Shanghai stock alert

CHINA

CLOSING UPDATE: Kweichow Moutai - A Share decreases gains by 1.2%, led Food/beverage/tobacco sector higher 18 January 2018 16:04 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 increased 0.4% to trade at CNY751.02 vs. the Food/beverage/tobacco sector which strengthened 146.1 points (or 0.5%) to 30,496.2. Representing a weighting of about 74.1% of the sector, the stock accounted for 68.3% of today's gain. The shares have outperformed 91% of the market in the past month. Trading volume was 1.6 times average at the end of the day. Compared with the SSE 180 Index which rose 66.4 points (or 0.7%) in the day, this represented a relative price change of -0.3%.

Technical indicators complementing today's significant uptrend:

+ The positive 28.23 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

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

+ The present value of CNY1,000 invested one year ago is CNY2,179 [vs CNY1,250 for the SSE 180 Index].

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

Undervaluation:

+ Return on Equity 22.9% [15.2%]

+ Return on Assets 15.9% [9.7%]

+ Return on Capital Employed 31.6% [20.1%]

Other Bullish Signals include:

+ 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%.

Note

Kweichow Moutai - A Share today is at a discount of 6.0% to the 12-month high of CNY799.06 on 15 Jan, 2018. It is at a premium of 123.4% to the 12-month low of CNY336.22 on 26 Jan, 2017.

Bearish Signals:

The price dropped 3.1% in the last week.

Tobin's Q Ratio is 8.4. Compared with the rest of the market the stock is overvalued and ranks in the bottom 5% of stocks by value of Q Ratio.

TODAY'S ALERT

Morning Alert: Kweichow Moutai - A Share increases 1.7%, leads Food/beverage/tobacco sector higher

18 January 2018 10:59 CST

Kweichow Moutai Co., Ltd. - A Share (SS:600519) has increased 1.7% to trade at CNY760.23 vs. the Food/beverage/tobacco sector which strengthened 460.0 points (or 1.5%) to 30,810.1. Representing a weighting of about 74.2% of the sector, the stock accounted for 81.7% of today's gain. The shares have outperformed 92% of the market in the past month. Trading volume was 1.1 times average so far today.

RECENT ALERTS

CLOSING UPDATE: Kweichow Moutai - A Share drops 3.3%, led Food/beverage/tobacco sector lower

17 January 2018 16:01 CST

Kweichow Moutai - A Share, Shanghai's largest food/beverage/tobacco company by market capitalisation, has dropped 3.3% to trade at CNY747.71 vs. the Food/beverage/tobacco sector which weakened 871.4 points (or 2.8%) to 30,350.2. Representing a weighting of about 74.1% of the sector, the stock accounted for 88.5% of today's loss. The shares have underperformed 82% of the market in the past week. Trading volume was 2.4 times average at the end of the day. Compared with the SSE 180 Index which rose 14.9 points (or 0.2%) in the day, this represented a relative price change of -3.5%.

Afternoon Alert: Kweichow Moutai - A Share drops 2.8%, leads market lower

17 January 2018 13:08 CST

Kweichow Moutai Co., Ltd. - A Share (SS:600519) has dropped 2.8% to trade at CNY752.16 vs. the SSE 180 Index which weakened 10.1 points (or 0.1%) to 9,117.0. Representing a weighting of about 4.0% of the index, the stock accounted for the loss. Trading volume was 1.6 times average so far today.

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

ISIN: CNE0000018R8

PermID: 4295864072

Source: www.BuySellSignals.com