Global Value Investing

[rjeezy007]

1122:HK Qingling Motors - partnered with Isuzu

This one is trading near NCAV based on F2010 figures:

NCAV in CNY:

5.569B net current assets/2.482B total shares o/s = 2.24/sh in CNY

1 CNY = 1.20828 HKD

So, 2.24/sh in CNY x 1.20828 in HKD gives us 2.71 HKD, current price in HKD is 2.61.

Is my work correct here? Or do we split up the H shares vs. the domestic which are about 49.9 vs. 50.1 respectively and split the assets based on this? Either way, it's trading slightly below NCAV from what I can see.

You could go for NCAV:

(5.569B net current assets x 49.9%H shares)/(1.239B total H shares o/s) = 2.243 CNY/sh for H shares

Apply exchange 1 CNY = 1.20828 HKD...still get HKD 2.71/sh for NCAV

Most of current assets are cash, good FCF, increasing dividends the last four years... and no capital raises in the past four years?

No debt.

Tangible book value of HKD 3.48/sh

Appears that the Company is getting the high P/E based on the strong growth in revenue and bottom line over the past years.

Could be interesting if price drops without much change in the financials...