HK 第3部分; Dollars trading for Pennies
The Hong Kong stock exchange fosters a large number of absurdly cheap stocks, of profitable, dividend-paying companies. On January 12th, 2024, I started writing about some of them. Today part 3.
Introduction
The Hong Kong stock exchange fosters a sizable number of absurdly cheap stocks, of profitable, dividend-paying companies. In a series of write-ups, I will take you through my journey turning over the rocks / stocks / stonks. Below you find a summary of the write-ups thus far, with a link to the full posts.
Dollars trading for Pennies; On January 12th, 2024, I introduced two hands full of stocks of mostly profitable businesses trading below their combined net cash and financial assets value (FAV).
The most absurd value situation among them was Tianjin Development ($882.hk). It traded at only about 36% of its net cash position. If you include some of the investments in firms like Otis China (Yes, THAT Otis), and Tianjin Ports Development ($3382.hk), it traded at less than 20% of FAV. I think it was fair to say you could buy HK$ 1 for less than 20 cents. Traditional valuation multiples did not look half bad either, with a 3-4x P/E and c6% dividend yield.
HK stocks 第2部分; Anxian Yuan and Fu Shou Yuan introduces two new names, both operating in the Chinese death care industry.
