Hot Investment Profile: China Merchants Holdings

Dr. Clemen Chiang
Dr. Clemen Chiang

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

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!

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