KEY HIGHLIGHTS Results Aier Eye Hospital Group (300015 CH/BUY/Rmb12.24/Target: Rmb15.00) 2023 results were satisfactory but 1Q24 revenue growth was significantly slower than our estimate. We believe weak economic conditions may continue to put pressure on revenue growth. Aier continues to pursue service excellence by offering high value-added services and products to attract patients and stay ahead of competition. Maintain BUY with a lower target price of Rmb15.00 to factor in the possible i...
KEY HIGHLIGHTS Sector Automobile China’s PEV sales grew 9% yoy and 12% wow during the week of 15-21 Apr 24, implying a 44.9% market share. BYD, Zeekr and XPeng saw sales rebound during the week, in line with expectations; Aion, Li Auto and Tesla posted lower sales, below expectations. Tesla posted disappointing 1Q24 results on a sales drop, and cut prices of Model Y/3 by 5-6%. Li Auto also cut prices by 5-7%, intensifying the price war. Maintain UNDERWEIGHT. Top SELLs: BYD, Li Auto and XPeng. ...
KEY HIGHLIGHTS Strategy China And Hong Kong Property A comparison between H-REITs and C-REITs. Results China Tourism Group Duty Free (601888 CH/BUY/Rmb71.72/Target: Rmb106.20) 1Q24: Core profit grew 0.2% yoy; inventories improving; expect further gross margin expansion. iFlytek (002230 CH/HOLD/Rmb41.97/Target: Rmb40.00) FY23 and 1Q24: Earnings missed; dividend of Rmb1.00 for every 10 shares. Jonjee Hi-Tech Industrial & Commercial (600872 CH/BUY/Rmb27.55/Target: Rmb36.10) 1Q24: Results abov...
KEY HIGHLIGHTS Update Jiumaojiu International Holdings (9922 HK/BUY/HK$4.57/Target: HK$5.30) SSS declines in 1Q24; strategic readjustment to fit value-for-money experience. Li Ning (2331 HK/HOLD/HK$17.50/Target: HK$19.20) 1Q24 sell-through growth in line; expect sell-through growth to pick up starting from 2H24. TRADERS’ CORNER Tsingtao Brewery Co., Ltd. (168 HK): Trading Buy range: HK$55.70-56.45 Bank of Communication Co., Ltd. (3328 HK): Trading Buy range: HK$5.25-5.30
KEY HIGHLIGHTS Sector Online Travel Agencies Robust Qingming festival travel momentum continues into Labour Day. Results Dian Diagnostics (300244 CH/BUY/Rmb14.36/Target: Rmb18.50) 2023: Results in line; smooth progress in developing esoteric testing business. EVE Energy (300014 CH/SELL/Rmb35.00/Target: Rmb20.00) 4Q23: Earnings miss on margins. Maintain SELL. Cut target price from Rmb24.00 to Rmb20.00. Huizhou Desay SV Automotive Co (002920 CH/BUY/Rmb118.01/Target: Rmb145.00) 1Q24: Earnin...
KEY HIGHLIGHTS Sector Automobile Weekly: PEV sales up 21% yoy/19% wow in the second week of April, in line. Maintain UNDERWEIGHT. Top SELLs: BYD, Li Auto and XPeng. Top BUYs: CATL and Desay SV. Results Han’s Laser (002008 CH/HOLD/Rmb18.95/Target: Rm17.10) 4Q23: Misses expectations on operating expenses. Margin pressure may continue through 2024. Update Xtep International Holdings (1368 HK/BUY/HK$4.46/Target: HK$7.00) Expect double-digit% yoy growth in retail sell-through for 2Q24 and 2024....
KEY HIGHLIGHTS Sector Insurance Value buy or value trap? Initiate Coverage Crystal International (2232 HK/BUY/HK$3.39/Target: HK$4.42) Well-positioned for market share gains from sportswear brand customers. Update Anta Sports (2020 HK/BUY/HK$81.60/Target: HK$109.60) Satisfactory 1Q24 sales performances; high-quality growth remains intact. JD.com (9618 HK/BUY/HK$98.85/Target: HK$127.00) 1Q24 results preview: Focusing on three core strategies to revitalise user growth. TRADERS’ COR...
KEY HIGHLIGHTS Economics Economic Activity 1Q24 surprises with 5.3% yoy growth. Sector Hong Kong Property Expect modest pull-back of primary sales in 2Q24; we prefer retail landlords over developers. Top pick: Wharf REIC. TRADERS’ CORNER China Hongqiao Group Limited (1378 HK): Trading Buy range: HK$8.80-9.42 China Coal Energy Company Limited (1898 HK): Trading Buy range: HK$8.05-8.30
KEY HIGHLIGHTS Sector Aviation Airlines’ Mar 24 operation data was slightly weaker than we expected. Maintain MARKET WEIGHT with Air China being our top pick. Property Property transactions pull back in April; rising risks of Vanke worsen sentiment. Update China Overseas Property Holdings (2669 HK/BUY/HK$4.05/Target: HK$5.60) Clarifying growth targets for 2024-26. TRADERS’ CORNER China Railway Construction Corporation (1186 HK): Trading Buy range: HK$5.05-5.12 China Unicom (Hong Kong...
