一百萬元基金倉

Friday, August 19, 2011

*BUY - Huscoke Resources (和嘉資源) 704.HK*

*BUY - Huscoke Resources (和嘉資源) 704.HK*

Huscoke Resources is a Mainland Chinese company that engages in coal washing
and trading (mid- to down-stream operations in the value chain).  It is
actively looking for opportunities to purchase coal mines (upstream assets),
which will transform the company into an integrated coal player.

Its stock closed at $0.222 this Friday (August 19, 2011), representing 7.9x
P/E based on 2010 EPS and 0.48x P/B based on 2011 BV.  The company will
announce first half 2011 results next Friday (August 26, 2011) and I expect
that results will be very good as the company has vastly expanded capacity
since the same period last year, and coking coal prices have, on average,
increased 6-8% in the past 6 months.  Overall, for 2011, I expect the
company will at least increase EPS by 50%.  If true, P/E based on 2011 EPS
will be less than 5.3x, vs. 9-11x for most comparable coal companies (which
have lower growth rates).  Stock price has fallen significantly in the past
year alongside weak market sentiments for SMEs generally and lack of
company-specific news.  But share price had huge rallies in the third
quarter of 2009 and 2010... and has so far been quiet in 2011.

No analyst cover this stock actively (there are two local securities firms
that have issued research reports on this company but their reports are
dated), which partially explains the shares being undervalued.  I believe
this stock should be worth $0.4 (almost double of this Friday's closing
price of $0.222).  Short-term catalysts include (a) strong first half 2011
earnings to be announced next Friday and (b) market rebound generally.
 Medium-term catalysts include (a) purchase of coal mines and (b) more
research analyst coverage.

Also note that Mr. Chim Pui Chung and China Construction Bank are current
shareholders/CB holders.

I strongly advise you to do your own research / adequate homework before
deciding whether to buy this stock.

- Blogmaster
 August 19, 2011

3 comments:

Anonymous said...

和嘉資源控股(00704)公布截至2011年6月底止6個月業績,期內股東應佔溢利減少48%至3637.1萬元,每股盈利0.61仙,不派中期息。

你今次大跌眼鏡了!!!!

Anonymous said...

一直都欣賞你的分析, 特別是SMALL TO MID CAP, 令人佩服

我一直都有追開你這個優質股發掘人的BLOG

同意一定要自己先做功課

我知道自己人微言輕, 但其望我自己一聲鼓勵, 可以給你原動力

David

在家工作 said...

如果您是:
+ 家庭主妇(夫),不便外工作者;
+失业无工作者;
+各行各业精英利用闲暇兼职者;
+退休赋闲在家者;
+学生兼职者;
如果你希望:
+能在家照顾孩子同时还可赚取额外收入
+能拥有2000~4000美金的收入
+能不影响目前收入而同时拥有安全的第二收入
+能随时选择放假,并决定假期的长短
+能在舒适的家里工作,并能自由选择工作时间
那请选择您想要的生活方式
http://goo.gl/jkJp4
P.s 抱歉..如有打扰,请删除.祝:幸福快乐