reports
- Ceilica Su Rui
- Ziv Ang Sze Champ
Zijin Mining (2899 HK): 1Q24: In line; margin expansion on effective p...
Zijin reported 1Q24 earnings of Rmb6,260.8m (+15.1% yoy), in line with expectations. Gross margin of mining entities expanded by 0.97ppt yoy to 54.5%, driven by cost savings and a spike in metal prices. Mine-produced copper/gold production volume rose 5.2%yoy/5.3% yoy to 262,649 tonnes/16,805kg, and management is confident of meeting the 10%/9% yoy production growth targets for 2024. There is limited impact from the production halt at the Kolwezi mine. Maintain BUY. Target price: HK$18.10.
- Damon Shen
- Greater China Research Team
- Jieqi Liu
- Jo Yee Ng
- Johnny Yum Chung Man
- Julia Pan Mengyao
- Kenny Yong Hui Lim
- Ming San Soong
- Shirley Wang Xueyi
- Stella Guo Yuting
- Ziv Ang Sze Champ
Greater China Daily: Wednesday, April 24, 2024
KEY HIGHLIGHTS Strategy China And Hong Kong Property A comparison between H-REITs and C-REITs. Results China Tourism Group Duty Free (601888 CH/BUY/Rmb71.72/Target: Rmb106.20) 1Q24: Core profit grew 0.2% yoy; inventories improving; expect further gross margin expansion. iFlytek (002230 CH/HOLD/Rmb41.97/Target: Rmb40.00) FY23 and 1Q24: Earnings missed; dividend of Rmb1.00 for every 10 shares. Jonjee Hi-Tech Industrial & Commercial (600872 CH/BUY/Rmb27.55/Target: Rmb36.10) 1Q24: Results abov...
600872 JONJEE HI-TECH INDUSTRIAL AND COMMERCIAL HOLDING CO. LTD. CLASS A
300124 SHENZHEN INOVANCE TECHNOLOGY CO. LTD CLASS A
601888 CHINA TOURISM GROUP DUTY FREE CORPORATION LIMITED CLASS A
2318 PING AN INSURANCE (GROUP) COMPANY OF CHINA LTD. CLASS H
2899 ZIJIN MINING GROUP CO. LTD. CLASS H
- Anas Fitri Bin Ahmad
- Arsit Pamaranont
- Benjaphol Suthwanish
- Ceilica Su Rui
- Damon Shen
- Heidi Mo Jinghui
- Jack Goh Tooan Orng
- Jieqi Liu
- Jo Yee Ng
- John Cheong Ming Chern
- Johnny Yum Chung Man
- Jonathan Koh
- Julia Pan Mengyao
- Kenny Yong Hui Lim
- Ming San Soong
- Posmarito Pakpahan
- Shirley Wang Xueyi
- Stella Guo Yuting
- Tanaporn Visaruthaphong
- Ziv Ang Sze Champ
Regional Morning Meeting Notes: Wednesday, April 24, 2024
GREATER CHINA Strategy China And Hong Kong Property A comparison between H-REITs and C-REITs. Results China Tourism Group Duty Free (601888 CH/BUY/Rmb71.72/Target: Rmb106.20) 1Q24: Core profit grew 0.2% yoy; inventories improving; expect further gross margin expansion. iFlytek (002230 CH/HOLD/Rmb41.97/Target: Rmb40.00) FY23 and 1Q24: Earnings missed; dividend of Rmb1.00 for every 10 shares. Jonjee Hi-Tech Industrial & C...
002230 IFLYTEK CO. LTD. CLASS A
600872 JONJEE HI-TECH INDUSTRIAL AND COMMERCIAL HOLDING CO. LTD. CLASS A
BBCA PT BANK CENTRAL ASIA TBK
NANO NANOCO GROUP
300124 SHENZHEN INOVANCE TECHNOLOGY CO. LTD CLASS A
601888 CHINA TOURISM GROUP DUTY FREE CORPORATION LIMITED CLASS A
2318 PING AN INSURANCE (GROUP) COMPANY OF CHINA LTD. CLASS H
2899 ZIJIN MINING GROUP CO. LTD. CLASS H
KREIT KEPPEL REIT
SCI SCI E&C
WHA TB WHA CORP PCL
SCGP SCG PACKAGING PCL
AZTECH AZTECH GLOBAL LTD
- Ceilica Su Rui
- Ziv Ang Sze Champ
Zijin Mining (2899 HK): 2023: In line; cost pressure to moderate in 20...
Zijin reported 2023 earnings of Rmb21,119.4m (+5.4% yoy), representing 96%/91 of consensus’/our earnings estimates, in line with expectations. Mining entities’ gross margin declined to 49.1% (-5.2ppt), and the increase in product ASP was offset by a steeper spike in mining costs. Management strives to maintain production costs at 2023’s level while the expected Fed rate cut in 2H24 continues to support metal prices. Maintain BUY. Target price: HK$18.10.
