China’s PV and passenger EV sales grew 25/63% mom in March, in line. Still, April sales are set to decline, with recent COVID-19 containment measures disrupting the automobile supply chain more severely than expected. CPCA estimates that these measures will cause a 20% loss in auto production volume. This week, four OEMs − NIO, Aion, WEY and BMW − raised product prices in response to cost hikes. Maintain OVERWEIGHT. Top picks: BYD, CATL and Ganfeng.
All main indexes advanced last week as BGTR30 (717.68) increased the most by 2.3%. 12 out of 29 names in our watchlist finished on the positive side as First Investment Bank (FIB, BGN 2.85) led by 26.1% gain, followed by Agria Group Holding (AGH, BGN 24.6, +23.6%) and Central Cooperative Bank (CCB, BGN 1.39, +23.0%). Top losers within our universe were Alcomet (ALCM, BGN 7.00, -5.4%), CEZ Distribution (CEZD, BGN 288, -5.3%) and Gradus (GR6, BGN 1.31, -5.1%). The weekly turnover was slightly lowe...
Tencent reported weak 4Q21 results. Revenue grew by 7.9% yoy to Rmb144.2b, broadly in line with consensus estimates. Gross margin declined by 4ppt yoy during 4Q21 to 40.1% mainly due to continued investment in key strategic areas, in line with consensus expectation. Non-GAAP operating margin contracted by 5.5ppt yoy to 23%. Non-GAAP net margin declined 7.6ppt yoy to 17.3%, in line with street estimate. Maintain BUY with a lower target price of HK$502.00.
After many false starts, the 5G spectrum auction in South Africa has finally started this week. The first stage (reserved for the four smallest players) completed on Tuesday (at low prices, as it was structured to) and we are waiting for the results of the main auction which started yesterday. This auction has been long awaited by the South African telcos and is key given i) telcos have been spectrum constrained for many years, and ii) data volume growth has structurally accelerated post pandemi...
Drug innovators see the update of NRDL offering tremendous market expansion opportunities for their listed innovative products. They will soon establish their sales networks and become key players in the pharmaceutical market in China. Innovative product launches and robust earnings growth will continue to be the key catalysts for the sector in the medium to long term. The recent sell-down offers buying opportunities. Maintain MARKET WEIGHT.
We publish the sixth section on memory, foundry/logic, and semicap. Cloud spending and 5G will continue to drive demand for logic and memory in 2022. In semicap, the outlook for next year looks solid and secure, with growth potentially limited by supply constraints but beyond next year the cyclical set-up is risky with limited upside. We remain high conviction buyers of TSMC and Intel in this environment, and remain on the sidelines for ASML and AMAT.
We publish today the third section on automotive. Production was hampered by semiconductor supply challenges which will persist into 2022 but show gradual improvement from today’s levels. Auto semis recorded record revenues, as EV & ADAS momentum continued and OEMs prioritized production of premium vehicles with increased semi content. We remain bullish on the auto semi sector as production will rebound strongly next year, inventories will be replenished across the value chain, and EV/ADAS momen...
MTN and IHS Holding have announced an agreement where IHS will acquire 5,709 sites from MTN South Africa at an implied multiple of 8.9x EBITDA. We see the transaction as moderately supportive for shareholders in both entities. For IHS, we estimate the transaction is ~4% EPS accretive and sees increased diversification away from Nigeria.
M6 - BUY | EUR22 VS. EUR21.5 (+22%) Further acceleration beyond 2019 levels As usual, the group’s results come out stronger than expected Acceleration in adv. recovery adds up to production turnaround Reassuring outlook for Q4 drives our TP slightly up
Our Tech Bible is a must-read for any tech investor. It wraps up all what the >120 companies we track have reported and said and provides an update on our key perspectives and convictions, in light of what we learnt. We publish today the second section on automotive. Units recovered close to 2019 levels, but production declined throughout the quarter, impacted by production constraints, which will only abate in 4Q21, or 2022. Auto semis recorded record revenues, with all companies claiming long...
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....
D’Ieteren investors got a double treat this month, with the long-awaited investment in TVH parts (€ 1.2bn) and, more importantly, a change in shareholdership at Belron, valuing the company at a whopping EV of € 21bn, far above our estimate of € 12.0bn. After diving deeper into the TVH stake, we conclude that the group is a good fit for DIE’s portfolio with plenty of value remaining to be unlocked. Although the transaction multiple for Belron (36x FY20 EV/REBIT) looks excessive, we believe the ne...
Today we update our Dynamic Top Picks List : • We ADD: Fugro and Materialise • We REMOVE: VGP • We KEEP: AB Inbev, Aegon, Ageas, Ahold Delhaize, D’Ieteren, Elia, Intertrust Group, Melexis, Telenet, UCB, Agfa, Care Property Invest, Intervest Offices & Warehouses, Inventiva, Ontex, and Sipef Since inception our DTPL is up 13.9% which represents an outperformance of 2.4% compared to the BEL20 and an underperformance of 4.9% and 1.5% compared to the AEX and SX5E respectively. Over the previous peri...
Pelham Smithers presents his strategy for Q3 2021 and the changes to PSA's stock Focus List Table of Contents Overview 3 Background 4 Valuations & Value 5 The Case for “Muddle Through” 6 Consumer Spending 7 The Labour Market 7 The Currency and the Carry Trade 8 The BoJ and Policy 9 Japan’s Stuttering Economy 10 Stock Performance and Earnings Expectations 12 Catalysts: Digital Transformation, Semiconductors, Price Hikes ...
Avantium: Secures € 1.78m additional EU grants CFE: Baptization of Spartacus supports Abu Qir margins D'Ieteren: 45% adj. PBT growth expected in 2021 Fagron: Second partial sale of AlyChlo stake Mithra: US Estelle market exclusivity and published study
Rising interest rates are becoming a hot topic, triggered by a significant uptick in US 10-year treasury yields through February and March. In this note we revisit this topic from several angles. We dig into the empirical side of what we can reasonably expect from the market as a whole when interest rates start to rise. Secondly we review our coverage, putting forward a number of impacted sectors and stocks.
PV sales resumed positive yoy growth in 18-24 Jan 21 on a low base. GWM and Sinotruk posted upbeat 2020 earnings growth. Weichai proposed an A-share issuance to fund its fast-growing businesses. However, auto stocks dropped 7.6% this week along with a market correction, which we see as good entry points for some stocks. Maintain MARKET WEIGHT. Upgrade Geely and BAIC to BUY. Top picks: BYD, CATL and Geely.
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.