China Saite (HK:153) Breaking Out of Consolidation

China Saite (HK:153) closed at 59 cents today, 10 Aug 2017, breaking out of its "comfort zone" after 1.5 months of consolidation. I have invested some money in this company and I predict it will soon hit 67 cents which should be its next resistance.

(1)    About China Saite Group Company Ltd  (153:HK)

China Saite Group Company Limited ("China Saite") is an integrated steel and prefabricated construction solution provider headquartered in Yixing, Jiangsu Province, the PRC with an operation history of approximately 15 years. Their integrated construction solution services are customised to meet the technical specifications and requirements of different projects, and span from fabrication and assembly of steel structure parts and prefabricated construction materials at our workshops to the installation of these materials onsite, based on the secondary design (as to our steel structure projects) provided by them or their customers. 
China Saite is one of the 70 Grade One Steel Structure Engineering Professional Contractors in the Jiangsu Province. Grade One Steel Structure Engineering Professional Contractors is the highest national qualification in this aspect, awarded by Ministry of Housing in November 2005, which enables the Group to undertake all kinds of steel structure projects without limitation in span, contract sum, construction area or total weight of construction in the PRC. 

(2)    Solid Financials

Rolling p/e is very low at 3.944x even though the profit declined 19.4% in FY2016.

The One-Belt-One-Road initiative by the China government should benefit the company for the next few years.

(3)    Technical Analysis

The prices have consolidated well in the tight range between 56 to 58 cents in the past 1.5 months and it just broke out of that range to 59 cents and this was achieved remarkably amidst the weak sentiment of the HK broad market.   

China Saite (HK:153) daily chart

Superphang
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