Best China Commodity Stock – China Integrated Energy (CBEH)
Picked by: Robert Hsu, editor of China Strategy
Strategy: The hottest Asian stocks
China Integrated Energy (CBEH) is a leading Chinese private sector oil company. Its earnings are growing at 35% a year, and the stock is dirt-cheap, trading at only eight times this year’s earnings (as of a few weeks ago). Since 2005, the company has grown at an average rate of 50% annually, and today the company is perfectly positioned to benefit from the increasing demand for both petroleum products and biodiesel.
CBEH operates 12 retail gas stations in Xi’an, a city with a population of 8 million. This business is stable with a strong cash flow due to Chinese drivers’ tendency to purchase gas with cash. Gas stations account for 13% to 15% of the company’s sales and revenue.
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