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Tencent – Dishing Out Another Special Dividend This Quarter

Tencent – Dishing Out Another Special Dividend This Quarter

I wanted to quickly run through my thoughts on the Tencent latest Q3 earnings announced yesterday.

This post was originally posted here. The writer, Brian Halim is a veteran community member and blogger on InvestingNote, with a username known as @3Fs and has close to 2500 followers.

First up, operating metrics – monthly active users (MAU) is still up year on year and quarter on quarter for both Weixin + Wechat as well as Mobile QQ but as you can see, they are approaching the matured 1.3b numbers so inevitably growth is slowing down on this front.

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Patience Is Required For Alibaba And JD.com (guestpost)

Patience Is Required For Alibaba And JD.com (guestpost)

This post was originally posted here. The writer, Brian Halim is a veteran community member and blogger on InvestingNote, with a username known as @3Fs and has 2,000+ followers.

I thought I’ll pen down my thoughts after receiving a number of emails this week from various sources asking for guidance on two big China cap names – Alibaba and JD.com – both of which have seen shares plummeting each day for the past few consecutive weeks.

Many readers would also know that I own Alibaba shares from my last monthly update and have also recently written a piece on JD analysis so it’s something which I’ll walk the talk.

Alibaba Group Holding Ltd (NYSE: Baba)

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Let’s start with Baba first.

This is probably the most hated large cap company right now in the entire planet.

The entire saga started when the intention to list Ant IPO was shelved and the State Administration for Market Regulators went to investigate the entire company’s holding structure.

Since then, the State of Administration has concluded by fining the company US$2.8billion – which the company chose to take in the Q4 FY2021 report announced last night.

The entire saga has shed the company 37% (more than 1/3) of its market cap from the peak – which in my opinion is a bit overdone. The RSI indicator confirmed the same by showing that the counter is currently in oversold territory.

If we look at the results announced yesterday, total revenue for the quarter was RMB 717 billion, an increase of 41% year on year.

The growth was driven by robust revenue growth of the China commerce retail business (Taobao, Tmall) and the continued growth of its cloud computing business.

Total adjusted EBITDA was RMB 170 billion, which is an increase of 24% year on year. There was the one-off adjustment from the anti-monopoly fine which was taken in the quarter, so it pushed the net comprehensive income for the quarter to negative loss territory.

Cash position remains solid at RMB 479 million with free cash flow coming in strongly at 32% to RMB 173 million.

During the conference call held yesterday, management has reiterated its intention to continue investing in R&D and also new seed of businesses such as Taobao Deals (which aims for the lowest of the market segment tiers), Taobao Grocery, Freshippo supermarket (which is the community marketplace business) and new features on the core platform such as Taobao Live and short-form video. The company is also enhancing its logistics arms, CaiNiao to give its competitors such as JD a good run for their money.

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Investing in the Lion-OCBC Securities Hang Seng Tech ETF (guest post)

Investing in the Lion-OCBC Securities Hang Seng Tech ETF (guest post)

The COVID-19 pandemic has significantly disrupted both working practices and life in general and many of us have been adjusting to this new working world and lifestyle. We have gotten used to working from home for extended periods of time and are now relying on digital ways to complete our daily errands and tasks.

Traditional businesses were impacted as well and many companies took this opportunity to pivot their operations and automate processes as strategies were redefined to meet the increasing need for a digital transformation.

Many of the technology companies that we were familiar with come from the United States, particularly Silicon Valley in the past twenty years. However, in recent years, the Chinese have also increased their technological research and absorption and have strengthened their digital presence globally.

This post was originally posted here. The writer, Brian Halim is a veteran community member and blogger on InvestingNote, with a username known as @3Fs and has 2261 followers.

 

How Hang Seng TECH Index Companies Performed During COVID-19

Alibaba, Tencent, Xiaomi, Lenovo, and JD.com… are some of the Chinese technology companies that have become very popular and are tracked by the Hang Seng TECH Index.

The Hang Seng Tech Index which represents the 30 largest technology companies by market capitalization listed on the Hong Kong Stock Exchange was launched on the 27th July 2020.

Since its inception till 25 November 2020, the Hang Seng TECH Index has gained nearly 20%, outperforming Hang Seng Index, NASDAQ, and Straits Times Index during the same period.

How Investors Can Invest In Tech Companies Listed on the HKEX

For those who are attracted by the growth in the technology sector, how can they get a piece of the pie?

An investor could attempt to build their own portfolio of technology companies by purchasing multiple stocks, for instance, Alibaba Group Holding Ltd (HKG: 9988), JD.com… Inc (HKG: 9618), and Meituan Dianping (HKG: 3690). …

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Is China Railway Construction (01186.HK) a Bargain Buy, or a Value trap? (Guest Post)

Is China Railway Construction (01186.HK) a Bargain Buy, or a Value trap? (Guest Post)

China Railway Construction (“CRCC”) recently caught my attention as it has tumbled approximately 44% from an intraday high of $9.99 on 5 Mar 2020 to close HKD5.64 on 21 Sep 2020.

Is this a bargain buy, or a value trap? Let’s take a look.

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This post was originally posted here. The writer, Ernest Lim is a veteran community member and blogger on InvestingNote, with a username known as el15 and has 456  followers.

