Hopewell Holdings (NASDAQOTH:HOWWY.PK)

Hopewell is a $2.6B Hong Kong conglomerate which owns and operates toll roads, power plants, commercial and residential property, hotels and restaurants. It trades in Hong Kong as 54.HK and in the US as HOWWY and HOWWF. After a not bad 2008 (only down 28%) it barely participated in the 2009 rally.

Like other Hong Kong real estate companies, revenue and earnings slumped a bit in late 2008/early 2009 but have come roaring back in the second half results. The earnings are historically not very clear however - there are a lot of non-cash items which I don't understand yet. The balance sheet is very conservative with no debt and a current ratio over 5. They have a variable dividend and have reduced it to keep their cash position.

They are currently trading at 6.4x trailing earnings and 1x tangible book. I expect forward earnings to be around 10-14 (taking out noncash items) and cash flow to return to positive territory. The dividend may also expand rapidly over the next few years.