Shanghai stock alert

CHINA

CLOSING UPDATE: China Merchants Securities down 3.5% in 2 days 20 October 2017 15:56 CST

NEWS BITES - BRIC

This is an end of day Alert, produced after today's Shanghai market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

China Merchants Securities, Shanghai's 2nd largest diversified financial services company by market capitalisation, extended its slide on Friday, shedding an additional 25.0 fen (or 1.2%) to trade at CNY19.78. Trading volume was 61% of average at the end of the day. The shares have fallen 72.0 fen (or 3.5%) over the past two trading days vs. the SSE 180 Index which has fallen 0.2% in the same period.

Technical indicators complementing today's significant downtrend:

+ The price dropped 2.4% in the last week and decreased 1.9% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

+ Price to Book of 2.2 [2.0]

+ Dividend yield of 1% [1.3%]

Note

China Merchants Securities today is at a discount of 11.5% to the 12-month high of CNY22.35 on 09 Oct, 2017. It is at a premium of 28.4% to the 12-month low of CNY15.41 on 05 May, 2017.

Bullish Signals:

The positive 0.14 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

The stock has outperformed 91% of the Shanghai market over the past 6 months.

In the last three months the stock has hit a new 52-week high six times, pointing to an uptrend.

Tobin's Q Ratio is 0.5. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stock by value of Q Ratio.

Net profit margin has averaged 37% in the last 3 years. This is considered superior and suggests a high margin of safety.

As per the Du Pont analysis, Return on Equity of 9.1% is better than sector average of 7.1%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Price/Earnings of 19.8 [24.8]

Return on Equity 9.1% [7.1%]

Return on Assets 2.2% [1.9%]

TODAY'S ALERT

Afternoon Alert: China Merchants Securities down 3.5% in 2 days

20 October 2017 13:01 CST

China Merchants Securities Co. (SS:600999) extended its slide on Friday, shedding an additional 24.0 fen (or 1.2%) to trade at CNY19.79. Trading volume was 66% of average so far today. The shares have fallen 71.0 fen (or 3.5%) over the past two trading days vs. the SSE 180 Index which has fallen 0.2% in the same period.

RECENT ALERTS

CLOSING UPDATE: China Merchants Securities recovers 1.2% on high volume

19 October 2017 15:57 CST

China Merchants Securities, Shanghai's 2nd largest diversified financial services company by market capitalisation, traded on heavy volume of 1.9 times average today while the price dropped 47.0 fen (or 2.3%) to trade at CNY20.03. Compared with the SSE 180 Index which fell 25.8 points (or 0.3%) in the day, this represented a relative price change of -2.0%.

Afternoon Alert: China Merchants Securities drops 3.4% on strong volume

19 October 2017 13:01 CST

China Merchants Securities Co. (SS:600999) traded on heavy volume of 3.1 times average so far today while the price dropped 70.0 fen (or 3.4%) to trade at CNY19.80.

China Merchants Securities Co. (SS:600999; SHA:600999; CH:600999)

ISIN: CNE100000HK9

PermID: 5000004477

Source: www.BuySellSignals.com