Stock Buy Call: Hong Leong Asia with price target of 1.63 by CitiGroup!

Citigroup said it has upgraded its rating for Hong Leong Asia to 'buy' from 'sell' while maintaining its price target of 1. 63 sgd, as it believes the company's stock is attractive at current levels given its positive earnings outlook. The brokerage said that the anticipated 177 pct growth in earnings this year for Hong Leong would be underpinned by a higher contribution from its white goods unit, Xinfei. Hong Leong has raised its Xinfei stake to 90 pct from 51 pct. Citigroup said that Hong Leong's other business segments such as Yuchai, GPac and building materials are also seeing improvement. Citigroup expects Hong Leong's net profit to grow from 20 mln sgd last year, to 54 mln this year, 72 mln next year, and 82 mln in 2008. At 10.41 am, Hong Leong Asia was up 0.02 sgd or 1.52 pct at 1.34 with 105, 000 shares traded.