China Hongxing Sports (S$0.49) - Growth after the Olympics

China Hongxing Sports (S$0.49) - Growth after the Olympics
We spoke to management recently regarding its growth strategy
post-Olympics. Hongxing plans to continue its retail network expansion and
A&P to raise brand visibility as it believes that China's sporting market
will continue to grow, buttressed by other sporting events like the 16th
Asian Games in 2010 and rising sports participation. In addition, Hongxing
has secured indicative orders worth Rm1bn during its March trade fair. We
have made no changes to our earnings estimates and maintain our target
price of S$0.86, based on 16.5x CY09 earnings, or a 20% premium to average
valuations for the sports shoe sector. Reiterate Outperform on the back
of robust industry prospects.

CIMB

China HongXing 14th Dec 2007

Downtrending since 29th Oct 2007.
Already in the lower part of the trading range ($0.90 - $1.04) on 5th Dec 2007 (significant day).
Last Friday, it closed at $0.94. This price was within the majority volume zone of $0.935 - $0.95, 7.076 millions of shares done on 5th Dec 2007.
If breaks on Monday, which looks possible (Dow fell 1.32%), the next support at $0.905 - $0.92 (8.842 millions done on 30th Nov 2007).
$0.92 is the uptrend support in mid-term on Monday. (see yellow line)
$0.90 is more like a psychological support.
Need a big volume to reverse the trend.