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TAL EDUCATION GROUP sees an upgrade to Slightly Positive due to a better fundamental star rating
The general evaluation of TAL EDUCATION GROUP (US), a company active in the Personal Products & Services industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date June 2, 2020, the closing price was USD 61.79 and its potential was estimated at USD 66.13.
Internet - Chinese ADRs face tightening rules to limit foreign government control over US-listed foreign companies
The US Senate passed legislation on Wednesday that could disqualify companies from listing shares on the US stock exchanges without adhering to the security laws and auditing regulations. The legislation passed would require companies seeking access to US stock markets to establish that they are not owned or controlled by a foreign government. We believe such legislation brings uncertainty and de-valuation risks to Chinese ADRs under the US sanction against China. Maintain OVERWEIGHT.
- Ivy Xu Da
- Jayson Kong
- Joyce Chan Pui Lai
- Julia Pan Mengyao
- Ken Lee
- Lee Yuk Kei
- Neo Chen Wentao
- Robin Yuen
- Sandra Huang Jieqiong
- Vanness Wong Wan
- Zhifeng Shen
- Ziv Ang Sze Champ
Greater China Daily: Wednesday, April 29, 2020
KEY HIGHLIGHTS Results Anhui Conch Cement Co (914 HK/BUY/HK$58.95/Target: HK$66.90) 1Q20: Results slightly beat expectation; operations resilient amid COVID-19 outbreak. BYD Company (1211 HK/SELL/HK$45.30/Target: HK$35.00) 1Q20: Core net loss expanded 32% qoq on EV subsidy cuts and COVID-19 outbreaks, missing estimates. Maintain SELL. China Construction Bank (939 HK/BUY/HK$6.25/Target: HK$6.89) 1Q20: Results in line. Solid asset quality but NIM compressed; upgrade to BUY. Goldwind Science & Technology (2208 HK/BUY/HK$7.31/Target: HK$10.06) 1Q20: One-offs to drive earnings growth. Guan...
TAL Education Group - 4QFY20: Earnings miss due to impairment loss, 1QFY21 revenue guidance better than expectation
TAL’s 4QFY20 revenue increased 18% yoy to US$857.7m, in line with our and consensus estimates. Non-GAAP operating loss was recorded at US$8.4m while operating margin was at -1%, below our and consensus estimates due to the higher impairment loss. Non-GAAP net loss was at US$57.2m. 1QFY21 revenue growth was guided at 30-33% yoy, better than our and street expectations. Maintain BUY with an unchanged target price of US$63.00.
- Eric Wang Zhen
- Ivy Xu Da
- Jayson Kong
- Jonathan Koh
- Julia Pan Mengyao
- Kader Farhan Bin Kader Ridzwan
- Keith Wee Teck Keong
- Kowit Pongwinyoo
- Lee Yuk Kei
- Loke Pei Hao
- Neo Chen Wentao
- Raphon Prima
- Sandra Huang Jieqiong
- Vanness Wong Wan
- Zhifeng Shen
- Ziv Ang Sze Champ
Regional Morning Notes - Wednesday, April 29, 2020
GREATER CHINA Results Anhui Conch Cement Co (914 HK/BUY/HK$58.95/Target: HK$66.90): 1Q20: Results slightly beat expectation; operations resilient amid COVID-19 outbreak. China Construction Bank (939 HK/BUY/HK$6.25/Target: HK$6.89): 1Q20: Results in line. Solid asset quality but NIM compressed; upgrade to BUY. Industrial and Commercial Bank of China (1398 HK/BUY/HK$5.25/Target: HK$5.80): 1Q20: Results in line, flat growth but stable asset quality; upgrade to BUY. Robam Appliances (002508 CH/HOLD/Rmb32.20/Target: Rmb31.00): 1Q20: Challenges in retail channel. Shanxi Xinghuacun Fenjiu (600809 CH/...
Int'l Insights: EM Strategy
EM Outperforming; Favor EM over EAFE With many global markets crumbling last week, one might assume that EM would have underperformed -- but that is not what transpired. What we saw was a decline in the US dollar which, along with improving coronavirus metrics in China, led to EM outperformance. Reiterating our 12/20/19 EM Strategy, we continue to believe EM is a better place to be than EAFE, supported by new highs in the EM vs. EAFE ratio and our ongoing belief that the US dollar is likely not headed for meaningfully new highs in the near-term... see charts below. Below we highlight attrac...
