I wish readers a happy and warm Christmas Eve and a joyful holiday
Based on the recent macro data released by China reflecting the signs of overall economic stability, if the timing of the signing of the first-phase trade agreement between China and the United States is clear, it is expected to stimulate the HSI to test 28,300 points. At this stage, you can consider investing in value stocks with attractive valuations and high visibility of business income prospects.
Sitting on the mainland’s 100 billion assets
The Wharf Group (0004) has most of its business related to real estate in the Mainland and Hong Kong. It mainly includes investment properties, hotels and development properties in both places. By region, Wharf’s assets in Mainland China exceed RMB 100 billion, accounting for more than 70% of its total assets, and contributing about 80% to overall profitability. Obviously, the profit performance and value of Wharf are closely related to the outlook of the mainland property market.
Wharf owns two high-profile investment property projects in the Mainland
One is located in Suzhou, China’s most economically developed area. It is the fifth project in the IFS Center series, with a height of 450 meters. It is currently one of the tallest buildings in Jiangsu Province. First, the transportation network is perfect. It only takes 30 minutes to Shanghai by high-speed rail. Another market-focused IFS project is located in Changsha, which is a one-stop fashion living, shopping, catering, cultural and entertainment center-based landmark in Central China.
Based on the book value and market price of HK $ 19.5 per share of Wharf at the end of June 2019, the price-to-book ratio is only 0.44 times, which attracts investment value.