Current Report: CITIC (CTPCY)

CITIC Ltd, bearing the ticker symbol CTPCY, has not been mentioned as a candidate for any of my previous seven dog of the week portfolios. This is its first mention as a candidate for the thirty-fourth selection for my Viking folio, my eighth collection.

CITIC Ltd is a Hong Kong-based investment holding company. The company was formerly known as CITIC Pacific Limited and changed its name to CITIC Limited in August 2014. CITIC Limited was founded in 1987 and is headquartered in Central Hong Kong.

The five company operating segments include (1) Comprehensive financial services; (2) Advanced intelligent manufacturing; (3) Advanced materials; (4) New consumption and (5) New urbanization.

It generates maximum revenue from the Comprehensive financial services segment. Geographically it derives a majority of its revenue from Mainland China.

Three key data points gauge CITIC Ltd or any dividend-paying firm. They are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

 

CTPCY Price

CITIC’s price per share was $6.29 at Wednesday’s market close. In the past year, its share price increased about 22% from $5.14 to today’s $6.29.

If CITIC’s stock trades in the range of $4.00 to $8.00 this next year, its recent $6.29 share price might get up to $6.55 by next year. Of course, CITIC’s price could go down about the same $0.26 amount or more.

My upside estimate of $0.26 is in line with the company’s  average annual  stock price gain since May 2021.

 

CTPCY Dividend

CITIC’s recent $0.29 Semi-Annual dividend equates to $0.39 annually to yield 6.20% at Wednesday’s closing price.

 

CTPCY Returns

Adding the $0.39 projected annual dividend to my estimated $0.26 estimated price gain, reveals a $0.65 potential gross gain per share for the coming year.

At Tuesday’s $6.29 closing price, a little over $1000 would buy 159 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.06 per share. Subtract that maybe $0.06 brokerage cost from my estimated $0.65 gross gain per share makes a net gain amount of $0.59 X 159 shares = $93.81 or a 9.3% net gain.

In the next year our $1K investment in shares of CTPCY could generate about $62.00 in dividends. Furthermore, a single share of CTPCY stock at Tuesday’s $6.29 closing price is almost ten times less than the income estimated from $1000.00 invested.

So, by my dogcatcher ideal, this is a prime time to consider CITIC Ltd based on its estimated dividends for 2023. The dividend from $1k invested is about 9.86 times greater than CITC’s single-share price. Consider yourself alerted.

This may be time to pounce on CITIC. But beware, its price is volatile, and is less than one-half its all time high posted in 2011.

 


More By This Author:

Current Report: Keppel Corp (KPELY)
Daily Stock Analysis: Singapore Airlines
Daily Stock Analysis: Swire Pacific

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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