Shanghai stock alert

CHINA

CLOSING UPDATE: China Merchants Bank - A Share hits 52-week high seventh time in one month 25 July 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, hit a 52-week high of CNY26.24 today for the seventh time in the past one month and last traded at CNY25.50. Trading volume was 2.2 times average at the end of the day. Compared with the SSE 180 Index which fell 38.7 points (or 0.5%) in the day, this represented a relative price change of -0.2%.

Technical indicators complementing today's significant uptrend:

+ The positive 0.85 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The 2.8% discount to 12-month high of CNY26.24 against the 56.1% premium to 12-month low of CNY16.33 suggests the stock continues to push for new highs.

+ The stock has outperformed 97% of the Shanghai market over the past 6 months.

+ In the last one month the stock has hit a new 52-week high seven times and in the last three months sixteen times, pointing to a significant uptrend.

+ The price lifted 4.0% in the last week and soared 10.4% in the last month.

+ The present value of CNY1,000 invested one year ago is CNY1,592 [vs CNY1,171 for the SSE 180 Index].

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

Undervaluation:

+ Price/Earnings/Growth of 3.91 [6.3]

+ Return on Equity 15.6% [13.6%]

+ Year-on-Year Earnings Growth of 7.4% [0.8%]

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 2.7% of the estimated Enterprise Value of CNY1,140 billion (US$168.8 billion).

+ As per the Du Pont analysis, Return on Equity of 15.6% is better than sector average of 13.6%.

Note

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

Overvaluation:

Price/Earnings of 10.4 [5.1]

Price to Book of 1.4 [0.7]

Dividend yield of 2.9% [3.8%]

TODAY'S ALERTS

Afternoon Alert: China Merchants Bank - A Share hits 52-week high seventh time in one month

25 July 2017 13:01 CST

China Merchants Bank Co., Ltd - A Share (SS:600036) hit a 52-week high of CNY26.24 today for the seventh time in the past one month and last traded at CNY25.82. This brought its two-day rise to CNY1.07 or 4.3%. Trading volume was 1.8 times average so far today.

Morning Alert: China Merchants Bank - A Share up 5.1% in 2 days

25 July 2017 10:43 CST

China Merchants Bank Co., Ltd - A Share (SS:600036) extended its gains on Tuesday, rising an additional 33.0 fen (or 1.3%) to trade at CNY26.0. Trading volume was 2.0 times average so far today. The shares have risen CNY1.25 (or 5.1%) over the past two trading days vs. the SSE 180 Index which has risen 0.6% in the same period.

RECENT ALERTS

CLOSING UPDATE: China Merchants Bank - A Share lifted 3.7% on robust volume

24 July 2017 15:52 CST

China Merchants Bank - A Share, Shanghai's 4th largest bank by market capitalisation, traded on heavy volume of 1.8 times average today while the price lifted 92.0 fen (or 3.7%) to trade at CNY25.67. Compared with the SSE 180 Index which rose 28.1 points (or 0.3%) in the day, this represented a relative price increase of 3.4%.

Afternoon Alert: China Merchants Bank - A Share increases 1.4% - outperforming 82% of stocks

24 July 2017 13:00 CST

China Merchants Bank Co., Ltd - A Share (SS:600036) has increased 35.0 fen (or 1.4%) today to trade at CNY25.10 and has outperformed 82% of the market in the past month. A price rise combined with a high relative strength is a bullish signal.

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

ISIN: CNE000001B33

PermID: 5035725598

Source: www.BuySellSignals.com