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Review of Country Gardens (2007.HK)
20 Sep 2022 (388 views)  

Country Garden is the largest or the second largest developer in China. I bought the shares 5 years ago at a price above HK$10 and sold the shares at a small profit.

The stock price has since dropped below $2.30 due to the problems of the property market in China. Another large developer, Evergrande, is now facing bankruptcy.

My friend, who is familiar with the China financial market, told me that the China government will support a few property developers to prevent their collapse, as it would cause a financial crisis. He said that Country Garden is one developer who will be supported.

I believe this would be the case, as the collapse of Country Garden would be harmful to the economy, especially as China is now trying to handle the collapse of Evergrande.

At the current price, Country Garden has a PE ratio (TTM) of 1.66 and a dividend yield of 9.83%. The forward PE ratio is 3.45 (i.e. the profit is expected to fall by more than 50%. This PE ratio is still quite low.

I decided to buy 200,000 shares at $2.29 for a total of $82,000 SGD. After my purchase, the stock price dropped 1% to $2.26. 

I hope to see the stock price recover.

Note - I am sharing my investing experience. I am not giving financial advice.

Tan Kin Lian




 


Review of Country Gardens (2007.HK)
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Country Garden is the largest or the second largest developer in China. I bought the shares 5 years ago at a price above HK$10 and sold the shares at a small profit.

The stock price has since dropped below $2.30 due to the problems of the property market in China. Another large developer, Evergrande, is now facing bankruptcy.

My friend, who is familiar with the China financial market, told me that the China government will support a few property developers to prevent their collapse, as it would cause a financial crisis. He said that Country Garden is one developer who will be supported.

I believe this would be the case, as the collapse of Country Garden would be harmful to the economy, especially as China is now trying to handle the collapse of Evergrande.

At the current price, Country Garden has a PE ratio (TTM) of 1.66 and a dividend yield of 9.83%. The forward PE ratio is 3.45 (i.e. the profit is expected to fall by more than 50%. This PE ratio is still quite low.

I decided to buy 200,000 shares at $2.29 for a total of $82,000 SGD. After my purchase, the stock price dropped 1% to $2.26. 

I hope to see the stock price recover.

Note - I am sharing my investing experience. I am not giving financial advice.

Tan Kin Lian