NetDragon
Written on: 31 August 2023
I am sounding like a broken recorder.
NetDragon 0777.HK continue to tick all the boxes for me.
Spinoff of their Education segment to Gravitas Education GEHI 0.00%↑ is likely to happen in 3Q 2023.
Dividend in specie of GEHI 0.00%↑ will happen soon after.
The gaming segment continues to grow.
0777 is giving out tons of dividends (HKD 1.40) for 1H2023.
And they have continued to mop up some shares along the way.
There are tons of cash left in the company to continue to give more dividends.
The gaming business has an insanely high gross margin.
If you value the core gaming business, the stock is valued at PE of 4x.
The userbase of the game continue to be really sticky and should be the most attractive segment of the gaming market.
I do not know what is going to move the stock price but if a spinoff and a continued dividend do not appeal to anyone in HK or the world, I am resigned to the fact that I will continue to hold on to this company and get a mediocre return.
The plan is to start adding more tomorrow till I run out of cash.
Portfolio Update:
Written on: 31 August 2023
AJISEN (CHINA) 0538.HK - HKD 1.13 [CLOSED]
2023 August: Ajisen (China) 0538.HK purchased at an average price of HKD 1.15 was closed after the release of their 1H 2023 results. Instead of reporting good operating results, the net profit is choke full of other income. With the nationalistic rant against Japan, even the cash holding > market capitalization cannot keep me invested. I am shifting this cash to my other catering stock like Tang Palace.
[Exited at HKD 0.99 for a -11.59% on 2023 August as the profit for 2023 1H is choke full of other income gains and not from operation!]