Vermilion Compass: Weekly Equity Strategy
Upgrading cap-weighted Communications to overweight; 10 to 2's Treasury spread breaking out We continue to move increasingly toward the bullish camp and we believe equities are poised for higher prices moving forward. Below we highlight several developments which help lead us to this conclusion. • 10 to 2's Treasury yield spread widening & breaking out. The 10 to 2's spread is quietly breaking out to YTD highs and breaking above a ~2.5-year downtrend. This steepening yield curve is good for Financials/banks and also the economy as recession concerns are subsiding... see chart below. • Comm...
Int'l Macro Vision: Global Ex-U.S. Equity Strategy
In our January 31 International Compass we presented a case for an incrementally improving overall global outlook, with the caveat that market bottoms tend to be a process that develops over many weeks. Since the end of January, not a lot has changed to alter our views. We remain constructive overall and continue to believe that global equities (MSCI ACWI) are going through a bottoming process. Opportunities exist but Sector leadership is mixed. In our February International Strategy, we explore various themes which lead to our overall constructive outlook, along with areas of the market wher...
Vermilion Int'l Compass: Global Equity Strategy
Global indexes approaching major resistance Broad global indexes are bumping up against logical downtrend resistance. As a result, our outlook remains cautious and our baseline expectation for continued downward pressure on global equities remains intact. At the same time, we are seeing signs that the worst of the declines may be behind us as global cyclical Sectors show RS improvements while defensive Sectors display early signs of RS deterioration. • Regional/Country Overview. The U.S., Europe, and Japan all remain in downtrends from a price perspective, though major resistance levels are...
Internet - Chinese ADRs face tightening rules to limit foreign government control over US-listed foreign companies
The US Senate passed legislation on Wednesday that could disqualify companies from listing shares on the US stock exchanges without adhering to the security laws and auditing regulations. The legislation passed would require companies seeking access to US stock markets to establish that they are not owned or controlled by a foreign government. We believe such legislation brings uncertainty and de-valuation risks to Chinese ADRs under the US sanction against China. Maintain OVERWEIGHT.
- Ivy Xu Da
- Jayson Kong
- Joyce Chan Pui Lai
- Julia Pan Mengyao
- Ken Lee
- Lee Yuk Kei
- Neo Chen Wentao
- Robin Yuen
- Sandra Huang Jieqiong
- Vanness Wong Wan
- Zhifeng Shen
- Ziv Ang Sze Champ
Greater China Daily: Wednesday, April 29, 2020
KEY HIGHLIGHTS Results Anhui Conch Cement Co (914 HK/BUY/HK$58.95/Target: HK$66.90) 1Q20: Results slightly beat expectation; operations resilient amid COVID-19 outbreak. BYD Company (1211 HK/SELL/HK$45.30/Target: HK$35.00) 1Q20: Core net loss expanded 32% qoq on EV subsidy cuts and COVID-19 outbreaks, missing estimates. Maintain SELL. China Construction Bank (939 HK/BUY/HK$6.25/Target: HK$6.89) 1Q20: Results in line. Solid asset quality but NIM compressed; upgrade to BUY. Goldwind Science & Technology (2208 HK/BUY/HK$7.31/Target: HK$10.06) 1Q20: One-offs to drive earnings growth. Guan...
TAL Education Group - 4QFY20: Earnings miss due to impairment loss, 1QFY21 revenue guidance better than expectation
TAL’s 4QFY20 revenue increased 18% yoy to US$857.7m, in line with our and consensus estimates. Non-GAAP operating loss was recorded at US$8.4m while operating margin was at -1%, below our and consensus estimates due to the higher impairment loss. Non-GAAP net loss was at US$57.2m. 1QFY21 revenue growth was guided at 30-33% yoy, better than our and street expectations. Maintain BUY with an unchanged target price of US$63.00.
