Phillip Securities Research in an Apr 11 research report says: "A leading storage & transportation provider (tanks & jetties) to PRC/MNC businesses in liquid petrochemicals. There is hardly any news from this company, apart from the periodic financial statements.
"The continuous news is in its prospectus & OISs: Its 55% shareholder has a 3-year moratorium from IPO date; and, its plans laid out at IPO are being implemented. On the macro-front, a CNCC report (source: Dragon Crown IPO prospectus) estimates 2012 y-o-y investment and consumption growth of petroleum/chemical products in the Yangtze River Delta to be 20% and 15% respectively.
"Hengyang’s valuation at 0.72XNBV (after rights) is cheap. Expansion plans are underway that probably would take capacity to 4X the existing cubic metres. We initiate coverage with a target that is derived from 2 nearest peers of 1.56Xnbv. This translates to 61 cents. BUY (initiating coverage)."
"The continuous news is in its prospectus & OISs: Its 55% shareholder has a 3-year moratorium from IPO date; and, its plans laid out at IPO are being implemented. On the macro-front, a CNCC report (source: Dragon Crown IPO prospectus) estimates 2012 y-o-y investment and consumption growth of petroleum/chemical products in the Yangtze River Delta to be 20% and 15% respectively.
"Hengyang’s valuation at 0.72XNBV (after rights) is cheap. Expansion plans are underway that probably would take capacity to 4X the existing cubic metres. We initiate coverage with a target that is derived from 2 nearest peers of 1.56Xnbv. This translates to 61 cents. BUY (initiating coverage)."
