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Hong Kong STOCKS thread

 

HK-HSI ... All-data : 2-years : 6-mos / 10-days : vs-SHcomp

======

HSI-all_zpsrf1esn46.gif

 

List of Stocks examined:

 

Stk.Code : Post

HK- 0877 : #02 : Emperor Watch & Jewellery :

HK-2007 :

HK-2777 :

========

FTX chart (China A50) ... update : HK-2823 : CN-SHcomp

FTX_zpsm1t8yo6i.png

>Hk St : HSI : HSP : prices

(note: hks: 766, 809, 910, 1051, 3081, 8088... )

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(Although I like the chart, I decided not to buy this one.)

BECAUSE:

+ With price at 29 cents, and Book Value 8 cents, the P/BV was too high

+ New measures restricting visitors from China to once-a-week, may depress demand, as new Visa are restricted:

=========

 

Emperor Watch & Jewellery (HK:887)

 

Emperor W&J is an investment holding company and its subsidiaries are principally engaged in the sales of luxurious branded watches, and the design and sales of jewellery products in Hong Kong, Macau, the PRC and Singapore

 

Corp. Presentation (3/2015): http://www.emperorwatchjewellery.com/wpapi/wp-content/uploads/2012/08/887_PPT_30March2015.pdf

 

Emp. Watch & J ... update-all : 2-yrs : 6-mos : 3-mos : 10-d

HK-887_zpspsxhahlt.gif

 

3-mos : update : 10-days // http://www.emperorwatchjewellery.com/

HK-887-3mos_zpswpyfsa6z.gif

 

H : 0.34 : 0.28
L : 0.25 : 0.25
Ch : .09 : 0.03 / 33%

support : 0.035/ 38.9%

Last: 0.30
Market Cap.: HK$ 2.03 bn / 7.75 = US$270.7 Mn

Revenue---: HK$ 5.93 bn / 7.75 =
EBITDA---: HK$ 233 mn (prev. 415, 572)
Net Profit- : HK$ 138 mn (prev. 290, 404: 6.6cents)
P/E : 12.69 (EPS : 2.00 cents, Div. 0.60 cents)

Book Value Per Share (mrq): HK$0.08 : Price/Book (mrq): 3.69

"Maintained a strong cash debt-free position at 12/31/2014"

> http://www.emperorwatchjewellery.com/en/news_detail.php?news=6542

Shops, no.: 88 (prev.74) : HK, Singapore, Macau... China: Beijing. Shanghai, and 11 other mainland cities

Reported rent for:

+ 1 / 288 Hennessy Rd., Wanchai
1st yr.-: $660k /mo. /7.75 = HK$85,161 /mo.
2nd yr : $680k : +3.0%
3rd yr. : $700k : +2.9%

+ 2 / Grand Emperor hotel, Macau
Rent: HK$ 344,000. /mo. (incl. prop.tax, A/C, etc.) : /7.75= $44,387
Rent Free: 2 months (Apr., May) : 3 Years total
Effective Rent: HK$324,889.
Deposit: HK$1,032,000. = equiv. to 3mos rent

 

Emperor Watch and Jewellery is internationally acclaimed as a retailer of the world's most prestigious timepieces and a manufacturer of trendy, sophisticated jewellery.

A solid foundation for the firm was laid with Mr. Yeung Shing's founding of Shing On Kee Watch Shop in 1942. For over half a century since them, Emperor Watch and Jewellery has undertaken a determined pursuit of excellence. This commitment serves as a guarantee for the quality of products and services it offers.

