It is customary for many to go on holidays as the end of the year is approaching. At EastMoneyStocks, we believe that your money can still work for you, even while you are away from work. To do that, we consider 3 stocks with strong fundamentals that hold their value across time. After all, you don’t want to be constantly checking on the stock market while you are skiing in the Alps.
Tingyi (Cayman Islands) Holding (322.HK)
Tingyi (Cayman Islands) Holding better known by its Master Kong brand name, produces and sells instant noodles, packaged drinks and other daily consumer goods. The company has been actively exploring higher end products, in line with consumption upgrading in China. The stock is currently trading at an attractive valuation with a P/E ratio of 20 times. This looks cheap compared to historical values of over 30 times. The company’s growth prospect remains strong due to robust domestic demand. During the first half of this year, it reported a 3.7% sales increase in its instant noodle business.
Tencent Holdings Ltd (700.HK)
Tencent Holdings Ltd may have faced some challenges in its stock price in the past few years. However, the company’s long-term prospects remain as strong as ever. WeChat continues to be an integral part of life in China. The platform is one of the apps with the most users. There remains potential to generate revenue from the platform. Tencent is a market leader in gaming, a lucrative market indeed. Tencent is also ramping up its cloud computing space and also has investments in numerous other companies, which could provide unexpected sources of returns.
Shenzhou International Group Holdings Ltd (2313.HK)
Shenzhou International Group Holdings Ltd is a vertically integrated clothing manufacturer. It is the largest vertically integrated knitwear manufacturer in China. Its clients include Uniqlo, Adidas, and Nike. The company has demonstrated competitive advantage by being able to achieve higher operating and net margins than non-vertically integrated players. The company has also been raising dividends annually from HKD 1 per share in FY 2014 to HKD 1.75 per share in 2018. With a rising middle-income class globally, there remains a lot of room for growth.