reports
- Jo Yee Ng
- Shirley Wang Xueyi
- Stella Guo Yuting
Inner Mongolia Yili Industrial Group (600887 CH): Q24: Earnings up 64%...
Yili’s earnings grew 64% yoy in 1Q24 due to one-off investment gains, despite a weak liquid milk revenue (-7% yoy). We expect liquid milk revenue to trend down in 2Q24 as Yili aims to reduce channel shipments amid the weak retail sales demand. Management guides for revenue growth of 3% yoy in 2024, which we think will be driven by consumption scene expansion and product innovation, and also reiterated its net profit margin target of at least 9% in 2025. Maintain BUY. Cut target price by 5% to Rm...
- Bella Lu Yifei
- Carol Dou Xiao Qin
- Ceilica Su Rui
- Greater China Research Team
- Jo Yee Ng
- Johnny Yum Chung Man
- Ken Lee
- Kenny Yong Hui Lim
- Roy Chen Chengzhi
- Shirley Wang Xueyi
- Stella Guo Yuting
- Sunny Chen
- Tham Mun Hon
- Ziv Ang Sze Champ
Greater China Daily: Thursday, May 2, 2024
KEY HIGHLIGHTS Economics PMI Manufacturing PMI came in better than expected at 50.4% (-0.4ppt) and stayed in the expansionary zone for the second month. It was mainly supported by production and new orders as employment remained a drag, dropping 0.1ppt to 48.0%. Non-manufacturing hit a three-month low of 51.2%, dragged by moderation in new orders and business expectations. We expect policy support to continue and the July Politburo may see new measures being rolled out. Sector Aviation T...
PRU PRUDENTIAL PLC
600132 CHONGQING BREWERY CO.LTD CLASS A
02328 PICC PROPERTY & CASUALTY CO. LTD. CLASS H
600887 INNER MONGOLIA YILI INDUSTRIAL GROUP CO. LTD. CLASS A
002352 S.F. HOLDING CO. LTD. CLASS A
002460 GANFENG LITHIUM CO. LTD. CLASS A
002472 ZHEJIANG SHUANGHUAN DRIVELINE (A)
601012 LONGI GREEN ENERGY TECHNOLOGY CO LTD CLASS A
600019 BAOSHAN IRON & STEEL CO. LTD. CLASS A
YUMC YUM CHINA HOLDINGS INC.
2338 WEICHAI POWER CO. LTD. CLASS H
COSCO SHIPPING HOLDINGS CO. LTD. CLASS H
1772 GANFENG LITHIUM CO. LTD. CLASS H
603259 WUXI APPTEC CO. LTD. CLASS A
WUXI APPTEC CO. LTD. CLASS H
- Jo Yee Ng
- Shirley Wang Xueyi
- Stella Guo Yuting
China Consumer: Focus on four key theses for the sector.
In this report, we have summarised what we read from consumer companies’ 2023 results, the 2024 outlook and recent updates. We think companies: a) with overseas expansion or turnaround prospects, b) that have upside potential of improving operating efficiency, c) that will benefit from near-term catalysts (eg event-driven), and d) have increasing dividend payout will outperform. Anta, CR Beer, CTGDF, Galaxy, Haidilao, Haier, Midea and Shenzhou are our most preferred stocks. Maintain OVERWEIGHT.
AS7 ANTA SPORTS PRODUCTS LTD.
00291 CHINA RESOURCES BEER (HOLDINGS) CO. LTD.
600132 CHONGQING BREWERY CO.LTD CLASS A
000858 WULIANGYE YIBIN CO. LTD. CLASS A
600809 SHANXI XINGHUACUN FEN WINE FACTORY CO. LTD. CLASS A
EZQ CHINA MENGNIU DAIRY CO. LTD.
02331 LI NING COMPANY LIMITED
600519 KWEICHOW MOUTAI CO. LTD. CLASS A
600887 INNER MONGOLIA YILI INDUSTRIAL GROUP CO. LTD. CLASS A
00027 GALAXY ENTERTAINMENT GROUP LIMITED
600872 JONJEE HI-TECH INDUSTRIAL AND COMMERCIAL HOLDING CO. LTD. CLASS A
601888 CHINA TOURISM GROUP DUTY FREE CORPORATION LIMITED CLASS A
599A SANDS CHINA LTD.