First up, a description of CRCC

Quoting from its 1HFY20 results, CRCC’s businesses cover a variety of construction, survey, design and consultation, manufacturing, real estate development, logistics and materials trading and other business with a refined industry chain covering scientific research, planning, survey, design, construction, supervision and management, maintenance, operation, investment and financing, etc.

Six reasons why CRCC catches my attention

1) 21 analysts cover CRCC with all buy calls; the average target price HKD12.00

Based on Figure 1 below, CRCC is widely covered by 21 analysts. It is noteworthy that all 21 analysts give a buy call on CRCC with an average target price of HKD12.00. This represents a potential capital appreciation of approximately 113%. The estimated dividend yield is around 5.0% hence the total potential upside may amount to 118%!

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Special Market Report 2020

Special Market Report 2020

What’s next for the stock market in 3-6 months? [Special Report]

With several countries around the world in lockdowns in combined efforts to contain the COVID-19 virus, businesses from virtually all industries are affected.

However, the last few weeks, investors have been seeing a rebound and some countries like Germany and China are easing their lockdowns.

Meanwhile, in Singapore, we see daily surges in virus cases.

Are we in a recovery phase or is bad going to be worse?

Here’s a special report created by the team behind Traders Dashboard.

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Although this report was originally published in February, it details the long-term implications of China’s policy changes on Singapore’s market during this critical coronavirus situation.

Get the Report here.

InvestingNote is the first and largest social network for investors in Singapore. Find out more about us here.

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Also, join our telegram channel here: t.me/investingnoteofficial

We’re here to keep you in touch with the latest investing & stock-related news, happenings and updates!

 

US And China Trade War Escalates. What Are The Implications?

US And China Trade War Escalates. What Are The Implications?

What is the Situation?

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On Friday, 23rd August, Trump said in a tweet that U.S. companies “are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA. ” It was not immediately clear under what authority or how the president could implement such orders. On the same day, China announced plans to impose additional duties on $75 billion worth of American goods on Sept. 1 and Dec. 15. In response, U.S President Donald Trump tweeted later that day his administration would also raise tariffs on $550 billion of Chinese imports. The latest round of tariff announcements in the last few days means that by the end of the year, essentially all Chinese goods exported to the U.S. will be subject to duties based on sources from CNBC.

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Trump Plans To Impose Tariff From 10% To 25%, What Will Happen To Singapore Market?

Trump Plans To Impose Tariff From 10% To 25%, What Will Happen To Singapore Market?

Why 25% instead of 10%? That’s twice of the initial tariff level!

On July 10 2018, Trump seeked to impose 10% on thousands of Chinese imports. While the tariffs would not be imposed until after a period of public comment, the proposed level was then raised to 25% by Trump – this could escalate the trade dispute between the world’s two biggest economies.

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Economically speaking, we know that by raising its tariff to a higher level simply serves as a motivation to motivate domestic producers to increase production of their output. This results in higher consumer prices, higher producer revenues and profits, and higher government revenues which make tariffs a way to make transaction from consumers to government treasuries effectively.

However, having tariffs begets strong consequences: 1) Cost of production for American companies increases 2) China will retaliate in response.

There are some opinions on the real motive behind imposing tariffs on China – it is more than just attempting to save its own country. …

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Trade Tariffs Hit Asian and US Stock Markets Badly

Trade Tariffs Hit Asian and US Stock Markets Badly

But first, what are trade tariffs?

A tariff is basically a tax paid on imports and exports of goods and services.

An imposing tax on an imported product would cause its price to increase, which results in a decrease in demand for imported goods. In relation, the price of local products becomes lower to the consumer.

The US Total Imports vs Dutiable Imports from 1821 to 2016 can be seen below:

The current US deficit as of 2017 is $500 billion. The US imports from China about four times as much as it sells to that country in goods as services, leaving Washington more room than Beijing to tax a greater share of bilateral trade. The U.S. trade deficit with China was $375 billion in 2017. The trade deficit exists because U.S. exports to China were only $130 billion while imports from China were $506 billion. The United States imports consumer electronics, clothing, and machinery from China. A lot of the imports are from U.S. manufacturers that send raw materials to China for low-cost assembly. Once shipped back to the United States, they are considered imports. …

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Citic Envirotech(CEE) – Green and Win

Citic Envirotech(CEE) – Green and Win

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This column is jointly written by @gordon_ong and @devinnath as part of the #analystsondemand series.

-Gordon has a demonstrable interest in equity investments, financial markets, and negotiating deals. As @NTUInvestmentClub president, he has an understanding of what factors drive an organisation’s success.
-Devin is a trader and investor who balances FA and TA in his investment decisions. He believes in using news and FA to spot the right stocks and rely on TA to give him the lowest risk-to-reward ratio possible.

Brief Background

CITIC Envirotech Ltd (“CEL”, “Group”) is a leading membrane-based integrated environmental solutions provider which specialises in water and wastewater treatment, water supply and recycling. It also provides solutions in sludge and hazardous waste treatment as well as river restoration. CEL undertakes both turnkey and investment projects as well as provides plant operation and maintenance services in water and environmental projects.

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