Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24
Micro Strategy Bubble Mania - 10th May 24
Biden's Bureau of Labor Statistics is Cooking Jobs Reports - 10th May 24
Bitcoin Price Swings Analysis - 9th May 24
Could Chinese Gold Be the Straw That Breaks the Dollar's Back? - 9th May 24
The Federal Reserve Is Broke! - 9th May 24
The Elliott Wave Crash Course - 9th May 24
Psychologically Prepared for Bitcoin Bull Market Bubble MANIA Rug Pull Corrections 2024 - 8th May 24
Why You Should Pay Attention to This Time-Tested Stock Market Indicator Now - 8th May 24
Copper: The India Factor - 8th May 24
Gold 2008 and 2022 All Over Again? Stocks, USDX - 8th May 24
Holocaust Survivor States Israel is Like Nazi Germany, The Fourth Reich - 8th May 24
Fourth Reich Invades Rafah Concentration Camp To Kill Palestinian Children - 8th May 24
THE GLOBAL WARMING CLIMATE CHANGE MEGA-TREND IS THE INFLATION MEGA-TREND! - 3rd May 24
Banxe Reviews: Revolutionising Financial Transactions with Innovative Solutions - 3rd May 24
MRNA - The beginning of the end of cancer? - 3rd May 24
The Future of Gaming: What's Coming Next? - 3rd May 24
What is A Split Capital Investment Trust? - 3rd May 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Chinese Travel Sector is Still Hot

Companies / China Stocks Sep 02, 2012 - 11:15 AM GMT

By: InvestmentContrarian

Companies

Best Financial Markets Analysis ArticleThe global travel industry is on an uptrend, with China rapidly becoming one of the top travel markets in the world for both domestic and international travelers, according to my stock analysis.

To deal with the increased travel, the country has been steadily building its road, rail, and air infrastructure that will make traveling in the country much easier for both domestic and international travelers. China has spent hundreds of billions on its railroad.


“China is the most attractive place in the world right now for hotels. That’s why investment capital is racing there and why the major international brands are racing there too,” said Patrick Ford, president of U.S.-based Lodging Econometrics. (Source: time.com)

China is the fourth top destination for tourism, but it is expected to become the number one destination by 2020, according to the World Tourism Association.

According to a research report, “China Tourism Industry Forecast to 2012,” on traveldailynews.com, China will see major growth in its domestic travel from 2011 to 2013.

China’s burgeoning travel industry is understandable. With a population in excess of 1.3 billion people and a rapidly rising middle class with money to spend on travel, the potential is significant, based on my stock analysis. Plus, there are the millions of foreign travelers with money to spend who have made Asia and China the premier travel destination for business and leisure. And, as wages increase, so will the spending on non-essential items, such as travel and recreation.

To handle the expected increase in travel, there is a push to build more hotels and motels across the vast country.

In the Chinese travel and hotel equities market, my stock analysis is that there are numerous operators that have excellent potential for the aggressive investor looking for growth areas.

Several of my favorite Chinese travel stocks include China Lodging Group, Limited (NASDAQ/HTHT), Home Inns & Hotels Management Inc. (NASDAQ/HMIN), and 7 Days Group Holdings Limited (NYSE/SVN).

All three companies have above-average, long-term share-appreciation potential, based on my stock analysis, but I will take a look at 7 Days Group.

On the chart, 7 Days has been on a steady decline, but, according to my stock analysis, the selling has been way overdone; this stock is a good contrarian situation.


Chart courtesy of www.StockCharts.com

7 Days is the third largest national economy hotel chain. It offers limited services under the “7 Days Inn” brand, akin to budget hotels and motels in the U.S. and Canada.

As of June 30, 2012, 7 Days Group operated 1,132 hotels, up from 944 hotels at the end of September 2011. The company has another 226 hotels under development. In total, it has 112,631 hotel rooms in 168 cities. In the second quarter, the occupancy rates were between 83.0% and 86.8%, depending on the hotel.

The nine analysts who follow 7 Days Group estimate the company will make $0.57 per American depositary share (ADS) in 2012, followed by profits of $0.78 per ADS in 2013, which are both higher than previous estimates. Revenues are predicted to grow 27.2% in 2012 and 21.9% in 2013.

The growth metrics are far superior to the U.S. hotels, according to my stock analysis.

My stock analysis is that 7 Days Group may or may not have the greatest potential of the three stocks. Only time will tell, but what is for sure is that the travel sector in China is a key growth area.

Source: http://www.investmentcontrarians.com/stock-market/the-chinese-sector-thats-still-hot/587/

By George Leong, BA, B.Comm.
www.investmentcontrarians.com

Investment Contrarians is our daily financial e-letter dedicated to helping investors make money by going against the “herd mentality.”

Copyright © 2012 Investment Contrarians- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in