Stock Upgraded: Longcheer Holdings fair value raised to 1.65 by GK Research!

MB-GK Research said it has raised its fair value for Longcheer Holdings Ltd to 1.65 sgd per share from 1.59 sgd after the Chinese-based cellular phones designer posted strong earnings for the third quarter to March. The company reported a 70 pct year-on-year rise in net profit to 70.9 mln yuan for the quarter. Sales doubled year-on-year to 559.53 mln yuan. "Following our earnings upgrade for 2006 and 2007, our target price has been lifted by 3.7 pct to 1.65 sgd per share," CIMB-GK Research said in a client note. "With a prospective dividend yield of 6.6 pct for 2007, we believe the shares still offer excellent value and we maintain our 'outperform' rating," it said. The brokerage expects net profit for Longcheer to rise to 232.7 mln yuan this year, from 111.9 mln yuan in 2005. Net profit for 2007 is pegged at 298. 8 mln yuan and 368.5 mln yuan in 2008. At 11.18 am, Longcheer was up 0.07 sgd or 6.09 pct at 1.22 on volume of 5. 3 mln shares.