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....
CHINA SHENHUA ENGY (CN), a company active in the Coal industry, loses a star(s) at the fundamental level and sees its general evaluation downgraded. The independent financial analyst theScreener just removed a fundamental star(s) for a 2 over 4-star rating. As such, market behaviour remains unchanged and is evaluated as moderately risky. theScreener believes that the loss of a star(s) merits downgrade to the general evaluation of the title, which passes to Neutral. As of the analysis date June 1...
China’s domestic thermal coal prices hit a decade-high level in 1Q21. Despite it being the traditional slow season, coal inventory at the QHD port has been trending down since end-Feb 21, indicating strong downstream demand. Raw coal production remained steady in 2M21 while imports contracted. We expect coal prices to remain strong in the near term. We believe leading coal names’ strong 1Q21 results will support the valuation recovery. Upgrade China’s coal sector to MARKET WEIGHT.
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...
KEY HIGHLIGHTS CHINA Results AAC Technologies (2018 HK/HOLD/HK$36.95/Target: HK$39.80) 2Q19: Big miss, awaiting a mild recovery in 2H19. Brilliance Auto (1114 HK/BUY/HK$7.71/Target: HK$9.50) 1H19: Beats our estimates; raise target price to HK$9.50. China National Building Material (3323 HK/BUY/HK$6.92/Target: HK$8.44) 1H19: Results in line, de-leveraging slower than expected. CR Gas (1193 HK/HOLD/HK$39.75/Target: HK$38.00) 1H19: Solid earnings growth, low gearing and healthy cash flow. C...
Shenhua reported in-line 1H19 net profit of Rmb24.2b, down 1.1% yoy. Coal segment stayed relatively resilient amid a weak coal market with coal output and sales volume better than full-year guidance. Power segment’s margin increased by 4.9ppt to 21.6% yoy on power tariff increase of 5.8% yoy. Looking ahead, we remain cautious on China’s coal market, while we expect Shenhua to stay resilient on the integrated coal-power-transportation model and healthy financial position. Maintain BUY with a ...
Thermal coal price continued to trend down in the first half of July, due to quick coal production ramp-up since June, sufficient inventory levels at key IPPs and lacklustre thermal power generation. With an additional 160m of newly-approved coal capacity in 1H19 coming on stream and softening demand amid concerns over slowing economic growth, we expect thermal coal price to decline gradually in 2H19. We see unexciting results from coal names in 1H19. Maintain UNDERWEIGHT on China’s coal secto...
The coal market has yet to rebound entering the peak demand season in summer, partly due to stronger hydro power generation than in 2018. The ytd market move affirms our cautious view on the coal sector in 2019. Looking ahead, we expect coal prices to gradually decline with rising supply and softening demand. Downgrade the sector to UNDERWEIGHT. Top pick: Shenhua (1088 HK) with a lower target price of HK$20.38.
Narrow-moat China Shenhua’s first-quarter result contains little surprise, with net profit rising 5% year over year to CNY 12.9 billion, despite a 14% drop in the benchmark QHD 5,500 kcal spot coal prices. We think this reflects Shenhua’s competitive advantage with its integrated coal power business, as growing power demand, coinciding with a falling coal price, helped to offset the weakness in the coal segment. In addition, with about 90% of coal outputs being sold through long-term contrac...
Narrow-moat China Shenhua’s first-quarter result contains little surprise, with net profit rising 5% year over year to CNY 12.9 billion, despite a 14% drop in the benchmark QHD 5,500 kcal spot coal prices. We think this reflects Shenhua’s competitive advantage with its integrated coal power business, as growing power demand, coinciding with a falling coal price, helped to offset the weakness in the coal segment. In addition, with about 90% of coal outputs being sold through long-term contrac...
