Summary BOC Hong Kong (Holdings) Ltd - Company Profile and SWOT Analysis, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights BOC Hong Kong (Holdings) Ltd (BOCHK), a subsidiary of Bank of China Ltd, provides a range of banking, insurance, and other financial services. Its product offerings include credit cards, de...
Summary China Construction Bank Corp - Company Profile and SWOT Analysis, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights China Construction Bank Corporation (CCB), a subsidiary of Central Huijin Investment Ltd. It is a commercial bank that offers a wide range of financial services. The bank's primary activiti...
The independent financial analyst theScreener just slightly lowered the general evaluation of INDUSTRIAL & COML.BK.OF CHINA 'A' (CN), active in the Money Center Banks industry. The title has lost a star(s) at the fundamental level and now shows 3 out of 4 stars. Its exposure to market risk remains nonetheless the same and can be still described as defensive. theScreener slightly downgrades the general evaluation to Slightly Positive for the title on account of the lost star(s). As of the analysi...
The sluggish economy is dampening loan growth and NIM continues to narrow but will be much better than that in FY20 and 1H21; asset quality remains stable, and we are expecting 1.75% NPL ratio in 3Q21. Meanwhile, PBOC has increased the capital buffers for banks due to the high risk exposure on real estate. Maintain MARKET WEIGHT. Top picks are CMB (3968 HK) and CCB (939 HK) with a target price of HK$71.00 and HK$8.50 respectively.
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....
GREATER CHINA Results Contemporary Amperex Technology (300750 CH/BUY/Rmb379.99/Target: Rmb520.00): 1Q21: Net profit grew 112% yoy and dropped 12% qoq, beating our estimate. Maintain BUY. Target price: Rmb520.00. Ganfeng Lithium - H (1772 HK/BUY/HK$103.08/Target: HK$140.00): 1Q21: Results in line; riding on lithium compound price rally in 2021. Guangzhou Automobile Group (2238 HK/BUY/HK$6.70/Target: HK$8.50): 1Q21: Net profit up 19x yoy and 145% qoq; in line with estimates. Maintain BUY. Target p...
ICBC achieved flat growth in 1Q21 as revenue and PPOP recorded growth of 3.85% yoy and 2.8% yoy respectively. NIM compression was caused by rising deposit costs. The stability in asset quality was evident from the stable NPL ratio, as well as the small improvement on provisions. As ICBC’s market leading position and strong balance sheet support its valuation, we maintain BUY with a target price of HK$6.70.
KEY HIGHLIGHTS Results Contemporary Amperex Technology (300750 CH/BUY/Rmb379.99/Target: Rmb520.00) 1Q21: Net profit grew 112% yoy and dropped 12% qoq, beating our estimate. Maintain BUY. Target price: Rmb520.00. Ganfeng Lithium - H (1772 HK/BUY/HK$103.08/Target: HK$140.00) 1Q21: Results in line; riding on lithium compound price rally in 2021. Guangzhou Automobile Group (2238 HK/BUY/HK$6.70/Target: HK$8.50) 1Q21: Net profit up 19x yoy and 145% qoq; in line with estimates. Maintain BUY. Target...
ICBC’s 2020 results were slightly below expectations due to a 15bp rise in the NPL ratio. Asset quality on corporate loans is deteriorating, but the NPL ratio remains stable for retail loans. Revenue and PPOP grew 3.1% yoy and 4.4% yoy respectively. NIM compressed 9bp yoy to 2.15% due to the declining lending rate and increasing deposit cost. The pace of loan growth was in line, driven by growth in individual SME loans and corporate lending. Maintain BUY. Target price: HK$6.70.
GREATER CHINA Sector Education: AST: Intensified regulations; slower online growth moving ahead. Results China National Building Material (3323 HK/BUY/HK$10.32/Target: HK$13.32): 2020:Results in line; de-leveraging on track; impairment loss pressure to ease. Guangzhou Automobile Group (2238 HK/BUY/HK$6.60/Target: HK$8.50): 4Q20: Results miss estimates on provision for asset impairment; cut target price to HK$8.50. Maintain BUY. Han’s Laser (002008 CH/BUY/Rmb41.33/Target: Rmb50.00): 2020: No surp...
