China Merchants Port Hlds 0144

China Merchants Port Hlds 0144

Postby winston » Wed Jun 24, 2020 8:38 pm

not vested

China Merchants Port Holdings (OTC:CMHHF)(OTCPK:CMHHY)

Investment thesis: Another extremely undervalued infrastructure play, CMH trades at about 2x cash flow, P/BV of 0.4x, and forward P/E of 8x.

The undervaluation here is so evident that there has been some speculation that CMH majority shareholder’s China Merchants Group has engaged advisers to take the company private.

The company owns stakes in several of the best port assets in mainland China.

Since 2010, CMH has also expanded by acquiring strategic overseas port assets in emerging markets, including Sri Lanka, Nigeria, Brazil, and Turkey.

The high yield of 8.5% is safe, backed by an investment-grade balance sheet and low leverage.

While the high growth days of China are probably gone for good, I still like this one ahead of a recovery in international trade.

Eventually, I still see countries as growing more connected, not less, over the next decade.

Source: Seeking Alpha
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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