 

aa_zpstdfhhg3z.gif

 

SISTER CO's:
HK:163 / Emperor International Holdings Limited (HK Stock Code: 163)
Engages in
1) properties investment with focus on premium retail spaces,
2) property development and
3) hospitality
HK:296 / Emperor Entertainment Hotel Limited (HK Stock Code: 296)
Operates the Grand Emperor Hotel in Macau with gaming facilities
HK:717 / Emperor Capital Group Limited (HK Stock Code: 717)
Runs a HK based financial institution providing a wide range of financial services
including
1) brokerage services,
2) wealth management with focus on Capital Investment Entrant Scheme customers,
3) securities financing, corporate loans and personal advance,
4) placing and underwriting,
5) corporate finance advisory services
HK:708 / New Media Group Holdings Limited (HK Stock Code: 708; TDR: 910708 )
Engages in the publication of weekly magazines and pocket books dist ributed in Hong Kong and the sales of
advertising spaces in the magazines
dragon-i & TAZMANIA BALLROOM
The ultimate dining & lounge experience in Asia. It is the place to see and be seen for Hong Kong’s chic, gorgeous,
cosmopolitan party crowd, as well as the first stop of classy, jet-setting international guests.

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My Neighbor suggested two Mainland property stocks:

 

HK-2007 / Country Garden Holdings Co. Ltd. (HKG)--- : All Data : 5-yrs / 3-yr : 1-yr : 10d

HK2007_zps8a75z4ys.gif

 

HK-2777 / Guangzhou R&F Properties Co. Ltd. (HKG) : All Data : 5-yrs / 3-yr : 1-yr : 10d

HK2777_zpsgcuvepcd.gif

=======

 

Chart images were added several days later, and showed good progress, especially 2007

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IS CHINA Too High ??

 

FTX chart (China A50) ... update : HK-2823 : CN-SHcomp

FTX_zpsm1t8yo6i.png

Craze is creating debt bubble of up to 1.7 Trillion yuan - PORFOLIO / HS Toh, in SCMP, pg. B2

Analysts express alarm at huge level of borrowings by mainland retail investors

SHcomp has doubled in the last 12 months... leverage has also risen in this "crazy rally"

Mainland Chinese retail investors also opened 5 million trading accts in March alone.

2/3rds of bew investors did not complete high school.

A-share mar

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Hidden No More :

China Has a Massive Debt Problem

 

China has a $28 trillion problem.
That’s the country’s total government, corporate and household debt load as of mid-2014, according to McKinsey & Co.

It’s equal to 282 percent of the country’s total annual economic output.

President Xi Jinping’s government aims to wind down that burden to more manageable levels by recapitalizing banks, overhauling local finances and removing implicit guarantees for corporate borrowing that once helped struggling companies.

. . .

Two Goals

“There’s obviously a contradiction between attempts to deleverage the economy and attempts to boost growth,” said Dariusz Kowalczyk, a senior economist at Credit Agricole SA in Hong Kong who’s covered emerging Asia for a decade and used to work at the Chicago Mercantile Exchange. “There’s a trade-off. China will focus on deleveraging as long as growth meets its target but if growth slows excessively then they will refocus.”

On April 17, securities regulators clamped down on margin lending that has helped fuel epic stock market rallies in Shenzhen and Shanghai over the last year.

Three days later, officials unleashed about 1.2 trillion yuan ($194 billion) into the economy -- and stock markets -- by cutting the level of deposits that banks need to hold in reserve with the central bank. For large lenders, the reserve requirement was lowered a full percentage point, to 18.5 percent, the PBOC’s most aggressive such step since 2008.

In a separate move, the People’s Bank of China injected a combined $62 billion worth of capital into two state-owned lenders that are referred to as policy banks, as they carry out government objectives, a Caixin magazine report showed.

Roll Over

Also in recent weeks, China’s Premier Li Keqiang has urged banks to support economic growth and roll over loans when needed to key borrowers.

That call didn’t apply to Baoding Tianwei, which suffered losses last year amid a glut of investment in the solar-energy industry. Nor to Kaisa Group Holdings Ltd., which on Monday became the first Chinese property developer to default on dollar debt.

Kaisa’s delinquency on $1 billion of bonds served as a reminder of the risks for overseas investors -- Chinese companies have $275 billion in dollar-denominated bonds outstanding, according to data compiled by Bloomberg. China’s property developers alone have tapped international bond and equity markets to the tune of almost $79 billion.

