Shanghai stock alert

CHINA

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

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%.

Technical indicators complementing today's significant uptrend:

+ The positive 0.8 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The 2.5% discount to 12-month high of CNY33.11 against the 81.7% premium to 12-month low of CNY17.78 suggests the stock continues to push for new highs.

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

+ The price climbed 4.5% in the last week and soared 14.0% in the last month.

+ The present value of CNY1,000 invested one year ago is CNY1,858 [vs CNY1,250 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 CNY1,404.4 billion (US$218.2 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 9.5 [6.1]

Price/Earnings/Growth of 5.23 [1.6]

Price to Book of 2.1 [0.9]

Dividend yield of 2.3% [3.2%]

TODAY'S ALERTS

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.

Morning Alert: China Merchants Bank - A Share lifts 2.2%

18 January 2018 10:59 CST

China Merchants Bank Co., Ltd - A Share (SS:600036) traded on volume of 0.9 times average so far today while the price lifted 70.0 fen (or 2.2%) to trade at CNY32.38.

RECENT ALERTS

CLOSING UPDATE: China Merchants Bank - A Share hits 52-week high second time in one month

17 January 2018 16:01 CST

China Merchants Bank - A Share, Shanghai's 4th largest bank by market capitalisation, hit a 52-week high of CNY33.11 today for the second time in the past one month and last traded at CNY31.68. Trading volume was 2.1 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 -0.8%.

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

17 January 2018 11:02 CST

China Merchants Bank Co., Ltd - A Share (SS:600036) hit a 52-week high of CNY32.98 today for the second time in the past one month and last traded at CNY32.71. Trading volume was 1.8 times average so far today.

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

ISIN: CNE000001B33

PermID: 5035725598

Source: www.BuySellSignals.com