Why I Chose to Invest in Sinopec Kantons Holdings Limited (00934)
There were several key factors that prompted my decision to invest in Sinopec Kantons Holdings Limited (00934). Notably, the company’s impressive financial strength, attractive dividend yield, and its close relationship with China Petroleum & Chemical Corporation (0386) all contributed to my decision.
- Strong Financial Position: One of the primary reasons I chose to invest in Sinopec Kantons was its healthy balance sheet. It is rare to find a company with such a robust financial standing, which I believe reflects well on the company’s long-term potential.
- Attractive Dividend Yield: Another appealing aspect of Sinopec Kantons is its dividend yield. As China Petroleum & Chemical Corporation (0386) owns approximately 60% of the company, it is reasonable to assume that they would have an interest in receiving regular dividends. This provides me with confidence that the company is likely to maintain a consistent dividend payout.
- Stable Customer Base: With Sinopec (0386) owning a significant stake in Sinopec Kantons (00934), it is safe to assume that the former will remain a loyal customer of the latter. This not only ensures a stable source of revenue for Sinopec Kantons but also strengthens the business relationship between the two entities.
While no investment is without risks, I believe these factors offer a solid foundation for potential growth and returns in the long run.
Disclaimer: This is not financial advice. Always conduct thorough due diligence before making any investment decisions.
Company Information
Sinopec Kantons Holdings Limited is a Hong Kong-based investment holding company principally engaged in oil and gas-related businesses. The Company operates through four segments. Trading of Crude Oil segment is mainly engaged in the trading of crude oil in Hong Kong and China. Crude Oil Jetty Services segment is mainly engaged in the provision of the transportation, unloading and storage of crude oil and other jetty services in China. Vessel Chartering Services segment is mainly engaged in the provision of vessel chartering services as crude oil transportation facilities and floating oil storage facilities for oil tankers in China and the Middle East. Natural Gas Pipeline Transportation Services segment is engaged in the provision of pipeline transportation services of natural gas in China.
Company Website: http://www.sinopec.com.hk//index_en.html
Trading Activity – When I Bought These Shares
- July 29, 2022 – HKD 2.46
Dividend Activity
- Ex-dividend date: 15 September, 2022 – HKD 0.08 (Interim dividend for the six months ended 30 June 2022.)
- Ex-dividend date: July 6, 2023 – HKD 0.12 (Final dividend for the year ended 31 December 2022.)
Trading Activity – When I Sold These Shares
- Not Applicable Yet
