GREATER CHINA Strategy Alpha Picks: April Conviction Calls: Adding AIA, Midea, Hansoh Pharmaceutical, Shenzhen Inovance and Trip.com to our BUY list, with SELL calls on BYD, EVE Energy, and Li Auto. INDONESIA Strategy Alpha Picks: Outperformance In Mar 24 and 1Q24: Our picks are ACES, BBTN, CMRY, SIDO, EXCL, MAPI, JSMR, CTRA, and AKRA. MALAYSIA Strategy Alpha Picks: Expanding The Variety Of Events Bets: Our Alpha Picks trounced the KLCI in Mar 24. Apr 24 picks: GENM, Inari, Mah Sing, MrDIY, MY...
CCB’s 2023 net profit came in largely within our expectation with 2.4% yoy growth. 4Q23 earnings inched up 0.3% yoy on better cost control and lower provisions despite the revenue dip. We expect the bank to face continued revenue headwinds in 2024 given the challenging environment. We cut our earnings forecasts on lower NIM assumptions and reduce our target price to HK$6.00. Maintain BUY.
KEY HIGHLIGHTS Strategy Small-Mid Cap Biweekly Eyeing re-rating for refrigerant suppliers as AC dealers front-load for peak sales in 2Q24. Results China Construction Bank (939 HK/BUY/HK$4.85/Target: HK$6.00) 2023: Results in line; expect revenue headwinds to persist in 2024. COSCO SHIPPING Holdings (1919 HK/BUY/HK$8.44/Target: HK$10.60) 2023: Results in line; expect an upbeat 1H24 performance. Maintain BUY. Kweichow Moutai (600519 CH/BUY/Rmb1,713.99/Target: Rmb2,488.00) 2023: Earnings up ...
GREATER CHINA Strategy Small-Mid Cap Biweekly Eyeing re-rating for refrigerant suppliers as AC dealers front-load for peak sales in 2Q24. Results China Construction Bank (939 HK/BUY/HK$4.85/Target: HK$6.00) 2023: Results in line; expect revenue headwinds to persist in 2024. COSCO SHIPPING Holdings (1919 HK/BUY/HK$8.44/Target: HK$10.60) 2023: Results in line; expect an upbeat 1H24 performance. Maintain BUY. Kweichow Moutai (600519 CH/BUY/Rmb1,713.99/Target: Rmb2,488.00) 2023: Earnings up ...
CMB’s 2023 results are in line with its preliminary results. 4Q23 earnings beat on cost control, lower provisions and trading gains. Management indicated that they will maintain the dividend payout after lifting it to 35%. They also guided that it will be challenging for CMB to achieve positive earnings growth in 1Q24 amid the margin squeeze and tepid fee income. Maintain BUY. Target price: HK$44.00.
KEY HIGHLIGHTS Results BYD Company (1211 HK/SELL/HK$201.60/Target: HK$140.00) 4Q23: Earnings up 19% yoy but down 17% qoq, in line. Management guides for flat earnings in 2024. Maintain SELL. Target price: HK$140.00. China Mengniu Dairy (2319 HK/BUY/HK$17.08/Target: HK$22.50) 2023: Missed estimates on one-off loss; weak demand to persist in the near term. China Merchants Bank (3968 HK/BUY/HK$30.95/Target: HK$44.00) 2023: Rise to the occasion. Country Garden Services (6098 HK/HOLD/HK$5.27...
GREATER CHINA Results BYD Company (1211 HK/SELL/HK$201.60/Target: HK$140.00): 4Q23: Earnings up 19% yoy but down 17% qoq, in line. Management guides for flat earnings in 2024. Maintain SELL. Target price: HK$140.00. China Merchants Bank (3968 HK/BUY/HK$30.95/Target: HK$44.00): 2023: Rise to the occasion. Haidilao International Holding (6862 HK/BUY/HK$16.86/Target: HK$18.80): 2023: In line; revenue growth on higher table turnover in 2024. Midea Group (000333 CH/BUY/Rmb63.67 /Target: Rmb76.20): 20...
Anhui Conch Cement reported 2023 earnings of Rmb10,689.2m (-32.6% yoy), representing 94% of our earnings forecast for 2023, in line with our expectations. Gross margin of 42.5 grade cement was resilient at 25.2% (-3.2 ppt), thanks to the 17.2% decline in fuel and power costs. Subsequent to 2023’s 0.7% yoy growth in cement and clinker sales volume, management is targeting another 4.9% yoy growth to 299m tonnes in 2024. Maintain BUY. Target price lowered to HK$21.00.
