Monday, September 24, 2007















On the left Kublai Khan, on the right Genghiz. Surprisingly many people can tell the difference, and were quick with the correct answer. Stock tip, which was deliberately left out of the list below: BOC-C1, buy up to 0.16.

a) Exposure to US subprime and CDOs caused BOC to provide RMB1.15bn. The coverage was very low considering it was just 1.6% of total exposure but mgmt was confident their subprime investment were at the top bracket in terms of quality.
b) Just released 1H2007 figures saw net profit jumping by 52% year on year to RMB29.54bn. This figure was at the high end of estimates. Its one of the better bets because its exposure to domestic business is excellent. Little reliance on "investment income". Revenue base well spread, earnings from the booming stockmarket, though jumping 72% y-on-y, makes up only 13.3% of operating income.
c) Many houses upgraded their estimates and target prices. Looking at 2.7x PBR 2007 as target price by March 2008 = HK$5.25.

4 comments:

adi said...

thanks for the tip.
I am vested ;)

deborah said...

Dear Dali,
I hv always enjoyed your analyses, and fun anecdotes here and there.. Although I hve not followd your stock tips, I did take note of them all... Didnt follow does not mean do not trust or disbelieve.. in fact, I try to understand your reasonings and learn from there.. If I hve some Rinngit to invest, be sure will buy already.. haha.. but looking at volume and price movement, looks like you have a huge following. Just wonder, wld your blog be used by syndicates at some point, if they hvent got onto it already.... hmm....

deborah said...

Me again!!
Just check the term sheet, does it mean, if we look at BOC at TP of HKS5.25, the fair value of each BOC-C1 is around 24 sen??

wile said...

I prefer to hold BOC (H shares) for long term. (vested)