Source:
https://scmp.com/article/416216/bargain-hunters-set-sights-new-world-services-stock

Bargain hunters set sights on New World Services' stock

The share price of New World Services Holdings (NWS) - the infrastructure and port management flagship of New World Development - soared 11.53 per cent yesterday as investors accumulated the undervalued stock.

The counter closed at HK$2.90, after leaping 8 per cent on Tuesday.

'The share price has been up close to 20 per cent in two days,' said Jeff Yau, an analyst at South China Research.

The market believed NWS was 'fundamentally undervalued', he said.

It was trading cheaply at about four times expected earnings for next year, Mr Yau added.

He said he was not aware of the company looking for new projects at present. 'The existing infrastructure portfolio is generating stable income and returns.'

Phillip Securities research director Louis Wong Wai-kit said of all the companies in the New World stable, NWS had the strongest cash flow.

NWS was principally engaged in port operations before an asset reorganisation of the New World group. NWS bought infrastructure assets from New World Infrastructure, which focused on information technology projects in Hong Kong and China after the asset reshuffle.

'Before [the swap] NWS' market cap was about $300 million, but after the cash injection its market cap has surged to $4.6 billion,' he said.