Will Sinotruk Grow Into A Chinese Caterpillar?
Today I'm reviewing a mid-cap Hong Kong based truck manufacturer.
It's name is Sinotruk (Hong Kong) Limited
It's trading ticker symbol is SHKLY.
Sinotruk (Hong Kong) Ltd specializes in the research, development, manufacturing, and sales of Heavy Duty Trucks, Light Duty Trucks and buses and related key parts and components. It also provides financial services such as deposits and loans.
The company operates through four segments: Heavy Duty Trucks, Light Duty Trucks, Engines, and Finance in Mainland China and internationally.
Sinotruk (Hong Kong) Limited serves infrastructure, construction, container transportation, logistic, mining, steel, chemical, and other industries. The company was incorporated in 2007 and is headquartered in Jinan, China. Sinotruk (Hong Kong) Limited is a subsidiary of China National Heavy Duty Truck Group Company Limited.
I use three key data points to gauge the value of any dividend equity or fund like Sinotruk (Hong Kong) Limited:
(1) Price
(2) Dividends
(3) Returns
After those three, four more keys will finally unlock an equity or fund in which to invest.
No matter what, it's the first three primary traits that best tell whether a company has made, is making, and will make money.
SHKLY Price
Sinotruk's price was $65.10 per share at yesterday's market close. Last July its price was $50.85 for a gain of $14.25 per share in the past year.
Assuming Sinotruk's price will continue to trade in the range of $30 to $90 next year, its price could grow another $14.25 from $65.10 to $79.35 by July 3, 2019.
SHKLY Dividends
Sinotruk's most recently declared and only annual dividend over one dollar was $4.46 per share declared in May to be paid August 13th. That $4.46 annual dividend equates to an annual 6.85% yield at yesterday's $65.10 closing stock price.
Gains For SHKLY?
Sinotruk's $14.25 estimated year over year price gain plus an anticipated dividend of $4.46 makes a projected gross annual gain of $18.91 per share, which will be reduced by the costs to trade those shares.
A little under $1,000.00 invested today at the $65.10 price buys 15 shares.
A $10 broker fee paid half at purchase and half at sale subtracts $0.67 per share.
Taking that $0.67 brokerage cost out of the estimated $18.91 gross gain per share leaves a net gain of $18.24 X 15 shares
= $273.60
or a 27.5% potential net gain on a $976.50 investment.
Therefore, Sinotruk (Hong Kong) Limited (whose ticker symbol is SHKLY), now shows a possible 27.5% net gain including a 6.85% dividend yield.
No analysts cover this stock:
So we'll just have to go with my $79.35 year over year target.
Y Charts has not yet rated SHKLY for an overall "Y" rating. Y Charts also has "insufficient data" for a Value score. And YCharts has "insufficient data" for a Fundamental reading. A Historic Valuation score for SHKLY also has insufficient data for Y Charts.
You could look at all those numbers like this: Sinotruk (Hong Kong) Limited has made money, is making money, and could net a 15% to 25% net gain next year including a 6.85% annual dividend yield. It could be more, it could be less.
The above speculation is conjecture based on past year performance. Actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if Sinotruk (Hong Kong) Limited is worth your time and money.
Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...
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