Union Gas Soars 42% in a Day: Possible Privatization Ahead?

Union Gas surged from 39 cents to 55.5 cents on 4^th August, marking a 42.31% increase. The spike occurred during the post-market auction after 5 pm, as the stock had been hovering around 38 cents for most of the day before that.

I bought Union Gas on 2^nd July at $0.32 apiece, viewing it as a defensive play with a solid dividend yield—particularly attractive given its insulation from Trump’s reciprocal tariffs. My unrealized net ROI has now reached about 72.7% within about a month. I had not expected such a drastic surge in such a short time, especially since most of the gains happened in a single session.

Based on the chart, I estimate the next resistance level to be around 68 cents, calculated as the average between the recent trough and the peak on 28^th Jul 2021.

The company is 68% owned by the Teo family, and there is a possibility it may be taken private by them. As for me, I will sit back with some popcorn and wait for the price to approach that resistance level before deciding whether to divest.

Superphang
https://superphang.blogspot.com

Valuation Insight: Beng Kuang Warrant Trades Below Historical Premium Levels

Beng Kuang Marine W270904 (Z3RW) appears undervalued when considering its favourable characteristics: a sufficiently long time to expiration (more than 2 years remaining), high gearing ratio (25.5/7.5 = 3.4x), and relatively low premium of 15.69% ((7.5+22)/25.5 – 1) required to exercise the warrant and convert it to the underlying shares of Beng Kuang Marine (BEZ).

Warrant Premium Calculation

The standard formula for calculating warrant premiums is: (Warrant price + Exercise price) / Underlying share price = 1 + premium

More concisely: (W + E) / P = 1 + premium

Rearranging this formula, the warrant price W can be expressed as: W = (1 + premium) × P - E

Based on historical market data, when multiple warrants are trading in the market, the average premium typically ranges from 20% to 30%.

Valuation Analysis

Given the current parameters:

• Share price (P) = $0.255
• Exercise price (E) = $0.22
• Applying a 25% premium

The estimated fair warrant price would be: W = (1 + 0.25) × 0.255 - 0.22 = $0.09875  or 9.875 cents

Compared to the current warrant price of 7.5 cents, this suggests a potential upside of approximately 31.67%, even without any upward movement in the underlying share price.

Investment Outlook

The warrant price is likely to be appreciated further if the underlying share price rises. This scenario appears plausible given that Beng Kuang Marine is considered an undervalued opportunity with:

• Trailing twelve months (TTM) P/E ratio of 4.4x
• Classification as a penny stock, which often experiences significant gains during bullish market conditions like now
  
  

Price Target

I estimate the Beng Kuang warrant will reach 12 cents within 6 months, representing a potential upside of 60% from current levels.

Superphang
https://superphang.blogspot.com

A Hidden Gem with 152% Upside Potential and 8.54% yield

I purchased shares of Prosperous Industrial (1731.HK) at an average price of HK$0.752, driven by its strong earnings growth and attractive valuation metrics.

Prosperous Industrial is an investment holding company primarily engaged in the manufacturing and sale of sports bags, general bags, and luggage. Its products are sold across the North American, Asian, and European markets.

The stock closed on 18 July at HK$0.82, and its key investment highlights include:

P/E (TTM): 3.96x
Dividend Yield: 8.54%
ROE: 18.6%
Earnings Growth: Turned around in FY2020 and has since grown at a CAGR of 77.8% over the past four years

If the market begins to recognise the company’s fundamentals in the coming 6 months, we could see a re-rating in its valuation. A more reasonable P/E of 10x would imply a target price of HK$2.07, representing a 152% upside—or a 2.5-bagger from current levels.


Superphang
http://superphang.blogspot.sg

CGS (HK:6881) Could Jump 38% on Strong 1H Performance

China Galaxy Securities (HK:6881) announced on 15 July 2025 that it expects its attributable profit for the first half of FY2025 to increase by 45% to 55%, reaching between 6.36 billion yuan and 6.80 billion yuan, compared to 4.39 billion yuan in the same period last year, according to a filing with the Shanghai Stock Exchange.

