Stock Upgraded: Longcheer Holdings fair value of 2 sgd by DBS Vickers!

DBS Vickers has increased its assumed fair value for Longcheer Holdings Ltd to 2.00 sgd from 1.20, citing attractive valuations and higher earnings forecast for the company. "At current levels, Longcheer is trading at just 10 times 2006 earnings and 6.3 times 2007 earnings," DBS Vickers said in a client note. "With an expected 30 pct dividend payout, current valuation remains very attractive against growth prospects and peers," it said. The brokerage believes Longcheer will benefit from leveraging on the 3G market in Europe and China. "We reiterate our 'buy' call with an upgraded one-year target price of 2 sgd per share," DBS said. DBS expects Longcheer's net profit for the year ending June 30 to rise to 212 mln sgd from 111.9 mln in the previous year, increasing further to 333.5 mln in the following year. Before trading was halted, Longcheer's share price rose to a 52-week high of 1.19 sgd. It last traded up 0.14 sgd or 13.46 pct at 1.18 on volume of 10. 16 mln shares.