This blog provides the smart investor with a fair value for HK equity dependent on annual report announcement and liquidity information. Financial products go up and down, please use at your own risk. I will not take responsibility for any losses

Wednesday, 26 February 2014

HSBC 5 (24/02/2014)

Date Announced: 24/02/2014
http://www.aastocks.com/EN/News/HK6/00005/NOW.590561.html

Ticker: 5 HSBC 匯豐控股
http://www.aastocks.com/EN/LTP/RTQuote.aspx?&symbol=00005

Current/Target Price: $81.85 -> $91
Cut loss: N/A

Performance Justification:

- Net profit 16,204 mil usd (125,725 mil hkd) up 15% from previous year

Risk profile:

- Under estimated performance, however, I believe market already priced in. Market over reacted over negative news and already reacting to lower future earnings
- Highly liquid and popular blue chip stock, should recover in the short term

Other broker recommendations:

UBS: $85.5 (project 6% decrease)
JPM: $92
MS: $90

High: 86.4 Current: 71.75

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