- Carol Dou Xiao Qin
- Ceilica Su Rui
- Greater China Research Team
- Jo Yee Ng
- Johnny Yum Chung Man
- Shirley Wang Xueyi
- Stella Guo Yuting
- Sunny Chen
- Ziv Ang Sze Champ
Greater China Daily: Tuesday, March 26, 2024
KEY HIGHLIGHTS Results ENN Energy Holdings (2688 HK/HOLD/HK$61.45/Target: HK$69.21) 2023: In line; challenging path ahead. Downgrade to HOLD. Jiumaojiu International Holdings (9922 HK/BUY/HK$5.60/Target: HK$8.20) 2023: Results in line; store opening and SSSG to decelerate in 2024. Q Technology Group (1478 HK/HOLD/ HK$3.03/Target: HK$3.30) 2023: Earnings miss due to non core items, but the worst is over. Sinopharm Group (1099 HK/BUY/HK$20.40/Target: HK$25.00) 2023: Results in line; expe...
- Carol Dou Xiao Qin
- Ceilica Su Rui
- Chong Lee Len
- Heidi Mo Jinghui
- Jo Yee Ng
- John Cheong Ming Chern
- Johnny Yum Chung Man
- Kampon Akaravarinchai
- Kong Ho Meng
- Paula Ruth
- Philip Wong
- Shirley Wang Xueyi
- Stella Guo Yuting
- Sunny Chen
- Ziv Ang Sze Champ
Regional Morning Notes - Tuesday, March 26, 2024
GREATER CHINA Results ENN Energy Holdings (2688 HK/HOLD/HK$61.45/Target: HK$69.21): 2023: In line; challenging path ahead. Downgrade to HOLD. Jiumaojiu International Holdings (9922 HK/BUY/HK$5.60/Target: HK$8.20): 2023: Results in line; store opening and SSSG to decelerate in 2024. Q Technology Group (1478 HK/HOLD/ HK$3.03/Target: HK$3.30): 2023: Earnings miss due to non core items, but the worst is over. Sinopharm Group (1099 HK/BUY/HK$20.40/Target: HK$25.00): 2023: Results in line; expecting s...
XGH ENN ENERGY HOLDINGS LIMITED
5218 SAPURA ENERGY BHD
X2S SINOPHARM GROUP CO. LTD. CLASS H
01478 Q TECHNOLOGY (GROUP) CO. LTD.
2899 ZIJIN MINING GROUP CO. LTD. CLASS H
PTI TELEKOMUNIKASI INDONESIA TBK PT (ADR)
SSG SHENG SIONG GROUP LTD
GMB GAS MALAYSIA BHD
MNHB MYNEWS HOLDINGS BHD
09922 JIUMAOJIU INTERNATIONAL HOLDINGS LTD.
- Ziv Ang Sze Champ
China Commodities: Gold - Sticky US inflation dents rate cut expectati...
COMEX gold price fell for a second consecutive week as sticky US inflation dented rate cut expectations. 2023 consumer demand for gold in Mainland China grew 15% yoy, driven by domestic consumers seeking a safe haven from economic anxiety and a weakening renminbi. Chinese gold ETFs’ AUM spiked to a record high of Rmb30b in Jan 24. Gold withdrawals from SGE hit a record high of 271 tonnes in Jan 24, given the industry’s bullish demand outlook. Maintain UNDERWEIGHT on commodities but we are sangui...
- Ziv Ang Sze Champ
China Commodities: Weekly: US 4Q23 GDP trounces expectations; weak cop...
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.
- Ziv Ang Sze Champ
China Commodities: Weekly: Mar 24 rate cut optimism fades.
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...
- Ziv Ang Sze Champ
China Commodities Weekly: US dollar tumbles on easing Fed rate hike fe...
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.
- Ziv Ang Sze Champ
China Commodities Weekly: Easing fears of further rate hikes supportin...
Gold and copper prices gained strength last week with the less hawkish signals from Fed officials and cooling US’ jobs data. Upside for gold prices could be very limited given the declining risk premium on the Israel-Hamas war and rising risk appetite, whereas demand prospects for copper are still clouded by China’s fragile recovery. Domestic construction activities are continuing to gain traction while the recovery in steel prices is driving a margin recovery for both steel mills and cement man...
- Ziv Ang Sze Champ
Zijin Mining (2899 HK): 3Q23: In line; mining entities’ margins narrow...
Zijin reported 9M23 earnings of Rmb16,164.9m (+45.2% yoy), representing 68% of our full-year estimates, in line with expectations. 3Q23 gross margin of mining entities dropped 2.21ppt qoq to 47.7%, largely dragged by the uptick in production costs. Unit cost of sales for mine-produced gold/copper was up 19.2%/15.9% yoy, boosted by the renminbi depreciation, a spike in energy prices, and lower grade ore mined. Maintain BUY. Target price: HK$15.00.
