Guangdong Investment 0270

Guangdong Investment 0270

Postby winston » Fri Jan 09, 2009 2:50 pm

DJ MARKET TALK: JPMorgan Keeps Overweight On Guangdong Investment

1152 [Dow Jones] STOCK CALL: JPMorgan keeps Overweight on Guangdong Investment (0270.HK), ups price target to HK$4 from HK$3.90; notes strong share price performance over past 3 months, expects more positive catalysts ahead due to to potential asset injections of water, infrastructure projects from parent.

Sees limited burden on gearing from new projects; even if all new projects are injected, reckons gearing only increases to 68% from 28%, reasonably low. Says GDI one of top picks in China infrastructure sector on defensive quality, high earnings visibility. Stock +0.3% at HK$3.07 vs HSI's rise of 0.5%.
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Re: Guangdong Investment 0270

Postby winston » Tue Jun 23, 2009 7:57 am

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

If you want to keep trading, you can consider Guangdong Investment (0270), the investment arm of the Guangdong provincial government.

The group invests in infrastructure and energy projects, supplies water to Hong Kong and Shenzhen, and operates hotel and department stores.

Even amid the financial tsunami, its net profit rose 10.6 percent to HK$1.87 billion. Growth was mainly contributed by water distribution at HK$739 million.

The company has HK$4 billion cash in hand and its low debt level puts it in a good position to exploit growth and development opportunities.

The management tips a double-digit profit growth over the next few years.

Its share price soared from HK$1.55 to HK$4.29 in the past eight months.

After a mild correction, it closed at HK$3.71 yesterday, at a reasonable historical price earnings ratio of 12 times.
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Re: Guangdong Investment 0270

Postby winston » Fri Dec 11, 2009 8:40 am

GDI boosts power assets to retain growth by Sophie He, The Standard HK

Guangdong Investment (0270) expects to maintain double-digit annual profit growth in the coming year, driven by the development of new projects and better operations management, chairman Li Wenyue said.

The company yesterday gained shareholders' approval to buy 25 percent of Hui Lai Power from its parent company and will inject 400 million yuan (HK$454 million) for a second phase development, Li said. The total expansion plans will involve 7 billion yuan, the company has said. The plant booked net profit of 130 million yuan from January to August this year.

When asked about investment in the property business, Li said: " The real- estate market is now overheating, we don't want to take too much risk on [buying land]. To maintain double-digit profit growth is the most important goal."

GDI will invest 2.7 billion yuan in a Tianjin property site that it bought in June for 309 million yuan.

It will develop it as a shopping mall and is expected to complete the project in three years.

"It will be similar to the Teemall in Guangzhou, although we don't expect the rent will be as high as it is in Guangzhou," Li said.

The rent in Teemall for the best spot is about 1,600 yuan per square meter.

Li also said that for now, GDI has no plans to task over its parent's water- supply business.

http://www.thestandard.com.hk/news_deta ... 91211&fc=8
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Re: Guangdong Investment 0270

Postby winston » Tue Jan 18, 2011 7:14 pm

Guangdong Investment's unaccredited MBAs
18th January 2011

Here we go again - in the course of writing today's other story on Applied Development Holdings Ltd, we came across a diploma mill called "International East-West University" (IEWU), purportedly of Hawaii, USA from which one of ADH's INEDs, Mr Su Ru Jia (Mr Su), claims an MBA.

So, who else amongst HK's listed boards has such a bogus degree?

Well, one listed company boasts not one but two graduates of this esteemed entity. They are Zhang Hui (Mr Zhang) and Xu Wenfang (Ms Xu), respectively the Managing Director and a non-executive director of Guangdong Investment Ltd (GDI, 0270), which is majority owned by the government of Guangdong Province, PRC.

http://webb-site.com/articles/eastwest.asp
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Re: Guangdong Investment 0270

Postby winston » Tue Oct 25, 2011 3:31 pm

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DJ MARKET TALK: GS Keeps Guangdong Investment As Conviction Buy

1514 [Dow Jones] STOCK CALL: Goldman Sachs keeps Guangdong Investment (0270.HK) on its Asia Pacific Conviction Buy list with a target price of HK$6.10.

It says Hong Kong government's proposal for Dongjiang water supply is positive for GDI as this should offer continuous stability to GDI's HK water revenue (about 47% of GDI's total 2012 revenue and 53% to total 2012 EBITDA).

"Not only could it provide cash support for select and accretive acquisitions in water and property development as part of its strategy, but it could also help fund potential increases in dividends (in amounts and/or payout ratios)."

Guangdong Investment gains 3.4% to HK$4.86.

Source: Dow Jones Newswire
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Re: Guangdong Investment 0270

Postby winston » Sun Jun 01, 2014 9:24 pm

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Guangdong Investment Ltd (Hong Kong: 270)

A subsidiary of GDH Ltd, Guangdong Investment Ltd is a Hong Kong based Red Chip company listed on the Hong Kong Stock Exchange. Guangdong is primarily a utility company operating water supply projects in Mainland China and natural water to Hong Kong, Dongguan and Shenzhen regions; Electric Power Generation through coal-fired power plants supplying the Guangdong Province, Mainland China; and infrastructure businesses like toll roads and bridges.

It also invests in and develops real estate properties, operates department stores, and provides financial services. In addition to commercial buildings and shopping malls, the company also manages around 37 hotels, including two in Hong Kong, one in Macau, and 34 in Mainland China.

For the fiscal year ended 31 December 2013, Guangdong’s revenues increased 3% to HK$7.99 billion, while net income increased 30% to HK$4.43 billion.

Much of the growth was contributed by water resources projects, department stores operations and hotel operations businesses.

