Dongyue Group (189.HK) --- a potential multibagger

Dongyue Group (189.HK) is principally engaged in the manufacture, distribution and sale of refrigerants, polymers, organic silicone and dichloromethane, polyvinyl chloride (“PVC”) and liquid alkali and others.

I started accumulating Dongyue shares since mid-August 2022 for its solid sustained earnings growth and my average price for it is HK$8.796. It closed on 27 Jan 2023 at HK$9.73. Given the solid growth and its very low forward price-earnings ratio of about 4.5x, I believe it can be a multibagger within 2023.

The earnings per share in RMB since FY 2020:

2H2022           1.004 (estimated)
1H2022           0.76        

2H2021             0.69
1H2021             0.29           

2H2020             0.17
1H2020             0.2

Weekly chart showing price has moved above 20w MA after about 1-year consolidation. Bullish!

 

Two latest articles written in Chinese which may be of interest to you:

https://cn.investing.com/news/stock-market-news/article-2170427 业绩持续爆发，东岳集团有望成为最闪耀的星？

https://finance.sina.com.cn/wm/2023-01-27/doc-imycrfmq0588609.shtml?cref=cj  左手锂电右手光伏！氟化工小巨人，今年能爆赚吗？ 

My target price for Dongyue is at $25.9 which is when its P/E hits about 12x based on the current price of $9.73. 

Prescientsuper
http://superphang.blogspot.sg

Xinte Energy (HK.1799) --- a multibagger

I accumulated more Xinte Energy (1799.HK) shares during December of 2022 in anticipation of a solid FY2022 earnings announcement and at a time this stock was overly punished by Mr Market. The bear trap starting from 21 Dec 2022 to 5 Jan 2023 signalled that this stock would have a solid run before some good news like a profit alert.

Yes, Xinte Energy just issued a profit alert on 19 Jan 2023 that the earnings per share of the company is likely to be HK$10 for FY2022 ending 31 Dec 2022. With this news, the stock price shot up 8.85% to reach HK$17.22 on the last trading day of  the Year of the Tiger and just before the start of the Year of the Rabbit!

The dividend payout ratio was 30%. This will mean the company will give HK$3 as dividend for FY2022 when they announce their result in end February or early March, and this will translate to a dividend yield of 17.4% based on the current price.

Price-earnings ratio is still at an irreproachable 1.63 now. You just need 1.63 years to get back your capital? Yes, just too cheap lah!

新特你最牛
个中有缘由
国策加环保
产能往上溜
顾客下早单
业绩立上游
闷声发大财
兔年不保留

A very good ending to the Year of the Tiger. Here is wishing my followers a very prosperous Year of the Rabbit!

Prescientsuper
http://superphang.blogspot.sg

LVJI Tech (1745.HK)

LVJI Tech (1745.HK) is engaged in the business of providing online tour guide in China. As the stock market moves ahead of the economy by around 6 months, the share price of LVJI Tech should surge explosively soon with China’s opening up and the recent insider’s sizable open market purchase of the company shares. 

1. Perfect Timing from my Technical Analysis

From my technical analysis, the stock should hit its first resistance at around $1.10, which means an upside of 35.8% from the current price of $0.81. 

2. Supported by Chairman, Founder and Executive Director

The Chairman Zang Weizhong bought 2.246 m shares on 14 Dec 2022 at an average price of HKD0.8334 apiece, increasing his stake to 38.10%. The subsequent pullback and consolidation from his purchase price gave me the confidence that the stock is ready to go through the roof to hit my target price soon. 

3. Earnings Returing to Black in 1H2022

Earnings per share for 1H2022 was 2.12 HK cents amid zero-Covid policy, reversing the loss in FY2021.  

I have amassed quite an amount of the shares in anticipation of the coming BIG surge before CNY.

 

Prescientsuper
http://superphang.blogspot.sg