Formerly it was China Infrastructure Machinery (CIMH). Changed its name last year I think. Supposedly the 2nd biggest construction vehicles producer in PRC (roallers, lifters, excavators, etc.).
Should benefit of strong growth in the next several years.
Unlike many others, not stupidly excessively priced (why ?)
but first some old news :
on December, 3rd, 2009 :
0533 GMT [Dow Jones] STOCK CALL: Morgan Stanley raises Lonking (3339.HK) price target by 12.7% to HK$6.20 after increasing FY09-11 recurrent earnings estimates by 6.2%, 11.8%, 13.9% respectively, now expects 23.5% recurrent earnings CAGR, mainly due to faster-than-expected sales recovery of wheel loaders, higher-than-expected profitability of excavators.
Keeps Overweight call. House says Lonking, China's construction machinery industry "hit the sweet spot of an upcycle" since 3Q09, thanks to further macro recovery, uptrend in China's overall mining/construction activities. Stock +5.0% at HK$5.30 midday.
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on 24.11.2009 08:09:25 - MARKET TALK: Goldman Upgrades Lonking To Buy, Ups Target 10.1%
0709 GMT [Dow Jones] STOCK CALL: Goldman Sachs upgrades Lonking (3339.HK) to Buy from Neutral, adds to Conviction Buy list on view company to be key beneficiary of robust demand, driven mainly by infrastructure construction, secondarily by property development and mining activity.
Raises target price to HK$5.90 from HK$5.36 after increasing FY09-10 EPS estimates by 6.4%, 7.1%. "At 11X 2010E P/E, we think Lonking's below-peer valuation offers a compelling risk-reward profile given upside from sustained machinery demand we see in 2010.
We also believe further acceleration in infrastructure construction spending and property development in China is a key share price catalyst." Shares flat at HK$4.94.