Hot Investment Profile: China Merchants Holdings
SGX Stock Code: C22 / Stock Price: 1.020
The biggest toll road company listed on the Singapore Exchange, China Merchants Holdings Pacific Limited (CMHP) was one of the last week’s top five value traded stocks on the SGX. Among the foremost toll road operators in China, CMHP has invested in eight toll roads on the mainland totaling some 575 kilometres. Operating from its headquarters in Singapore, CMHP is also involved in property development and sales.
Company Snapshot
CMHP is a member and the largest Southeast Asia-based company of the China Merchants Group. The first of CMHP’s two business segments, toll roll operation, currently oversees its toll roads in the following areas in China:
- Zhejiang province
- Jiangxi province
- Guangxi Zhuang Autonomous Region
- Guizhou Province
The company’s toll roads in these areas are an essential part of China’s provincial and national road network.
CMHP operates through subsidiaries such as holding company Huajian Highway Investment, a major toll road investor in China which manages toll roads, tunnels and bridges totalling some 7,500 kilometres across 18 provinces.
CMHP’s second business segment focuses on property development and related services such as
- residential construction and sales
- land development
- marketable securities dealership
- residential mortgage financing.
This business segment likewise works through subsidiaries which include
- China Merchants Pacific (NZ) Limited
- Universal Homes Limited
- Residential Finance Limited
- The Home Loan Company Limited
- Day Castle Investment Limited
- China Merchants Pacific Infrastructure Management (Shenzhen) Co., Limited
- Zhejiang Wenzhou Yongtaiwen Expressway Co., Limited
Stock Analysis
Bloomberg reports a 17.14% YTD return for CMHP, with a one-year return of 5.33%.
CMHP has a dividend-indicated gross yield of 6.83%, with earnings per share at HKD0.456.
Motley Fool has pointed out that CMHP has a strong track record of paying out steady dividends.
Financial Times says the company is going to outperform the market.
Latest Developments
- CHMP is seeking delisting from the Singapore Exchange, saying in May that privatisation would give its management more flexibility.
- Easton Overseas Limited also said in May that it intends to make a voluntary conditional cash offer for all shares in capital of CMHP, offering SGD1.020 for each share.
- First quarter net profit for CMHP rose 15% from same time last year, according to an announcement the company made in April. Net profit attributable to CMHP shareholders is at HKD164.1 million.
- CMHP announced its results for 2015 in February — revenue went up by 9% to HKD2,207.8 million with a net profit of HKD597.2 million attributable to CMHP shareholders.
See who among over 8,000 sophisticated investors in Singapore are buying and selling shares of China Merchant Holdings. Discover these along with the number one stock spiking on the SGX mainboard today!
Photo credit: http://www.cmhp.com.sg/about-profile