==

> http://www.bloomberg.com/news/articles/2015-04-22/china-debt-mess-brings-out-the-yin-and-yang-in-policy-makers

(Meantime... there's TROUBLE in China's economy):

China Manufacturing Gauge Drops to Lowest Level in 12 Months
Bloomberg-1 hour ago
... fell to a 12-month low in April, suggesting government efforts to cushion a ... slide, cutting banks' reserve requirements by 1 percentage point this week.
... Chase & Co. in Hong Kong, wrote in a note before the PMI reading.

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Two to Watch? For their "acoustical" qualities?

 

Fujikon was a stock once owned by David Webb ... but I have not researched it yet

 

HK-927 / Fujikon Industrial Holdings ... : All-data : update-5-yrs : 12mos : 6mos : 10d : BUY at $1.45/46 ?

hk-927_zpskn94v1fw.gif

Corporate Profile

Fujikon, a sound company founded in 1982, was listed on the Main Board of The Stock Exchange of Hong Kong Limited since the year 2000. The Group is mainly engaged in the design, manufacturing and sale of a wide range of electro-acoustic products, including headphones, earphones, headsets, microphones, speakers, sub-woofer systems and wireless products. All products are sold on an ODM or OEM basis to renowned global customers.

The Group has won the "Business Superbrands Hong Kong" in 2006. Fujikon has also granted "Innovation Knowledge Enterprise Award" jointly organised by the Hong Kong Productivity Council and the Guangdong Provincial Intellectual Property Office in April 2005 and the "Enterprise Award" of the DHL/SCMP Hong Kong Business Awards in 2002, which demonstrated its excellence in management and business development. In terms of products, the Group has received the HKEIA Award for Outstanding Innovation and Technology Products: "Silver Awards" in 2002 and 2003, "Gold Award" in 2004 and 2007, "Bronze Award" in 2008, "Grand Award" and "Gold Award" in 2013.

HK:0927 / Fujikon Industrial Holdings Ltd. (HKG) : 2014-PDF

=======

Operating results ------------- : 2014 : 2013 ------ Yr ends March 31st

Gross margin (%) ------------- :17.1% 20.3% -3.2%pts

Operating profit margin----- : 5.1% 8.7% -3.6%pts

Net profit margin (%) --------- : 4.1% 7.1% -3.0%pts

Return on equity holders(%): 7.8% 14.3% -6.5%pts

Financial position

Total assets (HK$'000) ------ : 1,152,835 1,193,025 -3.4%

Cash and bank deposits----- : 468,852 453,432 3.4%

Bank borrowings (HK$'000) : – 42,138 -100%

Shareholders equity---------- : 803,630 800,013 0.5%

Shares Outstanding-mn's---- : 419.8 mn

Book Value per share -------- : hk$1.91

Cash (& deposits) per share-- : hk$1.12

HKex News : http://www.hkex.com.hk/eng/csm/news.asp?LangCode=en&mkt=hk&StockCode=927

Profit Warning - dated 2 Feb. 2015

(same industry?)

HK-2728 / Shinhint Acoustical ... all-data : 5-yrs : 1-yr : 10d

HK2728_zpsqm7acpsg.gif

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Another Sign of a tougher market for Jewellery Retailers?

 

Emperor Watch & Jewellery (0887) has withdrawn from its lease at a 2,500-sq-ft site on Russell Street, Causeway Bay,

ahead of its expiry at the end of 2017.

==

> http://www.thestandard.com.hk/news_detail.asp?we_cat=2&art_id=156506&sid=44348547&con_type=1&d_str=20150428&fc=1

=== ===

+ Chow Tai Fook : http://ChowTaiFook.com
4yrs-Chart : HK-1929 : Chow Tai Fook Jewellery Group Ltd.

HK-1929_zpsxdueish7.gif

 

+ Chow Sang Sang : http://ChowSangSang.com
4yrs-Chart : HK-0116 : Chow Sang Sang Holdings International Ltd.