While weaker forecasted EPS growth reflects challenges within the China economy, the stock had averaged 13.72% ROE annually since 2004 and this is forecast to rise to 16.4%. On an equally good note, net-debt to equity is decreasing and long term cash flow relative to reported profits is strong.

http://www.thebull.com.au/premium/a/463 ... tocks.html
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Re: Guangdong Investment 0270

Postby winston » Mon Mar 16, 2015 8:20 am

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Guangdong Investment (270) looks good after a correction for its shares to nearer their 250-day moving average.

Its stock price was on an uptrend over the past few years, and always looked good to buy on dips. It now trades at 13 times historical earnings, which is not expensive.

Its earnings are guaranteed by supplying water to Hong Kong.


Source: Dr Check, The Standard HK
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Re: Guangdong Investment 0270

Postby winston » Tue Jul 14, 2015 5:23 am

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The policy-influenced shares of Guangdong Investment (0270) appeal after a minor correction. The price did not fall too much during the plunge.

The stock has been trending up over the past few years, and it has always looked good to buy on dips. It now trades at 14 times historical earnings, which is not expensive.

Its earnings, of course, are guaranteed by supplying water to Hong Kong, with the annual fixed price for the capped volumes from 2015 to 2017 at US$4.22 billion (HK$32.8 billion), US$4.49 billion and US$4.77 billion.

Guangdong Investment expanded six projects in the Pearl River Delta region last year, and now it is focusing on more high-quality water resources both inside and beyond the province.

Catalysts for the stock price include possible privatization of water- treatment assets within Guangdong and asset injections from the parent company.

Source: Dr Check, The Standard HK
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Re: Guangdong Investment 0270

Postby winston » Tue May 17, 2016 6:31 pm

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Guangdong Investment (ticker: 270.HK ) earns around two-thirds of its revenues from supplying fresh water to Hong Kong, as well as Shenzhen and Dongguan in mainland China.

The company’s unexciting but sturdy bottom line was underscored by its in-line March quarter earnings, which rose 5% compared to a year ago.

Steady revenues from its Dongjiang water plant, which supplies water to Hong Kong, underpinned the performance.

Guangdong Investment is expected to grow earnings at a 9% annual pace over the next three years and has averaged a 6.5% free cash flow yield since the end of 2014.

CCB International analyst Christeen So likes Guangdong Investment’s sound balance sheet and earnings visibility and says the company has been developing new growth drivers by investing in infrastructure projects in Guangdong.

While Guangdong Investment’s operations are mostly defensive, it also has cyclical businesses such as department stores and hotels, which have been hurt by a slowing economy.

So has a neutral rating on the stock with a HKD10.50 a share target price.

Currently at HKD10.8 a share, Guangdong Investment trades at 15 times forward earnings and pays a 3.2% dividend.

Source: Barron's
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Re: Guangdong Investment 0270

Postby winston » Fri Jul 29, 2016 7:27 am

Liquid Asset: Time To Buy This Hong Kong Water Play?

By Robert Guy

As Hong Kong sweats through another hot and humid day, it shouldn’t come as a surprise that piping water to its 7 million inhabitants is probably not that bad a business.

Daiwa is out this morning with an initiation report on Guangdong Investment (270.HK), the operator of the Dongshen Water Supply Project which is responsible for the supply of water to Hong Kong, as well as Shenzhen and Dongguan across the border in southern China. The broker rates the stock an outperform with a HKD12.80 share price target, implying around 7% upside.

While the upside won’t get speculators’ blood pumping, for longer term investors looking for a defensive stock it could make sense to add to the portfolio. Here’s why Daiwa likes the stock in a nutshell;

Some 60% of GDI’s 2015 PBT came from its Dongshen Water Supply project, for which GDI stands to receive a predetermined amount of revenue (in HKD) from the HKSAR Government over 2015-17E. Thus, we think GDI is less vulnerable to the impact of China’s slowing economy, and CNY depreciation risks, compared to its peers in the China water sector. GDI also owns other defensive businesses such as sewage treatment and road projects in China.

Although there is a risk that GDI’s revenue could be reduced if the HKSAR Government were to renegotiate the lump-sum payment amount for the next contract period (2018-20E) with the Guangdong Government, we believe the likelihood of a price cut is low, given the HKSAR Government has an incentive to maintain a stable water supply given the fierce competition for water from other Guangdong cities. The threat of a more expensive substitute supply of water on the back of the development of desalination technology is not a near-term problem, in our view.

The broker also likes that 43% of revenues are in Hong Kong dollars – which are pegged to the U.S. dollar – and 95% of costs are in Chinese yuan. This provides a favorable natural hedge against yuan depreciation.

Guangdong Investments’ share price performance has been spectacular: the stock is up 184% over the past five years compared to the Hang Seng Index which is flat over the same period. However, the stock, which offers a yield of over 3%, doesn’t come cheap. Nevertheless, Daiwa says the stock’s valuation is not “overly demanding”;

The stock is trading currently at a 12-month forward PER of 15.7x, meaning its valuation has still not reached the previous peak of 17.1x in May 2015, even with its acquisitions in late-2015, or the value-adding Private-Public-Partnership (PPP) road project obtained in June 2016 (10% IRR expected by management), which should add 6% extra revenue to GDI for 10 years starting from 2017E.

As we forecast an EPS CAGR of 8% for 2015-17E, and given the market’s expectation of further CNY depreciation, GDI’s premium over the other China utility stocks is likely to be sustained in the near term.

Barron’s Asia’s Isabella Zhong wrote positively about the stock in mid-May, highlighting it as a good defensive pick for Hong Kong investors worried about the threat of recession. The stock has rallied 12% since.

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... ater-play/
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