Buy: Ching Hong Xing

China Hong Xing deals with sporting equipment in China. They own two brands, namely China Hong Xing Sporting Equipment and Li Ning. They have recently won a sponsorship contract with the South Koreans for their Olympics campaign.

China Hong Xing's profit growth has been increasing steadily, and at an increasing rate over the last 2 years. Like many of my lost opportunities, China Hong Xing has been in my watchlist for the last year already, and I've seen it grown to its current level from a modest price.

The 3Q 2006 report showed a 3Q QoQ growth of 40% and likewise for the 9 month comparison. This impressive quarter is supported by several quarters in the past 1 1/2 years. They showed similiar increasing profit growth.

"A company with not only profit growth, but increasing growth is the perfect company to invest in."

China Hong Xing's annual growth has also shown growth over the last few years. Infact, China Hong Xing has a even larger room to grow. With an extremely large population, China Hong Xing is well positioned to tap the large consumer base. The projections show a steady increase in retail outlets to tap an increased pie of consumer spending.

Looking forward, to the next few years, with the Olympics in Beijing coming up, there will be more Chinese spending on sporting goods. Who knows, with them sponsoring the Korean team, they might just be the next big thing in sports like the way Nike is.

Buy, with a target of $3.00
Vested at $2.56 on 29 Jan 2007, 1415hrs