This is what I call excellent Investor Relations from HengXin

As promised, i will post the reply I got from HengXin regarding their patents.



Dear Niversphere

We represent Hengxin Technology as its IR/PR consultant.

Thank you for your interest in the Company. Hengxin Technology has received 3 patents in the PRC for its super-flexible coaxial cables and leaky coaxial cables, and are in the process of applying for another 5 patents for its products and manufacturing equipment.

I've attached the relevant pages from its IPO prospectus with the details of the patents. If you have any further queries, pls feel free to contact us.

Many thanks
May Nah


May Nah, CHIN
August Consulting
Tel: (65) 6733 8873
Fax: (65) 6733 9913
Hp: (65) 8139 7083






Cheers
Niversphere.

Attachment received: Attachment

Technical Side of 3G Rollout in China.

As we all probably already know, China is impending a 3G rollout. Probably readers are not as familiar as the implementing 3G network that is to be rolled out in PRC as I am. My field of interest and research is in mobile communications and networks.

There are many standards of the IMT-2000* and the one that China is probably going to implement is the TD-SCDMA standard. A collaboration of the China Academy of Telecommunication Technology (CATT) and Siemens Corporation.It's mode of operation is the DS-CDMA (1.1136 Mcps) using the TDD(time division duplexing)duplexing method. The key features of this standard is that the RF channel bit rate is up to 2.227Mpbs. Use of smart antenna technology is fundamental (but not strictly required) in TD-SCMA.

The current system employed in China is still the GSM standard, which is what we folks here in Singapore use currently. M1 tried to introduce CDMA here way back which i could remember but failed. What a pity. The wireless subscriber growth in China is a phenomenon. See here. Research firm, BDA China, forecasted the number of 3G subscribers in China to grow at a compound annual growth rate (CAGR) of 268 per cent from 2006 to 2010. By 2010, the number of 3G users will hit 210 million, accounting for 34 per cent of the total number of the phone subscribers in the country. The number of the total mobile users is expected to grow at a CAGR of 9 per cent from 2005 to 2010 to hit 617 million.

The TD-SCDMA standard relies on its existing core GSM infrastructure. Just by adding a high data rate equipment at each existing GSM station, you can implement the 3G network. As mentioned earlier, a key fundamental feature of the TD-SCDMA system is the antenna. The radio channels are 1.6KHz in bandwidth and rely on smart antenna , spatial filtering and joint detection to achieve several times more spectrum efficiency than GSM. As such this standard TD-SCDMA is easily implemented and inexpensively added into existing GSM systems.

Some industry pundits expect China to build networks based on the world's 2 most popular 3G standards, the WCDMA standard in Europe and CDMA 2000 which is backed by US Qualcomm Inc with the TD-SCDMA technology being used for support rather than a standalone system.

Let me make a bold prediction here, China will implement their own 3G standard, TD-SCDMA. Research started in 1998 and the proposal approved in 1999. Chinese pride is involved here, we have all seen how proud they are when they successfully launch to space.

Now lets discuss on how we can take advantage of this knowledge in investment. Knowledge of the technology behind it can be advantageous to a savvy investor. "Know what you buy ...." A recent report by leading Chinese financial portal, CNFOL.com estimated that around RMB 172 billion will be spent on 3G networks rollout in 2006 and 2007, and 70%(RMB 120 billion) of this investment will be wireless coverage related.

I have identified 3 companies listed in SGX as potential beneficiaries of the 3G network.

1. Ace Achieve
2. HengXin Technology
3. LongCheer


1.Ace Achieve
---------------------------------
I have covered on the fact that Ace Achieve is currently undervalued compared to what the market has given for its price. Ace Achieve provides customised solutions to its customers and is involved in business of installing of repeaters** for its customers. Ace Achieve's book order continues to look strong however net profits is lower. Being a small company, it is being bullied into having to give credit to its customers which is why high book orders dont really translate to higher share prices. However, an interesting point I observed is that the book orders are for GSM repeaters. This could lead to some interesting possibilities. Notice the fact that TD-SCDMA can be build over existing GSM system. Probably, the mobile operators are sliently confident on TD-SCDMA being implemented in PRC. And why not ? The phenomenon subscription rate has pushed the mobile operator to expand its coverage needs to satisfy their customers.

My Fair Value on Ace Achieve

2.HengXin Technology
---------------------------------
HengXin Technology is one of the most easy business to understand and is positioned to take advantage of the growing telecommunication industry in PRC. HengXin's core business is in the manufacture of coaxial cables used in mobile communications and other telecommunications equipment.

HengXin is enjoying the largest market share in the PRC of around 35 percent for the manufacture of coaxial cables for mobile.

