Today, China XLX recently traded at HK$4.51, which translates into about S$0.81 cents. On the Singapore bourse, the stock is S$0.685, a discount of 16% at lunch break.
XLX's smaller peer, CJ Fertilizer, was pretty active this morning, with 31.1 m shares done. The stock is up 2 cents at 29.5 cents.
The catalyst was UOB Kay Hian releasing its initiation report on CJ Fertilizer with a 42-cent target price. Click here for the full 24-page report.
The PE valuation gap between CJ Fertilizer and China XLX is pretty wide.
A check with Bloomberg this morning showed that CJ Fertilizer is now at PE of just above 5, while XLX is around 23. That’s an ocean apart!
Read our earlier story when CJ was 24.5 cents: CJ Fertilizer is cheapest among its peers
Stock had a strong morning run, up 2.5 cents at 22.5 cents. Company announced last night that it had secured approval from US authorities to list its ADRs.
The company had a roadshow two weeks ago in Hong Kong for the local investment community, which was organized by Aries Consulting.
With the ADR approval, the company still has a long way to go before US fund managers can buy the ADRs.
Check out the time line in the story we did recently. SINOTEL: What happens next in ADR journey? And when?
Check out also our story CHINA TAISAN: PE at 2.8X vs 9.8X for HK-listed peer
HEALTHWAY MEDICAL, ABTERRA
Healthway, a new market darling, is consolidating, closing unchanged this morning at 16 cents.
Abterra too has stopped rising. Is down 0.5 cents at 5 cents.
Seems like Charlie Lau accurately read the short-term technicals on these two stocks this morning in an article Hi-LITE: Technical analysis of ABTERRA, HEALTHWAY, ROXY-PACIFIC .
Oceanus was down as low as 40.5 cents probably on contra-selling and profit-taking, before recovering to close at 42 cents at lunch break.
The price trails that in Taiwan, where the TDRs were steadily inching up in the morning, closing at lunch break at NT$11, which is equivalent to 48 Singapore cents.
That is the highest it can go today, as there is a 7% (upside and downside) limit for TDRs in a single day.