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My investment in Cosco Ship Energy (1138.HK)
12 Aug 2021 (383 views)

I hold 264,000 shares at an average cost of HK$ 3.37. It closed on 11 August at $2.94. I have an unrealized loss of 13%.

This stock reached $4 on early May. It dropped by 27% over the past three months.

There was an announcement that the profit for the first half of this 2021 is expected to drop by 80% compared to the corresponding period of 2020. However the profit for the earlier period was exceptionally high.

If the full year’s profit drops by 80%, the PE ratio (now at 4.7X)  is expected to increase to 30X. However, I think it will not be that bad. I expect the PE ratio will be between 10 to 20 times.

The dividend yield is currently 8.26%. I expect the dividend to be maintained. If it is cut by half, the yield will drop to 4.1%, which is still attractive.

The current price is at the lowest level over the past two years.

The price in HK exchange, where I buy the share is at a discount of 52% compared to the price in Shanghai exchange.

Taking the above factors into account, I bought to buy an additional 50,000 shares at HK$2.96.

You can view the financial figures and price chart in the attached PDF

Caution: I am sharing my investment in this stock. I am not giving financial advice or recommending this stock for investment. 
 


My investment in Cosco Ship Energy (1138.HK)
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I hold 264,000 shares at an average cost of HK$ 3.37. It closed on 11 August at $2.94. I have an unrealized loss of 13%.

This stock reached $4 on early May. It dropped by 27% over the past three months.

There was an announcement that the profit for the first half of this 2021 is expected to drop by 80% compared to the corresponding period of 2020. However the profit for the earlier period was exceptionally high.

If the full year’s profit drops by 80%, the PE ratio (now at 4.7X)  is expected to increase to 30X. However, I think it will not be that bad. I expect the PE ratio will be between 10 to 20 times.

The dividend yield is currently 8.26%. I expect the dividend to be maintained. If it is cut by half, the yield will drop to 4.1%, which is still attractive.

The current price is at the lowest level over the past two years.

The price in HK exchange, where I buy the share is at a discount of 52% compared to the price in Shanghai exchange.

Taking the above factors into account, I bought to buy an additional 50,000 shares at HK$2.96.

You can view the financial figures and price chart in the attached PDF

Caution: I am sharing my investment in this stock. I am not giving financial advice or recommending this stock for investment.