Jiumaojiu issued a profit warning for 2024, which implies a net loss not exceeding Rmb22m in 2H24. Management attributed the decline in net profit to: a) a drop in same-store performance, b) one-off store closure losses and impairment losses of no more than Rmb135m, and c) a decrease in other income. We refresh our 2024 revenue and earnings forecasts based on the profit warning, and cut our 2025 earnings forecast by 22%. Trim target price by 25% to HK$3.00. Downgrade to HOLD.
Wharf REIC’s underlying net profit for 2024 rose 2.1% yoy, mainly thanks to a 10% drop in finance costs. Revenue decreased 3% on a 6% decline at Times Square. Key operational highlights include positive retail rental growth at Harbour City and a higher office occupancy rate. Management's outlook for 1H25 remains cautious. With top-line facing persistent challenges, lower finance costs may be the key profit driver. Trim earnings forecasts and lower target price by 7% to HK$23.10. Maintain BUY.
JBM is a leading branded healthcare provider in Hong Kong with a diversified portfolio. We expect enhanced brand recognition and accelerated e-commerce expansion to fuel future growth and forecast EPS growing at a three-year CAGR of 22.3% in FY25-27. We also like JBM for its solid cash flow generation and decent capital allocation. Initiate coverage with BUY and a target price of HK$2.42 based on 10.3x FY26F PE.
Project launches in 2025 are expected to remain stable yoy, limiting growth visibility for the sector. A slowdown in demand and elevated inventory will pressure margins and increase SG&A expenses. Additionally, policy uncertainty persists in the real estate sector. Given the ongoing challenges, a selective BUY approach remains appropriate, with AP as our top pick. Maintain MARKET WEIGHT on the sector.
As we continue to expect market volatility, we maintain exposure to names that have resilient earnings or are expected to enjoy an earnings growth recovery, such as Ausnutria Dairy (1717 HK), CSPC (1093 HK) and Dongfeng Motor (489 HK), and add PICC P&C (2328 HK) to our BUY list.
The stronger-than-expected 1Q19 economic data and central bank backstop have fuelled optimism that cycles are a thing of the past. With animal spirits rekindled, our more cautious view since end-February has not played out well. Although we have not seen an improvement in risk-reward so far and further meaningful monetary easing will be needed to see a sustainable recovery, we are adjusting our strategy to include laggards and policy-supported sectors in our BUY list.
The stronger-than-expected 1Q19 economic data and central bank backstop has fuelled optimism that cycles are a thing of the past. With animal spirits rekindled, our more cautious view since end-February has not played out well. Although we have not seen an improvement in risk-reward so far and further meaningful monetary easing will be needed to see a sustainable recovery, we are adjusting our strategy to include laggards and policy-supported sectors into our BUY list.
KEY HIGHLIGHTS Economics Hong Kong Budget 2025-26 The 2025-26 Budget balances fiscal discipline with strategic growth initiatives in AI and NM development, funded by prudent bond issuance. Hong Kong positions itself for future growth amid technological transformation, with a planned deficit of 2.0% of GDP and fiscal reserves falling to eight months of expenditure. The budget speech is overall positive on the Hong Kong property sector, with the reduction in stamp duty being a highlight. Result...
KEY HIGHLIGHTS Strategy China And Hong Kong Property Property sales in both mainland China and Hong Kong recovered wow in the third week of Feb 25. With a continued decline in transition volume and improvement of sentiment in a few cities, we expect the land market to continue its structural divergence in 2025. In Hong Kong, the CCL index remained stable, but we expect high inventory to continue weighing on property prices. We stay cautious on NWD with a HOLD rating despite the recent sentimen...
KEY HIGHLIGHTS Economics PMI January's manufacturing PMI slipped into the contractionary zone at 49.1 (-1.0pt mom) and the non-manufacturing PMI decreased to 50.2 (-2.0pt mom). Construction (-3.9pt mom) saw a sharper decline than services (-1.7pt mom), while smaller firms struggled due to subdued external demand. Given the weaker data, investors will be looking out for new supportive measures in the run-up to the Two Sessions. TRADERS’ CORNER Galaxy Entertainment (27 HK): Trading buy range: ...
KEY HIGHLIGHTS Update Anta Sports (2020 HK/BUY/HK$75.25/Target: HK$120.60) Sales momentum of the Anta brand and Fila both improved in 4Q24 compared to 3Q24, in terms of yoy growth, especially for Fila, although both brands fell short of the full-year sales targets. By channel, the performance of the offline channel has normalised. For 2025, management maintains the company’s mid- to long-term sales targets. In addition, the company plans to prioritise Super Anta as the key focus of store innov...
KEY HIGHLIGHTS Strategy China And Hong Kong Property In Nov 24, new and second-hand home transactions in major cities showed positive mom growth, although listing prices continued to trend down. In Hong Kong, the latest CCL index fell 0.7% wow after rebounding 2.2% since end-Sep 24, and primary transactions also declined mom. Rising geopolitical risks and uncertainties of rate cuts weigh on the recovery of property sales. CEWC in Dec 24 will be the next key event to watch. Maintain MARKET WEIG...
KEY HIGHLIGHTS Economics Money Supply A little less to cheer. Strategy Small-Mid Cap Biweekly Riding on the wave of AI PC; Thunder Software Technology is a beneficiary. Sector Internet 3Q23 results preview: Solid e-commerce ad growth to drive sector growth; potential positive surprise from online game grossing. Internet Muted growth acceleration from 11.11 campaign. Update Xtep International Holdings (1368 HK/BUY/HK$6.43/Target: HK$9.50) Revenue guidance revised down yet sales target mainta...