Shenhua posted an in-line 2018 net profit of Rmb44.1b, down 7.7% yoy while dividend pay-out ratio was maintained at 40%. Its JV with GD Power was completed in Jan 19. Management guided on more conservative 2019 business targets with coal production/sales volumes guided to see 2%/7% yoy declines respectively. Coal prices should trend down in 2019 towards the “green zoneâ€; trim net profit forecasts by 7%/6% for 2019/20 on a weaker coal segment performance. Maintain BUY. Target price: HK$22.42.
Narrow-moat China Shenhua’s full-year 2018 result contains few surprises, with net profit falling 8% year over year to CNY 44 billion. This implies a flat recurring fourth-quarter performance, despite an 8.8% drop in the benchmark QHD 5,500 kcal spot coal prices. We think this reflects Shenhua’s competitive advantage with integrated coal power business, as stronger power demand, coinciding with falling coal price, helped to offset the weakness at coal segment. In addition, with 82% of coal o...
Narrow-moat China Shenhua’s full-year 2018 result contains few surprises, with net profit falling 8% year over year to CNY 44 billion. This implies a flat recurring fourth-quarter performance, despite an 8.8% drop in the benchmark QHD 5,500 kcal spot coal prices. We think this reflects Shenhua’s competitive advantage with integrated coal power business, as stronger power demand, coinciding with falling coal price, helped to offset the weakness at coal segment. In addition, with 82% of coal o...
Narrow-moat China Shenhua’s full-year 2018 result contains few surprises, with net profit falling 8% year over year to CNY 44 billion. This implies a flat recurring fourth-quarter performance, despite an 8.8% drop in the benchmark QHD 5,500 kcal spot coal prices. We think this reflects Shenhua’s competitive advantage with integrated coal power business, as stronger power demand, coinciding with falling coal price, helped to offset the weakness at coal segment. In addition, with 82% of coal o...
China will lower the value-added tax, or VAT, rates as part of a CNY 2 trillion cost cut package to support the slowing economy and tariff dispute with the U.S. This favors Chinese coal producers, who will enjoy a 3% VAT rate cut to 13% on domestic coal production. We expect the VAT rate cut to boost net profits by 4%-10% for the major coal producers we cover, after taking into account the cost-side VAT rate cuts. Among these, we think China Coal is best positioned to benefit with estimated 8%-1...
China will lower the value-added tax, or VAT, rates as part of a CNY 2 trillion cost cut package to support the slowing economy and tariff dispute with the U.S. This favors Chinese coal producers, who will enjoy a 3% VAT rate cut to 13% on domestic coal production. We expect the VAT rate cut to boost net profits by 4%-10% for the major coal producers we cover, after taking into account the cost-side VAT rate cuts. Among these, we think China Coal is best positioned to benefit with estimated 8%-1...
China Shenhua’s preliminary full-year 2018 profit guidance of CNY 44.5 billion points to a better-than-expected fourth-quarter performance as an 8.8% drop in the benchmark QHD 5,500 kcal spot coal prices should have led to a drop in earnings. We think fourth-quarter profit could have been supported by stronger-than-expected power output and pickup in second-half coal rail-transport demand. In addition, the monthly coal production volume recovered to 25.5 million tons in the fourth-quarter, fro...
China Shenhua’s preliminary full-year 2018 profit guidance of CNY 44.5 billion points to a better-than-expected fourth-quarter performance as an 8.8% drop in the benchmark QHD 5,500 kcal spot coal prices should have led to a drop in earnings. We think fourth-quarter profit could have been supported by stronger-than-expected power output and pickup in second-half coal rail-transport demand. In addition, the monthly coal production volume recovered to 25.5 million tons in the fourth-quarter, fro...
China Shenhua’s preliminary full-year 2018 profit guidance of CNY 44.5 billion points to a better-than-expected fourth-quarter performance as an 8.8% drop in the benchmark QHD 5,500 kcal spot coal prices should have led to a drop in earnings. We think fourth-quarter profit could have been supported by stronger-than-expected power output and pickup in second-half coal rail-transport demand. In addition, the monthly coal production volume recovered to 25.5 million tons in the fourth-quarter, fro...
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