000333 MIDEA GROUP CO. LTD. CLASS A
0168 TSINGTAO BREWERY CO. LTD. CLASS H
06862 HAIDILAO INTERNATIONAL HOLDING LTD.
333 MIDEA GROUP
TXG 10X GENOMICS INC CLASS A
1368 XTEP INTERNATIONAL HOLDINGS
01876 BUDWEISER BREWING CO. APAC LTD.
6186 CHINA FEIHE LTD
06690 HAIER SMART HOME CO. LTD. CLASS H
09922 JIUMAOJIU INTERNATIONAL HOLDINGS LTD.
- Jo Yee Ng
- Shirley Wang Xueyi
- Stella Guo Yuting
China Consumer: Tourism, catering and movie consumption: Strong perfor...
During the Chinese New Year (CNY) holiday, tourism, both domestic and outbound, catering and movie consumption put up strong performances. For the consumer sector, we prefer discretionary to staple, and Macau gaming in the discretionary space, given the strong recovery momentum of Macau tourism and moderate hike in opex. Galaxy is our top pick in Macau gaming sector, given its net cash position amid the higher interests. Maintain OVERWEIGHT.
AS7 ANTA SPORTS PRODUCTS LTD.
ADCB ABU DHABI COMMERCIAL BANK
600132 CHONGQING BREWERY CO.LTD CLASS A
000858 WULIANGYE YIBIN CO. LTD. CLASS A
600809 SHANXI XINGHUACUN FEN WINE FACTORY CO. LTD. CLASS A
EZQ CHINA MENGNIU DAIRY CO. LTD.
600519 KWEICHOW MOUTAI CO. LTD. CLASS A
600887 INNER MONGOLIA YILI INDUSTRIAL GROUP CO. LTD. CLASS A
00027 GALAXY ENTERTAINMENT GROUP LIMITED
600872 JONJEE HI-TECH INDUSTRIAL AND COMMERCIAL HOLDING CO. LTD. CLASS A
000333 MIDEA GROUP CO. LTD. CLASS A
603288 FOSHAN HAITIAN FLAVOURING & FOOD CO. LTD. CLASS A
0168 TSINGTAO BREWERY CO. LTD. CLASS H
1928-HK SANDS CHINA
1368 XTEP INTERNATIONAL HOLDINGS
0606923D CHINA DUTY FREE GROUP CO LTD
6862 HAIDILAO INTERNATIONAL HOLDING LTD
2331 LI NING CO LTD
01876 BUDWEISER BREWING CO. APAC LTD.
6186 CHINA FEIHE LTD
9922 JIUMAOJIU INTERNATIONAL HOLDINGS LTD
ONEM 1LIFE HEALTHCARE
291 CHINA RESOURCES BEER HOLDINGS CO LTD
06690 HAIER SMART HOME CO. LTD. CLASS H
- Jo Yee Ng
- Shirley Wang Xueyi
- Stella Guo Yuting
China Dairy: Slowing demand to weigh on valuations in the near term. D...
We turn conservative on dairy companies’ top-line growth guidance for 2024, as we expect consumption to slow down in the discretionary segment while distributors are lacking enthusiasm in placing orders. We expect modest gross margin expansion, while companies may still achieve net profit margin expansion from disciplined investment and targeted marketing in 2024. Downgrade the dairy sector to MARKET WEIGHT. We switch our top pick to Yili.
- Jo Yee Ng
- Shirley Wang Xueyi
- Stella Guo Yuting
Inner Mongolia Yili Industrial Group (600887 CH): 3Q23: Strong results...
