-
BofAML lifts Mengniu Dairy (02319) to HK$29.2
BofA Merrill Lynch lifted its target price for
China Mengniu Dairy (02319) to HK$29.2 from HK$26.2, and maintained its "buy" rating.
  The research house remains positive on the China dairy industry. It sees accelerating
demand driven by: (1) volume growth from deeper penetration into lower-tier cities, which
benefit from both a cyclical upturn and structural upside on per-capita consumption, and 
(2) a product mix upgrade from consumers trading up.
  BofAML expects multi-year growthfor Mengniu, driven by self-help (such as supply-chain 
reform, product premiumization, brand building and channel enhancement). However,
it only foresees modest margin expansion at the core level in 2018, due to channel 
investment and marketing spend (such as World Cup sponsorship). It thinks a potential
turnaround of China Modern Dairy (01117) and Yashili (01230) and less non-operating costs
(such as FX loss) could serve as key margin drivers at the reported level in 2018.

Comments

Post a Comment

Popular posts from this blog

-
Image
CITIC Annual Net Profit Up 1.8% to $43.902B; Final Div $0.25 CITIC (00267.HK)    -0.160 (-1.447%)    Short selling $8.89M; Ratio 25.055%   announced that for the year ended December 2017, net profit rose 1.8% yearly to $43.902 billion, with an EPS of $1.51. A final dividend of $0.25 was declared. Profit contribution from financial sector of the company amounted to $39.5 billion, up 3% yearly. CITIC Construction continued to make inroads securing projects, both domestically and internationally, particularly along the Belt and Road corridor.
Read more
-
CLSA lowers Beijing Ent Water (00371) to HK$6   CLSA cut its target price for Beijing Enterprises Water (BEW)(00371) by 8% to HK$6, and reiterated its "buy" rating.   The research house said BEW's share price has dropped 14% in the last two trading days. First, the 2017 earnings results are below expectations. Second, management is guiding for 20-25% net profit growth for 2018, versus 30% in the past few years. Management now has a cautious approach to water PPP (public-private partnership) projects, which is not  necessarily bad.   CLSA cut its 2018-19 earnings forecasts by...
Read more
-
Image
HAECO (00044.HK) 2017 Loss $540M, 2nd Interim Div. $0.5   AECO (00044.HK)    -0.250 (-0.530%)      Short selling $18.92K; Ratio 2.633%     announced annual results for the period ended 31 December 2017. The loss amounted to $541 million, against the profit of $975 million in the year-ago period. Loss per share equaled $3.25. A second interim dividend of $0.5 was declared.
Read more