Refer to my post dated 13 Nov 2025 on WahSun Handbags (HK.2683): A potential 6-bagger .
I purchased WahSun Handbags on 3 July 2025, at an average
price of HK$0.792, attracted by its low P/E and undervaluation driven by
concerns over declining earnings due to Trump's tariffs on Chinese goods.
I was confident then that WahSun Handbags could maintain its
competitive edge because while Trump imposed tariffs on all countries, China
remains uniquely positioned to constrain US hegemony. American consumers cannot
do without China's quality and very affordable goods, and Trump has had to
frequently adjust his tariff policies to prevent runaway US inflation and keep
American businesses operational. My thesis has been borne out by events.
WahSun Handbags closed trading for 2025 today, 31 December,
at HK$1.18. The company paid two dividends since my purchase: one went XD on 6 Oct
and another on 15 Dec, each consisting of a 4-cent regular dividend plus a
2-cent special dividend per share. This totals 12 cents per share in dividends,
representing a solid 10.17% dividend yield (12/118). Combined with the 12-cent
dividend, my paper gain on this investment has reached 64% in less than six
months.
I maintain my original price target from the earlier post:
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 approximately 500%, or a 6-bagger opportunity from the earlier price
of HK$1.08. Under a more conservative valuation applying a normalized P/E
multiple of 12x, the stock could reach HK$2.50.
2025 has been an excellent year for my investment
performance. However, clarity is retrospective, while action must be
forward-facing. Guided by my investment methodology, I am optimistic that my
approach will continue to deliver strong results in 2026.
Prescientsuper
https://superphang.blogspot.com
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