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,...
Posts
Daiwa lifts Hengan Int'l (01044) to HK$92.8 Daiwa Research lifted its target price for Hengan International Group (01044) to HK$92.8 from HK$87.4, and maintained its "buy" rating. The research house expects Hengan's tissue paper revenue to continue to recover in 2018, supported by likely price hikes and a newly incentivised sales force following implementation of the Amoeba sales system. Given its status as the country's largest tissue paper manufacturer, Daiwa thinks Hengan will be the main beneficiary of the industry-wide ASP hikes that it expects this year.
HSI big breakout says 38,600 & 46,400 - BofAML BofA Merrill Lynch reiterated its view that Hang Seng Index (HSI) as one of the bullish global equity market ideas for 2018. The index closed above its 2007 peak of 31,958.41 last week. From technical perspective, the research house said the breakout from a decade-long big base on the move above the late-2007 downtrend line and the 2015 high is a secular bull market signal that favors upside to 38,600 and toward 46,400 longer-term. Holding above support at 30,200-28,135 keeps the bulls in firm control. The rising...
Daiwa lifts H&H Int'l (01112) to HK$61 Daiwa Research lifted its target price for Health and Happiness H&H International (01112) to HK$61 from HK$54.6, and maintained its "buy" rating. Having seen more advertising and marketing activity for H&H's Biostime infant formula products and Swisse health supplement products in overseas markets (Hong Kong, France) since 4Q 2017, the research house remains confident of H&H's prospects of maintaining its revenue momentum and market share (6% in 2017 for infant formula). Coupled with a stronger balance sheet as cash flow continues to...
Greentech Intl (0195) sees significant drop in annual profit Greentech Technology International (00195) said it expects to record a significant drop in net profit for the year ended 31 December 2017 as compared with that in 2016. The said decrease is due to the fact that in 2016, the Group booked a significant reversal of impairment loss on the property, plant and equipment and exploration and evaluation assets of the Renison underground mine in the sum of HK$170 million (the Group held 50% of interest in such mine) based on the then estimated recoverable amount of...
HSI Closes Up 537 pts with Nearly $200B Turnover The U.S Senate approved the temporary funding to end the shutdown of the Federal Government. Hang Seng Index rose for sixth consecutive trading day. The benchmark index opened higher 212 pts this morning and ended the day higher 537 pts or 1.7% to 32,930 pts, hitting historical high again. Hang Seng China Enterprises Index escalated 285 pts or 2.2% to conclude at 13,490. Market turnover rose to $197.979 billion, registering the highest amount over the previous 2.5 years. Chinese banks led the market gains. CCB (00939.HK) +0.370 (+4.405%) Short selling $1.02B; Ratio 14.751% and ICBC (01398.HK) +0.240 (+3.385%) Short selling $674.87M; Ratio 12.833% hit the record highs and surged 4.4% and 3.4%. BANK OF CHINA (03988.HK) +0.160 (+3.636%) Short se...
HK Last Dec CPI Growth Widens to 1.7% YoY; Full-year Underlying Inflation Eases to 1.7% The Census and Statistics Department (C&SD) released today (January 23) the Consumer Price Index (CPI) figures for December 2017. According to the Composite CPI, overall consumer prices rose by 1.7% in December 2017 over the same month a year earlier, slightly larger than the corresponding increase (1.6%) in November 2017. Netting out the effects of all Government's one-off relief measures, the year-on-year rate of increase in the Composite CPI (i.e. the underlying inflation rate) in December 2017 was also 1.7%, slightly larger than that in November 2017 (1.6%), mainly due to the smaller decreases in the prices of fresh vegetables. Also relevant was the enlarged increases in the costs for meals bought away from home. Analysed by sub-index, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 1.7%, 1.6% and 1.9% respectively in December 2017, as compared to ...
UBS lifts Tsingtao Brewery (00168) to HK$55.09 UBS Global Research lifted its target price for Tsingtao Brewery (00168) to HK$55.09 from HK$45.37, and maintained its "buy" rating. The research house raised its 2018/19 earnings estimates by 1%/7%, driven by higher ASP assumptions. It believes price hikes since last December were not cost-driven and reflect a structural change in the supply/demand balance. Trading at 8.4x 2019 EV/EBITDA, versus global peers' 16x, the stock still appears undervalued, given a 2017-20 EBITDA CAGR of 23%. UBS said the recently announced collaboration betwe...
UBS lifts CR Beer (00291) to HK$36.43 UBS Global Research lifted its target price for China Resources Beer (CRB)(00291) to HK$36.43 from HK$28.47, and maintained its "buy" rating. The research house said the beer price hikes since last December demonstrated Chinese breweries' pursuit of profitability improvement, given disciplined supply and premiumisation in Chinese beer consumption. The three national Chinese breweries' ASPs during 2007-17 undergrew the industry average retail selling price (RSP) by 75% and China's food CPI by 29%, suggesting the price hikes may not be a one-time event, ...
