Longcheer Holdings (L28.SG) +4.8% at $0.77 on above-average volume, says Dow Jones.

DBS Vickers, which has Buy call with $1.10 target, notes China-based handset designer trades at only 6.7X FY11 P/E, 45% cheaper than sector average:“The re-rating catalyst is the ramp-up of 3G PCBA (printed circuit board assembly) for China Telecom and contributions from the highly-profitable mobile lottery (business) to start from 4Q this year.”

Longcheer won China Telecom’s PCBA tender in June quarter, formed partnership with Vodone (0082.HK), C-Media Electronics (6237.OT) in March to develop mobile lottery business in China. Immediate resistance at S$0.80, last tested in July 2007.

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