KEY HIGHLIGHTS Results Anhui Conch Cement (914 HK/BUY/HK$17.20/Target: HK$21.00) 2023: In line; all set to expand market share. CSPC Pharmaceutical Group (1093 HK/BUY/HK$6.41/Target: HK$7.80) 2023: Results in line; expects double-digit revenue and earnings growth in 2024. Geely Auto (175 HK/BUY/HK$8.83/Target: HK$11.00) 2023: Results beat on margins again; upgrade to BUY. Raise target price from HK$6.50 to HK$11.00. Innovent Biologics (1801 HK/BUY/HK$39.35/Target: HK$60.00) 2023: Results ...
GREATER CHINA Strategy Alpha Picks: March Conviction Call: Adding CMB, COLI, CR Beer, Kuaishou and TUL to our BUY list, closing out SELL calls. INDONESIA Strategy Alpha Picks: Significant Outperformance In Feb 24: Our picks are BBTN, CMRY, SIDO, EXCL, MAPI, JSMR, CTRA, MYOR and AKRA. MALAYSIA Strategy Alpha Picks: Focusing On Earnings Momentum: Our Alpha Picks underperformed the KLCI in Feb 24 (-0.9% vs 2.5%). Mar 24 picks significantly feature companies with good earnings momentum. SINGAPORE...
The HSI and MSCI China rose 6.6% and 8.2% mom respectively in Feb 24, mainly contributed by heavy-weighted IT and consumer discretionary stocks amid strongerthan- expected policy easing, which led to improved market sentiment. We expect sentiment to remain positive in March, as further macro supportive measures should be unveiled during the Two Sessions. We are adding CMB, COLI, CR Beer, Kuaishou and TUL to our BUY list and closing out the SELL ideas.
The HSMBI has soared 8.5% ytd, riding on the tailwinds of valuation recovery and Central Huijin purchase. We opine that the subsequent valuation recovery needs to be further supported by fundamental improvements. However, the recent five-year LPR cut could continue to weigh on banks’ NIM and top-line growth. Banks’ asset quality remains stable, but the underlying vulnerabilities still persist. Maintain UNDERWEIGHT with CMB as our top pick.
The A-shares for China banks are outperforming their H-shares due to the widening yield gaps and buying momentum from the sovereign fund. However, our analysis suggests that the attractive valuation and dividend yield could improve H-shares performance in the near term. CMB is our top pick.
A director at Sany Heavy Industry Co bought 100,000 shares at 13.200CNY and the significance rating of the trade was 56/100. 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...
Stronger-than-expected 4Q23 US annualised GDP data has pushed back the timeline of the first rate cut. Funds are increasingly bearish on copper, with weak global demand outweighing concerns on supply disruptions. The rebound in flat products’ prices saw steel mills’ margins recovering, but it is unsustainable despite rising production due to weak demand amid the low season. Cement demand was hampered by the first cold snap in 2024, with construction continuing to slow as CNY approaches.
Optimism about a rate cut in Mar 24 faded amid resilient US economic data and hawkish comments from Fed officials, with gold prices sliding to a one-month low last week. The recent sharp declines in iron ore and coke prices have helped in stabilising steel mills’ margins. However, demand for both long and flat products continues to slump amid a low season. We are concerned about reports of the central government instructing heavily-indebted local governments to delay/halt some state-funded infra...
Against the backdrop of a slowing economy in China and prolonged margin squeeze, CMB’s earnings growth slowdown is expected to persist into 2024. However, we believe that the market may have fully priced in the earnings headwinds after its valuation was halved from its peak during the grace period. With its robust capital and ample provision buffers, CMB could be a safer bet among peers in this challenging environment. Maintain BUY with a lower target price of HK$40.00.
KEY HIGHLIGHTS Sector Catering Pick Haidilao in the near term on better operating leverage. Maintain UNDERWEIGHT. Update Alibaba Group (9988 HK/BUY/HK$69.75/Target: HK$102.00) 3QFY24 preview: Improving GMV and advertising growth bolstered by ad-tech upgrade initiatives. China Merchants Bank Co (3968 HK/BUY/HK$25.80/Target: HK$40.00) When the going gets tough, the tough get going. TRADERS’ CORNER Techtronic Industries (669 HK): Trading Buy range: HK$86.00-87.00 Hisense Home Appliances Group ...
Summary Sinopec Zhongyuan Petrochemical Co 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 Sinopec Zhongyuan Petrochemical Co Ltd (ZPC), a subsidiary of China Petroleum & Chemical Corporation, is a manufacturer and distributor of petrochemical products. It pro...
The US’ weaker-than-expected Oct 23 CPI has eased market concerns of further rate hikes by the Fed, dragging the US dollar to a two-month low. Expectations of more stimulus measures from China are boosting demand outlook for industrial metals and iron ore. Steel mills’ margins expansion continued on the rebound of steel prices, though consumption has slowed. Cement shipment slowed as the northern region entered the low season and the southern region encountered rainy weather.
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