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Chinese Stocks: Part-6

by Tech Writer 12 days ago in stocks

This content creates an overview of the performance of some Chinese companies.

SANY Heavy Industry Co., Ltd

SANY Heavy Industry Co., Ltd. [600031:CH] is a manufacturing company in China with its headquarter in Beijing region. The company’s business activities comprise of the manufacturing and marketing of different kinds of construction and engineering machinery and other related parts. Some of the products that are been produced and marketed by the company are concrete pumps, concrete pump vehicles, road rollers, pavers, and other related products. The company operates its business activities within the Chinese domestic regions and overseas. The company started its business and was issued a license in April 1989 with total number of employees as 24,586 and headed by Wengen Liang.

Performance in the Chinese stock market:

A look at the Chinese stock market shows that the company’s stock is performing reasonably well as compared to other stocks in the stock market. According to reuters platform, the company’s stock is currently trading at about 28.31 CNY per stock which implies that the price trends on a 24hours price magnitude by 0.07% as compared to the price of the stock as at same time on yesterday. Referencing the price of the stock as at the same period during the Fy20 period, the company’s current stock price has surged significantly by 5.61% YoY. The stock of the company trades with a 52-weeks high price of 50.30 CNY per stock while the 52-weeks low price amounts to about 22.40 CNY per stock. The market capitalization of the company significantly hits about CNY240.37 billion while the total revenue generated from business conducted within the Fy20 period amounted to about CNY100.05 billion. This implies that the stock of the company trends on an annual price to sales ratio of about 2.40x. The improved PSR on annual basis was caused by the strong improvement in the revenue that was generated from business during the Fy20 period. The strong improvement emanated from strong increment in the production rate and sales outlets of the company.

Analysis:

Price Against volume and Accumulation/Distribution.

From the chart above, the index widely followed as a benchmark that reflects the movement of those Chinese stocks that trade in the Chinese stock market. You can see how it peaked at February at 41.31.The bearish movement and lowest price performance of the stock was recorded at the first week of July at 24.87. The heavy selling volume of the end of July and early August this year as it took the trading volume above 5.5 billion.

This week’s continued unloading found a new price decrease by 2.79 percent before some buying came in and it managed to close at 27.52 CNY. Consider the extraordinary difference between the weakness of this index and the new all-time highs just seen in the S&P 500.

From the above chart, it is quite a significant fall when viewed on this time frame, isn’t it? From above 10 billion volume December last year last year all the way down to below 0 billion by middle September. Unlike the index that appeared on the March, 2020 pandemic low area with even greater selling volume than seen at that time.

Beijing Gehua CATV Network Co., Ltd.

Beijing Gehua CATV Network Co., Ltd. [600037:CH] is a telecommunication company in China with headquarter in Beijing region. The company is vastly concerned on the building, managing, and maintenance of different kinds of cable TV networks. The Company also engages in other businesses which includes the provision of advertising and information services. The company conducts its business activities within the Chinese domestic regions and a little effort in the oversea regions. The company was formed and issued a business license in September 1999 with total number of employees amounting to 21,324 and headed by Zhangpeng Guo.

Performance in the Chinese stock market:

The performance of the company’s stock in the stock market is a bit and slight negative trend. According to the reuters, the stock of SANY Heavy Industry Co., Ltd. [600031:CH] is presently sold at about 8.63 CNY which signifies a 24 hours price reduction by 1.26% as compared to the price of the stock as at yesterday. Presently, the company’s stock price trends on 12 months price increment by 11.21% YoY as compared to the price of the stock as at same period in the previous year.

The stock of the company trades with a 52-weeks high price of 13.40 CNY per stock while the 52-weeks low price amounts to about 7.87 CNY per stock. The market capitalization of the company significantly hits about CNY12.01 billion while the total revenue generated from business conducted within the Fy20 period amounted to about CNY2.57 billion. This implies that the stock of the company trends on an annual price to sales ratio of about 4.66x. The revenue during the Fy20 period significantly fell due to the pandemic period during the first and second quarter of the Fy20 period.

Analysis:

Price Against volume and Accumulation/Distribution.

From the chart above, the index widely followed as a benchmark that reflects the movement of those Chinese stocks that trade in the Chinese stock market. You can see how it peaked at October last year at 10.96.The bearish movement and lowest price performance of the stock was recorded at the first week of July at 8.29. The heavy selling volume of the end of April and early May this year as it took the trading volume above 500 million.

This week’s continued unloading found a new price slight decrease by 0.01 percent before some buying came in and it managed to close at 8.63 CNY. Consider the extraordinary difference between the weakness of this index and the new all-time highs just seen in the S&P 500.

From the above chart, it is quite a significant fall when viewed on this time frame, isn’t it? From above 1 billion volume October last year all the way down to above 300 million by middle September. Unlike the index that appeared on the March, 2020 pandemic low area with even greater selling volume than seen at that time.

Sources:

https://www.marketscreener.com/quote/stock/SANY-HEAVY-INDUSTRY-CO--6496928/company/

https://www.reuters.com/companies/600031.SS/financials

https://www.bloomberg.com/profile/company/600031:CH

https://www.reuters.com/companies/600037.SS/financials

https://www.bloomberg.com/profile/company/600037:CH

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