Chapter 15: Unexpected Investigation Results

As a professional, Su Zhixue was naturally well-versed in how to acquire stock data.

Soon, he became busy in his office, making numerous phone calls.

Lin Haoran was in no hurry; instead, he picked up a newspaper and began to read.

He had bought this newspaper at a roadside stall on his way back—it was a copy of the *Hong Kong Economic Daily*.

As expected, the news contained reports regarding Wharf Holdings.

Sure enough, after the "King of Shipping" announced to the outside world that he had no intention of purchasing more Wharf Holdings shares, the stock price had subsequently dropped from its peak of HKD 49, and trading volume had also significantly decreased.

In fact, the King of Shipping had acquired his shares from Li Jiacheng; he had never purchased Wharf Holdings shares on the open market, so retail investors naturally believed the announcement.

Consequently, seeing that there were no more bargains to be had, the speculators vanished, and the stock price naturally plummeted.

According to the article, Wharf Holdings' closing price yesterday had dropped to HKD 38 per share—a massive decline—though the trading volume was not particularly high.

In the current market, sell orders were increasing significantly, many of which originated from retail investors who had rushed to place orders due to lagging information or misunderstood market signals; they often became the "leeks" harvested during market volatility.

The tendency of ordinary investors to chase rising prices stems from a desire for profit, but it often ignores the complexity and risk behind the market.

This behavioral pattern causes them to buy in at market highs, making it difficult for them to escape being "harvested" by market makers or larger market forces when the wind shifts.

Lin Haoran frowned as he looked at the stock price.

HKD 38 per share was far from the bottom.

However, since the fifty million HKD loan funds had not yet arrived, there was no rush for Wharf Holdings to enter the market.

Since his transmigration, he had discovered to his delight that he had not only gained a "golden finger" capable of perceiving loyalty, but his memory had also miraculously enhanced, granting him an extraordinary photographic memory.

Articles and materials he had read in his previous life could now emerge clearly in his mind, as if he had experienced them only yesterday.

He had followed articles regarding famous enterprises like Wharf Holdings in his past life.

This was also why he had formulated a plan immediately after seeing the news about Wharf Holdings.

In his memory, shortly after the King of Shipping made his announcement, Wharf Holdings' stock price had undergone a massive correction, falling to a low of HKD 21 per share.

Therefore, the stock had not yet hit its trough.

His current strategy for Wharf Holdings was to maintain calm observation, focusing primarily on its price fluctuations.

He understood that in the stock market, timing is often more important than selection.

Thus, he was not in a rush to act, but was patiently waiting for the price to drop to what he considered a reasonable or undervalued level.

To maximize profits from this investment, he had to control his costs at the time of purchase—that is, to lower the average acquisition price as much as possible.

To this end, he planned to build his position gradually when market sentiment was pessimistic and the stock price was under pressure, utilizing market volatility to lower his holding costs.

Setting down the newspaper, Lin Haoran sat in his chair waiting for Su Zhixue's investigative results.

It was not until several minutes later that Su Zhixue finally hung up the receiver.

On the notebook in front of him, many words and data points had been written down.

"Mr. Lin, I have found the information you required," Su Zhixue said, looking up at Lin Haoran.

"Mhm, report it. I'm listening," Lin Haoran nodded.

"First is Wharf Holdings. Wharf's stock has been very volatile recently. It previously rose as high as HKD 49 per share and is currently in a continuous decline. Yesterday's closing price was HKD 38.56 per share, a 23% drop compared to the day before. After the market opened today, Wharf's stock price dropped rapidly again. The latest news I just received shows the current transaction price is at HKD 34.23 per share, and the trading volume is not very high.

Regarding Tsingzhou Cement, I have followed this stock for a long time, so I am quite familiar with it. This is a stock that has maintained relatively stable performance over a long period. The current actual controlling party is British, with the major shareholder holding 12.6% of the shares. Based on the current stock price, the company's total market capitalization is approximately HKD 238 million. Compared to the stock price during the same period last year, the increase is not significant.

However, some data I previously found shows that Tsingzhou Cement not only possesses a strong business foundation but also holds 800,000 square feet of waterfront land in Hung Hom, Kowloon. Based on current land values, this plot is estimated to be worth at least HKD 500 million, and that does not even include the valuation of their complete industrial chain. It can be said that Tsingzhou Cement's stock price is severely undervalued.

There is a significant gap between Tsingzhou Cement's stock price and its actual value. This may be due to insufficient market awareness of the company, conservative estimates by investors regarding its future prospects, or other market factors.

Currently, there are many pending orders for Tsingzhou Cement in the market, but the asking prices are quite stable; the price has not collapsed despite the high volume of orders.

The latest transaction price for Tsingzhou Cement is HKD 4.76 per share..."

Su Zhixue reported the data he knew and the information he had investigated in detail to Lin Haoran.

A market cap of over two hundred million HKD?

This was somewhat unexpected for Lin Haoran. He had thought Tsingzhou Cement was merely a cement plant and that a market cap of one hundred million would be decent; he hadn't expected it to exceed two hundred million.

In his previous life, the history of Li Jiacheng's acquisition of Tsingzhou Cement was only briefly mentioned in relevant records, without much depth or detailed accounts of the acquisition process.

In contrast, the merger and acquisition histories of massive, influential enterprises such as Wharf Holdings, Hutchison Whampoa, and Hong Kong Electric were documented in great detail, with clear processes.

This was only logical; compared to industry giants like Wharf Holdings and Hutchison Whampoa, Tsingzhou Cement truly could not hold a candle to them in terms of scale and influence.

However, thinking about the fact that Tsingzhou Cement owned such a large piece of land in a city center like Hung Hom, a market cap of over two hundred million HKD was indeed a very low price.

No wonder Li Jiacheng set his sights on this company later.

British-owned enterprises at this time were indeed very worthy of acquisition.

Just like the currently sensational Wharf Holdings—if calculated by its actual valuation, its market cap could reach four or five billion HKD, making it a true behemoth.

Yet, from the end of last year to the beginning of this year, Wharf Holdings' stock had been stagnating between HKD 13 and 14 per share. With the company having approximately 100 million total shares, its market capitalization fluctuated in the range of only about 1.4 billion HKD.

Therefore, this phenomenon where market capitalization differs greatly from actual value—where market cap is severely undervalued—was quite common in Hong Kong, especially among companies controlled by British conglomerates.

This was precisely why British-owned enterprises were continuously targeted and gradually eaten away and absorbed by Chinese-owned conglomerates.

"Go to the Stock Exchange and get me the stock transaction records for Tsingzhou Cement for the past six months. I will wait for you here," Lin Haoran instructed, not rushing Su Zhixue to act immediately.

"Understood, Mr. Lin. I'll head there right away. Please wait a moment," Su Zhixue replied and quickly exited the room.

About ten minutes later, Su Zhixue returned.

In his hand, he held several stapled A4 sheets covered in data.

"Mr. Lin, these are the daily transaction data for Tsingzhou Cement for the past six months. I obtained them through a contact I have at the Hong Kong Stock Exchange," Su Zhixue said, handing the A4 sheets to Lin Haoran.