The Matthews Pacific Tiger Fund (Trades, Portfolio) aims to invest at least 80% of its total net assets in stocks located in Asia Ex Japan. The Fund easily met that objective in the third quarter.
The Fund’s most significant third-quarter transaction was its reduction of its stake in AmorePacific Corp. (XKRX:090430, Financial), a South Korean cosmetic company. The Fund sold 304,709 shares – nearly 37% of the Fund’s stake – for an average price of â‚©383227 (about $335.75 in U.S. currency) per share. The deal had a -1.29% impact on the Fund’s portfolio.
AmorePacific has a market cap of $22.06 trillion and an enterprise value of $21.4 trillion. It has a P/E of 47.6, a forward P/E of 36.6, a P/B of 7.0 and a P/S of 6.2. GuruFocus has given AmorePacific a Financial Strength rating of 10/10 and a Profitability and Growth rating of 8/10.
Value Partners (Trades, Portfolio) also has shares of AmorePacific in its portfolio.
The Fund also reduced its stake in Ping An Insurance (Group) Co. of China Ltd. (HKSE:02318, Financial), a Chinese financial services holding company, by almost 28%. The Fund sold 11,789,000 shares for an average price of HK$42.38 (approximately $5.47 in American dollars) per share. The transaction had a -0.9% impact on the Fund’s portfolio.
Ping An Insurance has a market cap of $797.93 billion and an enterprise value of $634.29 billion. It has a P/E of 11.3, a forward P/E of 14.6, a P/B of 1.9 and a P/S of 1.1. GuruFocus has given Ping An Insurance a Financial Strength rating of 5/10 and a Profitability and Growth rating of 8/10.
Matthews Pacific Tiger Fund (Trades, Portfolio) is Ping An Insurance’s leading shareholder among the gurus. Matthews China Fund (Trades, Portfolio) also has shares in the company, as does Value Partners (Trades, Portfolio).
The Fund also sold a portion of its stake in Sinopharm Group Co. Ltd. (HKSE:01099, Financial), a Beijing-based pharmaceutical company. The Fund sold 17,394,000 shares, nearly 31% of its stake, for an average price of HK$29.5 (roughly $3.81 in U.S. money). The reduction had a -0.87% impact on the Fund’s portfolio.
Sinopharm Group has a market cap of $88.82 billion and an enterprise value of $117.8 billion. It has a P/E of 23.1, a P/B of 2.5 and a P/S of 0.3. GuruFocus has given Sinopharm Group a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.
Matthews China Fund (Trades, Portfolio) has shares of Sinopharm Group in its portfolio.
The Fund sold out six of its existing stakes in the third quarter – Taiwan Semiconductor Manufacturing Co.Ltd. (TPE:2330, Financial), Dongfeng Motor Group Co. Ltd. (HKSE:00489), Yuhan Corp. (XKRX:000100), Hyflux Ltd. (SGX:600), HDFC Bank Ltd. (HDB) and Kasikornbank Public Co. Ltd. (BKK:KBANK).
The Fund sold its 19,423,513-share stake in Taiwan Semiconductor, a Taiwanese semiconductor company, for an average price of NT$131.13 (about $4.04 in American currency) per share. The transaction had a -1% impact on the Fund’s portfolio.
Taiwan Semiconductor has a market cap of $3.54 trillion and an enterprise value of $3.19 trillion. It has a P/E of 11.6, a forward P/E of 14.6, a P/B of 3.3 and a P/S of 4.1. GuruFocus has given Taiwan Semiconductor a Financial Strength rating of 8/10 and a Profitability and Growth rating of 9/10.
The Fund sold its 53,690,000-share stake in Dongfeng Motor Group, a Chinese automobile manufacturer, for an average price of HK$1.09 (approximately 14 cents in U.S. money) per share. The deal had a -0.81% impact on the Fund’s portfolio.
Dongfeng Motor Group has a market cap of $96.85 billion and an enterprise value of $89.48 billion. It has a P/E of 6.0, a forward P/E of 7.3, a P/B of 1.0 and a P/S of 1.0. GuruFocus has given Dongfeng Motor Group a Financial Strength rating of 7/10 and a Profitability and Growth rating of 4/10.
The Fund sold its 225,201-share stake in Yuhan Corp., a South Korean pharmaceutical and chemical company, for an average price of â‚©258078 (roughly $226.10 in American dollars) per share. The transaction had a -0.62% impact on the Fund’s portfolio.
Yuhan has a market cap of $2.84 trillion and an enterprise value of $2.34 trillion. It has a P/E of 32.7, a forward P/E of 19.5, a P/B of 2.3 and a P/S of 2.8. GuruFocus has given Yuhan a Financial Strength rating of 10/10 and a Profitability and Growth rating of 7/10.
The Fund bought two new stakes in the third quarter – Fuyao Glass Industry Group Co. Ltd. (HKSE:03606) and Shanghai Jahwa United Co. Ltd. (SHSE:600315).
The Fund acquired 30,836,000 shares of Fuyao Glass Industry Group, a Chinese company that makes and distributes float glasses and automobile glasses, for an average price of HK$15.81 (about $2.04 in U.S. currency) per share. The purchase had a 0.95% impact on the Fund’s portfolio.
Fuyao Glass has a market cap of $41.59 billion and an enterprise value of $46.3 billion. It has a P/E of 11.8, a forward P/E of 6.4, a P/B of 2.2 and a P/S of 2.1. GuruFocus has given Fuyao Glass a Financial Strength rating of 7/10 and a Profitability and Growth rating of 7/10.
The Fund bought a 2,220,199-share stake in Shanghai Jahwa, a Chinese manufacturer of personal care products, for an average price of CN¥37.21 (approximately $5.88 in American money) per share. The deal had a 0.19% impact on the Fund’s portfolio.
Shanghai Jahwa has a market cap of $23.23 billion and an enterprise value of $21.09 billion. It has a P/E of 23.9, a forward P/E of 27.0, a P/B of 5.5 and a P/S of 4.0. GuruFocus has given Shanhai Jahwa a Financial Strength rating of 10/10 and a Profitability and Growth rating of 7/10.
The Fund added to its positions in five companies in the third quarter – Inner Mongolia Yili Industrial Group Co. Ltd. (SHSE:600887), Orion Corp. (XKRX:001800), AIA Group Ltd. (HKSE:01299), NAVER Corp. (XKRX:035420) and Lenovo Group Ltd. (HKSE:00992).
The Fund bought 7,449,730 shares of Inner Mongolia Yili Industrial Group, a Chinese dairy company, for an average price of CN¥16.92 (roughly $2.67 in U.S. dollars) per share. The acquisition had a 0.29% impact on the Fund’s portfolio.
Inner Mongolia Yili Industrial Group has a market cap of $97.63 billion and an enterprise value of $90.82 billion. It has a P/E of 21.8, a forward P/E of 21.3, a P/B of 5.2 and a P/S of 1.7. GuruFocus has given Inner Mongolia Yili Industrial Group a Financial Strength rating of 8/10 and a Profitability and Growth rating of 7/10.
To view the portfolios of more gurus, visit the List of Gurus page. Not a premium member of GuruFocus? Try it free for 7 days.
