Chinney Alliance Group (HKSE:00385) Predictability Rank

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

HKSE:00385 Chinney Alliance Group Ltd HKSE:00385
40 GF Score
Price HK$0.25
GF Value HK$0.39
Valuation Significantly Undervalued
! 6 Warning Signs
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What is Chinney Alliance Group Predictability Rank?

1 (5)

Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.

Chinney Alliance Group Predictability Rank Related Terms

HKSE:00385
40GF Score
Chinney Alliance Group Ltd HKSE:00385
Predictability Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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Chinney Alliance Group Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

PredictablesNon-PredictableAll stocks
Total Number of stocks57018332403
Total Lost Money61830891
Total Lost More Than 50%18412430
Total Lost More Than 90%48690
Average Gain260.6%100.0%138.1%
Median Gain150.0%13.0%39.0%
Maximum Gain2852.0%11483.0%11483.0%
Maximum Loss-100.0%-100.0%-100.0%
Annualized Average Gain12.7%6.7%8.4%
Annualized Median Gain8.9%1.1%3.1%


















For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank5-Star4.5-Star4-Star3.5-Star3-Star2.5-Star2-Star1-Star (non-predictable)Average among all
% Out of All 2403 Stocks 3.3% 2.9% 3.7% 3.3% 3.3% 3.7% 3.3% 76.3% 100%
% that are in Loss (10y) 3% 10% 8% 9% 11% 18% 16% 45% 37%
Average Gain (10y) 364.6% 330.9% 278.0% 235.1% 243.5% 227.8% 154.8% 100.0% 138.1%
Median Gain (10y) 238.5% 193.5% 171.0% 159.0% 132.5% 113.5% 87.0% 13.0% 39.0%
Maximum Gainer 2228.0% 2547.0% 2452.0% 2852.0% 2432.0% 1892.0% 1807.0% 11483.0% 11483.0%
Maximum Loser -82.0% -53.0% -67.0% -100.0% -83.0% -100.0% -78.0% -100.0% -100.0%
Annualized Average Gain 15.4% 14.6% 13.2% 12.0% 12.2% 11.7% 9.1% 6.7% 8.4%
Annualized Median Gain 12.1% 10.6% 9.8% 9.3% 8.2% 7.3% 6.0% 1.1% 3.1%
















For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

Also read:

Part II: What worked in the market from 1998-2008? Part II: Role of Valuations
Part III: Intrinsic Value, Discounted Cash Flow and Margin of Safety

Is Chinney Alliance Group (HKSE:00385) Overvalued in 2026?

Based on GuruFocus' analysis, Chinney Alliance Group stock appears to be undervalued. The current stock price of HK$0.25 is trading 35.9% below its estimated GF Value™ of HK$0.39. GuruFocus considers Chinney Alliance Group to be Significantly Undervalued.

Key valuation signals for HKSE:00385:

  • Predictability Rank:
  • GF Value™: HK$0.39 vs. price of HK$0.25 (35.9% below fair value)
  • GF Score™: 40/100 with 6 warning signs

No single metric tells the full story. See the HKSE:00385 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Chinney Alliance Group Business Description

Address 111 Connaught Road Central, 23rd Floor, Wing On Centre, Hong Kong, HKG
Chinney Alliance Group Ltd is engaged in trading of plastic and chemical products, provision of building related contracting services for both public and private sectors, including engineering contracting services in the air-conditioning industry and provision of maintenance services, superstructure construction works for both public and private sectors in Hong Kong and Macau, foundation piling, and drilling and site investigation for both public and private sectors in Hong Kong and Macau, distribution and installation of aviation system and other products, and property holding and development and investment holding. It derives revenue from the building-related contracting services segment, which consists of the provision of contracting services for both public and private sectors.
40GF Score

Get the complete analysis for HKSE:00385

Predictability Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$0.25
Price
HK$0.39
GF Value