Yili reported strong 3Q23 results, which can be attributed to the recovery of consumption scenes, consumers’ higher spending power, and a low base. Management maintains its 2023 revenue and net profit margin guidance. Going into 2024, Yili expects a better revenue growth, driven by penetration into lower-tier cities and rising selfdrinking consumption scenes. Maintain BUY. Cut target price by 6% to Rmb35.40 with lower revenue growth assumptions.
- Bella Lu Yifei
- Carol Dou Xiao Qin
- Greater China Research Team
- Jo Yee Ng
- Johnny Yum Chung Man
- Ken Lee
- Roy Chen Chengzhi
- Shirley Wang Xueyi
- Stella Guo Yuting
- Sunny Chen
- Terence Chiu
- Tham Mun Hon
- Ziv Ang Sze Champ
Greater China Daily: Wednesday, November 1, 2023
KEY HIGHLIGHTS Economics PMI September’s improvement was a flash in the pan. Sector Property Top 100 developers’ Oct 23 sales weaker than expected; government housing supply to accelerate. Results Anhui Conch Cement (914 HK/BUY/HK$19.52/Target: HK$28.20) 3Q23: In line; margins compressed by lacklustre demand and high coal prices. Budweiser APAC (1876 HK/BUY/HK$14.88/Target: HK$22.50) 3Q23: Slight miss; expect a better 4Q23. Chongqing Brewery (600132 CH/BUY/Rmb78.50/Target: Rmb100.50) 3Q23: ...
600132 CHONGQING BREWERY CO.LTD CLASS A
02328 PICC PROPERTY & CASUALTY CO. LTD. CLASS H
600887 INNER MONGOLIA YILI INDUSTRIAL GROUP CO. LTD. CLASS A
601919 COSCO SHIPPING HOLDINGS CO. LTD. CLASS A
0914 ANHUI CONCH CEMENT COMPANY LIMITED CLASS H
2747 ESTUN AUTOMATION
1772 GANFENG LITHIUM CO. LTD. CLASS H
2359 WUXI APPTEC CO LTD
9988 ALIBABA (9988 HK)
603259 WUXI APPTEC CO. LTD. CLASS A
1876:HK BUDWEISER BREWING CO APAC LTD
- Carol Dou Xiao Qin
- Damon Shen
- Greater China Research Team
- Jieqi Liu
- Jo Yee Ng
- John Cheong Ming Chern
- Johnny Yum Chung Man
- Jonathan Koh
- Kampon Akaravarinchai
- Kasemsun Koonnara
- Keith Wee Teck Keong
- Limartha Adhiputra
- Malaysia Research Team
- Paula Ruth
- Roy Chen Chengzhi
- Shirley Wang Xueyi
- Singapore Research Team
- Stella Guo Yuting
- Sunny Chen
- Vincent Khoo Boo Aik
- Ziv Ang Sze Champ
Regional Morning Notes - Wednesday, November 01, 2023
GREATER CHINA Sector Property: Top 100 developers’ Oct 23 sales weaker than expected; government housing supply to accelerate. Results Anhui Conch Cement (914 HK/BUY/HK$19.52/Target: HK$28.20): 3Q23: In line; margins compressed by lacklustre demand and high coal prices. Budweiser APAC (1876 HK/BUY/HK$14.88/Target: HK$22.50): 3Q23: Slight miss; expect a better 4Q23. COSCO SHIPPING Holdings (1919 HK/BUY/HK$7.95/Target: HK$9.30): 3Q23: Results below expectations; outlook still cautious but valuatio...
FCT FRASERS CENTREPOINT TRUST
02328 PICC PROPERTY & CASUALTY CO. LTD. CLASS H
ISAT INDOSAT
600585 ANHUI CONCH CEMENT COMPANY LIMITED CLASS A
600887 INNER MONGOLIA YILI INDUSTRIAL GROUP CO. LTD. CLASS A
601919 COSCO SHIPPING HOLDINGS CO. LTD. CLASS A
BSDE PT BUMI SERPONG DAMAI TBK
BURSA BURSA MALAYSIA BHD
2747 ESTUN AUTOMATION
01876 BUDWEISER BREWING CO. APAC LTD.
2359 WUXI APPTEC CO LTD
TWC TIONG WOON CORPORATION HOLDING
- Jo Yee Ng
- Shirley Wang Xueyi
- Stella Guo Yuting
China Consumer: Good recovery by domestic tourism and catering during ...