Looking ahead >>>>>>>>>>>..
> HengXin is immensely successful in passing on higher cost of copper to its customers.
> It has increased its annual production capacity of RF coaxial cables to more than 30,000 km. Further consolidating its dominance!
> Expanding sales and marketing network to Chengdu, Chongqing, Wuhan, Urumqi and Hehehaote before the end of the year. We have already seen its initial success with a foreign Korean company. This is definitely very exciting development. Wow.
> HengXin planned to expand its product range to include accessories like connectors and antennas so as to provide customers with a one-stop valued added manufacturing service.
> Plans to leverage on its 3G compatible products to enhance its market share further in view of the anticipated issuance of 3G licences this year.

All these are positive developments for HengXin Technology moving ahead. Single product multiple applications in demand.

It's major customers can be categorised as following:-

i) Major telecommunications operators - these include the various branches or subsidiaries of China Unicom, China Mobile, China Telecom and China Netcom.

ii) Equipment manufacturers - these include Huawei Technologies Co Ltd, ZTE Corporation, Siemens (China) Limited, Lucent Technology (China) Co Ltd, Shanghai Bell Samsung Mobile Communication Co Ltd, Shanghai Datang Mobile Communications Equipment Co Ltd and Nortel Network (China) Co Ltd.

iii) Cable television networks - these include the cable television network and broadcasting stations in the various provinces and cities.

My Fair Value on HengXin Technology


3.LongCheer
-------------------------------------------
LongCheer could be the closest proxy to the widespread rising style conscious consumerism of the Chinese in PRC and also hitch onto the rising adoption of the mobile lifestyle in China. Mobile handsets has practically been unirreplacable part of our lives. Can you imagine going out without your handset? It's as if we are born with handsets(obviously not I was born with pagers. Just joking). My first mobile was the Motorola StarTec X , then Nokia 6650, Nokia 6610, 3 Samsungs, 2 Sony Ericssons and now the lastest addition SE W810i. Imagine the mini fortune, I had spent on phones. Maybe you might not change handsets as often as I do. I work on them for research and development though. I would like to highlight the current widespread spending generation of Chinese. The need for a better quality of life. Not to be caught dead pulling out a outdated phone model from your pocket. Chinese are particular about the face-value factor. Laughs.

LongCheer is a relatively new listing here in SGX. So far, its results released has been impressive. LongCheer achieved y-o-y sales and earnings growth of 102% and 69% respectively in the 3Q06. Gross margin improved from 16.1% to 19.1% q-o-q driven by new products. Staff size has grown considerably from 300 to 600 which bodes for further expansion.

LongCheer is deeply undervalued given its rosy growth prospects. LongCheer has a cash position of RMB 429.9M and I expect another generous dividend payout from the company. CIMB-GK has a TP of S$1.59 while DBS Vickers has a fair value of S$2.00 for LongCheer. Currently, I have a fair value of S$1.20 for LongCheer which is approximately 67% undervalued from the current share price of S$0.71.


Cheers
Niversphere.

================================================

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

Terms used in this article:
**Repeaters: often used by mobile operators to provide dedicated coverage for hard to reach areas, such as buildings, or in valleys or tunnels. They are bidirectional in nature, and simultaneously send and receive signals from a serving base station.

IMT-2000: The standard for 3G cellular networks is called IMT-2000(international mobile telecommunications beyond 2000). IMT-2000 is the overall name for the 3G standard under ITU(international telecommunication union).



References used:
1)Wireless Communications Principles and Practice 2nd Edition by Theodore S. Rapport
2)Principles of Wireless Communications and Data Networks 2nd Edition by Benjamin PremKumar and Cai Jianfei.

News Articles:
1)Siemens sees delay in China 3G licenses to H1 '06
1)UPDATE: China Mobile Feb Growth Outpaced China Unicom

Youcan

Cheers
Niversphere.

HengXin Technology showing executionary, recognition and ambition.

HengXin Technology has since executed its executionary capabilities we expected of it and has been rather busy delivering good positive news to fellow investors. After my analysis of this company dated June 30th, several analyst has since released their analysis on HengXin Technology.



17 June 2006: JiangSu HengXin Technology granted tax exemption for 3 years.

17 June 2006: First major overseas contract with Korean-listed Taihan electric.

18 June 2006: China Mobile increases its contract with HengXin Technology.



Announcement


Regards
Niversphere.

Focus

Video interview of Warren Buffett in 3(1 hr) parts:



Google video : Heard it from the man




Focus.




Cheers
Niversphere.

