Huabao International Favors Flavors

The basic sector has thirteen industries all related to mining, making and delivering essential commodities. They are: agricultural inputs; aluminum; building materials; chemicals; coal; copper; paper; silver; specialty chemicals; steel.

Today I'm reviewing a chemicals company. It's a mid-cap stock, Huabao International Holdings Limited. It's trading ticker symbol is HUIHY

Huabao International Holdings Ltd researches, develops, produces, distributes and exports flavors and fragrances in China. Its four segments include flavors and fragrances, tobacco raw materials, aroma raw materials, and Innovative tobacco products.

In addition, the company provides equipment leasing, office stationery leasing, and assets and investment management services, as well as investment and leasing consulting services. 

The company was founded in 1996 and is headquartered in Wan Chai, Hong Kong.

Three key data points measure dividend equities or funds like Huabao: 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will unlock an equity or fund in which to invest.

Those first three primary keys, however, best tell whether a company has made, is making, and will make money. 

HUIHY Price

Huabao's price at yesterday's market close was $35.75 per share. A year ago its price was $30.72. That is a gain of $5.03 per share in the past year.  

Assuming Huabao's price gains at the same pace this year, its price would grow from $35.75 to $40.78 by March 2019.

HUIHY Dividends

Huabao's most recent semi-annual dividend was $1.02 declared in December and paid January 29, 2018. 

The Huabao estimated annual dividend for 2018 is estimated at $2.04 paid in two equal $1.02 payments in January and July.

The yield from that $2.04 annual dividend was 5.7% at Friday's $35.75 share price. 

Gains For HUIHY?

Adding the $2.04 annual dividend to the $5.03 estimated price gain makes a $7.07 projected gross annual gain, which must cover any cost to trade those shares.  

Say $1,000.00 was invested at yesterday's $35.75 price. That trade bought 28 shares. 

A $10 broker fee paid as $5 at purchase and $5 at sale of the shares equals about $0.36 in cost per share.

Subtracting that $0.36 brokerage cost from the estimated $7.07 gross gain leaves a net gain to next year of $6.71 X 28 shares 

= $187.88

or a 18.77% net gain on a $1,001.00 investment.

Therefore, Huabao International Holdings Limited (whose ticker symbol is HUIHY), now shows a possible 17.7% net gain including a 5.7% dividend yield. 

NO analysts cover this stock. However, its past 9-year price history shows a jerky decline from a peak $91 price in October 2010. Since then the price dropped 83% to a low of $15.30 as of December 2015 from which it has recovered 147% to $35.75 as of yesterday.

These forward-looking numbers are conjecture based on past year performance. The actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if Huabao International Holdings Limited is worth your time and money.

Disclaimer: For more information and to get a two-week free sample of my stock portfolios just click on this link. Click ...

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