HK-116_zpsqgxuroce.gif

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Fujikon / 927 may have been hurt by the rising USD

 

Fuji-927-DXY_zpsciy95hec.gif

 

Now that the USD is falling, might it be helped? ... update

 

Fuji-927-etc_zpszxvf2czt.gif

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Another "neighbor's recommendation"

 

HK-826 / Tiangong International Co. Ltd. (HKG) ... update

HK-826_zpsmn8nomef.gif

 

This one is "a steel company"

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Just for Fun - worth more dead that alive ?

 

HK-55 : Neway Group Holdings

Shs OS-12/2014 (1,468mn) x Price (HK$0.18) = HK$ 264 million

 

> http://newaygroup.todayir.com/attachment/2015042816320100032186205_en.pdf

.

HK-55 ... update : 6-mos / 10-d

hk55_zpsnze4wevn.gif

.

Business Line:

Manufacturing and Sales: 366,794,179 : 571,487,872 (73,340,317) 1,195,301

Trading--------------------- : $27,074,028 : $29,233,588 1,250,773 1,584,409

Music and entertainment: $25,332,180 : $12,547,845 (2,272,985) 88,617

Property business 物業業務 7,655 – 2,765,524 577,772

Securities trading 證券買賣 – – 2,103,290 (2,431,714)

Lending business 放貸業務 305,569 – (549,941) –

Total 總計 419,513,611 613,269,305 (70,043,656) 1,014,385

Interest income 利息收入 1,868,394 2,041,816

Unallocated corporate expenses 未分配企業支出 (11,960,448) (16,780,560)

 

/ HK-3800 /

 

Announcement

INVESTMENT CO-OPERATION AGREEMENT The Board is pleased to announce that on 8 May 2015, Zhongxing Guoying (indirectly held by the company) entered into the Investment Co-operation Agreement with the Co-presenter pursuant to which Zhongxing Guoying agreed to invest the Amount of Investment (i.e. RMB6.3 million) in a film. The Amount of Investment will be funded by the internal resources of the Group. * For identification purpose only 2 Pursuant to the Investment Co-operation Agreement: (1) the total amount of investment in the film, inclusive of distribution and promotion costs, will be RMB70 million. The Co-presenter shall be responsible for raising 91% of the total amount of investment (i.e. RMB63.7 million) and Zhongxing Guoying shall contribute 9% of the total amount of investment (i.e. RMB6.3 million);

> http://newaygroup.todayir.com/attachment/2015050812320100002199500_en.pdf

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EMPEROR (HK:887) Scales back with fall in Sales - Standard, pg. 9

 

Recorded a drop in sales in Q1... with same store sales lower.

But they are expecting a gain in Q4, year-on-year for those stores hit by Occupy protests

 

Of 24 outlets, eight will see leases expire this year... One or two will be given up.

 

Expansion continues on the mainland and in Singapore

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HONG KONG SHELLS : Crazy Prices?

 

Jaw-dropping share price fluctuations that cost a fortune - Shirley Yam, SCMP

 

+ Entrepreneur from the mainland has listed his business in Hong Kong, and

"only wants a multi-billion dollar company so he can borrow from mainland banks"

 

+ "To push up the price, he has to corner his shares in the market"

It used to be done in secret, but now in broad daylight, with help from "hordes of investors"

 

Mainland co's screening proposals (for listing vehicles) might be looking on 8 -10 proposals, with

"each asking for US$30 to 50 million", these deals may contain:

 

+ A buyback agreement, where a fund will buy a stake in a mainland co., and the company's owners

will have to buy it back in 12 months, with a guaranteed return of 20 percent, thru convertible bonds

 

+ The fund doing the deal, will finance it thru mainland banks, and the fund may benefit by being

able to borrow more, if the share price has been pushed higher

 

There are dozens of funds playing this game, and many co's now have 99% of their stock in the hands

of just 10 or less investors (ie they are available "shells")

 

Once trading at high levels, these are called "fairy stocks". And their share prices can be vulnerable,

if/when the game unravels

 

Why do banks support this game?

As Ms Yam writes: mainland banks may believe the big HK market caps and have "a different definition of risk",

and the company may be well-promoted to the banks. And the banks may not see what the game really is

until after the share price falls back. Meantime, the entrepreneur scrambles to keep the game going

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