Shanghai stock alert

CHINA

CLOSING UPDATE: Inner Mongolia Yili Industrial - A Share accelerates rise, now up 6.6% in 2 days 18 October 2017 15:54 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).

Inner Mongolia Yili Industrial - A Share, Shanghai's largest agriculture/forestry company by market capitalisation, is up CNY1.82 (or 6.6%) over the past two trading days. After rising 0.7% on Tuesday, the stock rose 5.8% on Wednesday to trade at CNY29.54 vs. the SSE 180 Index that is up 0.7% in the same period.

Technical indicators complementing today's significant uptrend:

+ The positive 1.34 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The stock has outperformed 99% of the Shanghai market over the past 6 months.

+ In the last one month the stock has hit a new 52-week high nine times and in the last three months fifteen times, pointing to a significant uptrend.

+ The present value of CNY1,000 invested one year ago is CNY1,826 [vs CNY1,192 for the SSE 180 Index].

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

Undervaluation:

+ Price/Earnings of 29.5 [34.1]

+ Dividend yield of 2% [1.8%]

+ Return on Equity 24.5% [13.1%]

+ Return on Assets 14.4% [5.8%]

+ Return on Capital Employed 27.2% [12.5%]

Other Bullish Signals include:

+ Total Liabilities/EBITDA of 2.1 is comfortably below the Joseph Piotroski benchmark of <5.

+ Net profit margin has averaged 8.2% in the last 3 years. This is better than the sector average of 7.6% and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity is high at 24.5%. Also, this has improved from 23.2% last year.

Note

Bearish Signals:

Tobin's Q Ratio is 4.6. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

Overbought/Bearish:

The 0.2% discount to 12-month high of CNY29.61 against the 79.6% premium to 12-month low of CNY16.45 suggests the climb might be peaking.

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

Overvaluation:

Price/Sales of 3 [2.4]

Price to Book of 8.1 [4.8]

TODAY'S ALERT

Afternoon Alert: Inner Mongolia Yili Industrial - A Share lifts 3.2% on firm volume

18 October 2017 12:59 CST

Inner Mongolia Yili Industrial Group Co. - A Share (SS:600887) traded on heavy volume of 1.2 times average so far today while the price lifted 90.0 fen (or 3.2%) to trade at CNY28.81.

RECENT ALERTS

CLOSING UPDATE: Inner Mongolia Yili Industrial - A Share increases 0.4%

16 October 2017 15:54 CST

Inner Mongolia Yili Industrial - A Share, Shanghai's largest agriculture/forestry company by market capitalisation, traded on volume of 0.9 times average today while the price increased 11.0 fen (or 0.4%) to trade at CNY27.72. Compared with the SSE 180 Index which rose 41.8 points (or 0.5%) in the day, this represented a relative price change of -0.1%.

Morning Alert: Inner Mongolia Yili Industrial - A Share increases 1.2% - outperforming 97% of stocks

16 October 2017 10:44 CST

Inner Mongolia Yili Industrial Group Co. - A Share (SS:600887) has increased 32.0 fen (or 1.2%) today to trade at CNY27.93 and has outperformed 97% of the market in the past month. A price rise combined with a high relative strength is a bullish signal.

Inner Mongolia Yili Industrial Group Co. - A Share (SS:600887; SHA:600887; CH:600887)

ISIN: CNE000000JP5

PermID: 4295864263

Source: www.BuySellSignals.com