Shanghai stock alert

CHINA

CLOSING UPDATE: China Merchants Bank - A Share keeps rising: up 3.5% in 3 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).

China Merchants Bank - A Share, Shanghai's 4th largest bank by market capitalisation, extended its gains on Wednesday, rising an additional 9.0 fen (or 0.3%) to trade at CNY27.12. Trading volume was 95% of average at the end of the day. The shares have risen 92.0 fen (or 3.5%) over the past three trading days vs. the SSE 180 Index which has risen 0.9% in the same period.

Technical indicators complementing today's significant uptrend:

+ The positive 0.19 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The 3.0% discount to 12-month high of CNY27.96 against the 61.3% premium to 12-month low of CNY16.82 suggests the stock continues to push for new highs.

+ The stock has outperformed 98% 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.

+ The price climbed 4.1% in the last week and 5.3% in the last month.

+ The present value of CNY1,000 invested one year ago is CNY1,618 [vs CNY1,192 for the SSE 180 Index].

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

Undervaluation:

+ Return on Equity 15.6% [13.1%]

+ Year-on-Year Earnings Growth of 7.4% [1.9%]

Other Bullish Signals include:

+ Net profit margin has averaged 26% in the last 3 years. This is considered superior and suggests a high margin of safety.

+ The Brand Value represents 2.6% of the estimated Enterprise Value of CNY1,175 billion (US$177.4 billion).

+ As per the Du Pont analysis, Return on Equity of 15.6% is better than sector average of 13.1%.

Note

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

Overvaluation:

Price/Earnings of 8.8 [5.6]

Price/Earnings/Growth of 3.9 [3.0]

Price to Book of 1.5 [0.8]

Dividend yield of 2.7% [3.6%]

TODAY'S ALERT

Morning Alert: China Merchants Bank - A Share keeps rising: up 3.7% in 3 days

18 October 2017 10:42 CST

China Merchants Bank Co., Ltd - A Share (SS:600036) extended its gains on Wednesday, rising an additional 15.0 fen (or 0.6%) to trade at CNY27.18. Trading volume was 1.1 times average so far today. The shares have risen 98.0 fen (or 3.7%) over the past three trading days vs. the SSE 180 Index which has risen 0.3% in the same period.

RECENT ALERTS

CLOSING UPDATE: China Merchants Bank - A Share up 3.2% in 2 days

17 October 2017 15:56 CST

China Merchants Bank - A Share, Shanghai's 4th largest bank by market capitalisation, extended its gains on Tuesday, rising an additional 14.0 fen (or 0.5%) to trade at CNY27.03. Trading volume was 1.4 times average at the end of the day. The shares have risen 83.0 fen (or 3.2%) over the past two trading days vs. the SSE 180 Index which has risen 0.03% in the same period.

Afternoon Alert: China Merchants Bank - A Share up 3.8% in 2 days

17 October 2017 13:02 CST

China Merchants Bank Co., Ltd - A Share (SS:600036) extended its gains on Tuesday, rising an additional 30.0 fen (or 1.1%) to trade at CNY27.19. Trading volume was 84% of average so far today. The shares have risen 99.0 fen (or 3.8%) over the past two trading days vs. the SSE 180 Index which has risen 0.3% in the same period.

China Merchants Bank Co., Ltd - A Share (SS:600036; SHA:600036; CH:600036)

ISIN: CNE000001B33

PermID: 5035725598

Source: www.BuySellSignals.com