KEY HIGHLIGHTS Sector Education AST: Intensified regulations; slower online growth moving ahead. Results China Meidong Auto Holdings (1268 HK/BUY/HK$35.50/Target: HK$41.00) 2H20: Core net profit up 51% yoy, in line with estimates; upgrade to BUY on stronger earnings growth and raise target price to HK$41.00. China National Building Material (3323 HK/BUY/HK$10.32/Target: HK$13.32) 2020:Results in line; de-leveraging on track; impairment loss pressure to ease. China Resources Gas Group (1193...
Fast deposit growth in 2020 was driven by an increase in corporates. Expect the driver of deposit growth to shift from corporate deposits to retail savings. Market lending rate is expected to rebound in 2021 supported by a rebound in interest rate. Banks are expected to write back provisions, which will lead to growth in earnings and book value. Fundamental improvement is the key catalyst for valuation recovery. Upgrade to OVERWEIGHT. Top pick is CCB (939 HK) with a target price of HK$8.70.
China regulators will impose a cap on domestic banks’ lending to the real estate sector. For Tier-1 large-scale banks, loans to developers will be capped at 40% while mortgage lending will be capped at 32.5% of their outstanding credit. The new rule shows that the regulators are firm in their stance in preventing speculation on the property market. There is limited impact on banks, but property market demand is expected to be hit hardly, which will then further tighten the developers’ liquidity ...
GREATER CHINA Economics PMI: Beating expectations, but still a mixed bag. Results China Construction Bank (939 HK/BUY/HK$5.35/Target: HK$6.46): 3Q20: In line; qoq improvement in NIM a key positive. Estun Automation (002747 CH/BUY/Rmb22.16/Target: Rmb26.00): 3Q20: Missed estimates, but positive outlook remains intact. Fuyao Glass Industry Group (3606 HK/BUY/HK$32.85/Target: HK$39.00): 3Q20: Core earnings spiked 83% yoy, beating estimates. Raise target price to HK$39.00; upgrade to BUY. Ganfeng Li...
The sector’s net profit contracted 9.9% yoy and 24.6% yoy in 1H20 and 2Q20 respectively as more provisions were made. Performance across various bank types was mixed as we are starting to see the repercussions of “national service†play out. Positively, the PBOC has signalled greater clarity on that front. Key uncertainties weighing on banks’ valuations continue to be asset quality and the subsequent capital inadequacy arising from NPL disposal. We prefer JSBs amid fewer “national serv...
ICBC’s 1H20 results came in below expectations. Revenue and PPOP grew 2.1% yoy and 2.4% yoy respectively. NIM compressed 16bp yoy due to a declining lending rate and increasing deposit cost. Asset quality remained stable due to lumpy write-offs but NPL ratio increased amid prudent NPL recognition. Pace of loan growth was in line. Maintain BUY. Target price: HK$5.30.
KEY HIGHLIGHTS Results BYD Company (1211 HK/BUY/HK$77.00/Target: HK$95.00) 2Q20: Results in line; 3Q20 earnings guidance exceeds estimates. Upgrade from SELL to BUY, and raise target price to HK$95.00. China Construction Bank (939 HK/BUY/HK$5.49/Target: HK$6.46) 1H20: Slight miss; NPL ratio rose but actual overdue loan ratio inched down. China Merchants Bank Co., (3968 HK/BUY/HK$37.00/Target: HK$43.35) 1H20: Revenue growth in line; profit dipped due to higher provisions. China Molybdenum Co...
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/...
GREATER CHINA Results China Resources Cement (1313 HK/BUY/HK$8.79/Target: HK$10.39): 2019: Rock-solid fundamentals; upgrade to BUY. China Shenhua Energy (1088 HK/BUY/HK$14.36/Target: HK$19.02): 2019: Higher dividends for 2019-21; upgrade to BUY. CIFI Holdings (884 HK/BUY/HK$5.40/Target: HK$7.13): 2019: Steady sales growth. CMGE Technology Group (302 HK/BUY/HK$2.74/Target: HK$4.54): 2019: Earnings above estimates; rich gaming pipeline and rosy outlook in 2020. CR Gas (1193 HK/HOLD/HK$41.80/Targe...
Already wrestling a growth slowdown in 2019, we expect the Covid-19 epidemic to pile further pressure on China’s soft macro environment and weigh on banks’ asset quality. Meanwhile, the PBOC’s call for banks to support the real economy may potentially come at the expense of sector earnings. We believe poor fundamentals of unlisted small banks represent the weakest link in the banking system, and rising default risk has not been fully discounted by the market. Maintain UNDERWEIGHT; top BUY ...
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