Thursday, January 05, 2023

Review of China Railway (0390.HK)

 I hold 400,000 shares of China Railway at an average cost of $3.67 HKD. The current price is $4.28, giving me a gain of $60,000 HKD.


The PE ratio is 3.15 times and the dividend yield is 5.57%. These indicators are attractive.

The forward PE ratio is 2.64 times. This suggest that the earnings for the current financial year will grow by 19%.

The stock trades in Hong Kong show a discount of 34% compared to the price in Shanghai.

Another positive factor, which will give a big boost to the stock is that the recent relaxation of covid restrictions in China will give a big boost to domestic travel within China. This will bring a big revenue boost to this stock.

All these factors are positive. I will buy an additional 200,000 shares.

Note - This is a personal opinion. I am not giving investment advice.

Tan Kin Lian
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