HPHT briefly underperformed the broader Drewry port equity index in 2H21, but thereafter the stock resumed its relative outperformance. Despite the recent outperformance, the company’s stock remained in the undervalued territory, based on its current EV/EBITDA multiple, which is below compared to its peers and its long-term average. We continue to believe that at the current price the stock is value accretive for mid-to-long term investors. We reiterate our Attractive rating on HPHT with a fair ...
China’s PV retail sales surged by more than 50% mom over 6-12 Jun 22, beating estimates. Auto dealers turn optimistic on 2H22 outlook. The state reiterates its support for the EV industry with the roll-over of purchase tax exemption. In June, two electric SUVs hit the market, and the market seems to prefer Li Auto L9 to Nio ES7. Maintain OVERWEIGHT. Top picks: BYD, GWM, Minth and Zhongsheng. Downgrade Geely from BUY to HOLD, as stock price almost hit our target.
China’s daily average PV retail sales grew 47% mom over 16-22 May 22, as OEMs have been ramping up production volume after resuming production since late-April. CPCA expects PV retail sales volume to rebound 26% mom to 1.32m units in May, albeit still 19% below that in May 21. The State Council on 23 May 22 announced Rmb60b in purchase tax reduction for PVs. Maintain OVERWEIGHT. Top picks: BYD, GWM and Geely.
Tencent reported weak 4Q21 results. Revenue grew by 7.9% yoy to Rmb144.2b, broadly in line with consensus estimates. Gross margin declined by 4ppt yoy during 4Q21 to 40.1% mainly due to continued investment in key strategic areas, in line with consensus expectation. Non-GAAP operating margin contracted by 5.5ppt yoy to 23%. Non-GAAP net margin declined 7.6ppt yoy to 17.3%, in line with street estimate. Maintain BUY with a lower target price of HK$502.00.
The Chinese equities market remained volatile in Feb 22 as escalating geopolitical tensions and fresh regulatory scrutiny of China’s tech sector frazzled investors. Despite the setbacks, we expect the markets to continue their slow recovery, based on our expectations that peak regulatory risks have passed with most of the bad news already priced in and for more uplifting policy signals during the “Two Sessions” meeting.
Chinese equities could stay volatile in Sep 21 as further policy details on regulating the tech sector may still be announced. However, we see an increasing possibility of macro policy easing. Hence, we are making a measured increase in portfolio beta and add Anhui Conch, HKex, Tinci Materials, Yongda Auto and Zoomlion to the BUY list.
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Opposite moves of SOFIX 563.86 (+0.11%) fixed the main index almost unchanged. Eurohold (EUBG, BGN 2.56, +2.4%) offset the drop in Doverie (DUH, BGN 7.24, -2.16%), Albena (ALB, BGN 33.00 ,-2.37%) and First Investment Bank (FIB, BGN 1.72, -1.71%). The most traded name Advance Terrafund (ATER, BGN 2.48, unch) registered BGN 142K daily turnover but sellers found adequate demand and the REIT closed without change on Tuesday.
The US automobile market and European EV market are recovering strongly, which bodes well for the earnings of Chinese automobile parts suppliers like Nexteer, FYG, Minth and CATL. Among them, Nexteer has the highest exposure to the US and European markets, and its revenue will be increasingly driven by EV-related steering products. CATL is set to tap the burgeoning European EV market. Maintain MARKET WEIGHT. Top picks: Nexteer and CATL.
South-bound capital flow from newly-raised funds pushed consumption market leader stocks to higher valuations in the second half of January. While share prices in the last week have seen some volatility, given reduction in liquidity on part of PBOC to reduce bubble concerns, we still expect consumer stocks to remain a core sector holding and thus outperform in the medium run. Maintain OVERWEIGHT.
TNH will acquire a 49% stake in property management company Chengdu Holytech Property at a consideration of ~Rmb296.6m, and at around 14x 2019 PE, which is in line with recent M&As in the market. We are positive on the news as the acquisition is aligned with management’s strategy of expanding outside the GBA and the scope of TNH’s services. Management remains confident on achieving its current earnings guidance of >80% growth. Maintain BUY with a lower target price of HK$11.77.
17 Education is a leading online tuition provider in China. The company was founded by former regional head of New Oriental Education and launched book building to raise up to USD 315m to list in the US. In our previous note we discussed that 17 Education has a unique business model whereby it provides a free in-school solution to teachers, students and parents and upsells after-school paid tuition. On one hand, it has a large pool of verified students to upsell its paid after-school tuition. O...
17 Education is a leading online tuition provider in China. The company was founded by former regional head of New Oriental Education and is looking to raise up to USD 300m via a listing in the US. 17 Education has a unique business model whereby it provides a free in-school solution to teachers, students and parents and upsells after-school paid tuition. On one hand it has a large pool of verified students to upsell its paid after-school tuition. On the other hand its conversion and market sha...
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