The strong performance of the securities brokerage is attributed to growth across multiple business segments, including investment trading, wealth management, investment banking, institutional services, and others, the company said.

Assuming a 50% increase in full-year earnings, China Galaxy Securities (6881) could see its share price rise by 38.5% to $13.30 from the current level of $9.62, based on a conservative forward P/E of 9x. I believe this target is achievable within six months.

Superphang
http://superphang.blogspot.sg

YZJ Shipbuilding: Where Value Meets Growth

The main investment merits for YZJ Shipbuilding are as follows:

·       ROE skyrocketed to 28.1% in FY2024 (from 21.3% in 2023), highlighting its excellent capital efficiency.

·       Net profit surged 61.7% YoY to RMB 6.63 billion, driven by strong revenue growth and margin expansion.

·       Gross and net margins expanded significantly (~28.7% gross margin, ~25% net margin), thanks to favorable RMB exchange rates and lower steel prices.

·       With the current price at $2.37, the P/E is an attractive 7.55, and the dividend yield of 5.06% exceeds the CPF SA interest rate.

If new orders—particularly high-margin LNG carriers and tankers—slow down, margin pressure could quickly erode bottom-line returns. Additionally, favorable currency and material cost trends, such as a weak RMB and lower steel prices, may reverse, potentially affecting future profitability. Barring these risks, the stock price is likely to continue its upward momentum.

The solid 28.1% ROE confirms that YZJ is not just profitable, it is producing elite returns for equity holders. With robust margins, strong earnings growth, and highly attractive valuation multiples, YZJ stands out as a compelling blend of value and growth.

I estimate YZJ Shipbuilding will rise to $3.77 within the next six months, bringing it to a more reasonable valuation of 12 times its earnings and offering an upside potential of 59%. 


Superphang
http://superphang.blogspot.sg

GME Group (HK:8188): A Deep Value Play in Underground Construction

GME Group (HK:8188) primarily provides underground construction services, catering mainly to private contractors involved in public infrastructure projects. The Group focuses on two core areas:

1. Tunnel Construction – including excavation, shotcrete application, formwork design and fabrication, tunnel lining, and preliminary engineering services.
2. Utility and Other Construction Services – including the planning, design, and renovation of gas pipelines, as well as structural engineering work.

What caught my attention is that GME Group has been consistently repurchasing its shares on the open market. This prompted me to explore the company as a potential investment opportunity.

As of the market close on 14 July 2025, with a share price of HK$0.92, the company’s key financial metrics are as follows:

·       Dividend Yield: 8.70%

·       P/E (TTM): 5.14

·       ROE: 57.03%

·       Net Profit Margin: 10.52%

 

Additionally, GME Group has demonstrated steady earnings growth over the past two years.

I estimate a 12-month target price of HK$1.79 --- reflecting a more reasonable valuation at 10x earnings. This represents a potential upside of 94.6% from the current price.

Superphang
http://superphang.blogspot.sg

Ambitious target met: 41.8% ROI in Just Over 3 Months

This is a follow-up to my three earlier posts on Sichuan Expressway (HK.107):

https://superphang.blogspot.com/2025/06/sichuan-express-closed-at-4.html of 4 June 2025

And
https://superphang.blogspot.com/2025/06/pre-dividend-rally-in-sichuan-express.html of 3 June 2025

And

https://superphang.blogspot.com/2025/05/sichuan-expressway-surpasses-target.html of 21 May 2025

It closed at HK$5.03 on 4 July 2025, comfortably surpassing my upwardly revised target of HK$5.00. Including the HK$0.31534 per share dividend payable on 11 July 2025, the total return since my recommendation on 31 March 2025 to my followers on InvestingNote at HK$3.77 amounts to an impressive 41.79% in just over three months.

Sichuan Expressway (HK.107) daily chart

Even at this closing price, the trailing P/E of Sichuan Expressway remains an undemanding 9.37x. I plan to divest soon and shift my focus to other more undervalued opportunities for my next potential win.

