A director at Cimc Enric Holdings Ltd bought 500,000 shares at 5.789HKD and the significance rating of the trade was 65/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two yea...
KEY CALLS Liquid Cooling Technology Three telecom operators (China Mobile, China Unicom and China Telecom) have jointly released a liquid cooling technology white paper with the targets to: a) achieve 10% penetration in pilot applications among new data centre projects in 2024 and 50% penetration among data centres by 2025 (currently about 3%), and b) lower power usage effectiveness (PUE) and total cost of ownership (TCO). UPDATES Town Ray Holdings (1692 HK/NOT RATED/HK$2.88) Town Ray is an...
Key Calls Liquid Cooling Technology Three telecom operators (China Mobile, China Unicom and China Telecom) have jointly released a liquid cooling technology white paper with the targets to: a) achieve 10% penetration in pilot applications among new data centre projects in 2024 and 50% penetration among data centres by 2025 (currently about 3%), and b) lower power usage effectiveness (PUE) and total cost of ownership (TCO). Wind cooling is a current mainstream technology that supports heat di...
Management shared trends of hydrogen energy cost reduction at the reverse roadshow in Foshan, including: a) hydrogen pipelines will be the future mainstream transport to realise long-distance, large-scale hydrogen transport at much lower costs, and b) cost reduction of the hydrogen supply system is accelerating with easing carbon fibre costs. Management also expects larger-scale application of type IV hydrogen storage cylinders thanks to the rollout of national standards in 2H23.
KEY HIGHLIGHTS Sector Sportswear Potential upgrade of guidance a short-term catalyst; Anta as top pick. Results CSPC Pharmaceutical Group (1093 HK/BUY/HK$7.23/Target: HK$11.00) 1Q23: Revenue up 2.3% yoy; expecting significant recovery from 2Q23. Meituan (3690 HK/BUY/HK$126.00/Target: HK$205.00) 1Q23: Robust earnings beat expectations; Meituan’s FD market share back to 3:1 vs its rival’s. NetEase (9999 HK/BUY/HK$130.50/Target: HK$152.00) 1Q23: Solid beat; strong game pipeline amid solid margin e...
GREATER CHINA Sector Sportswear: Potential upgrade of guidance a short-term catalyst; Anta as top pick. Results CSPC Pharmaceutical Group (1093 HK/BUY/HK$7.23/Target: HK$9.00): 1Q23: Revenue up 2.3% yoy; expecting significant recovery from 2Q23. Meituan (3690 HK/BUY/HK$126.00/Target: HK$205.00): 1Q23: Robust earnings beat expectations; Meituan’s FD market share back to 3:1 vs its rival’s. NetEase (9999 HK/BUY/HK$130.50/Target: HK$152.00): 1Q23: Solid beat; strong game pipeline amid solid margin...
KEY CALLS SOE reform The SOE reform has received rising market interest in the theme of “valuation system with Chinese characteristics”. Policies highlight the goal to improve ROE, R&D intensity, and operating cash flow of SOEs. As SOEs have been trading at discounts to POEs, we expect a re-rating for SOEs on the back of improving fundamentals, capital efficiency, and attractive dividend yield. UPDATES Wasion Holdings (3393 HK/NOT RATED/HK$3.53) The key beneficiary of higher spending on sma...
KEY CALLS SOE reform The SOE reform has received rising market interest in the theme of “valuation system with Chinese characteristics”. Policies highlight the goal to improve ROE, R&D intensity, and operating cash flow of SOEs. As SOEs have been trading at discounts to POEs, we expect a re-rating for SOEs on the back of improving fundamentals, capital efficiency, and attractive dividend yield. Qingdao Port (6198 HK/ Not Rated/ HK$4.69) is an attractive play for the theme with: a) wholly st...
CIMC Enric delivered its 2022 results with net profit growing 19.4% yoy, in line with market expectation. Notably, gross margin expanded by 2.7ppt yoy to 18.6%, which was mainly driven by the chemical and environmental segment. The company achieved steady growth in onshore and offshore clean energy and has obtained an order backlog that is sufficient enough to support future growth. For the hydrogen business, management targets a 90% revenue CAGR in 2023-25, off a low base.
KEY HIGHLIGHTS Results China Resources Beer (291 HK/BUY/HK$62.90/Target: HK$77.00) 2022: Results beat estimates; expect stellar performance in 1Q23. Meituan (3690 HK/BUY/HK$140.20/Target: HK$213.00) 4Q22: Solid beat; stronger outlook in 1Q23; increasing competition with Douyin. Orient Overseas (International) (316 HK/HOLD/HK$150.50/Target: HK$140.50) 2022: Results beat due to better-than-expected cost control; outsized final dividend unlocking shareholder value. Upgrade to HOLD. Xiaomi Corp ...
GREATER CHINA Results China Resources Beer (291 HK/BUY/HK$62.90/Target: HK$77.00): 2022: Results beat estimates; expect stellar performance in 1Q23. Meituan (3690 HK/BUY/HK$140.20/Target: HK$213.00): 4Q22: Solid beat; stronger outlook in 1Q23; increasing competition with Douyin. Orient Overseas (International) (316 HK/HOLD/HK$150.50/Target: HK$140.50): 2022: Results beat due to better-than-expected cost control; outsized final dividend unlocking shareholder value. Upgrade to HOLD. Xiaomi Corp (1...
CIMC Enric is a leading global integrated equipment manufacturer in the energy, chemical and liquid food industries. With China’s “dual carbon” goal, the demand for clean energy, including natural gas and hydrogen, is expected to surge in the foreseeable future. Enric is a leading equipment supplier for LNG and hydrogen fuel, and management expects the company to become a key beneficiary of this demand surge, on the back of its comprehensive LNG and hydrogen business layouts.
KEY HIGHLIGHTS Economics Inflation Slowing inflation leaves more room for policy easing. Sector Property Steering investments into affordable rental housing. Initiate Coverage Prudential (2378 HK/BUY/HK$129.20/Target: HK$204.50) Future-ready with sights set on emerging markets. Update WuXi AppTec (2359 HK/BUY/HK$104.80/Target: HK$128.00) 2021 net earnings up 72.2% yoy, expect revenue to grow about 67% yoy in 2022. Small/Mid Cap Highlights CIMC Enric Holdings Limited (3899 HK/NOT RATED/HK10.04) K...
CIMC ENRIC HOLDINGS (HK), a company active in the Exploration & Production 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...
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....
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
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