reports
- Ceilica Su Rui
- Ziv Ang Sze Champ
Baoshan Iron & Steel (600019 CH): 2023/1Q24: Above expectations; diffe...
Baosteel reported 2023 earnings of Rmb11,944.1m (-2.0% yoy), above our expectations. 4Q23 earnings of Rmb3,593.6m (+32% yoy) was boosted by the settlement of one-off tax incentives. 2023 operating profit was flattish at +0.3% yoy. The slump in ASP was offset by lower production cost, which led to flattish gross margin of 6.3%. Sales of differentiated products continued to break new highs and supported their outperformance against peers. Maintain BUY. Target price: Rmb7.90.
- 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
- 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.
- MarketLine Department
Trubnaya Metallurgicheskaya Kompaniya - Company Profile and SWOT Analy...
Summary Trubnaya Metallurgicheskaya Kompaniya - Company Profile and SWOT Analysis, 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 Trubnaya Metallurgicheskaya Kompaniya (TMK) is a manufacturer and distributor of seamless and welded tubes and pipe products. The company's portfolio of products includes oil count...
- 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
Baoshan Iron & Steel (600019 CH): 3Q23: In line; gross margin jumps 3....
Baosteel reported 9M23 earnings of Rmb8,350.4m (-11.8% yoy), representing 81% of our 2023 forecast, in line with expectations. 3Q23 gross margins expanded sequentially to 8.3% (+3.3% qoq), thanks to lower coal prices and cost-cutting initiatives. 9M23 cost reduction reached Rmb4.89b, exceeding the annual target. The growing differentiated products’ sales and export orders have offset the impacts of lacklustre domestic demand. Maintain BUY. Target price: Rmb7.10.
- Bella Lu Yifei
- Carol Dou Xiao Qin
- Damon Shen
- Greater China Research Team
- Jieqi Liu
- Jo Yee Ng
- Ken Lee
- Shirley Wang Xueyi
- Stella Guo Yuting
- Sunny Chen
- Terence Chiu
- Ziv Ang Sze Champ
Greater China Daily: Thursday, October 26, 2023
KEY HIGHLIGHTS Strategy Hong Kong Exchange and Hong Kong Property Sector neutral view on the policies related to the stock market. overall impact on the property industry is natural to negative. Results Aier Eye Hospital Group (300015 CH/BUY/Rmb16.61/Target: Rmb21.00) 9M23: Satisfactory results; weak economic conditions may slow revenue growth. Baoshan Iron & Steel (600019 CH/BUY/Rmb6.33/Target: Rmb7.10) 3Q23: In line; gross margin jumps 3.3 ppt qoq to 8.3%. China Overseas Land & Investment ...
- Bella Lu Yifei
- Carol Dou Xiao Qin
- Damon Shen
- Greater China Research Team
- Jieqi Liu
- Jo Yee Ng
- Jonathan Koh
- Ken Lee
- Kong Ho Meng
- Kwanchai Atiphophai
- Nurul Nazira Binti Abdullah
- Shirley Wang Xueyi
- Stella Guo Yuting
- Stevanus Juanda
- Sunny Chen
- Ziv Ang Sze Champ
Regional Morning Notes - Thursday, October 26, 2023
GREATER CHINA Strategy Hong Kong Exchange and Hong Kong Property Sector: Takeaways from 2023 Hong Kong Policy Address: Policies largely in line; Maintain MARKET WEIGHT. Results Aier Eye Hospital Group (300015 CH/BUY/Rmb16.61/Target: Rmb21.00): 9M23: Satisfactory results; weak economic conditions may slow revenue growth. Baoshan Iron & Steel (600019 CH/BUY/Rmb6.33/Target: Rmb7.10): 3Q23: In line; gross margin jumps 3.3 ppt qoq to 8.3%. China Overseas Land & Investment (688 HK/BUY/HK$14.90/Target:...
00688 CHINA OVERSEAS LAND & INVESTMENT LIMITED
300015 AIER EYE HOSPITAL GROUP CO. LTD. CLASS A
UNVR PT UNILEVER INDONESIA TBK
5243 VELESTO ENERGY
600019 BAOSHAN IRON & STEEL CO. LTD. CLASS A
FEHT FAR EAST HOSPITALITY TRUST
2331 LI NING CO LTD
CMMT CAPITALAND MALAYSIA TRUST
- 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...
- Ziv Ang Sze Champ
Baoshan Iron & Steel (600019 CH): 1H23: Below expectations; gearing up...
Baosteel reported 1H23 earnings of Rmb4,552.4m (-41.6% yoy), below expectations at 35% of our earnings forecast. The company still outperformed its peers’ average earnings growth of -97.6% yoy. Cost savings in 1H23 were insufficient to offset the slump in steel prices. Gross margin was down 2.5ppt to 5.3%, largely supported by differentiated products. The company is gearing up to capture the growing demand of green steel. Maintain BUY. Target price: Rmb7.10.
- Ariel Poh Yun Li
- Bella Lu Yifei
- Carol Dou Xiao Qin
- 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
- Sunny Chen
- Terence Chiu
- Tham Mun Hon
- Ziv Ang Sze Champ
Greater China Daily: Monday, September 4, 2023
KEY HIGHLIGHTS Economics PMI Further moderation in manufacturing contraction; policy support necessary Sector Aviation Airlines still loss-making but improving; expecting a turnaround in 2H23. Maintain UNDERWEIGHT. Internet China e-commerce seeking growth through international market expansion. Property Demand-side policy easing more strongly than expected; top pick: COLI. Results Baoshan Iron & Steel (600019 CH/BUY/Rmb6.11/Target: Rmb7.10) 1H23: Below expectations; gearing up for the grow...
600872 JONJEE HI-TECH INDUSTRIAL AND COMMERCIAL HOLDING CO. LTD. CLASS A
603288 FOSHAN HAITIAN FLAVOURING & FOOD CO. LTD. CLASS A
2333 GREAT WALL MOTOR CO. LTD. CLASS H
600019 BAOSHAN IRON & STEEL CO. LTD. CLASS A
2338 WEICHAI POWER CO. LTD. CLASS H
853 MICROPORT SCIENTIFIC CORP
2747 ESTUN AUTOMATION
BEKE KE HOLDINGS INC
3692 HANSOH PHARMACEUTICAL GROUP
06690 HAIER SMART HOME CO. LTD. CLASS H
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