Personal Thought Inspired By Buffett's Act Of Charity

Everyone is entitled to dream. To dream big, to feel the adrenaline of staying alive. Buffett lived his dream and also mine. I thought of distributing my wealth when I am old as Buffett and only sufficient amounts to my children. I stopped talking to friends about this as they would reply "You siao ah".

Personally, I am not a person easily swayed by other people's opinions. I lived my own life and so do they. It's easy to fall victim to the symptom I call "commander", giving orders on how others should live their own life.

That is really what I wanted to do, if I ever to be as successful as Warren that is. Success is relative. Just do your best.

Buffett has for decades declared his intention to donate his wealth to philanthropy unlike his friend Mr Willam Gates. I think I can relate to why that is so. A measure of wealth is how long you can substain your current lifestyle comfortably without any form of active income.

Have you ever wondered why the poor remained poor? Because they are poor. Huh ? You may say but let me elaborate on it. Let say you have less than $1000 dollars in your bank account or say less than $500 in your bank.(if you are those in below $500, hey you are donating $2 to the bank on "admin" charges, $2*12 = $24 ; $24/$500 * 100% = 4.8%P.A!! and assuming principal of $500 throughout. The bank is never going to offer you that rate even for your FDs. Compounding it and well be you know maths dont you.) I bet you would not even care a hood to fork out that $600 dollars for say the lastest phone in the market. But why? That is because to be rich, you had to feel rich first. To be rich is not what many imagined to be, living lavishly and using sharkfin for brushing teeth. In fact what I observed from rich pals are they are just like you and me but only that they can afford the occasional lavish treats. Deep down they are really misers, like the Uncle Scrooge. Haha. When you are there, you want to maintain at that wealth level and feel motivated to earn more and keep the number of digits running. You feel miserable when you over spend on somethings. Maybe Buffett overdone the feel rich factor. (shrugs shoulders)

The government recently released a new series of personal finance education program on Channel U. Quite a decent attempt at least, but not good enough. Action is the keyword, involve the people that really need it, not just celebrities.


Warren and all other successful people in life did one thing, enjoy doing what they like to do. I wish I could do that too, I know I can.

Take this with you from the Sage of Ohama,
"I Know what I want to do, and it makes sense to get going"
~ Warren Buffett

“为何指纹只长在手心而不是在手背，那有可能是老天爷要我们把命运掌握在手里“

Video Links:








Cheers
Niversphere.

Technical Chart Analysis on HengXin By Quest.

A little help from Quest and he did his analysis on HengXin Technology.





The chart can be viewed here 21st Century Quest!


Thanks Quest.





Cheers
Niversphere.

Singapore firms must not rush blindly into M&A deals: PwC By Wong Choon Mei, Channel NewsAsia

SINGAPORE : In their quest to internationalise, Singapore firms must prioritise which markets to move into first.

That is the advice from PricewaterhouseCoopers (PwC).

It says Singapore firms should not rush into acquisitions just for the sake of extending their regional footprint.

They should rather seek value through a patient and strategic selection process.

The mergers and acquisitions (M&A) market in Asia is growing fast, thanks to the sanguine global economy and burgeoning corporate wealth.

Last year, the value of M&A deals transacted in the region totalled US$38.7 billion.

Here in Singapore, firms too have shown keen interest to expand - not just domestically but also regionally.

And PricewaterhouseCoopers says this is where they have to be cautious and avoid over-aggressive moves.

"The markets are getting pretty efficient all over the world. So if you spring a deal anywhere, but can't earn back the cost of capital on the investment that you're making, you'll be negatively impacted no matter where you are. And if you can show, anywhere in the world, that you can actually increase the spreads between your return on capital and cost of capital, you'll be rewarded by investors anywhere," said Dr Mark Sirower, partner at PricewaterhouseCoopers.

According to PwC, most acquirers in an M&A transaction lost shareholder value, while sellers usually gained.

This is because firms tend to lose sight of the basics during the hunt for market share.

It says the keys to any successful merger are prudent pricing, business synergy and the ability to deliver upon integration.

"That's to basically understand the markets they are looking at. It's about understanding how their customers buy in those markets, how their customers' buying decisions are different across markets, what the underlying markets' growth rates are and what their competitors can do," said Dr Sirower.

"Some markets are going to have stronger competitors than other markets. So at the end of the day, I want to prioritise the market, I'm not going to go in everywhere at the same time. So I want to find those markets that have the capabilities," he added.

OCBC and DBS are among some of the top Singapore firms that launched high-profile M&A bids this year.

- CNA /ls

Article excerpted from:
http://www.channelnewsasia.com/stories/singaporebusinessnews/
view/217217/1/.html

Cheers
Niversphere.