Delong higher on future earnings growth prospects

12/13/2006

Delong was higher because of the prospectsfor future growth in its earnings and the stable outlook for the Chinese steel industry, dealers said.

Delong was up 0.005 sgd or 3.7 pct at 0.14, on volume of 15.37 mln shares.

Analyst said he was keeping an "outperform" rating for Delong, with a target price of 0.23 sgd.
He said Delong was expected to benefit from stability in the Chinese steel industry next year and the limited downside in prices of hot rolled coils. "Delong is poised to reap the fruits of its expanding capacity," Analyst said in a note.

Delong commissioned its second production line at the beginning of December 2006. The Analyst also said it believed acquisitions were part of the group's growth plan because the Chinese government continued to consolidate the industry.