During the Golden Week holiday, domestic tourism and catering recovery were on track while duty-free sales recovery was still weak. We prefer sportswear in the discretionary space, given the decent sales momentum during the holiday (Anta: in line with internal targets; Xtep: 20% yoy growth), and baijiu in the staples space, given baijiu’s strong brand power. We prefer Anta in the sportswear sector, given its multiple catalysts, and Moutai in the baijiu sector, for its highest earnings visibility...
AS7 ANTA SPORTS PRODUCTS LTD.
600132 CHONGQING BREWERY CO.LTD CLASS A
000858 WULIANGYE YIBIN CO. LTD. CLASS A
600809 SHANXI XINGHUACUN FEN WINE FACTORY CO. LTD. CLASS A
EZQ CHINA MENGNIU DAIRY CO. LTD.
600519 KWEICHOW MOUTAI CO. LTD. CLASS A
600887 INNER MONGOLIA YILI INDUSTRIAL GROUP CO. LTD. CLASS A
00027 GALAXY ENTERTAINMENT GROUP LIMITED
600872 JONJEE HI-TECH INDUSTRIAL AND COMMERCIAL HOLDING CO. LTD. CLASS A
601888 CHINA TOURISM GROUP DUTY FREE CORPORATION LIMITED CLASS A
599A SANDS CHINA LTD.
000333 MIDEA GROUP CO. LTD. CLASS A
603288 FOSHAN HAITIAN FLAVOURING & FOOD CO. LTD. CLASS A
168 TSINGTAO BREWERY CO LTD
1928-HK SANDS CHINA
333 MIDEA GROUP
1368 XTEP INTERNATIONAL HOLDINGS
6862 HAIDILAO INTERNATIONAL HOLDING LTD
2331 LI NING CO LTD
01876 BUDWEISER BREWING CO. APAC LTD.
6186 CHINA FEIHE LTD
9922 JIUMAOJIU INTERNATIONAL HOLDINGS LTD
ONEM 1LIFE HEALTHCARE
1876:HK BUDWEISER BREWING CO APAC LTD
291 CHINA RESOURCES BEER HOLDINGS CO LTD
06690 HAIER SMART HOME CO. LTD. CLASS H
- MarketLine Department
Want Want China Holdings Ltd - Strategy, SWOT and Corporate Finance Re...
Summary Want Want China Holdings Ltd - Strategy, SWOT and Corporate Finance Report, 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 Want Want China Holdings Ltd (Want Want) is a food and beverage products manufacturer. The company involved in manufacturing, distributing and marketing of rice crackers, dairy pr...
- Jo Yee Ng
- Stella Guo Yuting
Inner Mongolia Yili Industrial Group (600887 CH): 1H23: Earnings miss;...
Yili reported in-line revenue but earnings missed consensus forecasts by 6% in 1H23. Liquid milk sales growth turned positive in 2Q23 (+0.5% yoy) and is expected to grow by mid-single digits yoy for Jul 23-Aug 23. Management sees a gradual recovery in the coming months, thanks to higher consumption from national sporting events and the upcoming holiday season, as well as the better competition landscape in IMF. It keeps full-year growth guidance unchanged. Maintain BUY. Target price: Rmb37.50.
- Ariel Poh Yun Li
- Bella Lu Yifei
- Damon Shen
- Jieqi Liu
- Jo Yee Ng
- Johnny Yum Chung Man
- Julia Pan Mengyao
- Ken Lee
- Ming San Soong
- Roy Chen Chengzhi
- Stella Guo Yuting
- Terence Chiu
Greater China Daily: Wednesday, August 30, 2023
KEY HIGHLIGHTS Results BYD Company (1211 HK/BUY/HK$237.80/Target: HK$590.00) 2Q23: Earnings up 145% yoy and 65% qoq, in line. Maintain BUY. Target price: HK$590.00. China Feihe (6186 HK/HOLD/HK$4.81/Target: HK$5.18) 1H23: Results in line; growing asset-light digitalised stores. COSCO SHIPPING Ports (1199 HK/BUY/HK$4.72/Target: HK$6.00) 1H23: Results slightly beat our expectation; showing robustness amid slow macro environment. Country Garden Services (6098 HK/HOLD/HK$9.45/Target: HK$9.16) 1H...
