Lonking 3339

Lonking 3339

Postby stilicon » Thu Dec 31, 2009 5:34 pm

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.

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


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.
Last edited by stilicon on Thu Dec 31, 2009 5:44 pm, edited 1 time in total.
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Re: LONKING 3339

Postby stilicon » Thu Dec 31, 2009 5:39 pm

I wonder if anyone has any further insight on this company.

To me, by the numbers, this company doesn't seem bad.
It could evolve in the CATERPILLAR of China !

If I understand well, it is a company controlled by a certain Li San Yim.
So it is not a state-owned company.
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Re: Lonking 3339

Postby winston » Thu Jan 07, 2010 10:33 am

DJ MARKET TALK: Morgan Stanley Keeps Lonking At Overweight

0946 [Dow Jones] STOCK CALL: Morgan Stanley says leading wheel loader producers raise wheel loaders' average selling price by about 3% since start of year; believes this reflects house's view "downstream demand is recovering sustainably," driven by mining and construction activities.

Expects Lonking (3339.HK), Liugong (000528.SZ) to further benefit from downstream recovery in 2010, with steady margin outlook; Keeps Lonking at Overweight with HK$6.20 target. Stock flat at HK$6.12 at pre-open.

Source: Dow Jones newswire
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Re: Lonking 3339

Postby winston » Tue Jan 12, 2010 11:50 am

Not vested.

DJ MARKET TALK: BoA-ML Ups Lonking To Buy;Target HK$7.08

1131 [Dow Jones] STOCK CALL: Bank of America-Merrill Lynch upgrades Lonking (3339.HK) to buy from Neutral due to solid growth outlook in 2010. Raises Target to HK$7.08 from HK$4.97 after raising FY09-10 earnings estimates by 16%.

Says, in 2009, Lonking's biggest surprise came from its gross margin, thanks to the macroeconomic rebound and relatively low steel prices.

"We think the gross margin is sustainable in 2010 as the strong demand outlook should lead to a higher utilization ratio and economies of scale, which should offset steel price rises." Stock off 3.3% at HK$6.20.


Source: Dow Jones Newswire
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Re: Lonking 3339

Postby stilicon » Tue Jan 19, 2010 5:38 pm

CS increases its TP to HK$6,18 on 18/01/2010.
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Re: Lonking 3339

Postby stilicon » Wed Mar 03, 2010 2:53 pm

Nomura in a report on Machinery in China, sees strong orders flows in the sector, is at BUY on LONKING with a TP of HKD 6,6.
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Re: Lonking 3339

Postby winston » Mon Mar 08, 2010 11:38 am

Not vested.

DJ MARKET TALK: BoA-ML Keeps Lonking At Buy; Target HK$7.08

1059 [Dow Jones] STOCK CALL: Bank of America-Merrill Lynch keeps Lonking (3339.HK) at Buy with HK$7.08 target. Says company off to good start in 2010 with good Jan-Feb sales growth.

"Since the peak season has started and will last till the end of April, we expect to see robust sales volume in the next two months."

Adds, Lonking is currently trading at 11X FY10 EPS, below its historical average of 12.5X. Thinks valuation is attractive as house expects company's earnings to grow by 21% CAGR in next 2 years. Stock +3.6% at HK$5.18.


Source: Dow Jones Newswire
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Re: Lonking 3339

Postby winston » Fri Jan 28, 2011 9:52 am

Not vested

DJ MARKET TALK: Nomura Ups Lonking Holdings Target To HK$5.30
Dec 16, 2010

1034 [Dow Jones] STOCK CALL: Nomura raises its target price for Lonking Holdings (3339.HK) to HK$5.30 from HK$3.45, after revising its net profit forecasts for FY11 and FY12 up by 14% and 17% respectively.

Keeps the stock at Neutral as it believes further share price upside is limited. Expects Lonking's wheel loader sales growth to halt in FY11, due to a high base of comparison a year earlier, a slowdown in newly-started infrastructure projects, and a prevailing trend of wheel loaders being substituted by excavators.

But notes the stable replacement demand from the mining industry could prevent the wheel loader division from experiencing a sharp correction.

Adds the excavator segment is the company's primary source of growth. Forecasts sales in FY11 and FY12 to rise by 41% and 45% respectively on year.

Source: Dow Jones Newswire
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Re: Lonking 3339

Postby winston » Mon Dec 31, 2012 8:39 am

not vested

LONKING (03339.HK) expects huge decline in AR

LONKING (03339.HK) issued profit warning, saying that the Group’s financial result for the year ending 31 December 2012 is likely to decline significantly as compared to the year ended 31 December 2011.

Since December 2011, domestic demand for construction machinery has continued to weaken. This
reflects the slower growth in China’s fixed asset investment, the changes in macroeconomic environment resulting in fewer new infrastructure projects as well as the completion of projects funded by the 2009 stimulus plan.

As a result, the Group has experienced and the Board expects that it will continue to experience significantly lower rates of growth in demand for construction machinery as compared with prior comparable periods.


Source: AAStocks Financial News
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