Desmond Chong Chee Wai ... (+8)
  • Desmond Chong Chee Wai
  • Hazmy Hazin
  • Jack Goh Tooan Orng
  • Jessie Guo Yuting
  • John Cheong Ming Chern
  • Ken Lee
  • Kwanchai Atiphophai
  • Limartha Adhiputra

Regional Morning Notes - Friday, September 30, 2022

GREATER CHINA Sector Automobile: Weekly: China extends EV purchase tax exemption to 2023. Maintain OVERWEIGHT. Top picks: CATL, Fuyao Glass and Ningbo Xusheng. INDONESIA Update Indocement Tunggal Prakarsa (INTP IJ/BUY/Rp9,725/Target: Rp11,500): Aggressive expansion into East Indonesia. MALAYSIA Results Gamuda (GAM MK/BUY/RM3.85/Target: RM4.35): 4QFY22: Above expectations. Earnings growth was largely driven by both the construction and property segments. Scientex (SCI MK/BUY/RM3.47/Target: RM4....

John Cheong Ming Chern
  • John Cheong Ming Chern

Singapore Daily - Friday, September 30, 2022

KEY HIGHLIGHTS Update Nanofilm Technologies International (NANO SP/BUY/S$2.04/Target:S$2.72): High potential earnings contribution from entry into the EV battery industry. TRADERS’ CORNER DBS Group Holdings (DBS SP): Trading Buy Keppel Corp (KEP SP): Trading Buy

John Cheong Ming Chern
  • John Cheong Ming Chern

Nanofilm Technologies International (NANO SP) - High Potential Earning...

Nanofilm has formed a JV with Shenzhen Everwin to provide coating services for EVs’ battery components. Shenzhen Everwin currently supplies electroplating services to the top players in the EV industry such as CATL and Tesla. The JV aims to commence production in 1H23 and mass production by 2024. We estimate that the JV could generate at least S$200m additional revenue in 2024 (27% increase), based on the EV segment revenue of Shenzhen Everwin in 2021. Maintain BUY. Target price: S$2.72.

Jessie Guo Yuting ... (+2)
  • Jessie Guo Yuting
  • Ken Lee

China Automobile Weekly: China extends EV purchase tax exemption to 20...

PV retail sales volume hiked by 25% yoy and 7% mom during 19-25 Sep 22. CPCA estimates September passenger EV retail sales volume at 580,000 units (+74% yoy/+10% mom), in line with expectation. China extends EV purchase tax exemption until the end of 2023, and we keep our 2022-23 China EV sales estimates at 6.65m units (+90% yoy) and 8.65m units (+30% yoy) respectively. Maintain OVERWEIGHT. Top picks: CATL, Fuyao Glass and Ningbo Xusheng.

Jessie Guo Yuting ... (+3)
  • Jessie Guo Yuting
  • Ken Lee
  • Terence Chiu

Greater China Daily: Friday, September 30, 2022

KEY HIGHLIGHTS Sector Industrial Automation Cherry picking amid industry downcycle. TRADERS’ CORNER Trip.com Group Limited (9961 HK): Trading Buy range: HK$200.00-212.00 China Resources Beer (291 HK): Trading Buy range: HK$53.00-54.00

Greater China Research Team
  • Greater China Research Team

Strategy - Alpha Picks: Greater China October Conviction List

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.

Gary Kong Tsz Yeung ... (+2)
  • Gary Kong Tsz Yeung
  • Tham Mun Hon

China Strategy - The End Of Cycles?

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.

Gary Kong Tsz Yeung ... (+2)
  • Gary Kong Tsz Yeung
  • Tham Mun Hon

China Strategy: The end of cycles?

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.

ResearchPool Subscriptions

Get the most out of your insights

Get in touch