure people to buy, after the book close date, nightmare comes~ let's watch Li Heng price tomorrow and September 17. the price has to be lower than 0.47...

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fruitty
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11-Sep-2008 15:25

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company profit looks fine to me and is growing but looks badly short down...

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jackjames
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11-Sep-2008 15:13

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what happened ???? 0.435 !!! tomorrow ex date, will be another crash, poor things...

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jackjames
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11-Sep-2008 10:36

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ROI25per
Master

05-Aug-2008 20:22

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strong resistance @ 64.5-65; let's see it break tomor...

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alexmay
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05-Aug-2008 17:52

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LI HENG ACHIEVES STRONG GROWTH IN 2Q08 AND 1H08
· Revenue and gross profit rise grew more than 61% in 2Q08 and 36% in 1H08

· Net Profit increased 42.5% and 19.2% in 2Q08 and 1H08

·

Is this considered a good report? Declares interim cash dividend of S$0.015 per ordinary share

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yipyip
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30-Jul-2008 14:53

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can it breakout 0.65? next resistance line 0.67?

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yipyip
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29-Jul-2008 22:47

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UOB Initiate coverage with BUY recommendation and target price of S$0.845, representing 6.4x FY08PE and 5.2x FY09PE.

Li Heng Chemical Fibre Technologies Limited (Li Heng)'s predecessor wasChangle Liyuan Polyamide Enterprise Co., Ltd, which was established in 2003and acquired by Li Heng in 2006. Li Heng has become a leading manufacturerof high-end nylon fibre products and has a solid sales network that covers all thetextile production hubs in China. Li Heng plans to achieve economies of scaleby enlarging its annual production capacity.

Leading position in high-end nylon fibre market. Li Heng is a large high-endnylon fibre manufacturer in China with an annual production capacity of 92,400tonnes in 2007. It achieved a stunning three-year net profit CAGR of 107.6% forFY04-07 through a combination of organic growth, increased production capacity,and the introduction of new products. The company is heading for the nextstage of growth by further expanding capacity, widening its geographical coverage,and moving up the supply chain to mitigate raw material supply risks and becomemore profitable.

Propelled by strong downstream demand. With the strong growth in textileexports and domestic consumption of garments and clothing (5-year CAGR of21.9% and 17.7% respectively for FY01-06), demand for nylon is expected to seesustained double-digit growth. China's nylon producers are working hard tomeet the strong domestic demand, which has outstripped domestic supply andhas to rely on imports. Li Heng is riding on buoyant downstream demand,leveraging on high product quality and keeping its gross margin stable at 34-35% p.a. despite rising raw material prices.

2008F Turnover(Rmbm) $4,160.3 EBITDA (Rmbm)$1,354.5 Net Profit (Rmbm) $1,093.5 EPS(Rmb)$0.67

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yipyip
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29-Jul-2008 22:36

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Press Release - Li Heng Signs Contracts for Construction of Polyamide Chip Plant

Singapore, 29 July 2008 – Li Heng Chemical Fibre Technologies Limited (“Li Heng”) is proud to announce that
it has entered into contracts with leading German engineering and construction company Lurgi Zimmer GmbH
(“Lurgi Zimmer”) and Chinese firm Beijing Sanlian Hope Textile & Chemical Technology Co., Ltd (北京三联虹普
纺织化工技术有限公司) (“San Lian”) to commence the construction of its polyamide chip plant as part of the
Liheng (PRC) Phase III Development set out in its Prospectus dated 29 February 2008.

The plant has a designed daily production capacity of 200 metric tons of high quality textile grade polyamide
chips (“PA chips”). PA chips are the essential feedstock for the production of nylon yarn products. To cater for
the polyamide chip plant, construction of additional building facilities and supporting infrastructures has begun in
April 2008. The total cost of the polyamide chip plant, building facilities and supporting infrastructure is
estimated at approximately RMB550 million, which is approximately RMB50 million higher than initially
estimated as set out in the Company’s Prospectus dated 29 February 2008 due to general increases in raw
material costs in 2008. RMB500 million of the cost of the polyamide plant will be funded from the IPO proceeds
and the remaining RMB50 million will be from internal source.

