Wednesday, June 23, 2010
This morning I added GDI (270) to the private portfolio paying an average of HK$3.78 per share. GDI's main business and source of revenues is water supply and other utilities. It also undertakes some property development. With the China's continued urbanisation and the growing per capital consumption of water by the urban population, the water business should experience at least modest growth in revenues and profits in the years ahead. With a trailing PE of 11.4 and historical yield of 2.9% it is relatively cheap on fundamentals. The balance sheet is solid with gearing at a modest 12%.