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Chinney Alliance Group (0385.HK)
13-08-2017, 12:24 AM, (This post was last modified: 13-08-2017, 01:28 AM by cyclone. Edit Reason: Edited thread title. )
Post: #1
Chinney Alliance Group (0385.HK)
I’m looking at investing into this company.  I went through the financial statements and worked out the value ratios as follows (based on price $1.44 HKD)

PS - 0.19              (Top 4% of HK stock exchange)
PE – 4.08             (Top 4%)
PC – 4.4               (Top 4%)
PB – 0.61             (Top 13%)
Div – 4.17%        (Top 17%)
Ev/Ebitda – 0.36 according to Wall St Journal

These figures look remarkably strong.  I’m particularly encouraged by the Ev/Ebitda which I take very seriously when choosing.  This represents an extremely good leveraging/debt scenario.

The company looks like it has a board of directors with extremely strong experience – the chair has a number of positions on numerous other companies and strong experience.  Profits are well distributed between their companies.  The diversity of companies makes me feel confident.  5 major customers represent less than 30% of their clients.  Ethical outlook and environmental concern is encouraging.  And the company is worth £85m (UK pricing) which is not too small compared to other companies I typically invest in (this is my typical average size).  All looks rather good to me.

This would be my first investment in an Asian company and I am nervous about this.  I would love any thoughts from anyone with good experience in investing in Hong Kong.

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14-08-2017, 03:10 AM,
Post: #2
RE: Chinney Alliance Group (0385.HK)
The other companies under the same Chairman, Mr James Wong are :

Chinney Investments (00216.HK) - Controlling company /
Hon Kwok ( 00160.HK) - Property development
Chinney Kin Wing ( 01556.HK) - Foundation Piling ,

Chinney Alliance has good dividend record rising from 3 cents in 2012 to 6 cents in 2017.

Annual Dividend is announced around March so best time to buy the shares may be in January.

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14-08-2017, 07:52 AM,
Post: #3
RE: Chinney Alliance Group (0385.HK)
May I know which screener u all use to identify hk companies with potential? At least from financial ratios point of view.

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14-08-2017, 10:11 AM,
Post: #4
RE: Chinney Alliance Group (0385.HK)
Looks impressive over the last 5 years - steadily increasing dividend, positive cash flow every year (although highly variable), decent pile of cash.

https://markets.ft.com/data/equities/tea...?s=385:HKG

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1 hour ago,
Post: #5
RE: Chinney Alliance Group (0385.HK)
(14-08-2017, 07:52 AM)Life is a game Wrote: May I know which screener u all use to identify hk companies with potential? At least from financial ratios point of view.

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Hey there. Well I live in the UK and using screeners is the cornerstone of my research.  I use a UK based one provided by the Financial Times which is our major UK financial newspaper. 

You can find it here: https://markets.ft.com/data/equities?exp...eener=true

You can choose your country and you can choose which variables you want to screen on this.

I warn you - be VERY careful with screeners.  I have found most of them to be bad.  There are lots of things to think about. 

1) Most importantly, many screens use stored information based on when each company's financial report was released.  Of course, if the share price has doubled since then, then all the stored information is COMPLETELY WRONG!! So check that it is updating its info as the share price moves. 

2) Look out for TTM.  This means that they have incorporated half-year results and quarterly results into their stats.  Many sites just use the annual returns.

After you have found a good screen and isolated a company you are interested in - you MUST MUST get hold of the annual report and work out the stats yourself to check they are accurate.  All screeners draw from info which occasionally contain mistakes.  YOU must work out the figures yourself to check what the figures are.  I have done this with the above figures. 

Hope that's helpful.  If you want any help in working out how to get the figures and ratios from the financial report just ask - I love doing those stats Cool

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1 hour ago,
Post: #6
RE: Chinney Alliance Group (0385.HK)
(14-08-2017, 03:10 AM)soros Wrote: The other companies under the same Chairman, Mr James Wong are :

Chinney Investments  (00216.HK) -  Controlling company /
Hon Kwok ( 00160.HK) - Property development
Chinney Kin Wing ( 01556.HK) - Foundation Piling ,

Chinney Alliance has good dividend record rising from 3 cents in 2012 to 6 cents in 2017.  

Annual Dividend is announced around  March so best time to buy the shares  may be in January.

Yeah I think it looks good.  One slight concern is that I seem to remember the owner owns around 70% of the company (I'm happy to be corrected on this).  I'm not sure how bad this is really.  I once invested into Nord Gold with a similar situation - that went up 100% over the following month so I have good experience of this kind of situation  Big Grin  . I know people are complaining about Twitter because I think the owners own more than 50% of the shares and people don't like that the shareholders cannot over-rule the majority owners if they decide to do something that is not in the shareholders interest.  I guess its a slight risk, but then investing in a small company is a risk in its own right.  I am kinda trusting the owners know what they are doing and have proved themselves over previous years or I wouldn't be investing in the first place!  Some of the companies you mention above may be subsidiaries of Chinney Alliance - I noticed the owner (Mr Wong?) had interests in a lot of the subsidiaries.

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