- Eric Wang Zhen
- Ivy Xu Da
- Jayson Kong
- Jonathan Koh
- Julia Pan Mengyao
- Kader Farhan Bin Kader Ridzwan
- Keith Wee Teck Keong
- Kowit Pongwinyoo
- Lee Yuk Kei
- Loke Pei Hao
- Neo Chen Wentao
- Raphon Prima
- Sandra Huang Jieqiong
- Vanness Wong Wan
- Zhifeng Shen
- Ziv Ang Sze Champ
Regional Morning Notes - Wednesday, April 29, 2020
GREATER CHINA Results Anhui Conch Cement Co (914 HK/BUY/HK$58.95/Target: HK$66.90): 1Q20: Results slightly beat expectation; operations resilient amid COVID-19 outbreak. China Construction Bank (939 HK/BUY/HK$6.25/Target: HK$6.89): 1Q20: Results in line. Solid asset quality but NIM compressed; upgrade to BUY. Industrial and Commercial Bank of China (1398 HK/BUY/HK$5.25/Target: HK$5.80): 1Q20: Results in line, flat growth but stable asset quality; upgrade to BUY. Robam Appliances (002508 CH/HOLD/Rmb32.20/Target: Rmb31.00): 1Q20: Challenges in retail channel. Shanxi Xinghuacun Fenjiu (600809 CH/...
TAL: Combination Of Online And Offline Supporting Better Enrollments In FY4Q20 And FY1Q21; Maintain BUY
TAL will report FY4Q20 results on April 28th before the markets open with an 8am EST conference call. We are positive on TAL’s performance in FY4Q20. Based on our data and calculations, we believe that TAL’s revenue in FY4Q20E is likely to be higher than consensus at $860.8M (excluding Light Class). The revenue for Small Class/Peiyou is likely to grow 8.6% Y/Y, vs. 40.6% Y/Y in FY3Q20. The slower growth was because Peiyou offered a lot of lower price and promotional courses during the period of the COVID-19 outbreak.
- Johnny Yum Chung Man
- Joyce Chan Pui Lai
- Julia Pan Mengyao
- Ken Lee
- Oscar Jiang
- Shaun Tan
Greater China Daily: Friday, July 26, 2019
KEY HIGHLIGHTS CHINA Sector Automobile 1H19 results preview; maintain OVERWEIGHT. Results TAL Education Group (TAL US/BUY/US$37.51/Target: US$41.00) 1QFY20: Results in line but 2QFY20 revenue guidance below estimates. Update Tencent (700 HK/BUY/HK$372.40/Target: HK$437.00) 2Q19 results preview: Recovery in games growth, upgrade to BUY. HONG KONG Sector Property 1H19 results preview: On track to meeting sales targets; prefer SHKP as top BUY. TRADERS’ CORNER ZTE (763 HK): Trading Buy Range CM Bank (3968 HK): Trading Buy Range
- Charles Wong Kok Min
- Joyce Chan Pui Lai
- Julia Pan Mengyao
- Michael Cheung Ho Bun
- Neo Chen Wentao
- Sandra Huang Jieqiong
Greater China Daily: Friday, April, 26, 2019
KEY HIGHLIGHTS CHINA Sector Healthcare GPO spillover effect appears in more provinces. Results Baoshan Iron & Steel (600019 CH/BUY/Rmb7.23/Target: Rmb8.10) 2018: Strong results, in line; challenging year ahead. TAL Education Group (TAL US/BUY/US$34.42/Target: US$43.00) 4QFY19: Earnings beat on operating leverage; diversified revenue streams. Wisdom Education International Holdings (6068 HK/BUY/HK$4.35/Target: HK$5.00) 1HFY19: Results in line; ambitious target for enrolment growth, upgrade to BUY. Update China Molybdenum (3993 HK/HOLD/HK$3.16/Target: HK$3.08) 1Q19 profit warning on ...
Greater China Daily: Friday, January, 25, 2019
KEY HIGHLIGHTS CHINA Results TAL Education Group (TAL US/HOLD/US$31.22/Target: US$30.00) 3QFY19: Earnings beat on operating leverage; concerns on slowing expansion remain. TRADERS’ CORNER Standard Chartered (2888 HK): Trading Buy Range Lonking (3339 HK): Trading Buy Range
TAL EDUCATION GROUP sees an upgrade to Slightly Positive due to a better fundamental star rating
The general evaluation of TAL EDUCATION GROUP (US), a company active in the Personal Products & Services industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date June 2, 2020, the closing price was USD 61.79 and its potential was estimated at USD 66.13.