 

Superphang
http://superphang.blogspot.sg

Wee Hur's Descending Triangle suggests an Effective Breakout

Technically, if the price breaks above 47.5 cents within these few days, the descending triangle formation suggests a potential breakout to 61.5 cents — representing a 32.25% ROI from the current price of 46.5 cents.

Wee Hur daily chart at the close of 27 Jun 2025

Superphang
http://superphang.blogspot.sg

XMH validates investment thesis with 34.6% gain in a day

I wrote about XMH's solid FY2025 results in my blog post on 26 June 2025, and introduced this stock to my followers on InvestingNote:

https://superphang.blogspot.com/2025/06/potential-37-bagger-with-10-yield.html

On 27 Jun 2025, XMH opened at $0.93 and closed at $1.05, up $0.27 or 34.62% from the previous day's close. The intraday high reached $1.09. Those who read my post before the market opened could have captured a substantial quick profit.

The company’s ROE stands at 31.3%, which is impressive. At the current closing price of $1.05, the P/E remains undervalued at 4.51x.

If the day ever comes when this company is taken private, I hope it happens much later — I would much rather watch the bullet travel a longer distance so as to get a much better ROI.

Superphang
http://superphang.blogspot.sg

Potential 3.7-Bagger with 10% Yield

The CEO of XMH, Tan Tin Yeow, made frequent open-market purchases prior to the end of February 2025, which caught my attention and prompted me to evaluate and accumulate shares of this hidden gem.

On 26 June 2025, XMH announced strong full-year results for FY2025 (financial year ended 30 April), with EPS surging 103.4% compared to FY2024. EPS for 2H2025 was 11.8 cents, essentially sustaining the solid 11.49 cents achieved in 1H2025.

Based on the closing price of 78 cents on 26 June, the stock offers an attractive dividend yield of 10.26% (8/78) and is trading at a low P/E of 3.25x. If the market re-rates the stock to a more reasonable P/E of 12x, the potential upside is significant — the share price could reach $2.88, representing a 3.69-bagger from current levels.

There may be even greater upside if the CEO initiates a privatization offer or if earnings continue to improve.


Superphang
http://superphang.blogspot.sg

CHINA XLX FERTILISER Update: Strong Momentum and Growing Confidence

On 31 October 2024, I wrote a blog post about CHINA XLX FERTILISER (HK.1866), calling it a potential multibagger when it was priced at $4.15:

https://superphang.blogspot.com/2024/10/china-xlx-fertiliser-hk1866.html

I also published a post on InvestingNote on 1 November 2024, recommending this gem to my followers.

As of 12 June 2025, after about seven and a half months, the stock closed at $5.75 — a gain of 38.55%. I believe the upward momentum will continue, especially considering the recent significant purchases made by the company and its chairman, alongside a low P/E ratio of just 5.26x.

The tailwind is here, and I have fastened my seatbelt to enjoy the ride with my followers.

Superphang
http://superphang.blogspot.sg

From Yield to Breakout: UOBKH’s Rally in Motion

I have been holding onto UOB Kay Hian (U10) for a while now, attracted by its steady and respectable dividend yield, low price-to-earnings ratio, and the recent growth in earnings since FY2023. Additionally, MAS’s initiatives to boost trading activity in Singapore’s stock market could further support its growth.

On 5 June, I shared a post on InvestingNote when UOBKH closed at $1.88 — up 4.44% — breaking through a key resistance level. Based on my technical analysis, I projected it could rise to $2.05.

Daily chart of UOBKH on 5 June 2025

The very next day, on 6 June, the stock surged another 5.32% to reach an intraday high — and closing price — of $1.98, moving steadily closer to my target.

The angbao came early this year with my successful and sizable investments in UOBKH, Sichuan Express (HK.107), JBM Healthcare (HK.2161) and Japfa. 

