Shanghai stock alert

CHINA

CLOSING UPDATE: China Merchants Bank - A Share increases 0.6% - outperforming 87% of stocks 19 January 2018 16:05 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, has increased 20.0 fen (or 0.6%) today to trade at CNY32.50 and has outperformed 87% of the market in the past week. A price rise combined with a high relative strength is a bullish signal. Compared with the SSE 180 Index which rose 44.1 points (or 0.5%) in the day, this represented a relative price increase of 0.1%.

Technical indicators complementing today's significant uptrend:

+ The positive 0.86 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The 2.5% discount to 12-month high of CNY33.35 against the 82.8% premium to 12-month low of CNY17.78 suggests the stock continues to push for new highs.

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

+ The price lifted 3.2% in the last week and soared 10.7% in the last month.

+ The present value of CNY1,000 invested one year ago is CNY1,876 [vs CNY1,259 for the SSE 180 Index].

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

Undervaluation:

+ Return on Equity 15.6% [12.9%]

+ Year-on-Year Earnings Growth of 7.4% [3.8%]

Other Bullish Signals include:

+ Tobin's Q Ratio is 0.1. Compared with the rest of the market the stock is undervalued and ranks in the top 1% of stock by value of Q Ratio.

+ 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 2.1% of the estimated Enterprise Value of CNY1,409.5 billion (US$220.3 billion).

+ As per the Du Pont analysis, Return on Equity of 15.6% is better than sector average of 12.9%.

Note

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

Overvaluation:

Price/Earnings of 9.6 [6.2]

Price/Earnings/Growth of 5.26 [1.6]

Price to Book of 2.1 [0.9]

Dividend yield of 2.3% [3.1%]

TODAY'S ALERTS

Afternoon Alert: China Merchants Bank - A Share lifts 2.3%, leads market higher

19 January 2018 13:08 CST

China Merchants Bank Co., Ltd - A Share (SS:600036) has lifted 2.3% to trade at CNY33.05 vs. the SSE 180 Index which strengthened 54.9 points (or 0.6%) to 9,263.3. Representing a weighting of about 3.5% of the index, the stock accounted for 13.5% of today's gain. The shares have outperformed 91% of the market in the past week. Trading volume was 1.1 times average so far today.

Morning Alert: China Merchants Bank - A Share increases 2.0%, leads market higher

19 January 2018 10:56 CST

China Merchants Bank Co., Ltd - A Share (SS:600036) has increased 2.0% to trade at CNY32.93 vs. the SSE 180 Index which strengthened 66.2 points (or 0.7%) to 9,274.6. Representing a weighting of about 3.5% of the index, the stock accounted for 9.5% of today's gain. The shares have outperformed 89% of the market in the past week. Trading volume was 1.3 times average so far today.

RECENT ALERTS

CLOSING UPDATE: China Merchants Bank - A Share increases 2.0% - outperforming 90% of stocks

18 January 2018 16:04 CST

China Merchants Bank - A Share, Shanghai's 4th largest bank by market capitalisation, has increased 62.0 fen (or 2.0%) today to trade at CNY32.30 and has outperformed 90% of the market in the past week. A price rise combined with a high relative strength is a bullish signal. Compared with the SSE 180 Index which rose 66.4 points (or 0.7%) in the day, this represented a relative price increase of 1.2%.

Afternoon Alert: China Merchants Bank - A Share lifts 2.1% on firm volume

18 January 2018 13:06 CST

China Merchants Bank Co., Ltd - A Share (SS:600036) traded on heavy volume of 1.1 times average so far today while the price lifted 66.0 fen (or 2.1%) to trade at CNY32.34.

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

ISIN: CNE000001B33

PermID: 5035725598

Source: www.BuySellSignals.com