Expect increased market volatility in 1H25 as the US embarks on another round of trade rebalancing with China via higher tariffs. We expect China to roll out growth supportive policies on top of the de-risking measures that have been announced. Hence, we prefer a domestic orientation and policy beneficiaries for 1H25. Our MSCI China Index target is at 68pt, based on 7% EPS growth and 10.5x PE. The downside target is 51pt in the event of a full-fledged trade war. China is focusing on de-riskin...
GREATER CHINA Economics Economic Activity Mainly stable except for weakness in real estate. Results Alibaba Group (9988 HK/BUY/HK$87.20/Target: HK$130.00) 2QFY25: Seeking high quality growth and gradual monetisation. CSPC Pharmaceutical Group (1093 HK/HOLD/HK$5.13/Target: HK$5.50) 9M24: Disappointing results; targets positive revenue growth in 2025. JD Logistics, Inc (2618 HK/BUY/HK$14.16/Target: HK$22...
Haier’s 1H24 net profit increased by 16% yoy. Management expects domestic sales to be boosted by trade-in policies in 2H24, given the launch of the programme nationwide in early-Sep 24. In overseas markets, management is optimistic about demand recovery in North America, and expects strong growth in India to continue, leveraging population growth and favourable weather. Maintain BUY but lower target price by 5% to HK$33.10.
Haier continued to consolidate its leading position in the domestic market, with AC’s revenue recording >10% yoy growth and Casarte’s revenue increasing 14% yoy. In the overseas market, operating profit grew by double-digit % yoy. We like Haier for its expanding business (eg air conditioner) in the domestic market and the upside potential of overseas operating efficiency improvement. Maintain BUY and target price of HK$31.00. It is our top pick in the home appliance sector.
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.
FIRST ABU DHABI BANK (AE), a company active in the Money Center Banks industry, reduced its market risk and raised its general evaluation. The independent financial analyst theScreener awarded an improved star rating to the company, which now shows 4 out of 4 possible stars; its market behaviour has improved and can be considered as defensive. theScreener believes that this new assessment merits an overall rating upgrade to Slightly Positive. As of the analysis date March 8, 2022, the closing pr...
DUBAI ISLAMIC BANK (AE), a company active in the Money Center Banks industry, now shows a lower overall rating. The independent financial analyst theScreener just confirmed the fundamental rating of 4 stars out of 4, as well as the stock market behaviour of the title as moderately risky. However, environmental deterioration penalises the general evaluation, which is downgraded to Neutral. As of the analysis date March 1, 2022, the closing price was AED 6.15 and its expected value was estimated a...
The independent financial analyst theScreener just slightly lowered the general evaluation of ABU DHABI COML.BANK (AE), active in the Money Center Banks industry. As regards its fundamental valuation, the title confirms its rating of 4 out of 4 stars. Its market behaviour, however, has slightly deteriorated and can be now qualified as moderately risky. This risk increase, even if marginal, forces theScreener to slightly downgrade the title, which now displays an overall rating of Slightly Positi...
The general evaluation of EMIRATES NBD (AE), a company active in the Money Center Banks industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date January 28, 2022, the closing price wa...
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....
Sequential improvement in 3Q20 business activity. This was evident in the progressive rise in fee income posted by most names (c.+13.3%, on average q-o-q), with banks citing improved consumer spending trends, credit card usage, and trade finance activity as drivers for growth. NIMs continued to fall q-o-q (-c14bps, on average), albeit at a slower pace, as the bulk of asset repricing took place in 1H20. 3Q20 saw sequential reductions in provisions, save for ENBD, as the bank continued to ramp up ...
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