The polyamide chip plant will be located at Li Heng’s current production base at Binhai Industrial Zone (滨海工
业区) in Changle City, Fujian Province, PRC and expected to commence commercial production in the third
quarter of 2009. Upon completion, Li Heng will be able to reduce its reliance on external suppliers of PA chips
while ensuring better control of the quality of the PA chips, leading to overall costs efficiency and better quality
nylon yarn products.

Lurgi Zimmer will provide the technology, basic engineering, procurement of certain equipment and supervision
services. Lurgi Zimmer is a leading German engineering company which focuses on technologies and plants for
polymers, synthetic fibres, plastics etc. The company’s know-how covers its own polyamide technology and it
has built some 160 polyamide polymerisation plants since 1953.

San Lian will provide design solution, technical support and sourcing for certain machinery and equipment. San
Lian is a leading Chinese chemical & fibre industrial engineering company which integrates equipment
manufacture, engineering design and engineering services.
-- End --

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ROI25per
Master

17-Jul-2008 21:21

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PnF chart

Return to DWA Home Page
E9A-SG (07/16/2008) 0.590 Up 0.015
STRAITS-SG RS = Sell, 06/30/2008; col=Xs
Trend Chart Broke a Double Bottom on 06/26/2008

0.940 |                                                                          0.940 
0.920 |                                                                          0.920 
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0.880 |             •                                                        Top 0.880 
0.860 |             X •                                                          0.860 
0.840 |             X O •                                                        0.840 
0.820 |         X   X O X •                                                      0.820 
0.800 |---------X-O-5-O-X-O-•------------------------------------------------    0.800 
0.780 |         X O X O X O   •                                                  0.780 
0.760 •         X O X O X O     •                                                0.760 
0.740 O •   4   X O   O X O                                                      0.740 
0.720 O   • X O X     O X O                                                      0.720 
0.700 O-----X-O-X-----O---6--------------------------------------------------    0.700 
0.680 O     X O X         O X                                                Med 0.680 
0.660 O X   X O           O X O                                                  0.660 
0.640 O X O X           • O X O                                                  0.640 
0.620 O X O X         •   O   O X                                                0.620 
0.600 O-X-O-X-------•---------O-X--------------------------------------------    0.600 
0.580 O X O X     •           O X                                                0.580 
0.560 O • O X   •             O X                                                0.560 
0.540 •   O X •               O X                                                0.540 
0.520 |   O •                 7 X                                                0.520 
0.500 |---•-------------------O-X--------------------------------------------    0.500 
0.490 |                       O                                                  0.490 
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jackjames
Elite

17-Jul-2008 16:23

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good post, the financial PR's MD quite pretty, ha ha ha..

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ROI25per
Master

17-Jul-2008 16:23

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http://www.remisiers.org/research//mb%2017%20July.pdf

2) Li Heng Chemical Fibre (DRAFT) – Initiating Coverage (Anni Kum, DID: 64321470)
Previous Day Closing price: $0.59
Recommendation: BUY
Target price: $0.88
Value is emerging for China’s largest nylon producer
We are initiating coverage on Li Heng (LHCF) with a BUY recommendation. Our DCF target
price of $0.88 is based on 14.7% WACC and 1% terminal growth. Our target price implies a
FY09 PER of 6.2x which is still at an unjustified discount to its sector peers (at 9.7x PER), given
its leading market position in China.
Natural hedge against slowdown in textiles and garment exports
Though lingering concerns of a slowdown in textile and garment exports cloud the entire
industry’s outlook, the management is upbeat about the demand for nylon. This is because they
are banking on strong domestic consumption and a diverse customer base which is more
inclined towards supplying the domestic market.
Earnings boost from capacity expansion
We are seeing topline and bottomline CAGR of 39.9% and 31.5% over FY07-10F, underpinned
by capacity growth of 53.8% to 257,000 tons by 3Q09. During this expansion stage, 18 lines of
HOY/POY/FDY and 20 DTY will be added, improving the product mix.
Maintaining competitiveness by upstream move
Construction is underway for a polyamide chips plant at its current Binhai Industrial Zone
facilities. Production may commence by 3Q09, with initial available capacity of 80,000 tons. We
estimate LHCF to be 35% self-sufficient from 3Q09 and cost savings could be significant as raw
material costs make up more than 90% of cost of sales.
Nothing to fear but fear itself
Our sensitivity analysis implies that the market has discounted LHCF at 20% WACC and
assumed 0.5% terminal growth. This is way too pessimistic considering that Li Heng is a serious
player in the premium nylon segment, and its market-leading position will ensure that it is here
to stay.
Year End Dec 31 2006 2007 2008F 2009F 2010F
Sales (RMB'm) 1696.6 2288.1 3862.9 4698.4 6667.9
Pre-tax (RMB'm) 561.1 744.2 1187.8 1397.2 1901.5
Net profit (RMB'm) 477.8 905.1 1039.3 1222.6 1663.8
EPS (fen) 28.1 53.2 61.1 71.9 97.9
EPS grow th (%) 80.1 89.4 14.8 17.6 36.1
PER (x) 10.7 5.6 4.9 4.2 3.1
EV/EBITDA (x) 8.5 4.7 2.2 1.6 0.7
Yield (%) 4.4 4.2 4.1 4.8 0.0

