| By now, everyone is more or less expecting a sustained recovery in China and HK stocks following the Chinese government's measures to stimulate the Chinese economy. Even stocks on SGX which are exposed to the Chinese economy have seen a nice uplift too.  Nearly a fortnight ago, as stocks started to stir, we asked 11 private Singaporean investors who know one another fairly well, to share their picks, with a goal in mind: Select stocks that will finish the year with the highest percentage gain. As the table below shows, their picks span a wide range of industries. They reflect the investors' diverse interests, diverse investing approaches and risk appetites. Thus their selections are not recommendations for investment for readers. Your risk profile and investment objectives may differ significantly from theirs. |
Those with double-digit gains so far are highlighted in yellow:
|
Investor |
Stock |
Ccy |
Start |
Recent |
% change |
|
|
1 |
Hims & Hers Health |
US$ |
17.26 |
17.66 |
2.3 |
|
|
Cosmo Lady |
HK$ |
0.25 |
0.305 |
22.0 |
||
|
Cyprium Metals |
A$ |
0.032 |
0.033 |
3.1 |
||
|
2 |
Tesla |
US$ |
257 |
250.08 |
-2.4 |
|
|
Nam Cheong |
S$ |
0.47 |
0.455 |
-3.1 |
||
|
ISDN |
S$ |
0.31 |
0.32 |
3.1 |
||
|
3 |
CMCDI |
HK$ |
12.38 |
14.28 |
15.3 |
|
|
PC Partner |
HK$ |
4.15 |
4.96 |
19.5 |
||
|
4 |
Launch Tech |
HK$ |
5.2 |
5.65 |
8.7 |
|
|
Sprott Phy Uranium |
US$ |
19.86 |
20.21 |
1.7 |
||
|
Wolfspeed |
US$ |
8.89 |
9.48 |
6.6 |
||
|
5 |
CMCDI |
HK$ |
12.38 |
14.28 |
15.3 |
|
|
CCID |
HK$ |
0.87 |
0.93 |
6.9 |
||
|
C&T |
HK$ |
1.95 |
1.96 |
0.5 |
||
|
6 |
TK Group |
HK$ |
1.7 |
1.81 |
6.5 |
|
|
Hang Lung Ppt |
HK$ |
6.47 |
7.96 |
23.0 |
||
|
Mandarin Oriental |
S$ |
1.7 |
1.76 |
3.5 |
||
|
7 |
CMCDI |
HK$ |
12.38 |
14.28 |
15.3 |
|
|
Sino Ocean |
HK$ |
0.71 |
0.55 |
-22.5 |
||
|
8 |
Hawson Iron |
A$ |
0.021 |
0.023 |
9.5 |
|
|
Galan Lithium |
A$ |
0.11 |
0.115 |
4.5 |
||
|
9 |
Sayona |
A$ |
0.029 |
0.031 |
6.9 |
|
|
Pilbara |
A$ |
3.17 |
3.05 |
-3.7 |
||
|
10 |
Seatrium |
S$ |
1.76 |
1.99 |
13.1 |
|
|
Genting |
S$ |
0.835 |
0.885 |
6.0 |
||
|
11 |
Hor Kew |
S$ |
0.435 |
0.455 |
4.6 |
|
|
Digilife |
S$ |
1.13 |
1.14 |
0.9 |
||
|
Far East |
S$ |
0.076 |
0.075 |
-1.3 |
||
Here are briefs on 2 of the top stock performers:
• CMCDI was chosen by 3 of the investors, and it has turned out to be a good performer. Key to the price action, or future price action, is the activism of a substantial shareholder ASM.
Fundamentally, CMCDI is on good grounds. One of the investors shared:
| "CMCDI is trading at ~0.45X NAV and owns stakes in highly liquid listed companies like China Merchants Bank and Iflytek. Just these alone are worth more than the market cap of CMCDI. It also owns stakes in many valuable unlisted companies / funds like NBA China, China Unionpay (Visa/Mastercard of China), Pony AI (self-driving cars), Moonshot AI (similar to ChatGpt but in China) etc. "Despite these potentially valuable assets and paying regular dividends including occasional special dividends, the discount to NAV had only increased over the last few years." |
• Hang Lung Properties is the absolute winner so far with a 23% gain, thanks to the Chinese government's stimulus measures for its economy resulting in an uplift in sentiment towards property counters.
The investor who picked it said:
| "Hang Lung owns prime retail malls in China and Hong Kong. China accounts for 2/3 of revenue. It has little property development activities and the bulk of revenue is from recurring rental income. 1H24 was one of the most challenging periods for the group, with tenant sales at its luxury malls down by over 20%, while ex-Shanghai malls fell by single digits. "At current levels, share price is still depressed at 0.23x P/Book and dividend yield above 7%. Operating environment is expected to remain challenging in the near term but Hang Lung’s malls are mostly super prime in the cities it operate in and anchored by strong tenants. "Management expects gearing to peak in the mid-30% range before declining as it is in the midst of completing Westlake 66 in Hangzhou. Also, the declining interest rate environment is expected to relieve some of its interest rate burden." |
While dividends from Hang Lung Properties have been strong and consistent, this year may see a drop. The company cut its interim dividend from 18 HK cents to 12 HK cents, and may do likewise for the final dividend, owing to weaker earnings and capex requirements for a new mall and some mall upgrades.
For more, see: HANG LUNG PROPERTIES: This stock "has too much value to ignore," says DBS Vickers
| Has the recent rally been partly driven by investors rushing to buy stocks due to a fear of missing out on potential gains? As the Chinese Golden Week holidays (1-7 Oct) end, will investors demonstrate a fresh burst of enthusiasm next week? On a fundamental level, there is anticipation that additional fiscal measures may be announced by the Chinese government, which will sustain the rally. Analysts suggest that Beijing might introduce further consumer support initiatives and property market interventions to maintain investor confidence and economic momentum. We will update on all the stock picks' performance from time to time. Stay tuned. |
