Thursday, October 31, 2024

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

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