Shanghai stock alert

CHINA

CLOSING UPDATE: Guangzhou Automobile - A Share keeps rising: up 2.8% in 3 days 22 May 2018 16:10 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).

Guangzhou Automobile - A Share, Shanghai's largest auto manufacturing company by market capitalisation, extended its gains on Tuesday, rising an additional 5.0 fen (or 0.3%) to trade at CNY18.79. Trading volume was 65% of average at the end of the day.

Technical indicators complementing today's significant uptrend:

+ The price increased 0.5% in the last week and jumped 7.7% in the last month.

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

Undervaluation:

+ Price/Earnings of 9.4 [12.9]

+ Dividend yield of 1.7% [1.4%]

+ Return on Equity 17.6% [13.6%]

+ Return on Assets 9% [6.4%]

+ Return on Capital Employed 14.5% [10.9%]

Other Bullish Signals include:

+ Total Liabilities/EBITDA of 4 is comfortably below the Joseph Piotroski benchmark of <5.

+ Tobin's Q Ratio is 1.1. Compared with the rest of the market the stock is undervalued.

+ Net profit margin has averaged 13.8% in the last 3 years. This is better than the sector average of 11.7% and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity of 17.6% is better than sector average of 13.6%.

Note

Guangzhou Automobile - A Share today is at a discount of 37.4% to the 12-month high of CNY30.01 on 27 Oct, 2017. It is at a premium of 10.5% to the 12-month low of CNY17.0 on 19 Apr, 2018.

Bearish Signals:

The negative 0.28 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

The stock has underperformed 88% of the Shanghai market over the past 6 months.

In the last three months the stock has hit a new 52-week low six times, pointing to a downtrend.

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

Overvaluation:

Price/Earnings/Growth of 0.22 [0.2]

Price to Book of 2.3 [2.0]

TODAY'S ALERTS

Afternoon Alert: Guangzhou Automobile - A Share keeps rising: up 2.7% in 3 days

22 May 2018 15:08 CST

Guangzhou Automobile Group Co., Ltd - A Share (SS:601238) extended its gains on Tuesday, rising an additional 3.0 fen (or 0.2%) to trade at CNY18.77. Trading volume was 1.4 times average so far today.

Morning Alert: Guangzhou Automobile - A Share keeps rising: up 3.1% in 3 days

22 May 2018 10:49 CST

Guangzhou Automobile Group Co., Ltd - A Share (SS:601238) extended its gains on Tuesday, rising an additional 11.0 fen (or 0.6%) to trade at CNY18.85. Trading volume was 1.2 times average so far today. The shares have risen 57.0 fen (or 3.1%) over the past three trading days vs. the SSE Composite Index which has risen 1.7% in the same period.

Guangzhou Automobile Group Co., Ltd - A Share (SS:601238; SHA:601238; CH:601238)

ISIN: CNE100001NQ2

Source: www.BuySellSignals.com