Markets around the world have been declining for the past few weeks. Maybe it is time to look at some of the companies that has dropped like falling knives to near their 52-week low. Here are 5 of our favorites.
Galaxy Entertainment Group Limited
Galaxy Entertainment Group (27:HK) is one of the main operator of casinos and integrated resorts in Macau. The company operates the StarWorld Hotel and has significant presence in the Cotai, the newest resort destination in Macau. However, due to the current crackdown in corruption in China, revenue and income from the gaming business is expected to head for tougher times ahead.
Prada SpA (1913:HK) one of the most well-known luxury brand. The company designs, produces and distributes luxury consumer products. It owns popular brands such as Prada, Miu Miu, Chruch’s and Car Shoe. The company has been one of the most highly valued consumer companies in the Hong Kong Exchange. However, due to recent drop in net income, the company’s share price has been on a downward slope.
Petronas Gas Bhd
Petronas Gas Bhd (PTG:MK) a RM42.2 billion company operating in the gas infrastructure and utility space in Malaysia. The company is a listed subsidiary of Petroliam Nasional Berhad (PETRONAS MALAYSIA), the national oil major of Malaysia. The company operates in the downstream of the gas industry, processing natural gas and selling them to consumers. Although the company saw its share price decline for the recent week, the down is still rather mild compared to the general market in Malaysia.
Tsingtao Brewery Company Limited
Tsingtao Brewery Company (168:HK) is the brand owner of the Tsingtao Beer brand. It is the first H-share to be listed in Hong Kong. Due to its long history and stable business, the company is considered by many as one of the staple business to own among the H-shares. The company’s share price did retreat slightly in the past weeks. However, the company is still trading at a P/E ratio of 28 times and only having a dividend yield of 0.9%.
United Plantation Bhd
United Plantaion Bhd (UPL:MK) is a mid-sized upstream palm oil player in Malaysia. It operates in oil palm plantation, to milling to refining the crude palm oil into other products. The company has roughly 46,000 hectares of planted oil palm area in Malaysia and Indonesia combined. Considered as one of the best managed plantation owner in Malaysia, the company now offers a 4.4% dividend yield and is trading at P/E ratio of 16.5 times.
Value In Action
Although a company trading near its 52-week low is not necessary a signal for investors to buy, it is definitely a good place to start searching for potential investment that has been oversold by the market recently.
Join us on Facebook for more exciting updates and discussion about value investing.
Submit your email address for important market updates and FREE case studies!
We will only provide you with information relevant to value investing. You can unsubscribe at any time. Your contact details will be safeguarded. The information provided is for general information purposes only and is not intended to be any investment or financial advice.
All views and opinions articulated in the article were expressed in Stanley Lim’s personal capacity and does not in any way represent those of his employer and other related entities. Stanley Lim does not own any companies mentioned above.