Top 5 Favourite Undervalued Companies SGX/SEHK

[CityFarmer]

Sichuan Expressway 105.HK (highway) - low pe low pbv (but debt a bit high)

I wonder the pick of Sichuan Exp 105.HK, over the other two, Jiangsu Exp 177.HK, and Shenzhen Exp 548.HK?

The Sichuan Exp has the lower PE, and PB among them, but poorer in other factors. I am tracking Jiangsu, and Shenzhen Exp, as competitors of CMPacific in SGX.

(vested in CMPacific, but not others)

Jiangsu Exp has very sollid balance sheet. Shenzhen Exp has some debt too.

The reason I own a bit of Sichuan Expressway is the low PBV and low PE. The debt is a bit of a problem. But I don't foresee much higher interest rate in China in the next few years. Also, given the fact that all these expressway companies are SOEs, these expressway operators should have no problem rolling over debt.

Having said that, I normally don't place more than 2% of my money in a single stock. It is a very volatile time when it comes to investment, with market that can go up and down very fast in just a couple of months.

Btw, there is another stock on my watchlist: Anhui Expressway (low debt, SOE, PE around 10x). Probably can start collecting when price break below 4.5 (it has run up a bit in the past year).

My personal 2c.

IMO, valuation in PE and PBV are important, but should be considered together with quality of the stocks.

Sichuan Exp has the lowest in PE and PBV, for good reasons.
- Sichuan Exp is the only one with negative FCF, based on shareinvestor.com. A negative cash flow, is highly undesirable for toll operator. 
- Sichuan Exp has the lowest margins, ROA/ROE among them
- Sichuan Exp has the highest gearing among them.

(sharing view, based on my tracking of toll operators in SEHK)

[fundamentalman]

Sichuan Expressway 105.HK (highway) - low pe low pbv (but debt a bit high)

I wonder the pick of Sichuan Exp 105.HK, over the other two, Jiangsu Exp 177.HK, and Shenzhen Exp 548.HK?

The Sichuan Exp has the lower PE, and PB among them, but poorer in other factors. I am tracking Jiangsu, and Shenzhen Exp, as competitors of CMPacific in SGX.

(vested in CMPacific, but not others)

Jiangsu Exp has very sollid balance sheet. Shenzhen Exp has some debt too.

The reason I own a bit of Sichuan Expressway is the low PBV and low PE. The debt is a bit of a problem. But I don't foresee much higher interest rate in China in the next few years. Also, given the fact that all these expressway companies are SOEs, these expressway operators should have no problem rolling over debt.

Having said that, I normally don't place more than 2% of my money in a single stock. It is a very volatile time when it comes to investment, with market that can go up and down very fast in just a couple of months.

Btw, there is another stock on my watchlist: Anhui Expressway (low debt, SOE, PE around 10x). Probably can start collecting when price break below 4.5 (it has run up a bit in the past year).

My personal 2c.

IMO, valuation in PE and PBV are important, but should be considered together with quality of the stocks.

Sichuan Exp has the lowest in PE and PBV, for good reasons.
- Sichuan Exp is the only one with negative FCF, based on shareinvestor.com. A negative cash flow, is highly undesirable for toll operator. 
- Sichuan Exp has the lowest margins, ROA/ROE among them
- Sichuan Exp has the highest gearing among them.

(sharing view, based on my tracking of toll operators in SEHK)

thank you for your analysis and sharing.

you are right. Sichuan expressway is the lowest quality of all expressway stocks mentioned

but whether it is of quality that quantify as 'investible', I guess, each to his/her own opinion. Obviously, by investing in that stock, I personally think that quality of that stock is still investible (even though not as good as others).  Other quality expressway stocks have much higher PE and higher PBV (so market is pretty efficient in that way).

BTW: sichuan expressway is also an expressway construction company (not just tollroad operator). That could explain the higher gearing.  Most SOE public construction companies like China State Construction (601668.SH) or China Communication Construction (1800.HK) that are engaged in infrastructure construction, are very highly geared.

[CityFarmer]

I respect the decision. In value investing, "investible" isn't entirely an subjective decision, but objectively based on future cash flow generation, and buy at cheaper than fair price.

I reckon the decision on Sichuan Exp, isn't based on any of the above criteria. Anyway, my best wish to you, on the venture.  

I am suggesting, CMPacific in SGX, is a quality choice, with a much cheaper price comparing to those in SEHK with similar quality.

(not vested on any SEHK toll operator)

[intellect]

My Top Pick
1) OCBC
2) DBS
3) Capitaland
4) Chip Eng Seng
5) Engro

On Watchlist: Keppel Corp

[jjlim84]

1) Chip Eng Seng
2) Nam Lee
3) Frasers Centrepoint Ltd
4) Penguin
5) Ellipsiz

[Bubbachuck]

1. Spindex - 0.61
2. Colex - 0.3
3. MFG Integration = 0.21
4. ISOTeam - 0.59 (before bonus issue)
5. Penguin - 0.12

With share price as of the posting to compare in the future.

[GFG]

1. Spindex - 0.61
2. Colex - 0.3
3. MFG Integration = 0.21
4. ISOTeam - 0.59 (before bonus issue)
5. Penguin - 0.12

With share price as of the posting to comparing in the future.

I'll just indicate 3:

1. Dutech Holdings - 0.27
2. Libra Group - 0.155
3. Boustead - 0.8

[Life is a game]

1. Isoteam
2. PEC
3. CNMC Goldmine

Sent from my SM-N9005 using Tapatalk

[Gaudente]

My top 5 fav undervalued companies are :

1, Asia Standard  ( 00129.HK)  latest price $1.48  ( NAV = $11.73 )
2. Aisia Orient  ( 00214.HK)  latest price  $1.51   ( NAV = $ 12.10 )
3. Road King  ( 01098.HK)  latest price $6.85  ( NAV = $18.10)
4. Dan Form  ( 00271.HK)  latest price $1.23  ( NAV = $4.04 )
5. Lai Sun     ( 00191.HK)  latest price  $0.93  ( NAV=  $6.7 )

I bought at the "right price" but still  was higher than "latest price".  So buying strategy  at "right time" must be better  than at "right price" ???

Easyknit International (1218:HK) has a P/BV of 0.1 and a P/E of 1.5 .
Dividend yield is a paltry 2.5% though.

[opmi]

Just a side question on HK shares. Does anyone know where can I find an online list of coming AGM/SGM in HK?
The SEHK website does not seems to have it. Thanks in advance.