Chu Kong (560 HK)
I had the opportunity to visit a port in Guangdong operated by Chu Kong. The newly appointed CEO, Mr Huang was present to discuss with me and several investors on the industry outlook as well as the business operations.
The passenger ferry business seems to be doing well, despite the threat of a bridge being built along Zhuhai, Macau and Hong Kong. The cargo business is sheltered from the shipping crisis globally as they handle more intra-china transportation.
Chu Kong has recently started a new business in advertising media. This is a step away from their traditional business.
The Company is trading at a steep discount to its NAV at 2.10 HKD.
I have bought almost 5m shares in Chu Kong over the past weeks.
I see little reason for its steep discount to the NAV.
Going by the Company track record, it is likely to see another M&A asset injection from the parent company in the coming 12 months.
That should be the catalyst to move the share price closer to its NTA.
Bro Mac,
Thanks for the idea. Can i ask what your target price. do u think the company will give dividends. i look at the share price, like have gone up a bit now. are u the one buying up?
Shippings stocks all below NTA. There is nothing new.
look at nol... our national carrier is in deep shit. share price so low now.
why is chu kong trading at 52-week high?
crazy.
LimPeter, I concur with you. The profit margin of Chu Kong Shipping is too thin to interest me. It's a business that is under pressure from competition. If anyone wants to know more about CK, you can read this :
CHU KONG, ONE MEDIA Ink Strategic 20 Mln Hkd Ad Tieup
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