GREATER CHINA Sector Automobile Weekly: PV sales rebound by 14.7% yoy, beating estimates. Maintain MARKET WEIGHT. Top BUYs: CATL, Desay SV, and Geely. Top SELL: GAC. Consumer 2Q24/1H24 results wrap-up: Lowered expectations; disciplined operations matter. INDONESIA Update Sido Muncul (SIDO IJ/BUY/Rp680/Target: Rp900) ...
GREATER CHINA Strategy Alpha Picks: August Conviction Calls We expect stimulus to be announced in August and add COSCO Shipping Ports, Haier Smart Home, and KE Holdings to our BUY list and add SELL call on WuXi Bio, and XPeng. Small-Mid Cap Monthly Reiterate BUY on Crystal amid share price pullback; eyes on interim dividend surprise. Sector Automobile ...
GREATER CHINA Results China Merchants Bank (3968 HK/BUY/HK$34.95/Target: HK$44.00) 1Q24: Earnings miss on muted fee income and higher cost-to-income ratio. China Resources Building Materials Tech (1313 HK/BUY/HK$1.34/Target: HK$1.83) 1Q24: Mixed bag of results; regaining cement market share. Foxconn Industrial Internet (601138 CH/BUY/Rmb24.52/Target: Rmb29.10) 1Q24: Margins miss likely due to product mix, AI business remains robust. Haier Smart Home (6690 HK/BUY/HK$27.10/Target: ...
Haier’s 2023 results were in line with market consensus but 1% slightly below our estimate. We expect Haier to continue to consolidate its market leading position in China, and its overseas operation to improve in terms of profitability, mainly driven by the turnaround of the Europe market. Management aims to raise the dividend payout steadily during 2024-26, and targets dividend payout ratio to be not lower than 50% in 2026. We maintain BUY and raise target price by 9% HK$31.00.
GREATER CHINA Sector Aviation: Airlines still loss-making but improving; expecting a turnaround in 2H23. Maintain UNDERWEIGHT. Results China Mengniu Dairy (2319 HK/BUY/HK$26.40/Target: HK$39.30): 1H23: In line; expecting a smooth price hike. Estun Automation (002747 CH/BUY/Rmb23.23/Target: Rmb31.50): 2Q23: Earnings impacted by forex loss, but robot business remains solid. Great Wall Motor (2333 HK/SELL/HK$9.30/Target: HK$5.20): 2Q23: Results rebound qoq, but 1H23 earnings still fall short of tar...
We expect to see periodical opportunities in the following months due to the slow pace of consumption recovery and lack of incremental funds. We suggest paying more attention when the share prices dip to a low level that is close to the bottoms in Apr/Oct-Nov 22. We are confident on domestic sportswear leaders’ future growth from the increasing demand for professional sports products against the partially recovered purchasing power. Maintain OVERWEIGHT on the consumer sector.
In spite of the limited funds in the market, we believe that consumer names’ investment opportunities still exist after share prices factored in rational expectations. We expect players with high earnings visibility and/or faster-than-expected growth pace (ie Moutai, Anta and CR Beer) to remain attractive for investment against a relatively weak consumption recovery background. Maintain OVERWEIGHT on the consumer sector.
Haier’s revenue grew 7.2% in 2022, while attributable net profit grew 12.5%. The weak sales (+2.2% yoy) and net profit (-2.7% yoy) growth in 4Q22 dragged its full-year performance. It guided a mid-to-high single digit sales growth and a double-digit earnings growth (ideally at 15%) for 2023. It also aims to achieve a 7% operating margin for its overseas business in 2023. We expect earnings growth to be higher than sales growth in the next few years. Maintain BUY and trim target price to HK$29.80...
KEY HIGHLIGHTS Economics PMI Points to further recovery, but employment still soft. Results China Longyuan Power (916 HK/BUY/HK$8.97/Target: HK$11.50) 2022: Below expectations; recognition of RMB2,045m in impairment provision. China Merchants Port (144 HK/BUY/HK$12.04/Target: HK$13.48) 2022: Core earnings a slight beat; expecting earnings decline in 2023. Maintain BUY. China Overseas Land & Investment (688 HK/BUY/HK$18.96/Target: HK$27.14) 2022: Results below expectations; targeting 20% sale...
While we think the road ahead to an overall consumption recovery is still bumpy despite the RSV pickup in 2M23, we are upbeat on the wealthy group’s sustainable consumption ability and the future growth of China’s luxury and duty-free markets. We believe the duty-free market will grow at a faster pace than the overall luxury market in China. CTGDF will be the largest beneficiary of the government’s intention to nurture it into a super strong duty-free leader globally. Maintain OVERWEIGHT on the ...
Haier is set to see improving sales growth following China’s reopening and supportive policies for real estate and home appliance consumption in 2023. The Three-Winged Bird brand will further facilitate Haier’s premiumisation with the brand’s capabilities in one-stop solutions and resource integration. Haier's global operational ability will continue to drive its overseas expansion. We expect Haier to see a margin recovery in 2023. Initiate coverage with BUY. Target price: HK$31.20.
KEY HIGHLIGHTS Economics Economic Activity Further policy support is needed to entrench the recovery. Initiate Coverage Haier Smart Home (6690 HK/BUY/HK$25.80/Target: HK$31.20) Leading household appliance player among one-stop solution providers. Results Nexteer (1316 HK/BUY/HK$4.61/Target: HK$7.50) 2H22: Results meet our estimates but miss consensus’. Maintain BUY. Target price: HK$7.50. Prudential (2378 HK/BUY/HK$108.80/Target: HK$141.90) 2022: Results below expectations, better recovery a...
GREATER CHINA Economics Economic Activity: Further policy support is needed to entrench the recovery. Initiate Coverage Haier Smart Home (6690 HK/BUY/HK$25.80/Target: Rmb31.20): Leading household appliance player among one-stop solution providers. Results Nexteer (1316 HK/BUY/HK$4.61/Target: HK$7.50): 2H22: Results met our estimates but missed consensus’. Maintain BUY. Target price: HK$7.50. Prudential (2378 HK/BUY/HK$108.80/Target: HK$141.90): 2022: Results below expectations, better recovery a...
The general evaluation of HAIER SMART HOME (CN), a company active in the Durable Household Products 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 November 12, 2021, the clo...
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....
The ING Benelux equity research team has performed a Covid-19 scenario analysis in order to provide a reference point for investors and to test if stocks: (a) have been relatively oversold in comparison to their earnings risk; (b) still provide downside risk; and/or have balance issues in a Covid-19 scenario; and (c) could bounce sharply if a vaccine is found; or (d) benefit relatively from the crisis. Our analysis results in lists of stocks that we consider: (1) low earnings risk, with attracti...
Appliance demand could rise on faster residential property completions in 4Q19 and 2020. Valuations (0-2SD above mean) and share prices (+9-21%) have shot up since late-November. We advise against chasing the rally as property volumes may not fully translate into appliance fundamentals. We are concerned about the longer-term outlook – new-home sales growth was weak in 2019 and is poised to become weaker in 2020. Maintain MARKET WEIGHT on the sector.
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