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My investment in China Petroleum (0386.HK)
07 Oct 2021 (448 views)  

I held 170,000 shares in China Petroleum (0386.HK) at an average cost of HK $4.09. I held a larger number of shares previously but had reduced my exposure during the past few months.

Over the past two days (6 and 7 October), I bought an additional 150,000 shares at $4.05. 

Here are my reasons for buying more shares:

a) Oil price has doubled over the past year. This will mean more profit for this company.

b)  The PE ratio is 12.23 for the past year and 4.27 for TTM (trailing 12 months). This implies that the profit for 2021 is likely to be 2.8 times higher. 

c) The forward dividend yield is 8.65%

d) The price in HK is a discount of 25% from the price in Shanghai.

The financial figures below are taken from POEMS (with data provided by Refinitiv).

I verified the figures against the Yahoo Finance website. It confirmed that the projected profit (based on TTM figures) is indeed 2.87 times higher for 2021.

I found this to be an attractive stock and decided to increase my purchases. 

Note - I am sharing my observation. I am not giving investment advice. Please do your own due diligence before you invest in this stock.


 


My investment in China Petroleum (0386.HK)
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I held 170,000 shares in China Petroleum (0386.HK) at an average cost of HK $4.09. I held a larger number of shares previously but had reduced my exposure during the past few months.

Over the past two days (6 and 7 October), I bought an additional 150,000 shares at $4.05. 

Here are my reasons for buying more shares:

a) Oil price has doubled over the past year. This will mean more profit for this company.

b)  The PE ratio is 12.23 for the past year and 4.27 for TTM (trailing 12 months). This implies that the profit for 2021 is likely to be 2.8 times higher. 

c) The forward dividend yield is 8.65%

d) The price in HK is a discount of 25% from the price in Shanghai.

The financial figures below are taken from POEMS (with data provided by Refinitiv).

I verified the figures against the Yahoo Finance website. It confirmed that the projected profit (based on TTM figures) is indeed 2.87 times higher for 2021.

I found this to be an attractive stock and decided to increase my purchases. 

Note - I am sharing my observation. I am not giving investment advice. Please do your own due diligence before you invest in this stock.