China Railway Group Ltd (HKG:0390) HEFFX Trading Outlook

China Railway Group Ltd (HKG:0390) HEFFX Trading Outlook

China Railway Group Ltd (HKG:0390) HEFFX Trading Outlook

With a low PE and solid growth China Railway Group Ltd (HKG:0390) is a safe long term buy, the HEFFX Target here is HKD8 in 2017.


Beta: 1.78
Market Cap(Mil.): HK$173,460.00
Shares Outstanding(Mil.): 22,844.30
Dividend: 0.10
Yield (%): 1.71


0390.HK Industry Sector
P/E (TTM): 9.61 24.99 26.93
EPS (TTM): 0.62
ROI: 5.41 6.40 6.35
ROE: 10.20 8.39 9.66

Overall, the bias in prices is:  Sideways.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 6.21.

The projected lower bound is: 5.64.

The projected closing price is: 5.92.

CHINA RAILWAY closed up 0.080 at 5.920. Volume was 16% below average (neutral) and Bollinger Bands were 42% narrower than normal.

Open     High     Low    Close     Volume
5.940  5.980  5.890  5.920    12,454,936

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 5.92 5.81 5.95
Volatility: 23 31 48
Volume: 12,384,859 12,509,661 19,542,596

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

CHINA RAILWAY is currently 0.5% below its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of 0390.HK at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on 0390.HK and have had this outlook for the last 12 periods.


Momentum Outlook

Momentum is a general term used to describe the speed at which prices move over a given time period.  Generally, changes in momentum tend to lead to changes in prices.  This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20).  The Stochastic Oscillator is 41.3044.  This is not an overbought or oversold reading.  The last signal was a sell  9 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas.  The current value of the RSI is 53.64.  This is not a topping or bottoming area.    A buy or sell signal is generated when the RSI moves out of an overbought/oversold area.  The last signal was a sell 68 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas.  The current value of the CCI is 30.  This is not a topping or bottoming area.  The last signal was a sell 6 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line.  The last signal was a sell 1 period(s) ago.

China Railway Group Limited is engaged in infrastructure construction, survey, design and consulting services, engineering equipment and components manufacturing, and property development and other business. Its infrastructure construction business includes railway construction, highway construction, urban rail transportation and other construction. Its survey, design and consulting services business involves in the provision of survey, design and consulting services for railway, bridge, road and tunnel projects. The revenue of engineering equipment and component manufacturing business is primarily generated from the design, research, manufacture and sale of turnouts and other railway construction equipment, steel structures of bridges, and engineering equipment. It is also engaged in the build-operate-transfer (BOT) investment and operation of highways, the development of minerals, merchandise trading and provision of financial services.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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