KEY HIGHLIGHTS Economics Money Supply Slower-than-expected credit expansion. Trade Exports drop 7.5% and imports fall 1.9%. Sector Healthcare ICL: Recent policies may cloud revenue growth in 2024; accelerating market consolidation to benefit leading players. Results Zhejiang Shuanghuan Driveline Co (002472 CH/BUY/Rmb21.60/Target: Rmb27.60) 4Q23: Results in line; but slowdown in EV gear business is apparent. HSI AND HS TECH INDEX OUTLOOK
KEY HIGHLIGHTS Economics Inflation CPI inflation moderates as CNY effects fade. Sector Automobile Weekly: Raise 2024 auto sales growth to 7.5% on bigger price cuts. Maintain UNDERWEIGHT. Top SELLs: BYD, Li Auto and XPeng. Top BUYs: CATL and Desay SV. Consumer Focus on four key theses for the sector. Property 2023 results wrap-up: Profitability deteriorates as expected; outperformance of CR Land/COLI the main highlight. TRADERS’ CORNER Dongfang Electric Company Limited (1072 HK): Tr...
KEY HIGHLIGHTS Sector IT Hardware AI Hardware: Elevated investment to bolster investor confidence. Maintain OVERWEIGHT. Update Alibaba Group (9988 HK/BUY/HK$70.50/Target: HK$92.00) 4QFY24 preview: Solid CMR and AIDC growth; lacklustre profitability. TRADERS’ CORNER Guangzhou Automobile Group (2238 HK): Trading Buy range: HK$3.48-3.58 China Gas Holdings Limited (384 HK): Trading Buy range: HK$7.90-8.00
KEY HIGHLIGHTS Sector Property Management 2023 Results wrap-up: Entering a stage of high-quality growth. TRADERS’ CORNER Hang Seng Bank Limited (2333 HK): Trading Buy range: HK$89.00-92.00 MGM China Holdings Limited (2822 HK): Trading Buy range: HK$12.20-12.80
KEY HIGHLIGHTS Update Sino Biopharmaceutical (1177 HK/BUY/HK$2.83/Target: HK$3.80) Enters into strategic partnership with Boehringer Ingelheim. TRADERS’ CORNER Great Wall Motor Company Limited (2333 HK): Trading Buy range: HK$9.10-9.40 Aluminum Corporation of China (2600 HK): Trading Buy range: HK$4.70-4.90
GREATER CHINA Strategy Alpha Picks: April Conviction Calls: Adding AIA, Midea, Hansoh Pharmaceutical, Shenzhen Inovance and Trip.com to our BUY list, with SELL calls on BYD, EVE Energy, and Li Auto. INDONESIA Strategy Alpha Picks: Outperformance In Mar 24 and 1Q24: Our picks are ACES, BBTN, CMRY, SIDO, EXCL, MAPI, JSMR, CTRA, and AKRA. MALAYSIA Strategy Alpha Picks: Expanding The Variety Of Events Bets: Our Alpha Picks trounced the KLCI in Mar 24. Apr 24 picks: GENM, Inari, Mah Sing, MrDIY, MY...
KEY HIGHLIGHTS Strategy Alpha Picks: April Conviction Calls: Adding AIA, Midea, Hansoh Pharmaceutical, Shenzhen Inovance and Trip.com to our BUY list, with SELL calls on BYD, EVE Energy, and Li Auto. Sector Automobile: Weekly: Prefer high value-added automotive part companies. Maintain UNDERWEIGHT. Top SELLs: BYD, Li Auto and XPeng. Top BUYs: CATL and Desay SV. Small/Mid Cap Highlights Giordano International (709 HK/BUY/HK$2.09/Target: HK$2.81): SGM result: Chairman removed; Colin Currie appo...
In Mar 24, the HSI and MSCI China edged up 0.2% and 0.9% mom respectively, as profit taking set in after the Two Sessions, while investors await further details of the policy support. The MSCI China index still trades at an undemanding valuation of 9.1x 12-month forward PE. We are mainly adding beneficiaries of policy support like Midea, Hansoh Pharmaceutical, Shenzhen Inovance and Trip.com to our BUY list, but hedging with SELLs on BYD, EVE Energy and Li Auto, where price competition has intens...
GREATER CHINA Strategy Alpha Picks: April Conviction Calls Adding AIA, Midea, Hansoh Pharmaceutical, Shenzhen Inovance and Trip.com to our BUY list, with SELL calls on BYD, EVE Energy, and Li Auto. Sector Automobile Weekly: Prefer high value-added automotive part companies. Maintain UNDERWEIGHT. Top SELLs: BYD, Li Auto and XPeng. Top BUYs: CATL and Desay SV. Small/Mid Cap Highlights Giordano International (709 HK/BUY/HK$2.09/Target: HK$2.81) SGM result: Chairman removed; Colin Currie appoi...
KEY HIGHLIGHTS Economics PMI First expansion in six months. Sector Aviation Airlines: Expecting a turnaround in profitability in 2024 with moderate international travel recovery. Maintain MARKET WEIGHT. Macau Gaming Mar 24 GGR up 6% mom; May 24 Golden Week a potential catalyst. Results China Feihe (6186 HK/BUY/HK$3.68/Target: HK$4.43) 2023: Results in line; healthy channel inventory and improved operating efficiency to drive growth. Upgrade to BUY. China Longyuan Power (916 HK/BUY/HK$5.4...
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