Shanghai stock alert

CHINA

CLOSING UPDATE: CRRC - A Share hits 52-week low thirteenth time in one month 20 June 2018 16:06 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).

CRRC - A Share, Shanghai's largest industrial company by market capitalisation, hit a 52-week low of CNY7.79 earlier today for the 13th time in the past one month, but later rebounded higher to CNY7.86. Trading volume was 43% of average at the end of the day. Compared with the SSE Composite Index which rose 10.3 points (or 0.3%) in the day, this represented a relative price increase of 0.03%.

Technical indicators complementing today's significant downtrend:

+ The negative 0.35 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The stock has underperformed 81% of the Shanghai market over the past 6 months.

+ In the last one month the stock has hit a new 52-week low thirteen times and in the last three months eighteen times, pointing to a significant downtrend.

+ The price tumbled 9.4% in the last week and plummeted 19.3% in the last month.

Note

Bullish Signals:

Tobin's Q Ratio is 0.6. Compared with the rest of the market the stock is undervalued.

Net profit margin has averaged 6.1% in the last 3 years. This is better than the sector average of 4.5% and suggests a high margin of safety.

As per the Du Pont analysis, Return on Equity of 8.6% is better than sector average of 7.4%.

Oversold/Bullish:

The 0.9% premium to 12-month low of CNY7.79 against the 38.8% discount to high of CNY12.85 suggests the decline might be bottoming.

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

Undervaluation:

Price/Sales of 1.1 [1.3]

Price to Book of 2.2 [2.4]

Dividend yield of 2.7% [1.3%]

Return on Equity 8.6% [7.4%]

Return on Assets 3.5% [2.5%]

Return on Capital Employed 9% [7.7%]

TODAY'S ALERTS

Afternoon Alert: CRRC - A Share hits 52-week low thirteenth time in one month

20 June 2018 13:01 CST

CRRC Corporation Limited - A Share (SS:601766) hit a 52-week low of CNY7.79 earlier today for the 13th time in the past one month, but later rebounded higher to CNY7.83. Trading volume was 1.2 times average so far today.

Morning Alert: CRRC - A Share increases 0.4%, leads Industrial sector higher

20 June 2018 10:49 CST

CRRC Corporation Limited - A Share (SS:601766) has increased 0.4% to trade at CNY7.86 vs. the Industrial sector which strengthened 97.0 points (or 1%) to 9,507.2. Representing a weighting of about 34.5% of the sector, the stock accounted for 12.8% of today's gain. Trading volume was 1.5 times average so far today.

RECENT ALERTS

CLOSING UPDATE: CRRC - A Share tumbles 9.6%, led Industrial sector lower

19 June 2018 16:06 CST

CRRC - A Share, Shanghai's largest industrial company by market capitalisation, has tumbled 9.6% to trade at CNY7.83 vs. the Industrial sector which weakened 769.8 points (or 7.6%) to 9,410.2. Representing a weighting of about 34.7% of the sector, the stock accounted for 44.0% of today's loss. Trading volume was 89% of average at the end of the day. Compared with the SSE Composite Index which fell 116.5 points (or 3.9%) in the day, this represented a relative price change of -5.7%.

Afternoon Alert: CRRC - A Share sinks 5.4% on high volume

19 June 2018 13:00 CST

CRRC Corporation Limited - A Share (SS:601766) traded on heavy volume of 2.0 times average so far today while the price sank 47.0 fen (or 5.4%) to trade at CNY8.19.

CRRC Corporation Limited - A Share (SS:601766; SHA:601766; CH:601766)

ISIN: CNE100000CP9

PermID: 4298052521

Source: www.BuySellSignals.com