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The recent pullback in SITC share price seems overdone.SITC International Holdings Company Limited (1308). Price 25/3/2022: HKD 27.65 SITC is a US$10 billion market cap transport and logistics company, quoted in Hong Kong, doing business (i.e. shipping goods), from China 39%, South East Asia 31.2% and Japan 24.8%. They have 96 vessels delivering to 74 ports, including ports in Russia. Shipping and logistics companies typically trade at a discount to the general market due to the uncertainties of world trade. The Russian invasion of Ukraine has added to these uncertainties. All companies, shipping companies included, not only have to adhere to the sanctions, but also have to contend with the additional difficulties incurred when dealing in non-sanctioned goods. These include problems with payments for goods (money transfers) and reputation risk. This week's heavy fall in the SITC share price no doubt was triggered by these uncertainties. Given the solid fundamentals of SITC, the fall seems over-done. Good Fundamentals Low Price Earnings ratio (6.47e), High yield (11.3%e), Growing turnover (+78.8% yoy, +19%f). High margin (43% e). Improving analyst forecasts Analysts have been improving their forecasts of the current year(2022) earnings per share (EPS). In September 2021 the forecast was around US$0.37, by December 2021 it was around US$0.40. By the end of February 2022 analysts had increased their forecast EPS to US$0.50. On 7th March 2022, SITC announced its full year 31/12/2021 results showing sales up 78%, and Earnings per share tripled. In the following days analysts raised their forecast of the 2022 EPS to $US0.59. Sound financial situation The financial position seems sound with current assets of $1.18 billion (including cash of $919 million), exceeding current liabilities of $785 million. Long term liabilities are modest at $415 million and are nearly covered by the net current assets. Too cheap Most stocks quoted in Hong Kong are trading at a significant discount to the rest of the world. Whilst the reasons for under-weighting China and Hong Kong are well known, the question is how much discount is too much? With a prospective p/e ratio of 6.47x, a dividend yield in double digits, and solid forecast growth, SITC seems rather cheap. That's why I am buying some shares.
HKEX:1308Long
by Clive_Thompson
Tencent .. my ten cents worth on it sharedQuick note... a good friend asked me about Tencent. Given the developments recently, as well as over the past year. There was some regret in not buying during the dip, but it was about risk management in catching a falling knife IMHO. Missing the boat is also another feeling, and it is perhaps something dangerous to feel when looking at charts. So, this is called planning the trade... and in doing so, we might expect a dip in the week of April 25 at about 320-350. IF it does play out to that, we can expect a bottoming pattern to form, and then start looking to go shopping. Not before. Here we are planning the shopping trip. For now, it remains as a plan. Wait for it... For you, my friend... just so we go live on what we spoke about.
HKEX:700
by Auguraltrader
Giving China Stocks a much needed lift Those who followed me knows that I am quite heavy on my China portfolio and Xiaomi is one example here . We can see from chart that it has fallen more than 40% from the peak and followers are concerned and some getting panicked about selling. The Chinese Government are concerned and have offered "helicopter money" to the much needed stock market ! Read article here ! If you look at individual stocks like Tencent , Meituan ,etc you would see that selling pressures has not eased and I think we would continue to see some more selling (tail end) before we see a meaningful rebound. Looking at the chart, if you are bullish on the prospects of Xiaomi, then you may want to allocate 10-25% of your capital to scoop up this stock on the cheap. Again, I was asked, should you short the chinese stocks ? My answer would be it depends on your strategy and objective. If you had time the entry perfectly, you would have made 30% at around 32.50 price level. But shorting is not everyone's cup of tea as some prefer to buy and hold so you need to know your own temperament , time line ,etc. No one fixed strategy to fit everyone. I am excited to see how the news will shore up the stocks over the next few weeks.....
HKEX:1810Long
by dchua1969
2
BE GREEDY WHEN OTHERS ARE FEARFUL!!!! LIVE LONG EVERGRANDE...As traders or investors, we are supposed to make our own research, don't believe anything that everyone says. Evergrande was a hot discussion at the end of the quarter last year due to its failure to pay its debt. And as the second real estate developer in China, the negative effect was catastrophic throughout the entire world. The media never stop reporting the collapse of Evergrande and china's economic downfall. Most Chinese stocks were dumped hard even the Chinese blue-chip stocks couldn't avoid the effect. But based on my analysis on the chart, the buyers are back and starting buying the dip. (MACD& RSI look bullish ) But it's a very risky trade or investment, and there is no turning back!!! Invest only what you can afford to lose!!!! however, if it pulls off, greater rewards will come start with a small position first until the uptrend is made **Not financial advice**
HKEX:3333Long
by aryoTraderX
1
IS THE BOTTOM CONFIRMED?? XIAOMIXiaomi after the stock plummet almost 70% from the all-time high due to the debt crisis in china back in 2021. I personally expect some kind of bounce back from this level and if the coming earning report turn positive the bounce will be massive Along with the bounce of other Chinese stocks like BABA,DIDI,NIO,XPENG. in My opinion Xiaomi will do the same... But advisedly, enter with the small position first because the stock is in the downtrend. **Not financial advice**
HKEX:1810Long
by aryoTraderX
Forward looking telco player Read latest article here We have heard quite a fair bit about the upcoming 5G technology and how it is going to help us in terms of fast downloading , thus saving time,etc. We are now living in a connected world where speed truly matters. More storage space, faster downloading, clearer image, etc. We want it and and we want it now. That's the stressful part of instant gratification. It becomes like a vicious cycle where customers demand faster turnaround and suppliers are competing with one another to churn out the next high speed device to counteract with its competition. According to techrepublic.com, the top 3 countries with the most 5G networks are South Korea with 85 cities, China with 57 cities and US with 50 cities. I believe the next decade we are going to witness a vast improvement in our communication and information sending and receiving. The more advanced this technology becomes, the more I wonder if bricks and mortar business will have its footings , one decade from now ? How will the economy be like ?
