Hu An Cable

[potatolover]

Any view of this counter, which deals with high end of the power cable business?

***********
Hu An Cable wins $18.2m contract from State Grid Corporation of China

The new order, signed under the group’s wholly-owned subsidiary, Wuxi Hu An Wire And Cable Co., is to supply 325km of low-voltage power cables to various municipal projects in Shanghai, China. Around 80% of the deliveries are expected to take place in 2012 and the balance in 2013.

The new order comes after the RMB105.6 million contract signed in August 2012 with China’s top five power generation company China Power Investment Corporation, and the RMB103.1 million contract signed in July 2012 with Hubei Province Electric Power Company.

---

Phillip Securities cut its target price for Hu An Cable Holdings to $0.190 from $0.275 and kept its ’buy’ rating, citing smaller expected revenue and lower copper prices.

Shares of Hu An were unchanged at $0.134. They have gained 18.6% since the start of the year, compared with the FT ST Industrials Index’s 16.6% rise.

Hu An had said its net profit for the first half of the year fell 37.8% from a year ago to 38.7 million yuan.

The company underperformed most of its peers in terms of revenue growth and net profit margin, Phillip said in a report.

The brokerage cut its forecast revenue for the second half of the year and first quarter of 2013 by 25%, due to lower-than-expected volumes for its cable and wire business in the second quarter.

---

Phillip Securities Research in a July 1 research report says: "Hu An Cable’s comparable performance means that it is unlikely to be another Chinese fraud, which usually outperforms peers by a big margin.



"High raw material prices and labour rates, together with a melee of competition at the low-end of market, reduced volumes of peer group. But moving to the high-end helps. Wire & cable industry leaders are confident their industry will outgrow China’s GDP growth for the next 10 years.



"We added quarterly forecasts for 2011 and extended annual forecasts to 2020. We estimate Hu An Cable’s present value (PV) to be $801 million. Its current market cap is only $250 million. However, as we understand the performance of this peer group, we only expect it to trade to 55% discount to PV. This means an immediate target price of 39 cents. MAINTAIN BUY."

[Greenrookie]

Any view of this counter, which deals with high end of the power cable business?

***********
Hu An Cable wins $18.2m contract from State Grid Corporation of China

The new order, signed under the group’s wholly-owned subsidiary, Wuxi Hu An Wire And Cable Co., is to supply 325km of low-voltage power cables to various municipal projects in Shanghai, China. Around 80% of the deliveries are expected to take place in 2012 and the balance in 2013.

The new order comes after the RMB105.6 million contract signed in August 2012 with China’s top five power generation company China Power Investment Corporation, and the RMB103.1 million contract signed in July 2012 with Hubei Province Electric Power Company.

---

Phillip Securities cut its target price for Hu An Cable Holdings to $0.190 from $0.275 and kept its ’buy’ rating, citing smaller expected revenue and lower copper prices.

Shares of Hu An were unchanged at $0.134. They have gained 18.6% since the start of the year, compared with the FT ST Industrials Index’s 16.6% rise.

Hu An had said its net profit for the first half of the year fell 37.8% from a year ago to 38.7 million yuan.

The company underperformed most of its peers in terms of revenue growth and net profit margin, Phillip said in a report.

The brokerage cut its forecast revenue for the second half of the year and first quarter of 2013 by 25%, due to lower-than-expected volumes for its cable and wire business in the second quarter.

---

Phillip Securities Research in a July 1 research report says: "Hu An Cable’s comparable performance means that it is unlikely to be another Chinese fraud, which usually outperforms peers by a big margin.



"High raw material prices and labour rates, together with a melee of competition at the low-end of market, reduced volumes of peer group. But moving to the high-end helps. Wire & cable industry leaders are confident their industry will outgrow China’s GDP growth for the next 10 years.



"We added quarterly forecasts for 2011 and extended annual forecasts to 2020. We estimate Hu An Cable’s present value (PV) to be $801 million. Its current market cap is only $250 million. However, as we understand the performance of this peer group, we only expect it to trade to 55% discount to PV. This means an immediate target price of 39 cents. MAINTAIN BUY."

Used to be vested in this counter, 2 things to note:

1) Very highly geared,
2) Very low net profit margin.

