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JICPT| Kweichow Moutai reached attractive buy level as expectedHello everyone. This is a follow-up post of my published idea titled 'Kweichow Moutai potential buying level of 1550' on July 28th. Back then, price was CNY 1768 per share. I guess a lot of Chinese investors doubted if it can fell to that level. Now it sat at CNY 1550 and a lot of investors started to concern if there is much room to the downside. In my opinion, the valuation became really attractive for me, though I observed huge sell orders from foreign institutions via the HK and Shanghai connect scheme. On the daily chart, definitely it's still downtrend with no sign of reversal yet. On the weekly chart, it sat at a beautiful sweet spot place. I will keep an eye on this level if any reversal pattern formed on the daily. It'll be a really nice place to buy. When everybody is scared and bearish on a particular stock, bullish buyers should wake up and have a further check. Give me a like if you're with me.
SSE:600519Long
by JICPT
JICPT| Kweichow Moutai potential buying level of 1550Kweichow Moutai is the icon of Chinese stocks. With gross margin of 90% plus, It's been served as the deep value investor's must-have holdings. In addition, the share of Moutai is the most expensive one in domestic Chinese market. However, 2021 is not the year of Moutai. The price has dropped by approximately 37% from around 2630 created in Feb. From the valuation perspective, it fell into the reasonable zone which attracted me. I bought Chinese wine ETF and plan to add more in the next future. From the weekly chart, I identified the level of CNY 1550 be attractive with abcd pattern combined with moving average line. I won't save my bullet if it drops to that level. Moutai is a great company. I think it has very high probability to hit CNY 3000 within the next 2 years. So the annual return is close to 50%. What's your opinion? Give me a like if you're with me.
SSE:600519Long
by JICPT
BOE Released its Performance Forecast: Profits Might be IncreaseBOE expects to achieve a net profit of CNY 12.5 billion to CNY 12.7 billion in the first half of 2021, with a year-on-year growth of 1001% to 1018%. On July 13, BOE Technology Group Co., Ltd. (BOE) released its 2021 semi-annual performance forecast. According to the announcement, the basic earnings per share are expected to be about CNY 0.355 to CNY 0.361, 13 times higher than that of CNY 0.026 apiece in the same period of 2020. The announcement shows that BOE's good performance is attributed to the global semiconductor display industry's prosperity, with stronger demand and rising prices caused by the shortage of raw materials. Meanwhile, the company's mature production lines will maximize production and sales, maintaining a leading position in the LCD mainstream application market, improving profitability and the product mix. According to BOE's 2020 financial report, the annual revenue was CNY 135.55 bn, with an increase of 16.80% year-on-year; the net profit was CNY 5.04 bn, reporting growth of 162.46%. Furthermore, the company achieved a net operating cash flow of about CNY 39.25 bn, with cash on hand of approximately CNY 73.69 bn. During the same period, BOE's overall display shipments ranked first globally, including five major application fields such as smartphones, tablets, laptops, monitors and TVs. In addition, based on the forecast data of Sigmaintell, the firm will still rank first in the world in terms of display shipments in the five application areas of smartphones, tablets, laptops, monitors and TVs. And the market share of automotive display panels over 8 inches will also continue to remain the world's first. Omdia, a technology research firm, predicted that BOE, TCL CSOT and HKC would become the top three global panel production capacities, accounting for 25.3%, 17.2% and 10.3% respectively.
SZSE:000725
by EqualOcean
1
GoldWind is back after waiting for pullbackIf we see the consolidation around 11.50 to 12.50 this area shows a good spike in volume and breakout of its consolidation. With China's renewable energy push, Wind energy has been very quiet considering all other areas of renewable energy have been accelerating. Also since the launch of the Carbon Trading Exchange on Friday, this might be good enough a push to draw attention back to the wind industry. Entered trade at 12.50 and look to take profit at around 15.50. Other wind names that look attractive are : MingYang Smart Energy 601615 (has already started its uptrend but its valuation is higher due too its higher growth rate) Dajin heavy Industry 002487 (breaking out of consolidation same like Goldwind but with less volume) maybe a laggard so it could be a good secondary trade to follow up Shanghai Taisheng 300129 (Halted trading on 18th due to change in share structure) There was a big bullish breakout before Sunday so I expect this to follow through with further upside. Happy Trading all.
SZSE:002202Long
by Joeyismoney
Great Walls Great Stock GainsGreat Wall Motor Company Limited is China's largest producer of sport-utility vehicles and pick-up trucks and its share price is up around 500% over the last 12 months reflecting the rapid adoption of vehicles in China as well as Great Walls continued expansion into international markets. Share price is probably in the overbought / expensive area at the moment so if you are interested you could wait for a bit of a pull back in the 5% to 10% type range or a drop in the RSI back under 65% if it goes through some kind of consolidation period at current price levels. Might be worth a look.
SSE:601633Long
by zAngus
JICPT| Gree is testing M bottom, creating buy opportunity Frankly speaking, I love Gree which is still the best Air conditioner manufacturer in China. I started to trade it back in 2012 and still hold some shares as of today. The company has been up by more than 900% in the past ten years. It used to be must-have stock for value investors due to its outstanding financial performance. However, things started to change from 2018. The below is my personal view for reference: 1. single-product line business strategy: No doubt, Gree makes the best AC with competitive price. But 92% of its revenue comes from AC. However, the AC sale has highly correlated with real estate. I recall annual sale of ACs are capped at 23-25 million per year. Against the backdrop of structure reform, government wants to replace the model with new one(innovation) to achieve GDP growth, not through selling properties. I don't see numbers will jump in the coming years. 2. Diversified development strategy failed: Gree announced to make phones, cars, and invest billions into chip companies. But all ended in failure. I think it's better for the management to focus on the home appliances, e.g. floor cleaning robot, window cleaning robot. Some Chinese companies are doing those stuff very well. Their share price soared into sky! 3. Rising input costs: With the super loosing monetary policy from central banks around the world, commodities, such as copper, created new highs. We know, copper accounts for approximately 30% of the cost of producing an air conditioner. it started to become an major issue for AC manufacturers, including Gree. I think they have no choice but to increase the price to hedge the rising cost. But that might impact consumers' willingness to buy. So, I need to read the half-year financial report to do my own research. Back to the technical side, Price retreated to 61.8% fib level with M formation and Gap. The bad formation is the crossover of the MAs. So, price might go sideways for a while before buyers take control. I think the 47-50 would be the bottom by checking the PE band of last 10 years. Give me a like if you're with my idea.
SZSE:000651Long
by JICPT