Hong Kong's Top 20% Quality Companies

[heifien91]

I believe valuations for China Mobile, TVB and Sa Sa looks attractive. However, I have not really looked deeper into these companies, especially China Mobile and TVB. These are not ordinary Graham-sort of companies. Telecommunications business structure is one that is more complex, while TVB I am not sure about their business structure. Sa Sa should be fine especially given how in general retail companies in HK are relatively cheap now.

That said, this is just based on numbers, further due diligence has to be done to look through the AR to identify if there are any potential red flags.

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?

[cherks]

Hi Heifien91,

Sorry for asking you that silly question of mine. And I thank you for your good nature & helpfulness trying to answer it. Of course, the answer is in your listing itself.

On a separate note, I would be quite interested to find out if we, all the valuebuddies here, could also benefit from your helpfulness to run the same test on the stocks listed on SGX?

I believe from the comparison of the top 20% stocks selected based on the same set of parameters, a value investor could perhaps get a glimpse of where, HKEX or SGX, lies greater opportunities for value-investors to build up a portfolio of better-value firms.

Somehow I have this nagging feeling that the quality (based on your quantitative measures/parameters used) of listings at HKEX is higher than that over here. Of course, even if this is true, it may not be a wise decision to invest in HKEX for a variety of reasons including exchange risk, custody fee, lack of better knowledge in the business environment of coys, etc.

Just a fancy thought, but hope you don't mind.

Thanks

[heifien91]

No worries. Actually I have ran the exact same screening process on Singapore before doing it for HK. You can find my original post here. I would say that there are much more quality companies that are in HK than in SG. However, we have to understand that SG has also much fewer listings than in HK, so based on proportions it may be the same but I did not bother verifying that.

With any investments overseas, there would be all the risks you mentioned. However, I could post similar questions such as just concentrating your portfolio in Singapore, what happens if Singapore goes into a war the next day? It would just mean a huge drop in portfolio value for you. Hence, I have never really been too bothered about currency risk, custodian fees etc. That said, Standard Chartered do not charge any custodian fees for investing in overseas stocks.

Hi Heifien91,

Sorry for asking you that silly question of mine. And I thank you for your good nature & helpfulness trying to answer it. Of course, the answer is in your listing itself.

On a separate note, I would be quite interested to find out if we, all the valuebuddies here, could also benefit from your helpfulness to run the same test on the stocks listed on SGX?

I believe from the comparison of the top 20% stocks selected based on the same set of parameters, a value investor could perhaps get a glimpse of where, HKEX or SGX, lies greater opportunities for value-investors to build up a portfolio of better-value firms.

Somehow I have this nagging feeling that the quality (based on your quantitative measures/parameters used) of listings at HKEX is higher than that over here. Of course, even if this is true, it may not be a wise decision to invest in HKEX for a variety of reasons including exchange risk, custody fee, lack of better knowledge in the business environment of coys, etc.

Just a fancy thought, but hope you don't mind.

Thanks

[BlueKelah]

If there is a war in sg, how would you access your standard chartered broker account to sell them shares in hk?? So if one is looking to have some overseas fund in hk, better to have brokerage and bank in hk as well ?

Wouldnt it be better to have some cold hard cash or gold stashed away for such emergencies? Probably usd or swiss francs?

Better yet get a permanent residency visa in another continent like aus, nz or canada, can always run there until war is over and gov will take care of you, no need for emergency funds.

via Galaxy Tab S with Tapatalk

[heifien91]

Haha I really meant it as that there is no need to worry about currency risk and what's not. Else there would be a whole load of other reasons like the one you cited to not invest.

If there is a war in sg, how would you access your standard chartered broker account to sell them shares in hk?? So if one is looking to have some overseas fund in hk, better to have brokerage and bank in hk as well ?

Wouldnt it be better to have some cold hard cash or gold stashed away for such emergencies? Probably usd or swiss francs?

Better yet get a permanent residency visa in another continent like aus, nz or canada, can always run there until war is over and gov will take care of you, no need for emergency funds.

via Galaxy Tab S with Tapatalk

[ckwok]

here are the HKongie penny stocks to avoid

http://skyapex.com/forum/financial-marke...-stocks#30

[fundamentalman]

CNOOC used to be good ... but it is a cyclical stock tied to oil price. with recent crash in oil price, this upstream oil company might need to write off some of its oil assets ...

the ROE won't be good too this year ...

[soros]

here are the HKongie penny stocks to avoid

http://skyapex.com/forum/financial-marke...-stocks#30

The list of  HK  penny stocks is out of date .

No. 136 Mascotte was  taken over last year  by Evergrandee and Tencent  thro'  issue of  90 Bil  and 32 Bil respectively  of new shares at $0.0061 .
The company was renamed "Hengten Networks"  and shares are currently priced at $0.365 with market cap at $ 26 Bil. 

No. 273 Willie has been renamed "Mason Financial" and has market cap  at $4.6 Bil.

No. 412 Heritage has been renamed "China Innovative Finance Group" with  29% main shareholder Hao Tian Management  and market cap at $18 Bil. 

No. 275 Hanny Holdings has gained a new controlling shareholder - 61%  Emperor Capital Group and  Hanny  is currently engaged in consolidation 10 shares  into 1 share and followed by rights issue  8 rights  for every one consolidated share  at $0.25 .