Friday, April 20, 2007

valuation chinese construction stocks / nasdaq reloaded?

fascinating! even when someone thinks that the chinese economy is healthy the chinese stockmarket looks very very frothy!

china ist momentan superspannend. selbst wenn man der meinung ist das die chinesische wirtschaft gesund ist kann man das über den aktienmarkt wohl kaum sagen. sieht für mich extrem überhitzt aus.

April 20 (Bloomberg) -- China's construction stocks have become the most expensive in Asia on record spending for roads and bridges, just as the government is taking steps to slow economic growth.

The country's building and machinery stocks trade on average for 166 times profit for the past year, according to data compiled by Bloomberg. That's about nine times the price-earnings ratio for the average company in the Morgan Stanley Capital International Asia-Pacific Index, and higher than construction stocks in any other country in the region...

>but on the other hand look at some us homebuilders. after their charges they have almost no earnings to calculate the pe........ ( i know not quite apples to apples)

>auf der anderen seite haben etliche us builder nach berücksichtigung der abschreibungen keinerlei gewinne mehr die notwendig sind um ein kgv zu ermitteln....

Chinese construction stocks have gained 117 percent this year on average, boosted by a record $366 billion in spending on roads, ports and power stations last year. That compares with a 4.7 percent rise in the MSCI Asia-Pacific benchmark. Eight of the 10 most expensive Asian stocks in the industry are traded in Shanghai or Shenzhen.

Below Peak
While Chinese construction stocks are down an average of 3.6 percent from their peaks of the past year, they still contributed to a 54 percent surge this year in China's benchmark CSI 300 Index, the biggest gain in Asia. The CSI 300 closed at a record this week.

Changsha Zoomlion trades at 42 times profit, the highest since 2003, according to Bloomberg data. The stock has averaged 16.5 times profit over the past four years.

China Communications Construction Co., the country's biggest port builder, is priced at 36 times earnings. The company sold shares to the public for the first time in December.
thanks to m.panzer

Sany Heavy
Sany Heavy Industry Co., the country's largest maker of machinery for handling concrete, is valued at the highest price relative to profit since July 2004. The shares, trading at 53 times current profit, are more than five times more expensive than in November 2005 when they were worth 10 times. ....

``Most Chinese infrastructure companies have strong order books and high earnings visibility,'' said Maggie Lee, who helps manage the $450 million Invesco Asia Infrastructure Fund at Invesco Hong Kong Ltd. ``Under the current environment, you won't really find any other sectors in China that will deliver the same kind of sustainable growth over the next five years.''
Lee said she continues to hold more Chinese infrastructure stocks than represented in her fund's benchmark.

Rising Demand
Demand for construction machinery in China will grow 15 percent annually in the five years through 2010 to 250 billion yuan, BNP Paribas Peregrine Securities Ltd. said in a November 2006 report.

Shares of Changsha Zoomlion have risen fourfold in the past 12 months. Sany Heavy has surged almost eight times in the period, and China Construction is up 61 percent since its stock market debut in Hong Kong on Dec. 15.

>but nothing compared with indian homebuilder stocks ......

>im vergleich zu indischen homebuildern harmlos......
Shares of Unitech Ltd., India's largest real-estate developer by market value, soared 26,869 percent during the past three years. Anant Raj Industries Ltd., a competitor, leapt 39,548 percent

``The danger there is that it's been fair weather for such a long time, people have slightly forgotten that these are highly cyclical stocks,'' he said

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Blogger Lou Minatti said...

That NASDAQ comparison chart is eerie!

5:42 AM  
Blogger jmf said...

hi lou,

i agree!

but that hasn´t stopped the index to go higher another 10% since the date the chart was made....

5:56 AM  

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