- Bella Lu Yifei
- Carol Dou Xiao Qin
- Greater China Research Team
- Jo Yee Ng
- Johnny Yum Chung Man
- Kate Luang
- Ken Lee
- Shirley Wang Xueyi
- Stella Guo Yuting
- Sunny Chen
- Terence Chiu
- Ziv Ang Sze Champ
Greater China Daily: Tuesday, October 31, 2023
KEY HIGHLIGHTS Strategy Small-Mid Cap Biweekly Pet food exports on track for recovery; beneficiary: Yantai China Pet Food. Results BYD Company (1211 HK/BUY/HK$246.20/Target: HK$630.00) 3Q23: Earnings up 82% yoy and 53% qoq, in line. Maintain BUY. Target price: HK$630.00. China Construction Bank (939 HK/BUY/HK$4.48/Target: HK$6.00) 3Q23: Results in line; earnings up 2.6% on lower credit costs. China Merchants Bank Co. (3968 HK/BUY/HK$30.30/Target: HK$45.00) 3Q23: Results miss; longer wait ne...
X2S SINOPHARM GROUP CO. LTD. CLASS H
002472 ZHEJIANG SHUANGHUAN DRIVELINE (A)
603288 FOSHAN HAITIAN FLAVOURING & FOOD CO. LTD. CLASS A
601689 NINGBO TUOPU GROUP CO. LTD. CLASS A
2899 ZIJIN MINING GROUP CO. LTD. CLASS H
M4B CHINA MERCHANTS BANK CO. LTD. CLASS H
1211 BYD COMPANY LIMITED CLASS H
§3§3 CHINA RESOURCES CEMENT
333 MIDEA GROUP
300760 SHENZHEN MINDRAY BIO-MEDICAL ELECTRONICS CO. LTD. CLASS A
002340 GEM CO LTD
06690 HAIER SMART HOME CO. LTD. CLASS H
- Ziv Ang Sze Champ
China Commodities Weekly: Safe-haven assets rally on flight-to-safety ...
The flight to safety and a dovish Fed have continued to weigh on treasury yields, which have declined from its 16-year high to 4.58%. The US’ Sep 23 CPI has stoked expectations of another rate hike in Dec 23. More Chinese steel mills are commencing plant maintenance amid deteriorating margins, which has weighed on iron ore demand prospect. Resumption of construction activities remains still slower than expected, with weekly rebar/cement consumption still down 18% and 36% yoy respectively.
- Ziv Ang Sze Champ
China Commodities Weekly: Israel-Hamas conflict boosts safe-haven appe...
The Israel-Hamas conflict has boosted the appeal of safe-haven assets. Gold has pared some losses in the past few weeks amid a hawkish Fed. US’ Aug 23 nonfarm payroll came in well above expectations at +336,000. However, the weaker-than-expected wage growth of 0.2% mom could be a signal of decelerating inflation. Steel inventory was +6.7% wow and ended its seven consecutive weeks of downtrend. Steel’s apparent consumption and cement shipment was -15.2%/-8.6% wow during Golden Week holidays.
- Ziv Ang Sze Champ
China Commodities Weekly: Gold extended its losing streak from 25 sep ...
A hawkish Fed, which led to rising treasury yields and a strengthening US dollar, continued to weigh on gold prices, which have been on a losing streak since 25 Sep 23. LME copper saw the widest contango since 1994 with cash-to-three-month discount reaching US$70/mt, partly dragged by concerns on near-term demand. Steel mills saw a steep margin deterioration amid weakening product spot prices and raw material price upticks, which should help moderate production activities.
- Ziv Ang Sze Champ
China Commodities Weekly: Hawkish Fed and gloomy China recovery outloo...
The Fed maintained interest rates last week but guided for one more rate hike by end- 23. The Fed’s hawkish guidance and China’s gloomy recovery outlook have weighed on the demand outlook of base metals. Steel mills’ margin erosion and the upcoming steel production curbs are expected to drag on iron ore consumption. The rebound in cement prices continues to be supported by demand recovery. Guangdong is seeing an intensifying price war given the influx of products from Guangxi.
- Ziv Ang Sze Champ
China Commodities Weekly: Better-than-expected economic figures raise ...
China’s and the US’ Aug 23 economic figures came in above expectations, raising hopes of a soft landing and boosting the demand outlook for base metals. Iron ore prices rallied 8.5% wow given steel mills’ robust production activities and fresh stimulus announced, which further compressed steel mills’ profitability. Cement prices’ six-month downtrend reversed last week with average prices up 0.5% wow. Shipment has continued to pick up but the resumption of production contributed to inventory buil...
- Ziv Ang Sze Champ
China Commodities Weekly: Signs of economic stabilisation from improvi...
Metal prices have been boosted by China’s Aug 23 CPI figures which have returned to positive territory, paring some of the losses last week given the strength of the US dollar. Iron ore prices corrected last week as Chinese authorities stepped up intervention and warned futures brokers not to hype up iron ore prices. Steel production activities expand further as steel mills anticipate consumption to pick up further. Cement shipments continue to recover as weather conditions improve, but rising c...
- Ziv Ang Sze Champ
China Commodities Weekly: Hopeful on demand recovery as we enter the p...
China’s disappointing 2Q23 GDP growth has hampered the demand outlook for base metals. 1H23 property sales fell 5.3% yoy and new home prices reversed down in Jun 23, with no signs of property market stabilisation yet. Steel production output continued hovering at high levels as 64.07% of steel mills are currently profit-making. The unregulated production is expected to accelerate inventory build-up. Cement prices are bottoming out as inventory level is falling and production output has moderated...
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