- Ariel Poh Yun Li
- Bella Lu Yifei
- Chong Lee Len
- Damon Shen
- Desmond Chong Chee Wai
- Jieqi Liu
- Jo Yee Ng
- John Cheong Ming Chern
- Johnny Yum Chung Man
- Julia Pan Mengyao
- Keith Wee Teck Keong
- Ken Lee
- Kwanchai Atiphophai
- Ming San Soong
- Roy Chen Chengzhi
- Stella Guo Yuting
- Stevanus Juanda
Regional Morning Notes - Wednesday, August 30, 2023
GREATER CHINA Results BYD Company (1211 HK/BUY/HK$237.80/Target: HK$590.00): 2Q23: Earnings up 145% yoy and 65% qoq, in line. Maintain BUY. Target price: HK$590.00. China Feihe (6186 HK/HOLD/HK$4.81/Target: HK$5.18): 1H23: Results in line; growing asset-light digitalised stores. COSCO SHIPPING Ports (1199 HK/BUY/HK$4.72/Target: HK$6.00): 1H23: Results slightly beat our expectation; showing robustness amid slow macro environment. Country Garden Services (6098 HK/HOLD/HK$9.45/Target: HK$9.16): 1H2...
GGRM PT GUDANG GARAM TBK
1295 PUBLIC BANK BHD
002594 BYD COMPANY LIMITED CLASS A
600887 INNER MONGOLIA YILI INDUSTRIAL GROUP CO. LTD. CLASS A
6888 AXIATA GROUP BHD.
01810 XIAOMI CORP. CLASS B
6098 COUNTRY GARDEN SERVICES
6186 CHINA FEIHE LTD
1199 COSCO SHIPPING PORTS LIMITED
CVL CIVMEC
PDD PINDUODUO PDD US
- Jo Yee Ng
- Stella Guo Yuting
Inner Mongolia Yili Industrial Group (600887 CH): 2Q23 results preview...
Yili’s 2Q23 revenue growth is likely to be milder than expected, dragged by tepid liquid milk sales and the industry’s intensified promotion of infant milk formulas. We are cautious on its high single-digit organic revenue growth guidance but remain confident on its 30bp organic earnings expansion due to product mix upgrading, lower raw milk prices and lower operating expense ratio. We resume coverage on Yili with a BUY rating and new target price of Rmb37.50.
- Adrian Loh Tzum Yung
- Benjaphol Suthwanish
- Celine Yuan Xinlin
- Jo Yee Ng
- Julia Pan Mengyao
- Kochakorn Sutaruksanon
- Kong Ho Meng
- Ming San Soong
- Posmarito Pakpahan
- Stella Guo Yuting
- Tanaporn Visaruthaphong
- Tham Mun Hon
Regional Morning Notes - Wednesday, July 12, 2023
GREATER CHINA Economics Money Supply: Weaker M1 growth points to need for policy stimulus. Update Alibaba Group (9988 HK/BUY/HK$87.00/Target: HK$130.00): Solid 1QFY24; Taobao+Tmall DAU/Time spend to be the key focus. Inner Mongolia Yili Industrial Group (600887 CH/BUY/Rmb28.50/Target: Rmb37.50): 2Q23 results preview: conservative on full-year revenue guidance. Small/Mid Cap Highlights SenseTime Group Inc (20 HK/NOT RATED/HK$1.89): Revolutionising industries with rapid iteration. INDONESIA Updat...
