I hold 130,000 shares of Cosco Shipping Holdings at an average cost of $11.73 HKD. The current price is $7.84 giving me a loss of 33% ($87,000 SGD).
I cannot understand why the stock price is so low. At the current price, the PE ratio is 0.97 times and the dividend yield is 42%.
The forward PE ratio is 4.2 times. This suggest that the profit is likely to drop by 4 times. However, the financial figures showed that the earnings for 2022 is likely to be higher than 2021. This does not support the higher PE ratio.
The debt is 39% of equity, which is quite low.
The stock trades in Hong Kong at a discount of 33% from the price in Shanghai.
Overall, I find the fundamentals to be excellent. I cannot understand why the stock price dropped by 33% from my cost.
Note - I am giving an observation. I am not giving financial advice.
Tan Kin Lian
https://fisca.sg/ArticleDisplay.aspx?ID=1284
No comments:
Post a Comment