Shanghai stock alert

CHINA

CLOSING UPDATE: Kweichow Moutai - A Share increases further 1.6%, led Food/beverage/tobacco sector higher 21 September 2018 16:00 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 lifted 3.2% to trade at CNY700.01 vs. the Food/beverage/tobacco sector which strengthened 795.7 points (or 3%) to 27,495.4. Representing a weighting of about 76.6% of the sector, the stock accounted for 81.3% of today's gain. The shares have outperformed 96% of the market in the past week. Compared with the SSE Composite Index which rose 68.2 points (or 2.5%) in the day, this represented a relative price increase of 0.7%.

Technical indicators complementing today's significant uptrend:

+ The price jumped 8.9% in the last week and climbed 4.2% in the last month.

+ The present value of CNY1,000 invested one year ago is CNY1,444 [vs CNY833 for the SSE Composite Index].

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

Undervaluation:

+ Return on Equity 29.6% [18.8%]

+ Return on Assets 21.5% [12.4%]

+ Return on Capital Employed 40.3% [24.3%]

Other Bullish Signals include:

+ Total Liabilities/EBITDA of 1.1 is comfortably below the Joseph Piotroski benchmark of <5.

+ Net profit margin has averaged 47.1% 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 29.6%. Also, this has improved from 22.9% last year.

Note

Bearish Signals:

The negative 1.59 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

Tobin's Q Ratio is 6.5. Compared with the rest of the market the stock is overvalued and ranks in the bottom 3% of stocks by value of Q Ratio.

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

Overvaluation:

Price/Earnings/Growth of 1.84 [0.6]

Price to Book of 10 [7.4]

TODAY'S ALERTS

Afternoon Alert: Kweichow Moutai - A Share increases 1.5%, leads Food/beverage/tobacco sector higher

21 September 2018 13:02 CST

Kweichow Moutai Co., Ltd. - A Share (SS:600519) has increased 1.5% to trade at CNY688.88 vs. the Food/beverage/tobacco sector which strengthened 419.9 points (or 1.6%) to 27,119.5. Representing a weighting of about 76.4% of the sector, the stock accounted for 74.1% of today's gain. The shares have outperformed 95% of the market in the past week. Trading volume was 92% of average so far today.

Morning Alert: Kweichow Moutai - A Share increases 0.8%, leads Food/beverage/tobacco sector higher

21 September 2018 10:47 CST

Kweichow Moutai Co., Ltd. - A Share (SS:600519) has increased 0.8% to trade at CNY684.11 vs. the Food/beverage/tobacco sector which strengthened 203.7 points (or 0.8%) to 26,903.4. Representing a weighting of about 76.5% of the sector, the stock accounted for 82.4% of today's gain. The shares have outperformed 96% of the market in the past week. Trading volume was 86% of average so far today.

RECENT ALERTS

CLOSING UPDATE: Kweichow Moutai - A Share decreases 0.4%, led Food/beverage/tobacco sector lower

20 September 2018 16:01 CST

Kweichow Moutai - A Share, Shanghai's largest food/beverage/tobacco company by market capitalisation, has decreased 0.4% to trade at CNY678.55 vs. the Food/beverage/tobacco sector which weakened 117.7 points (or 0.4%) to 26,699.7. Representing a weighting of about 76.4% of the sector, the stock accounted for 73.2% of today's loss. Trading volume was 62% of average at the end of the day. Compared with the SSE Composite Index which fell 1.6 points (or 0.06%) in the day, this represented a relative price change of -0.4%.

Afternoon Alert: Kweichow Moutai - A Share keeps rising: up 8.4% in 6 days

20 September 2018 12:59 CST

Kweichow Moutai Co., Ltd. - A Share (SS:600519) extended its gains on Thursday, rising an additional CNY1.58 (or 0.2%) to trade at CNY683.0. Trading volume was 81% of average so far today. The shares have risen CNY53.0 (or 8.4%) over the past six trading days vs. the SSE Composite Index which has risen 2.7% in the same period.

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

ISIN: CNE0000018R8

PermID: 4295864072

Source: www.BuySellSignals.com