MARKET HEADLINE: SHORT SELLING BY OCTOBER
SMP NOTICE: SERVER ISSUE HAS CREATED POSTING PROBLEM, FIXED SOME ISSUES ALREADY
Ghost Month: August 11 - September 6

China Banking Corporation
#31
congratz Smile
God is good all the time!
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#32
strong
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#33
Looks like the stock split signaled a new era for this stock. I think this deserves a logo na Smile
Still learning ...
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#34
CHINA BANKING CORPORATION – CHIB

CURRENT PRICE = PhP 56.80 (as of 091412)


P/E RATIO TEST:

2009 Earnings-per-share = PhP 3.1591
2010 Earnings-per-share = PhP 3.8554
2011 Earnings-per-share = PhP 3.8600
2012 1H Earnings-per-share = PhP 1.5627

Average earnings-per-share (based on the past 3 years and 2 quarters) = PhP 3.5000
Average price earnings ratio (based on the past 3 years and 2 quarters) = 16.23

Benjamin Graham recommends current price no more than 15 times average earnings (should be positive) over the past three years. This issue failed Graham’s price-earnings ratio test.

However, threshold value, P/E <15 should be taken as arbitrary level. Ratios do not tell us the whole story by itself. It is more useful to compare the ratios of one company to other companies in the same industry.


PRICE-TO-BOOK RATIO TEST:

Total Equity = PhP 39,393,376,338
Outstanding Shares = 1,297,874,230
Book-Value per Share = PhP 30.35
Price-to-Book ratio (PB) = 1.87

Graham recommends that current price should not be more than 1.5 times the book value last reported.
This issue failed Graham’s price-to-book ratio test.

However, threshold value, P/B <1.5 should be taken as arbitrary level. Ratios do not tell us the whole story by itself. It is more useful to compare the ratios of one company to other companies in the same industry.


NET-WORKING-CAPITAL OR “RARE BARGAIN” TEST:

Current Asset = PhP 273,441,455,459
Total Liabilities = PhP 248,024,411,824
Net Working Capital = PhP 25,417,043,635
Current Asset to Total Liabilities ratio = 1.10

* By “net-working-capital”, Graham means current assets (such as cash, marketable securities, and inventories) minus total liabilities (including preferred stock and long-term debt).

Current asset is greater than the total liabilities.
Graham recommends issues with positive net-working-capital.
This issue passed Graham’s net-working-capital or “RARE BARGAIN” test.


GRAHAM’S “BLENDED MULTIPLIER” TEST:

P/E = 16.23
P/B = 1.87
P/E*P/B = 30.37

Graham suggests that the product of P/E and P/B should not exceed 22.5 (should be positive).
This issue failed Graham’s “blended multiplier” test.

However, threshold value, P/E*P/B <22.5 should be taken as arbitrary level. Ratios do not tell us the whole story by itself. It is more useful to compare the ratios of one company to other companies in the same industry.


LIMITATION OF THE ANALYSIS:

EPS calculation does not isolate “other income” and “extra-ordinary income”.

Analysis does not include earnings stability, dividend records, earnings growth and futures earnings (or forward P/E ratio).

Analysis does not include banking industry’s key performance indicators such as: Return on Average Equity, Return on Average Assets, Capital Adequacy Ratio, Non Performing Loan Ratio, etc..

For future plans and prospects, read below reference.


REFERENCE:

http://www.pse.com.ph/resource/corpt/201...un2012.pdf
http://www.pse.com.ph/resource/corpt/201...ec2011.pdf

If You're So Smart, Why Aren't You Rich? - BATMAN The Animated Series: Season 1, Episode 41
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#35
Kumusta na kaya itong si CHIB?
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#36
Ok pa kayabumili ng shares nito kahit 60+ na?
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#37
(02-19-2013, 09:01 AM)MK1911 Wrote: Ok pa kayabumili ng shares nito kahit 60+ na?

I bought a few when it was 64....now it's now 71/sh.
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#38
dividend time: http://www.pse.com.ph/resource/disclosur...5_CHIB.pdf

Cash div: 1.20/sh
Stock div : 10%

ex date : TBA
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#39
nag 74 na pala 'to kanina. Smile
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#40
sold. kthnxbye salamats.
buy high, sell higher!

stock market abbreviations (for newbies)
http://www.stockmarketpilipinas.com/post...g#pid11738

"when it comes to trading, i'm just barely smart enough to realize that i'm a total idiot. i might be considered stupid, but on the intelligence scale, it puts me comfortably ahead of all the dumber people who thinks they're better than me."


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