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China Merchant Holdings Pacific Ltd ("CMH").

Yesterday I added 6 lots of CMH to my SRS portfolio.

China Merchant Holdings is an investment holding company that operates tollroads in China. The company has a long history, established since 1981 in Singapore and its parent is listed on Hong Kong Stock Exchange (SEHK: 144).

I last mentioned CMH in a blog post on 18 Sep 2012. At that time, CMH was trading at 71.5c, versus my entry price of 88c yesterday. I have lost "23% upside" by not taking action earlier, somewhat similar situations to the many good quality stocks which i have spotted in the past, hahaha, including Hutchison Port which is in the same post @ 90.5c (now trading at 1.055c). ^_^


The Company has committed to pay out at least 5.5 Singapore cents (if i remember correctly) each year and that translate into a yield of 6.25% based on my entry price. While i don't like Chinese stocks, i like the China economy and companies with good management. CMH is definitely not a 'fly-by-night' company. DBS has given it a $1.20 price target in a research report dated 28 Feb 2013 but in an updated report dated 8 April, the price target is now $1.12. (I don't have the latest report)

I have to warn you that i am not entirely convinced that this is a good entry price except that 88c is a nice number and i have a weakness for nice numbers. 


The chart is for reference only. As you can see, the price is at an all time high and can drop badly during the financial crisis. Perhaps 70c is a better entry price. In any case, the decision has been made.

Happy SRSing.

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