CHINA XLX FERTILISER (HK.1866)

A MULTIBAGGER IN THE MAKING

Currently, China XLX Fertilizer (HK.1866) has a trailing P/E of 2.69x and a P/B of 0.39x, alongside a dividend yield of 5.9%.

‌The company's market capitalisation stands at $5.45 billion, and it has achieved a profit of $1.534 billion in the first nine months of 2024, an improvement of 80.7% over the same period in 2023. If profitability remains steady through Q4, the projected P/E for the full year would drop to just 2.61x.

At the time of writing, China XLX Fertiliser is priced at $4.15. With a target price of $15.93, this valuation assumes the P/E rises to a more reasobable level of 10x which also means this is potentially a 3.84-bagger!

Superphang
http://superphang.blogspot.sg

Japfa -- a gem is in the making

A gem is in the making

Finding growth stocks with low price-earnings ratios has become increasingly challenging, but Japfa appears to be a promising exception.

Japfa surged 9.72% on 29 Oct 2024, following the announcement of strong results for the first 9 months of 2024. During this period, Japfa earned about 5.5 Singapore cts per share, reversing a loss of Singapore1.42 cts per share for 9M2023. At today's closing price of 39.5 cts and with the specially declared one-off interim dividend of 1 ct for the first 9 months of 2024, the stock currently yields 2.53% - and this does not even account for the potential final dividend that is likely to be declared.

Financial analysis for Japfa:

·       NAV stands at 55 Singapore cts. So, P/B is only 0.72x.

·       The forward P/E for the full year is around 5.39x.

·       If the P/E were to reach a more reasonable valuation of 12x, the share price could reach 88 Singapore cts, representing a potential upside of 123%. The surge could be even greater if the company experiences further growth.

Technical analysis:
The chart's upward trend resembles a growth stock's performance.

Superphang
http://superphang.blogspot.sg