Hong Kong's Top 20% Quality Companies

[heifien91]

The methodology used was extracting the past 10-year financial data and only companies trading within the top 20 percentile that exhibits all the qualities are shown in this final list, as per attachment.

[funman168]

i like cafe de coral...been looking for gd entry price

The methodology used was extracting the past 10-year financial data and only companies trading within the top 20 percentile that exhibits all the qualities are shown in this final list, as per attachment.

[heifien91]

Would say the valuations for cafe de coral aren't great. I would go for Ajisen its more of a value stock than cafe de coral.

i like cafe de coral...been looking for gd entry price

The methodology used was extracting the past 10-year financial data and only companies trading within the top 20 percentile that exhibits all the qualities are shown in this final list, as per attachment.

[edragon]

From the list, I think the following is interesting but unsure of current valuation for an entry.

Vitasoy
Cafe de Coral (commented as above)
ANTA Sports
Want Want
China Mobile
TVB
Vtech
Sa Sa
Value Partners

[cherks]

Hi Heifien91,

Could you share on the basis for selecting the list of HK stocks?

Thanks

[heifien91]

Perhaps you could share why the following list? Personally, I believe you chose that list due to behavioural bias. It is a common mistake where investors picks companies that they have heard of to invest in. However, such a method may not necessarily mean you are picking undervalued companies. At times it is the most obscure name that is undervalued and would provide one with the best performance.

From the list, I think the following is interesting but unsure of current valuation for an entry.

Vitasoy
Cafe de Coral (commented as above)
ANTA Sports
Want Want
China Mobile
TVB
Vtech
Sa Sa
Value Partners

[heifien91]

Hi,

I do not really understand what you mean by basis for selecting the list? Essentially I ran a screening process through all the HK companies listed coming up with the 10-year ROA & ROC, FCF/Total Assets, Margin Growth and Margin Stability. Subsequently, only companies that scored in the top 20 percentile of each category makes it to this final list. You may read up more of this method in the research paper written by Wesley Gray.

Hi Heifien91,

Could you share on the basis for selecting the list of HK stocks?

Thanks

[secretinvestors]

Hi Heifien91, great job there regarding filtering out the top 20% quality companies in HK stocks. Appreciate your effort. I guess the next step is to source out which company is worth the purchase at current prices. Have you shortlisted any based on this quality list? Also, may I check which software or platform you've utilized?

[edragon]

Perhaps you could share why the following list? Personally, I believe you chose that list due to behavioural bias. It is a common mistake where investors picks companies that they have heard of to invest in. However, such a method may not necessarily mean you are picking undervalued companies. At times it is the most obscure name that is undervalued and would provide one with the best performance.

From the list, I think the following is interesting but unsure of current valuation for an entry.

Vitasoy
Cafe de Coral (commented as above)
ANTA Sports
Want Want
China Mobile
TVB
Vtech
Sa Sa
Value Partners

I suppose you are right.

What do you think about these Companies?

[heifien91]

You are welcome!

My partner and I have access to a Bloomberg Terminal and Reuters Eikon for the screening of financial data. We have yet to determine a list of companies but have invested in HK companies as seen from our portfolio tab on our site.

Hi Heifien91, great job there regarding filtering out the top 20% quality companies in HK stocks. Appreciate your effort. I guess the next step is to source out which company is worth the purchase at current prices. Have you shortlisted any based on this quality list? Also, may I check which software or platform you've utilized?