There are many factors that make up a great investment. Generally, important aspects to consider can be grouped into the following five factors: past performance, financial health, future growth, value for money and cash flow to investors. In this article, I’ve put together a list of companies that meet or exceed expectations in two or more areas, causing them to be attractive investments for all kinds of investors.
Greenland Hong Kong Holdings Limited (SEHK:337)
Greenland Hong Kong Holdings Limited, an investment holding company, engages in the property development, property and hotel investment, and property management businesses in the People’s Republic of China. Founded in 2006, and run by CEO Jun Chen, the company provides employment to 3,153 people and with the company’s market capitalisation at HKD HK$10.69B, we can put it in the large-cap group.
337’s ability to generate enough cash to cover its total debt, as well as enough net income to cover debt interest, indicates its strong financial position. In addition to this, 337 is currently trading below its true value in terms of its discounted cash flows, and its relative PE ratio compared to its industry, which gives investors an opportunity to accumulate the stock at a low price. Dig deeper into Greenland Hong Kong Holdings here.
AAC Technologies Holdings Inc. (SEHK:2018)
AAC Technologies Holdings Inc., an investment holding company, provides miniaturized technology components to the consumer electronics industry worldwide. Established in 1993, and headed by CEO Zhengmin Pan, the company employs 52,171 people and with the company’s market cap sitting at HKD HK$137.84B, it falls under the large-cap stocks category.
2018 is expected to churn out cash in the short term, with its operating cash flow predicted to expand by 74.85%, expected to trickle down to investors in the form of a 32.10% return on equity in the near term. 2018’s track record of returns, such as the prior year’s 30.71% beating the industry return of 10.94%, gives us more conviction of the company’s capacity to drive bottom-line growth going forward. Likewise, 2018 has sufficient cash and investments to meet its upcoming liabilities, and its total debt is well-covered by its cash flows, demonstrating financial stability and good capital management. Dig deeper into AAC Technologies Holdings here.
Guangzhou R&F Properties Co., Ltd. (SEHK:2777)
Guangzhou R&F Properties Co., Ltd., together with its subsidiaries, engages in the development and sale of residential and commercial properties in the People’s Republic of China, Malaysia, Cambodia, Korea, the United Kingdom, and Australia. Founded in 1994, and run by CEO Li Zhang, the company employs 49,239 people and with the company’s market cap sitting at HKD HK$62.97B, it falls under the large-cap group.
2777’s previous triple-digit bottom-line expansion in the prior year, producing an outstanding triple-digit return to shareholders, is an optimistic signal for the future. 2777’s shares are now trading at a price below its true value based on its discounted cash flows, and also on its price-to-equity metric, meaning those that are interested in the stock can buy it for cheap. What’s more is, 2777’s increasing dividend payment over the past decade gives the stock its reputation for being one of the best dividend payers in the market. More detail on Guangzhou R&F Properties here.
For more fundamentally-robust companies with industry-beating characteristics to enhance your portfolio, explore this interactive list of big green snowflake stocks.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.