01988 MINSHENG BANK

01988 MINSHENG BANK

I bought it at 8.6 HKD, and now it is trading at 7.29 HKD. According to its Q1 report it is now trading at 3.58 PE (I used their Q1 EPS multiplied by 4) and 0.57 PB.

I didn't study deeply into this company's financial report. My logic is Minsheng bank is one of the cheapest bank in China at the moment, and it is still profiting, even though the result might not be satisfied by many other investors. Recently they changed their dividend plan (this year they paid very little dividend, so I guess there must be some people worried about its cash flow).

Well.. To me as long as this bank can survive and its operation is still comparable to other major banks in China, I don't see why it deserves such a low valuation.

Planning to average down somemore.. I actually submitted an order to buy more at 7.22 HKD few days ago, but was not executed. My main concern is now China is going to open its financial market to foreign banks, and it definitely going have some negative impact to weaker banks in China.. But I think the impact won't come so soon.

Plan Update

Previously I was planning to buy Keong Hong after I sold LHT, however the daily trading volume is so low and the spread is still huge, therefore I haven't proceed with my investment plan yet. I have decided to wait for the opportunity to show itself.

Meanwhile I bought 1,600 shares of BOC Aviation (HK) again at 46.10, after I sold it at 46.95 earlier this month. Sad thing was I realised that I forgot to change the settlement currency to HKD for the sell order earlier, therefore I got about 1% loss due to currency conversion fee. Lesson must be learnt, and I will double check all the orders before submit them.

Recently CDG reversed its trend and the latest price was 2.23. Hopefully the trend won't change again after its XD. Looking forward to sell it (:

Straits Trading went XD, and the latest price is 2.20. Want to average down but due to my huge exposure to the counter at the moment, I found the average down plan is not realistic. I will use the dividend to purchase other counters instead.

My new investment plan is: Average down on Keong Hong at reasonable price, and see if need to purchase more BOC Aviation (HK) at reasonable price. I am looking to sell CDG at a good price and use the proceeds to buy more Keong Hong or Tai Sin.

Happy Investing!