Capex very high due to upgrading of high voltage cables production capability, which supposed to command better margins, but the deal you quote is again of low voltage.

Good luck.

[potatolover]

Tks bro.

But how come their website put gearing ratio as "Net Cash"?


http://huancable.listedcompany.com/finan...ights.html

[Greenrookie]

Tks bro.

But how come their website put gearing ratio as "Net Cash"?


http://huancable.listedcompany.com/finan...ights.html

2010 they issue shares to raise money. They have been rolling over the debts for years.

I have not been following the counter for about year, might not have updated facts, my apologies. But my concern is still there, margin is deterioration and interest is in the range of 6%.

A quick look at your website will show that the borrowing did not went down. It was listed in 2010 and after 6 months, raise funds through dual listing of TSR, then there is another shares issuance exercise in 2011. They actually wanted a second round of TSR issuance but was cancelled, too frequent fund raising to me.

NOT a buy or sell call, just my 2 pennies concern

[CityFarmer]

This badly reflected the management...

(not vested)

Twelve customers of Hu An Cable's subsidiary to stop all payment for existing contracts

SINGAPORE (Sept 3): Hu An Cable Holdings says subsidiary Wuxi Hu An Wire and Cable has received notifications from 12 of its customers, saying they will be terminating all payments under their existing purchase contracts.

The 12 customers are all subsidiaries of the State Grid Corporation of China, located in Jiangsu, Hubei, Jiangxi, Northern Hebei and Shandong.

The move comes after reports issued by the Quality and Technology Supervision Bureau upon the request of the State Quality Inspection Administration in China revealed that certain products manufactured by Wuxi Hu An were not compliant with specifications set out in applicable regulations.

In addition, the customers say Wuxi Hu An will no longer be on the customers’ approved vendor list; and that they reserve their legal rights to obtain compensation from Wuxi Hu An for any loss or damages suffered by them.

Hu An says the company is still conducting internal investigations into the nature of the non-compliances, and is working with the affected customers to address their concerns.

Dai Zhixiang, the group’s CEO and Executive Chairman, has taken charge of the investigations and is in close discussions with the customers on the manner of resolution.

Hu An Cable closed flat at 1.2 cents.
http://www.theedgemarkets.com/sg/article...-contracts

[CityFarmer]

An interesting story, which best fit into a conspiracy theory...

The local gov is the best person to solve the issue? It is just an external party, and not the one dealing with the issue day-to-day?

(not vested)

Hu An Cable asked by local goverment to dispose three subsidiaries to overcome financial difficulties, save jobs

SINGAPORE (Sept 8); Hu An Cable Holdings, the manufacturer of electrical cables in China, says the local government of Wuxi City, Guanlin Town, has proposed that the company dispose the assets and liabilities of the group’s three Chinese subsidiaries – Wuxi Hu An, Wuxi Shenhuan Electric Co. and Shenhuan Cable Technology Co. – to potential purchaser Yixing Jinxiao Copper Industry Co.

The proposed disposal is to help Hu An overcome the financial and operational difficulties which it currently faces in China, safeguard the livelihoods of the group’s employees, and protect the interests of the group’s shareholders and creditors, says Hu An in an SGX filing.

Yixing Jinxiao is an independent third party which is not related to the company’s directors, controlling shareholder and their associates, the group adds.
...
http://www.theedgemarkets.com/sg/article...fficulties

[Behappyalways]

(prepayment of RMB310m???? Learnt from Foreland????)

pursuant to a major supplier of the Group facing liquidation, the Group had made full provision for a prepayment of approximately RMB310 million that was made to the supplier;

HU AN CABLE HOLDINGS LTD
http://infopub.sgx.com/FileOpen/HAC_Ann_...eID=375702

[Behappyalways]

FY2014 Prepayments of RMB 83m
FY2013 Prepayments of RMB 74m

FY2015 Prepayments of RMB 310m???? You believe????? not vested

FY2014
http://infopub.sgx.com/FileOpen/HAC_FY20...eID=340596

(prepayment of RMB310m???? Learnt from Foreland????)

pursuant to a major supplier of the Group facing liquidation, the Group had made full provision for a prepayment of approximately RMB310 million that was made to the supplier;

HU AN CABLE HOLDINGS LTD
http://infopub.sgx.com/FileOpen/HAC_Ann_...eID=375702