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ROI25per
Master

17-Jul-2008 16:19

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LI HENG: Visit to leading Chinese nylon producer

Written by Sim Kih

Wednesday, 16 July 2008

Financial PR's MD Kathy Zhang led 10 investors on investigative trip to China's textile sector.

A SUPPLY GLUT and margin erosion may be looming over the billion-dollar textile and apparel industry in China.

Nevertheless, a group of 11 investors, including QDII funds and high net-worth Singapore investors, embarked on a trip recently to investigate the textile value chain in hopes of identifying winners.

Companies they visited include makers of Xtep sportswear, Erke tennis shoes and Dapai haversacks, as well as their supporting synthetic fiber and fabric makers, FibreChem Technologies, Li Heng and China Taisan.

Financial PR’s managing director Kathy Zhang led the group to textile hub Fujian to visit the factories of domestic brands behind the fashion landscape of China’s generation Y.

Textile value chain of companies visited

Which companies will win over Gen-Yers as these youthful big spenders move up the ladder of economic prowess?

Will it be imported brands? Or will domestic brand owners who started out as sub-contract suppliers be able to close the brand status gap?

The likely winners will be those with the technology edge, margins and economies of scale to buffer the rising costs of operation, according to insiders.

Riding out the industry consolidation

A quick comparison of the textile players visited suggests the leading synthetic fiber makers have a more lucrative business than some brand owners.

Li Heng, a leading producer of high-end nylon in China with a 15% market share, has one of the highest operating margins (34%) among textile players.

SGX-listed	Price S$	Mkt Cap S$mln	Sales S$mln	Historic PE	Operating Margin %
FIBRECHEM TECH	$0.590	532.9	313.5	5.5	34.8
LI HENG CHEMICAL	$0.575	977.5	544.5	4.4	33.5
CHINA TAISAN	$0.180	167.0	160.1	3.5	31.1
CHINA ZAINO INTL	$0.415	392.2	299.8	6.5	25.3
CHINA HONGXING	$0.475	1,206.5	404.0	11.8	23.0
HK-listed
XTEP INTL	$0.501	1,101.7	269.5	16.8	19.5

Source: Bloomberg, 15 July 2008

Pushing for export quality

Chinese online mart www.smarter.com retails imported swimwear for Rmb 450 to Rmb 1,200.

Last year, China overtook the USA to become the world’s largest nylon producer with a market share of 24.8%. It grew its output 15% despite a decline of 1.7% in global nylon output to 3.8 million tons.

China is still a net nylon importer, relying on imports for high-grade nylon. It imported 223,300 tons of nylon fibre in 2007.

The nylon produced by Li Heng is of a quality that borders on domestic and import grade, such as that which is required for high-end delicate and fine lingerie and undergarments, premium sportswear, including swimwear.

Imported brands of swimwear and lingerie don’t come cheap: a swimsuit can retail for as much as what a PRC production worker earns in a month.

By producing high-end nylon, Li Heng has maintained gross margins at about 35%.

Investors from QDII funds Changcheng and Zhongyin, as well as other funds such as BOC, China Merchants, Cheetah, Fullerton, GIC, JK Capital, Marathon and Martin Curie in Q&A with the chairman at a finished nylon yarn storage room.

