Shanghai stock alert

CHINA

CLOSING UPDATE: Kweichow Moutai - A Share increases losses by 0.01%, led Food/beverage/tobacco sector lower 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).

Kweichow Moutai - A Share, Shanghai's largest food/beverage/tobacco company by market capitalisation, has decreased 1.4% to trade at CNY574.60 vs. the Food/beverage/tobacco sector which weakened 207.5 points (or 0.8%) to 24,474.3. Representing a weighting of about 70.6% of the sector, the stock accounted for the loss. Compared with the SSE 180 Index which fell 18.4 points (or 0.2%) in the day, this represented a relative price change of -1.2%.

Technical indicators complementing today's significant downtrend:

+ The 1.8% discount to 12-month high of CNY585.15 against the 92.8% premium to 12-month low of CNY298.09 suggests the climb might be peaking.

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

Overvaluation:

+ Price to Book of 10.4 [8.3]

+ Year-on-Year Earnings Growth of 5.3% [19.2%]

Bearish Signals:

+ Tobin's Q Ratio is 6.4. Compared with the rest of the market the stock is overvalued and ranks in the bottom 8% of stocks by value of Q Ratio.

Note

Bullish Signals:

The positive 20.95 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

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

The price lifted 3.3% in the last week and soared 15.8% in the last month.

The present value of CNY1,000 invested one year ago is CNY1,938 [vs CNY1,190 for the SSE 180 Index].

Total Liabilities/EBITDA of 1.6 is comfortably below the Joseph Piotroski benchmark of <5.

Net profit margin has averaged 48.1% 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 is high at 22.9%.

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

Undervaluation:

Dividend yield of 1.2% [1.0%]

Return on Equity 22.9% [15.6%]

Return on Assets 15.9% [9.2%]

Return on Capital Employed 31.6% [20.1%]

TODAY'S ALERT

Afternoon Alert: Kweichow Moutai - A Share decreases 1.4%, leads Food/beverage/tobacco sector lower

20 October 2017 13:01 CST

Kweichow Moutai Co., Ltd. - A Share (SS:600519) has decreased 1.4% to trade at CNY574.52 vs. the Food/beverage/tobacco sector which weakened 247.9 points (or 1%) to 24,433.9. Representing a weighting of about 70.7% of the sector, the stock accounted for 98.1% of today's loss. Trading volume was 1.3 times average so far today.

RECENT ALERTS

CLOSING UPDATE: Kweichow Moutai - A Share hits 52-week high twelfth time in one month

19 October 2017 15:57 CST

Kweichow Moutai - A Share, Shanghai's largest food/beverage/tobacco company by market capitalisation, hit a 52-week high of CNY585.15 today for the 12th time in the past one month and last traded at CNY582.60. This brought its two-day rise to CNY25.92 or 4.7%. Trading volume was 1.3 times average at the end of the day. Compared with the SSE 180 Index which fell 25.8 points (or 0.3%) in the day, this represented a relative price increase of 4.2%.

Afternoon Alert: Kweichow Moutai - A Share up 3.1% in 2 days

19 October 2017 13:01 CST

Kweichow Moutai Co., Ltd. - A Share (SS:600519) extended its gains on Thursday, rising an additional CNY13.01 (or 2.3%) to trade at CNY574.01. Trading volume was 1.9 times average so far today. The shares have risen CNY17.33 (or 3.1%) over the past two trading days vs. the SSE 180 Index which has risen 0.5% in the same period.

Kweichow Moutai Co., Ltd. - A Share (SS:600519; SHA:600519; CH:600519)

ISIN: CNE0000018R8

PermID: 4295864072

Source: www.BuySellSignals.com