(summary of the report only)
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Singapore-listed Chinese companies
Key takeaways from China Express Sep 13 & 14
Ten companies attended China Express: We completed a twoday corporate access event in Hong Kong and Singapore last
week. In this document, we present the key takeaways on the companies that attended this event.
Key highlights of each company:
China Hongxing Sports Ltd —focuses on mid-size stores and has raised its new POS target to 600 from 400/year;
China Merchants Holding (Pacific)—plans to acquire more toll roads in future;
China Sky Chemical Fibre—plans M&A to expand nylon capacity and is moving upstream into polyamide chips;
China XLX Fertilizer Ltd—growth via M&A is how the company plans to expand its urea capacity;
Cosco Corporation—formidable global shipyard player with a strong order book;
FerroChina Limited—short-term catalysts (Changshu Everbright acquisition and acquiring inefficient galvanized steel compnies in China) should drive up the share price;
Fibrechem Technologies Ltd—on track with its expansion into synthetic leather and key products;
Sino Techfibre Limited—expects key product, PMP, to drive earnings in FY08;
Sunpower Group Ltd—recognizes constraints on attracting skill and talent;
and YHI International Limited—in the business of distribution of tires and manufacturing of wheels in Asia.
We continue to like FerroChina (FRC SP, OW) and Cosco (COS SP, OW). The fiber companies—Fibrechem, Sino Techfibre, China Sky Chemical Fibre, China Hongxing and China XLX Fertilizer—have earnings growth prospects, based on consensus estimates.