HL Asia

HL Asia: (Key feature from The Edge) Heads in New direction. CEO wants to drive Co. into new mkts and products, which could result in reduced exposure to China. Note that Xinfei has lost its long standing position as China’s no.2 refrigerator Co. and is now ranked 4th. Grp aims to export Xinfei products out of China, potential mkts include Latin America and Asean, and expand product range to include things of comfort and health e.g heater, dish washers and purification systems.

Wants Yuchai to move upstream, making not only disel machines but key components that could go into the end product, to lower it operating costs. Does not rule out acquisitions but might shed some of its non-performing business like its industrial packaging and will sell its consumer electronics distribution stake to Thakral. Tip housing and infrastructure to continue driving HLA’s growth. CIMB have Underperform rating with $1.78 TP, while CS has neutral rating with $2.40 TP.