Many positive factors have prompted me to buy this stock and also
recommend it here:
1.
Expected FY2017 EPS growth year-on-year is 75%. Expected
p/e is 8.2x, PEG ratio = 0.109. Simply stupendous.
2.
Boss bought in last 3 months shares with a total
value equivalent to more than Singapore $2m.
3.
Company also bought back shares with a total value
equivalent to Singapore $6.6m in recent months and the treasury shares have
been deleted from the outstanding shares.
4.
Company is expanding its paper-making production
capacity by 15% and tissue paper production capacity by 70% to catch the big
wave of demand in China.
5.
The threshold of going into quality tissue paper
is very high and it gives economy moat to 2314.HK.
6.
Selling price of paper has been ratcheting up
too. Stock price has been consolidating for a good period of 4 months and is
ready to rocket up to retest previous high of $10.90.
7.
FA and TA are both bullish. Too many good
factors not to give 2314 a serious look.
8.
The HSI was down on 5 Feb 18 by 0.88% but
2314.HK bucked the trend to move up by 2.62%. You just have to give due respect
to its prowess.
Conclusion: My target price for Lee & Man Paper
(2314.HK) is $13.1, which gives 39% upside from the 5 Feb 2018's closing price
of $9.40. This will likely be achieved by June 2018.
https://superphang.blogspot.sg
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