Monday, March 1, 2021

CGS (6881.HK)

I have sold $SINOTRANS(598.HK) and made a ROI of about 66.8% within about 6 months. Solid! 

I have also sold $CMS(867.HK) and made a solid ROI of about 58.4% within about 3 months. Not bad!

I worked hard to find CGS, the new gem, to invest some of the above sales proceeds.

CGS (6881) is the smallest of the eight China brokerages that has A+H market cap which exceeds S$20 billion but it has the best financials.

CGS is expected to make EPS of RMB0.71 for FY2020, an increase of 37% yoy. This will give it a very attractive p/e of 5.7x at the current price of HK$4.83.

The China stock market will be getting hotter with its GDP forecast to hit 7% this year and CGS is expected to make more commissions through the hot market in FY2021.

Target price is HK$8.20 which will enable it to reach its average historical p/e.

Superphang
https://superphang.blogspot.sg


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