- Celine Yuan Xinlin
- Jo Yee Ng
- Julia Pan Mengyao
- Ming San Soong
- Stella Guo Yuting
- Terence Chiu
- Tham Mun Hon
Greater China Daily: Wednesday, July 12, 2023
KEY HIGHLIGHTS Economics Money Supply Weaker M1 growth points to need for policy stimulus. Update Alibaba Group (9988 HK/BUY/HK$87.00/Target: HK$130.00) Solid 1QFY24; Taobao+Tmall DAU/Time spend to be the key focus. Inner Mongolia Yili Industrial Group (600887 CH/BUY/Rmb28.50/Target: Rmb37.50) 2Q23 results preview: conservative on full-year revenue guidance. Small/Mid Cap Highlights SenseTime Group Inc (20 HK/NOT RATED/HK$1.89) Revolutionising industries with rapid iteration. TRADERS’ CORNE...
- Greater China Research Team
- Tham Mun Hon
2H23 Market Strategy: Time for a booster?
MSCI China now trades at an undemanding 12-month forward PE of 10.2x, or a 37.0% discount to Emerging Asia. This steep discount is unwarranted and we expect valuation to normalise in 2H23, backed by additional policy support. However, a significant re-rating is only possible if credit growth accelerates; hence, our index target is at 74 points for now, implying 12.0x target PE. We prefer exposure to automobiles, consumer, industrial automation and online gaming. Steep discount unwarranted. We...
A117ME ALIBABA GROUP HOLDING LTD. SPONSORED ADR
00016 SUN HUNG KAI PROPERTIES LIMITED
XGH ENN ENERGY HOLDINGS LIMITED
00823 LINK REAL ESTATE INVESTMENT TRUST
PRU PRUDENTIAL PLC
01109 CHINA RESOURCES LAND LIMITED
SXC SUNNY OPTICAL TECHNOLOGY (GROUP) CO. LTD.
002594 BYD COMPANY LIMITED CLASS A
01299 AIA GROUP LIMITED
300015 AIER EYE HOSPITAL GROUP CO. LTD. CLASS A
600519 KWEICHOW MOUTAI CO. LTD. CLASS A
600887 INNER MONGOLIA YILI INDUSTRIAL GROUP CO. LTD. CLASS A
ORI1 ORIENT OVERSEAS (INTERNATIONAL) LIMITED
600872 JONJEE HI-TECH INDUSTRIAL AND COMMERCIAL HOLDING CO. LTD. CLASS A
601919 COSCO SHIPPING HOLDINGS CO. LTD. CLASS A
599A SANDS CHINA LTD.
00700 TENCENT HOLDINGS LTD.
02669 CHINA OVERSEAS PROPERTY HOLDINGS LIMITED
0914 ANHUI CONCH CEMENT COMPANY LIMITED CLASS H
2318 PING AN INSURANCE (GROUP) COMPANY OF CHINA LTD. CLASS H
M4B CHINA MERCHANTS BANK CO. LTD. CLASS H
1211 BYD COMPANY LIMITED CLASS H
2338 WEICHAI POWER CO. LTD. CLASS H
753 AIR CHINA LTD-H
670 CHINA EASTERN AIRLINES CO-H
1928-HK SANDS CHINA
916 CHINA LONGYUAN POWER GROUP-H
300760 SHENZHEN MINDRAY BIO-MEDICAL ELECTRONICS CO. LTD. CLASS A
1055 CHINA SOUTHERN AIRLINES CO-H
2747 ESTUN AUTOMATION
700 HK TENCENT 700 HK
TCOM US TRIP.COM TCOM US
9988 ALIBABA (9988 HK)
1199 COSCO SHIPPING PORTS LIMITED
9922 JIUMAOJIU INTERNATIONAL HOLDINGS LTD
1585 YADEA GROUP HOLDINGS LTD
2696 SHANGHAI HENLIUS BIOTECH INC
1024 KUAISHOU TECHNOLOGY
291 CHINA RESOURCES BEER HOLDINGS CO LTD
3692 HANSOH PHARMACEUTICAL GROUP
06690 HAIER SMART HOME CO. LTD. CLASS H
9961 TRIP.COM GROUP LTD
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