China Resources Enterprise (NASDAQOTH:CRHKY)

CAPS Rating: No stars


Player Avatar MostlyChina (32.86) Submitted: 5/25/2010 7:21:31 AM : Outperform Start Price: $6.51 CRHKY Score: +7.99

This company is the partner of SABMiller to distribute beer in China. That alone would be a good enough reason for me to like this stock, but it gets even better. Here are the figures released May 24th:

1.1st Qtr profit nearly 9 times what they reported last year. Part of the profit came from selling off a brand-fashion distribution business.
2.“Profit from retail operations in the first three months more than doubled.”
3.Profits for their beverage business increased 53 percent.

For its retail operations, the company had more than 2,800 hypermarkets, supermarkets and convenience stores in China and Hong Kong.
With over 1 Billion people in China there has to be huge potential for further increases in both their retail and beverage businesses. I think this investment looks good for the next several years.

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