HengXin Technology

HengXin Technology is a relatively new listed company in SGX. HengXin core business is in the manufacturing of radio frequency coaxial cables for mobile and telecommunications equipments in the PRC. HengXin Technology has a strong research and development base. Its strategic location allows the company to tap into the raw talents from Shanghai Cable Research Institute and Zhejiang University, Electronics Information Technology and System Analysis Institute to help improve and innovate new products for the company. So far, the company holds 3 patents and 5 pending patents from the 27 products they have developed. This is an impressive figure.
Coaxial cables find its many uses in (1) Outdoor wireless mobile signal coverage, (2) Indoor wireless mobile signal coverage, (3) Wireless mobile coverage in underground railways and tunnels, (3) Cable television network systems and (4) Broadband network access.

Hengxin Technology recently announced that they were awarded a contract worth 119 RMB million from China Mobile Communications Group Corporation and completion is expected by 30 Sept 2006. The contract involves supplying RF frequency coaxial cables of about 3100 kilometres and telecommunciations equipments to 31 cities and provinces in China. By no means, a huge contract to Hengxin Technology and demostrates its executionary capabilities. A side track is that 30,000 kilometres is the annual production capability of HengXin, which is around 10% for this contract alone.

HengXin Technology as noted by its directors are relatively able to buffer any flucuations in copper prices as they can easily passed on the cost to their customers. This to me is rather dubious.

Looking forward, HengXin Technology aims to get a slice of the huge mobile communications pie with the would be implementing 3G network in China. Currently, mobile penetration is only 30%. Hengxin Technology’s comprehensive sales and distribution network has helped to attract and maintain its wide customer base comprising major telecommunications companies in the PRC including 24 out of 30 branches of China Unicom, and 20 of 31 subsidiaries of China Mobile; seven major telecommunications equipment manufacturers such as Huawei Technologies Co., Ltd and ZTE Corporation; as well as 10 provincial cable television networks in the PRC.

HengXin Technology is going for vertical integration.The Group intends to expand its product range to include accessories like connectors and antennas. Plans are underway for the Group to commence production of connectors for RF coaxial cables by 4Q2006.

At current share prices of 0.51, HengXin Technology is trading at around single digit 9x FY06 PE. HengXin closest peer Andrew Corp is trading at around 25x.

Based on my DCF discount model, I derived a fair value of S$0.69 for HengXin Technology. This represents a cool 35% discount from current share price of S$0.51.


Cheers
Niversphere.

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Please read the prospectus and perform your analysis before making any investment decision. The above does not constitute a recommendation to apply for this company. I will not be liable for any losses incurred by anyone who invests based solely on the above-mentioned information

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Cheers
Niversphere.

拼搏 - 就是要你拼， 也要放手一搏

Jim Rogers Says China's Stock Market, Agriculture Set to Boom:Bloomberg

June 26 (Bloomberg) -- Jim Rogers, who joined George Soros to start the Quantum hedge fund in the 1970s, said China's stock market will boom in the next few years because the economy is improving and the government is encouraging investment in stocks. Tourism, agriculture, energy and airlines are among the areas where shares will surge, said Rogers, 63, who started investing in Chinese stocks at end of 2005 and plans to buy more. China's economy doubled in size over the past decade, overtaking the U.K and France to become the world's fourth-largest economy in 2005.

``Over the next few years, China's stock market will be one of the best in the world,'' Rogers told a forum in Beijing on June 24. ``I've sold out of many stock markets in the world. I have been buying Chinese stocks. If the China market goes down, I would hope to buy more.'' China's Shanghai Composite Index has gained 39 percent this year and the Shenzhen Composite Index has advanced 50 percent, making them among the 10 best performers this year of the world's 80 major equity markets tracked by Bloomberg. The government's success in disposing of more than $200 billion of non-tradable stock has helped to fuel the rally.

China also ended a yearlong ban on share sales last month to attract bigger companies to domestic markets, now dominated by smaller, state-owned manufacturers. So far, 40 so-called qualified foreign institutional investors, including Citigroup Inc. and Fortis, have been allowed to invest in a combined $6.895 billion in mainland stocks and bonds. The nation's stock market turnover in May jumped 80 percent from the previous month to a record 715.8 billion yuan ($89 billion), the China Securities Journal said on June 18, citing the China Securities Regulatory Commission.

Real Estate

Still, not all Chinese stocks will do well, and Rogers expects real estate to suffer. ``The government is trying to cut back and ease speculation,'' he said. ``The only thing is they haven't gone far enough yet.'' China in the past two months has adjusted loan, tax and land policies aimed at curbing property prices, including raising the minimum down payment for larger apartments. Real estate investment, which accounts for a quarter of total investment, rose 21.8 percent in the first five months, from a year ago. Rogers correctly predicted a bull market in commodities that began in 1999 and helped to send oil to a record and gold to a 26-year high. He has written about his travels across China and the rest of the world by motorcycle in the books ``Investment Biker'' and ``Adventure Capitalist.'' He also wrote the book ``Hot Commodities.''