Superphang
http://superphang.blogspot.sg

Sichuan Express on Track: 38.6% Gain Within About 2 Months

Sichuan Express closed at $4.91 on its ex-dividend date, 4 June. Based on the theoretical ex-dividend price of $4.74466 (with a dividend of HK$0.31534 per share), the stock rose by 3.48% on the day — fierce!

Since my recommendation on 31 March, just two months and four days ago, the stock has surged 38.6%. It looks poised to hit my $5.00 target very soon.

Superphang
http://superphang.blogspot.sg

Pre-Dividend Rally in Sichuan Express (107)

Sichuan Express (107) closed at $5.06 today, 3 June, up 3.27%. The on-paper ROI within about two months of my recommendation stands at 34.2%, which is quite remarkable and satisfying.

Tomorrow is the ex-dividend date, with a dividend of HK$0.31534 per share. Therefore, the theoretical price for tomorrow should be $5.06 - $0.31534 = $4.74466.

My revised target price for this stock before the ex-dividend date was $5.30, and the post-ex-dividend price should be around $5.00. I am patiently waiting for the price to reach that level.


Superphang
http://superphang.blogspot.sg

Sichuan Expressway Surpasses Target Amid Strong Growth

I recommended Sichuan Expressway to my followers on InvestingNote on 31 March 2025, with a target price of HK$4.44, when the stock was trading at HK$3.77.

The company had just released its FY2024 results, which were strong, along with a solid dividend declaration. The dividend was RMB 0.29 (equivalent to HK$0.31428) per share, with an ex-dividend date of 4 June. At the price of HK$3.77, its P/E was 7.37x and the dividend yield stood at 8.25%.

I noted in my post that the target price of HK$4.44 would have yielded 7% dividend, a level that had been attractive to Sichuan Expressway’s investors from past data. I also mentioned that if the company began to show signs of evolving into a growth stock, the share price could climb significantly higher.

On 30 April, Sichuan Expressway announced its 2025 Q1 results, reporting a 17% year-on-year increase in attributable profit. EPS rose 11%, from RMB 0.1280 to RMB 0.1425. The strong growth appears sustainable, which supports a more optimistic outlook. As a result, I have revised my target price upward by 20%, to HK$5.30.

As of 21 May, the stock closed at HK$4.58, marking a 21.5% gain and surpassing my original target of HK$4.44 set on 31 March. I am looking forward to it reaching my updated target of HK$5.30!


Superphang
http://superphang.blogspot.sg

JBM Healthcare --- Buying the Dip in Volatile Markets

I have held some JBM Healthcare (2161) shares  for quite some time now. I initially bought them due to the company's consistent earnings growth over the past few years, attractive price-to-earnings ratio, and high dividend yield.

The recent market selloff triggered by Trump’s reciprocal tariffs gave me an opportunity to buy the dip. I have always believed in picking up quality businesses at attractive prices, which led me to place an order for an additional quantity of JBM Healthcare shares at about 15% below the previous day’s close on 7 April 2025. I managed to pick up a partial quantity at $1.47 which turned out to be the intraday low.

What I did not expect was the stock to rally for four consecutive days, eventually closing at $1.95 on 11 April 2025.

I actually welcome market volatility—it gives me the chance to accumulate more high-quality businesses at compelling valuations.

Superphang
http://superphang.blogspot.sg

Privatisation of Japfa at 62 cts

I identified Japfa as a promising investment on 29 Oct 2024, with a target price of 88 cents within a year.

https://superphang.blogspot.com/2024/10/japfa-gem-is-in-making.html

On 16 Jan 2025, Japfa announced a potential share transaction. After the market closed on 24 Jan 2025, Japfa disclosed that the Santosa family, which controls this agri-food company, made an offer of 62 cents per share.

While this offer is below my initial target price, it represents a premium over Japfa's share prices from the past four years. Although my original 88-cent target will not be met, the investment still yielded an impressive 57% return in just under three months—a big angbao just before the CNY for myself and my followers who participated in this venture.

Superphang
http://superphang.blogspot.sg