Beijing Development (HK) 0154

Beijing Development (HK) 0154

Postby winston » Thu Oct 22, 2009 8:38 am

Smart buy on the cards from Dr. Check, The Standard HK:-

One stock that lost HK$400 million in market valuation last year is worth a fresh appraisal.

Beijing Development (Hong Kong) (0154) provides smart-card systems in the capital. Its biggest shareholder is Beijing Enterprises (0392), the business arm of the municipal government.

Beijing Development has issued more than 25 million cards, through which around 14 million transactions are conducted daily on public transport and in hotels and convenience stores.

The capital's finance bureau provided Beijing Municipal Administration & Communications Card, a Beijing Development unit, with a 100 million yuan (HK$113.5 million) subsidy for card settlement handling charges. But because BMAC has yet to conclude a profit- sharing agreement with bus and subway operators, it has not contributed any profit.

This explains why Beijing Development is making a loss despite despite having a well- developed smart card system.

Dr Check believes a deal can be reached in the future. When this happens, Beijing Development will see profits.

The stock has fallen from HK$5 in 2007 and now hovers between 90 HK cents and HK$1.40, closing at HK$1.15 yesterday. Its downside should be limited as the net asset value per share is HK$1.17.

http://www.thestandard.com.hk/news_deta ... 91022&fc=7
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Beijing Development (HK) 0154

Postby winston » Wed Dec 23, 2009 7:54 am

Not vested. From Dr. Check, The Standard HK:-

Capital gains on the cards

It's worthwhile taking a fresh look at a mainland company that made losses of HK$400 million last year.

In October, I recommended Beijing Development ( Hong Kong ) (0154) at HK$1.15.

The price later rose to HK$2.95 for no apparent reason.

But for a company with 95 HK cents cash per share and a net asset value of HK$1.17, buying at HK$1.15 was safe.

Besides, related companies such as Beijing Enterprises Water (0371) had a satisfactory performance.

Beijing Development is the provider of smart cards in the capital.

Its cards are used for about 14 million transactions a day, mainly for public transport, car parks, hotels and public telephones.

So why then is the firm in the red?

The explanation is that Beijing Development does not have any business agreement with the Beijing Municipal Administration and Communications Card Co, which was granted a 100 million yuan (HK$113.59 million) subsidy by the capital's government for card settlement handling charges.

As a result BMAC has not contributed any profit to Beijing Development.

But Dr Check believes an agreement is in the pipeline, and when a contract is signed Beijing Development will turn profitable.

Yesterday, the stock closed at HK$2.07, about 30 percent down from its recent peak.

So I would opine the stock looks attractive.

http://www.thestandard.com.hk/news_deta ... 91223&fc=4
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Beijing Development (HK) 0154

Postby winston » Thu Apr 01, 2010 6:08 am

Not vested. From Dr. Check, The Standard HK:-


Beijing Development (Hong Kong) (0154) is the provider of smart cards in the capital.

Its 25 million cards are used for about 14 million transactions every day, mainly for public transport, car parks, hotels and public telephones.

So far, the firm has not signed any agreement with the Beijing Municipal Administration and Communications Card Co, which was granted a 100 million yuan (HK$113.72 million) subsidy by the city government. Dr Check believes a deal will be struck in the future that will make the firm profitable.

In October, I recommended Beijing Development at HK$1.15. The price later rose to HK$2.95.

It has fallen since, closing yesterday at HK$1.94.

For a company with 95 HK cents cash per share and a net asset value of HK$1.17, the downside should be limited.

http://www.thestandard.com.hk/news_deta ... 00401&fc=7
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Beijing Development (HK) 0154

Postby winston » Tue Feb 05, 2013 7:43 am

not vested

Let's look at stocks of companies linked to the Beijing municipal government.

The most prominent, Beijing Enterprises (0392), is into natural gas distribution, brewing, and management of transportation infrastructure.

It also owns Beijing Enterprises Water (0371), which is involved in sewage treatment.

Thanks to its powerful parent, quality assets have been injected into BE Water. Before it was acquired by Beijing Enterprises, the firm was a modest entity with a share price below 70 HK cents.

But after the acquisition, the stock surged to HK$3 in 2008. Now it trades near HK$2. If you hold BE Water shares for the long term, you won't fare too badly.

Another firm with links to Beijing Enterprises is Beijing Development (0154). The company bought a garbage incineration-power generation firm in the mainland last September. Dr Check expects more asset acquisitions in the near future.

In 2007, BD shares hovered around HK$5. By 2009, they had slipped to almost HK$3. Currently, they are around HK$2.

A sharp rally can be expected when large assets are injected into this company. Let's keep an eye on BD.

Source: Dr Check, The Standard HK
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am


Return to A to B

Who is online

Users browsing this forum: No registered users and 6 guests

cron