Fortunes

Rogers said if he looks for new opportunities in commodities today, he would start with agriculture. ``I think there will be fortunes made in agriculture in the next decade.'' He is looking at cotton, coffee, wheat, soybeans and sugar. Cotton futures have risen about 6 percent in the past month because of concern over drier whether. Still, they are trading 53 percent below $1.15 a pound, reached in 1995. While cotton and coffee have been gaining, prices for copper, zinc, and gold have declined from records in the past month.

``Agricultural prices are historically very, very low,'' Rogers said. ``Inventories are the lowest in 34 years. We haven't even had a major worldwide drought in many years.'' Agricultural prices will also gain because China's demand has surged compared with 25 years ago, and the nation is losing farmlands, Rogers said. ``In Beijing, you now see a lot of restaurants. You wouldn't see that many 25 years ago,'' he said. Rogers told the audience at the conference organized by the Beijing University that the best advice he can give on investing is ``do your own homework.'' When asked what his strategies are, he said: ``When I find something cheap, when I think there are fundamental changes and things might get better, I buy.'' ``Supply and demand are out of balance for the commodities market and that's where the bull market is,'' Rogers said. ``All commodities over the next decade will be much higher.''

$2b e-govt masterplan launched

The Business Times, Amit Roy Choudhury, 31 May 2006

S'pore players who develop e-govt solutions will retain IP rights and get help to export them.

(SINGAPORE) In a move that is expected to boost the infocomm industry, the government yesterday announced a $2 billion iGov2010 masterplan under which it will work with local players to co-create, develop and export e-government solutions.

In addition, it will allow them to retain ownership of the relevant intellectual property (IP) to enhance their business and export opportunities. Players welcomed this move, saying it should boost infocomm exports.

To run over five years, iGov2010 will introduce innovations like a single SMS (short message service) number for all government services.

Unveiling the plan yesterday, Raymond Lim, who will today relinquish his posts of second finance minister and minister in the Prime Minister's Office, said the government aims to transform back-end processing to achieve front-end efficiency and effectiveness. Mr Lim takes over from Yeo Cheow Tong as Transport Minister.

iGov2010, or integrated government, builds on two previous plans - the e-Government Action Plan I (eGAPI) launched in 2000 and eGAPII launched in 2003. The government spent about $1.2 billion and $1.3 billion respectively on these three-year plans to develop e-services for citizens and businesses.

Wu Choy Peng, deputy chief executive of the Infocomm Development Authority (IDA) and the government's chief information officer, said iGov2010 will facilitate the growth of private sector IT through partnerships in innovative projects.

'Public agencies will collaborate with the infocomm industry in the co-creation, development and export of iGov solutions,' Ms Wu said.
She said that in many economic sectors the government is either the regulator, dominant supplier or dominant consumer. 'So in such sectors, what the government does internally can potentially have a lot of effect on the entire sector.'

An example of this is TradeXchange, a project by Singapore Customs, the Economic Development Board and IDA, which aims to transform the trade and logistics sector. 'We used what was essentially a government function... to create something that can potentially transform the entire trade and logistic sector,' Ms Wu said.

Similar sectoral transformation projects will be implemented under iGov2010.

Reacting to iGov2010, NCS chief executive Chong Yoke Sin said her company is well-placed in terms of expertise and experience in developing solutions such as My.eCitizen to create best-in-class solutions.

'Ultimately, these same solutions would have to be tweaked for foreign governments for export . . . In this regard, we applaud the government's thrust to release IP to the industry,' Dr Chong said.

Singapore Computer Systems president and chief executive Tan Tong Hai said iGov2010 is good news for his company because it is easier for governments to sell to other governments and to market 'Made-by-Singapore' solutions as a whole. 'The 'Made-by-Singapore' branding is very important, especially with Singapore being showcased as a leader in e-government solutions,' Mr Tan said.
CrimsonLogic's CEO Leong Peng Kiong said: 'To be able to export the IP for innovative e-government solutions is certainly a huge shot in the arm for local companies like ourselves.'

Stephen Lim, chairman of the Singapore infocomm Technology Federation (SiTF) noted that while there have been previous transfers of IP from the government to industry, iGov2010 institutionalises this arrangement. 'It makes it much more easier for industry and government agencies to collaborate - it's a positive act for the industry,' Mr Lim said.

The iGov2010 plan will revamp My.eCitizen and develop My.eBusiness portals to cater to specific customer segments or individuals. It will also increase the number of CitizenConnect Centres from five to 25.

According to IDA's Ms Wu, guidelines will be developed to help agencies present clear and useful information online and create new consultation spaces for business, young people and overseas Singaporeans.

She also said the government will implement a Unique Establishment Identifier (UEI) for establishments in Singapore, including companies, businesses, societies and non-profit organisations.

Similar to the NRIC number for individuals, the UEI for establishments will reduce the number of identifiers that establishments have to use and will provide a common means of identifying them.

The Indomitable Human Spirit

Xiaodoudou

Cancer has taken a few of my loved ones away before. This blog entry is dedicated to her, a stranger she may be. Her indomitable human spirit against cancer remains. Cherish Today.



Cherish Today
----------------------------------------

Take each day as it comes, Life is stressful enough.

Do not look back and grieve over the past,
There's nothing much you can do about it.

Do not worry about the future,for it has yet to come.

As long as it is called Today, Cherish it.

This day as if it was your last, will find each day worth living for.




Regards
Niversphere.