4 Stocks This Week (China-Play) [24 Nov 2017] – YJZ Shipbldg; Yanlord; Tianjin ZX; Citic Envirotech
As we head into the final weeks of the year, we look at how 2017 has fared. The Morgan Stanley Capital International (MSCI) All Country World Index (AWCI), an index that acts as a proxy for how well the global markets are performing, has increased 17.1% since the start of the year.
Turning to major indexes in the USA, the Standard & Poors 500 (S&P 500) and Dow Jones Industrial Average Index (DJIA) broke all-time highs throughout the year, improving 15.3% and 18.5% respectively.
Over in Asia, the Hang Seng Index (HSI) in Hong Kong and the Shanghai Stock Exchange Composite Index (SSE) rose 34.8% and 6.9% respectively.
In Singapore, our Straits Times Index (STI) has increased 18.7% ending at 3442.15 points on Friday (24 November 2017), its highest level in close to 30 months.
China-Related Companies Listed On SGX
According to an SGX My Gateway report, there are 110 China-related enterprises listed on the Singapore Exchange (SGX), and the 20 biggest companies have delivered a return of more than 40% since the start of 2017.
Commonly referred to as S-Chips, many investors have tended to avoid such companies due to accounting irregularities and numerous fraud cases in the past. This improvement in performance shows that the sector, especially the biggest companies, have the trust of investors in Singapore, and could see more listings or even secondary listings going forward.
Yangzijiang Shipbuilding Group Limited (SGX: BS6)
Yangzijiang Shipbuilding is a Shipping and offshore engineering firm based in China. Its other businesses include financial investment, metal trading, real estate and ship leasing as well.
In its latest results release on 9 November 2017, it announced a positive set of results which saw its revenue and net profit improving 13% and 208% respectively.
On the back of its strong showing in 2017, its share price has more than doubled since the start of the year, rising to $1.67 on Friday (24 November 2017) from $0.83. Yangzijiang also pays a dividend that yields 2.7% per annum.
Yanlord Land Group Limited (SGX: Z25)
Yanlord is a real estate developer focusing on high-end residential, commercial and integrated property projects in high growth cities in China. Its property development projects are usually within five major economic regions, namely, the Yangtze River Delta, Pearl River Delta, Wester China, Bohia Rim and Hainan International Tourist Island.
In its latest results announced on 13 November 2017, it posted a 76% year-on-year increase in net profit on the back of a 9% year-on-year decline in revenue.
Yanlord is also part of the Straits Times Index (STI) Reserve List since 19 June 2017. This is a list of five companies that acts as a back-up to the 30 companies that are listed on the STI, should they be removed from the STI.
Its share price has performed well in 2017 – increase 25.2% to $1.69 on Friday (24 November 2017) from $1.35 at the start of the year. It also pays a dividend that yields 2.3% per annum.
Tianjin Zhong Xin Pharmaceutical Group Corporation Ltd (SGX: T14)
Tianjin Zhong Xin engages in the production and sale of traditional Chinese medicine, western medicine and health products.
In its latest results announced on 30 October 2017, it posted a 5% year-on-year increase in net profit on the back of 10% decrease in revenue. The company stated that the Chinese pharmaceutical industry is facing intense competition as well as having to adhere to reforms in the industry.
Its share price has performed stably, improving 6.7%, so far, in 2017 to end at $0.95 on Friday (24 November 2017). In addition, its dividend yield translates to 4.0% per annum.
Citic Envirotech Ltd (SGX: CEE)
Citic Envirotech is engaged in the business of water and waste water treatment, water supply and recycling in China.
Reporting a 70.7% increase in net profit on the back of a 38.6% increase in revenue, Citic Envirotech’s share price has increase 4.3% since the start of the year. The company also pays out a dividend that yields 1.0% per annum.