UBS lifts Mengniu Dairy (02319) to HK$30.5 UBS Global Research lifted its target price for China Mengniu Dairy (02319) to HK$30.50 from HK$24.04 due to higher revenue growth assumptions, and maintained its "buy" rating. The research house said both Mengniu and Yili's top-line growth accelerated in 2H 2017 HoH, outpacing HSD (high-single-digit) industry growth. Regional companies' aggressive scale-back in promotions since 2Q 2017, due to cost pressure and their already depressed profitability, underpinned the accelerating industry consolidation. Mengniu's share price has underperformed Yili's...
HSBC lifts Sands China (01928) to HK$54 HSBC Global Research lifted its target price for Sands China (01928) to HK$54 from HK$44, and maintained its "buy" rating. The research house said Sands' 4Q 2017 Mass q-o-q growth outpaced VIP for the first time in three quarters, recording 9% q-o-q and 16% y-o-y. Premium and grind mass collectively drove the recovery. It added that the accelerating VIP growth in the past few quarters seemed to have finally begun to spill over into premium mass. This is reflected in stronger volume and spend, and could have been tri...
UBS lowers SHK Properties (00016) to HK$154.05 UBS Global Research lowered its target price for Sun Hung Kai Properties (SHKP)(00016) by 6.3% to HK$154.05, and maintained its "buy" rating. The research house thinks any tightening of rules on mortgage lending by non-banks would affect transaction volumes of leading developers such as SHKP. UBS estimated 9% of SHKP's primary sales are financed by its own lending. Its percentage of lending to sales is in the top three among its peers. UBS has recently surveyed 278 people who had bought properties in Hong Kong in the...
Moody's assigns first-time "B2" rating to Landsea Properties Moody's Investors Service has assigned a first-time B2 corporate family rating to Landsea Green Properties Co., Ltd. (00106). The rating outlook is positive. "Landsea's B2 rating reflects its asset-light business model, allowing it to earn service income while requiring limited invested capital and borrowed funds per development project when compared to fully-owned projects," said Cedric Lai, a Moody's Assistant Vice President and Analyst . As of 30 June 2017, the company had 15 wholly owned projects, 33 partially owned projects unde...
HSBC ups Galaxy Entertainment (00027) to HK$83 HSBC Global Research lifted its target price for Galaxy Entertainment (00027) to HK$83 from HK$70.5, and maintained its "buy" rating. The research house estimated 4Q 2017 mass exceeded its expectations and rebounded by 9% q-o-q outpacing VIP for the first time in three quarters. Premium and grind mass drove the recovery collectively. HSBC believes the accelerating VIP growth has finally begun to spill over into premium mass, translating into stronger volume and spent. Grind mass saw a strong uptick, too, driven in part by ...
]UOBKH lifts Cathay Pacific (00293) to HK$12.4 UOB Kay Hian lifted its target price for Cathay Pacific Airways (CX)(00293) to HK$12.4 from HK$11.2, and maintained its "hold" rating. The research house said CX underperformed the market in 2017. For 2018, it believes there is a possibility that CX could at best market perform if yields rise under the following conditions: (a) improving business traffic, (b) weak US dollar which leads to higher inbound yields; and (c) strong volume and yields to North Asia. UOBKH has taken these factors into account and raised i...
Sany Int'l (00631) to pay special dividend of HK$0.18/share Sany Heavy Equipment International (00631) said the board has resolved the declaration and payment of a special dividend of HK$0.18 per ordinary share, amounting to about HK$547 million in total. It is expected that the special dividend will be distributed on or around 6 March.
HSI Continues Higher 138 pts to New High; Led by TENCENT, CN Developers Hang Seng Index rose for five consecutive trading days. Hang Seng Index started higher 22 pts this morning but once faded up to 208 pts. The benchmark index escalated up to 162 pts after midday, peaking at 32,417, hitting a historical high again. It ended higher 138 pts or 0.4% to 32,393. Hang Seng China Enterprises Index closed up 25 pts or 0.2% to 13,204. Market turnover reached $168.934 billion. TENCENT (00700.HK) +7.600 (+1.680%) Short selling $1.21B; Ratio 13.638% continued higher 1.7% to breach peak and ended higher at $460. SUNNY OPT-100 (02382.HK) +1.800 (+1.610%) Short selling $109.96M; Ratio 12.392% and AAC TECH (02018.HK) +1.300 (+0.957%) Short selling $30.67M; Ratio 2.281% so...