WahSun Handbags (HK.2683): A potential 6-bagger

 · EPS growth accelerated to 48.6% in 1H2026 as forecast by the management on 12 Nov 2025 (HK$0.104 vs HK$0.07 in 1H2025), demonstrating strong operational momentum and margin expansion.

· Net profit surged at least 48.1% YoY to minimum HK$40 million, significantly outpacing the prior half-year comparison of HK$27 million in 1H2025.

· Consistent profitability trajectory across three consecutive reporting periods (1H2025, 2H2025, 1H2026), with sequential EPS improvements of 28.6% and 15.6%, indicating sustainable business fundamentals rather than one-off gains.

· Management confidence is evident in the early profit alert announcement, signaling visibility into sustained profitability and potential for further positive surprises when full results are released.

Conclusion:
The PEG ratio stands at an exceptionally low 0.17, implying a target price of HK$6.50 if the current growth rate is sustained. This represents potential upside of about 500%, or a 6-bagger opportunity from the current price of HK$1.08. Under a more conservative valuation scenario applying a normalized P/E multiple of 12x, the stock could reach HK$2.50, still offering meaningful upside of 131%.


Superphang
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TJDaRenTang USD (T14.SG): 62% Upside from Dual-Listing Arbitrage

 TJDaRenTang USD (T14.SG)

At current levels (T14 US$3.08, A-share 600329 at RMB49.12), the A-share trades at a P/E of 10.57x while the Singapore listing trades at just 4.72x—a significant valuation discount. Taking the midpoint between these two valuations, the fair value for T14 should be around US$5.00, representing upside potential of 62%.

The stock offers a reliable dividend yield of at least 5%, providing attractive income while waiting for the market to recognize its undervaluation.
The substantial valuation gap between the dual listings suggests Singapore investors are overlooking the company's fundamentals, creating an arbitrage opportunity.

Key risks include potential regulatory changes affecting dual-listed stocks, liquidity constraints in the Singapore market that could delay price discovery, and any deterioration in the company's A-share performance that might justify the current discount. However, the extreme valuation gap appears difficult to justify based on fundamentals alone.

The dual-listing discount presents a compelling value opportunity. With a 5%+ dividend yield providing downside protection and earnings support from the A-share market, investors can patiently wait for Mr Market to close the valuation gap and push T14 toward its fair value of US$5 or above. This offers both income and capital appreciation potential with a reasonable margin of safety.

Superphang
https://superphang.blogspot.com