After Kathy compared Li Heng's nylon quality with what she saw at a competing nylon factory, she concludes that customers were willing to pay Li Heng's asking price for the difference it made to the apparel produced.

Polyamide, a by-product of oil, comprises over 90% of Li Heng’s cost of sales.

The company has been able to pass on rises in the cost of raw materials to customers but is addressing the issue of rising oil prices by building facilities to produce polyamide chips by 3Q09.

To meet demand for high-end nylon, the company is ramping up capacity 3-fold: 257,200 tons by 3Q09, up from 92,400 tons in FY07.

Plant under construction will produce polyamide by 3Q09. Photo by Kathy Zhang.

”Huge though the capacity increase may seem, it is wholly driven by orders,” said Mr Chen.

Order management is important, as nylon has a shelf life of only 5 months, during which it has to be stored at the right temperature and humidity. After 5 months, it is downgraded and selling prices are adversely affected.

To maximize utilization, the company has a policy of serving a wide customer base and accepts not more than 60% of orders placed by each customer.

The strategy appears to be working: utilization has exceeded 90% in the past 2 years.

Kathy noted that Li Heng’s plant is very well managed. It operated 24/7 without a need for maintenance downtime.

Stock rebounds from historic low on investors' return

The delegate flew back to Singapore on 5 Jul, after Li Heng closed at a historical low of 49.5 cents.

Some investor(s) must have seen that as a buying opportunity: the stock rebounded sharply by over 20% in the week following their return to close at 62 cents this Monday.

Deutsche Bank reiterated its buy call on Li Heng with a target price of S$1.40 on Monday, while UOB Kayhian initiated coverage with a buy call with a target price of 84.5 cents last Wednesday.

Deutsche Bank analyst James Tan believes that the stock is undervalued due to concerns of lower global demand for textiles amid rising oil prices and inflationary cost pressures.

To address cost pressures, Li Heng is looking to produce its own polyamide by 3Q09.

Meanwhile, textile players are looking forward to an increase in rebates on exported clothing from 11% to 15%, which is widely touted to materialise in the near future.

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Nokita
Senior

17-Jul-2008 15:20

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15:15:44	0.605	20,000	Buy Up
15:15:20	0.605	20,000	Buy Up
15:14:50	0.605	20,000	Buy Up
15:06:49	0.605	10,000	Buy Up
14:57:07	0.605	10,000	Buy Up
14:56:12	0.605	12,000	Buy Up
14:55:09	0.605	20,000	Buy Up
14:54:04	0.605	5,000	Buy Up
14:53:08	0.605	30,000	Buy Up
14:53:05	0.605	50,000	Buy Up
14:53:02	0.605	50,000	Buy Up
14:52:54	0.605	20,000	Buy Up
14:51:25	0.605	8,000	Buy Up
14:49:34	0.605	20,000	Buy Up
14:49:11	0.605	200,000	Buy Up
14:47:17	0.605	30,000	Buy Up
14:40:28	0.600	18,000	Sell Down

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focusy
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16-Jul-2008 12:04

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To add to ZhugeLiang's post, what i found out:

On 9 July, UOB Kayhian initiated coverage with BUY

representing 6.4x FY08PE and 5.2x FY09PE.

Amazing : at 84.5 cents, the stock would be trading at only 6.4X this year's earnings!
No wonder, Li Heng is so resilient and there's upward push on the stock.
I heard that Li Heng made a presentation to CIMB people, and they were mighty impressed.

recommendation and target price of S$0.845,

zhuge_liang ( Date: 15-Jul-2008 12:30) Posted:

Li Heng Chemical Fibre down as market weakness interrupts stock's steady recovery over past few days from record low of $0.49. Deutsche Bank, which has Buy call with $1.40 target, says share price currently undervalued due to concerns of lower global textile demand due to rising oil prices, inflationary cost pressures. But weakness not justified; "Li Heng's market leadership position and the economies of scale of its operations could give the company a competitive advantage and help it to outgrow the industry." Adds, recent news of China's plans to increase general export tax rebates to 13% from 11%, rebates on clothing meant for exports to 15% from 11% bode well for company.

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redash
Member

15-Jul-2008 16:49

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0.6 will be a resistance for Li Heng to overcome...

3_3

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