Swing Media May Rise On HK Dual Listing Plan

Swing Media to seek dual listing in Hong Kong
Singapore-listed data storage manufacturer Swing Media Technology (SWMT.SI)said it is planning a dual primary listing of its shares on the Hong Kong stock exchange. The firm's main manufacturing operations are in Hong Kong and one of its main markets is China. (source: http://www.theedgesingapore.com/the-daily-edge/business/13558-swing-media-to-seek-dual-listing-in-hong-kong.html)

According to DJ News,Swing Media Technology (5BQ.SG) may head higher on hopes dual listing in Hong Kong will see shares attract more interest, improve valuation.
Company says listing is, "expected to enhance the reputation of the company in China;" is also "important for its long term growth and development" and "will broaden the company''s investor base and improve the liquidity of its shares."

DMG Partners maintain BUY TP at SGD0.105. With Swing Media announcing that its tie-up with PetroChina to venture into the solar indurtry has been on track. The company's strategy of branching out of its core optical media manufacturing business and into clean technology is therefore looking to be promising. In addition, DMG Partners has highlighted that the market may also rerate this stock for its exposure into the solar industry which is expected to yield higher profit margins as to its optical media division. Besides, Swing Media revealed that Shanghai Hui Yang New Energy Technology (SHY) has been awarded a contract to install solar powered energy systems in 20 petrol stations for China's biggest oil producer, PetroChina.SHY is to be 80%-owned by Swing Media through a sale and purchase agreement that was previously announced during Oct 09. (source: DMG Partners Research)


Strategy:
Prefer buy: SGD0.055 or below