HKEX:728Long
by dchua1969
Be greedy when others are fearfulIf this last line of defence is also taken out by this week, then we can see the price possibly heading further south towards 120 level (though I think is quite unlikely). From its peak at 453.70, we have witnessed how this stock tumbled down almost 60% to its current price of 194. Please do not ask me should you sell or buy as I do not know your objectives nor strategy. As a long term investor, I am thrilled for 2 reasons. One, the central government moves seen by many global investors as a hard hit is really not in the eyes of the middle income people in China. The severe downfall of the Education sector was a crude wake up call to many other players who wondered when will the next industry be hit ? So , panic selling and fearmongers are spreading rumours to encourage weak hearted traders to let go of their shares. Of course, the weak companies will suffer as we see these tuition operators that make millions and billions are now worth much lesser of its valuations than its glory days. The entire business model - from profit to non-profit will affect the share price drastically! However, the fundamentally strong companies , like Meituan will be able to withstand though it also has its fair share of whipping from the government. A more fairer wage model was proposed for the deliverymen, one that created millions of jobs including in the rural areas. The central government does not want capital growth at the expense of its people. We know how tough the job of these deliverymen are. So. let the selling pressure quiets down a bit more and I will be watching like a hawk to average down. Do not copy my model if you are not sure what you are doing. Speak to your Adviser and get professional advice.
HKEX:3690
by dchua1969
XPENG -updateXPENG (9868) plunged last week and reached the HKD87.6 support that we talked about last week. It then craved a lower low before settling at HKD102.60 on Friday. With the latest price action, a close above HKD115.90 could trigger a near term rebound towards the HKD143 resistance. Bear in mind, price action as been creating lower lows and lower highs since Dec 2021, hence any rebound could be limited with traders are trading with the wind on their faces. Hence a close below HKD100 psychological support could provide short selling opportunity with a retest of HKD71.80 support or beyond.
HKEX:9868
by Boring_Trader
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HKEX:700
by Sunstorminvest
Rainy weather , best to eat steamboat with family !The weather has been raining for the past few days here in SG and we were told that this pattern might continue ........ And to many Chinese, they love to eat steamboat ! And one popular restaurant serving steamboat that offers excellent customer service and wide variety of food is Haidilao. If you have been to any of their outlets here , it is not surprising to queue for more than a hour before you can get a table. Of course now they are affected by the COvid and how many patrons allowed per table. Hopefully, with the vaccination rates going up and eventually economy picking up, more people will return to the norm and go eat their favourite steamboat ! The chart shows a double bottom pattern within the channel but I am not nibbling prematurely as it could possibly have another leg down. So, I will wait patiently for it to breakout first .........
HKEX:6862
by dchua1969
XIAOMI.....At the end of the down-trend?Hello Traders, XIAOMI, the Chinese smartphone maker, is showing weakness since weeks. The stock has fallen down to 12,74 HK$, and it seems there is no „tomorrow“ for XIAOMI! But, is this the truth? Let's check the stock. Arguing that the rise from 8,28 to 35,90 HK$ was a complete impulsive move, the correction is a wave 2 of „intermediate degree“! That means, most of the gains have blown away, and the bears took control of the stock. Sentiment is so negative against XIAOMI (and most of Chinese stocks), that it is hard to believe it could get better. But that is often the key to rising price for stocks. The advance from the low @ 8,28 – 35,90 HK$ took 495 days; the decline is now at 425 days, with the low @ 12,74 HK$! Note the open gap-down left from March 3-4: This could be an „exhausting-gap“, that only appears at the end of a trend. So, if this gap should be closed, and the low @ 12,74 is valid, the trend could have changed to the upside! But this call is a „is a tender flower“! Means, watch the low with Argus-eyes. A break of this low should have tremendous impact on the stock! But let's get positive! If this gap should be closed, the next short-term target is @15 HK$ and above up to 16,50-17,58 HK$! But this could be a hard way to go. So, I will try to update the chart in the coming 1-2 weeks and hopefully the stock is performing well positive! Have a great Sunday..... Ruebennase Feel free to ask or comment! Trading this analysis is at your own risk!
HKEX:1810
by ruebennase