During the second quarter, the Value Partners (Trades, Portfolio) investment firm added to its stake in Logan Property Holdings Company Limited (HKSE:03380). The company added 59,122,000 shares during the second quarter at an average price of HK$2.79. The trade had a 1.71% impact on the fund’s portfolio. It now owns 154,088,000 shares of the company.
Logan Property Holdings Company is an investment holding company. The company and its subsidiaries develops, invests in, and constructs properties in China. Logan Property Holdings operates its business through three segments: Property Development, Property Leasing and Construction Contracts.
Logan Property Holdings Company has a market cap of HK$18.9 billion, a P/E ratio of 5.34, an enterprise value of HK$26.92 billion and a P/B ratio of 1.17.
According to GuruFocus, Logan Property Holdings Company has a 5 of 10 financial rating with a cash to debt ratio of 0.86, and a Piotroski F Score of 3, which usually implies poor business operation. The company also has a 5 of 10 profitability and growth rating with an operating margin of 29.90% and an ROE of 21.50%, which ranks it higher than 88% of the companies in its industry.
Since the fourth quarter of 2015, when the Value Partners (Trades, Portfolio) purchased its original stake in Logan Property Holdings Company,Ă‚ the fund has has gained an estimated 17% profit on its investment.
It's possible that the Value Partners (Trades, Portfolio) added to its stake in Logan Property Holdings because the company was founded in 1996 and it has 20 years of operating experience. The company is also paying a dividend yield of 4.09, which is higher than 69% of the companies in the global real estate general industry. The Value Partners (Trades, Portfolio) also likes to purchase companies that it believes to be undervalued.
According to the Peter Lynch chart below, Logan Property Holdings Company is trading below its instrinsic value.
The Value Partners (Trades, Portfolio) is an investment firm that likes to invest effectively, communicate clearly, spend responsibly and it uses a team of experts to make its investment decisions in companies that are:
1) Hard to compete with.
2) Difficult to live without.
3) Difficult to replicate.
Logan Property Holdings Company is not easy to compete with as well, as its not easy to replicate because it has 20 years of operating experience. It is difficult to live without because real estate is an essential industry -- everyone needs a place to live. The Value Partners is also a firm that likes to focus on securities that give out healthy dividend yields.Ă‚
Cheers to your investment success.
Disclosure:Ă‚ Author does not own any shares of this company.
