Postal Savings Bank of China, PSBC (HK:1658) dated 10 May 2021
Updated: Aug 1, 2021
Postal Savings Bank of China (PSBC) (HK:1658) engages in the provision of banking and related financial services. It operates through the following segments: Personal Banking, Corporate Banking, Treasury, and Others.
Recently, the stock caught the eye of many investors when it was announced that Li Lu, through his investment firm, Himalaya Capital increased his stakes into the company substantially. Li Lu, is often referred to as the Chinese Warren Buffett, is best known for recommending Warren Buffett to invest into BYD, helping Buffett made 20 times over a 20 years period. You can refer to the link for some write up about Li Lu and his investment into PSBC.
JPMorgan issued an Overweight recommendation on PSBC with a price target of HK$8.20 by end Dec 2021. That’s about *50% upside from its last done price of HK$5.27. You can refer to the attached report for the analyst’s rationale.
On its daily chart, PSBC had corrected about 20% from recent high of HK$6.37. Stochastic is hovering around oversold region and KST had crossing over upward, indicating possible entry signal for more upside momentum. Next major support for PSBC is at HK$4.
As usual, this writeup was broadcast to Clients on 10 May 2021 but posted here only on 12 May 2021. Do join our Telegram channel https://t.me/stockwhisperersg* to receive free & interesting trading/investment ideas across US/HK/SG!
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