Nomad Investors

HSI Closes Up 301 pts ; CN Developers, Cement Stocks Rally US stocks diverged last night (22 February). Hang Seng Index opened up 323 pts this morning and then rallied up to 420 pts to peak at 31,386. The benchmark index ended at 31,267 pts, up 301 pts or 1%. Hang Seng China Enterprises Index gained 206 pts or 1.6% to 12,735. Market turnover receded to $103.332 billion. Blue chips broadly fared well. HSBC HOLDINGS (00005.HK)    +0.100 (+0.126%)       Short selling $798.05M; Ratio 43.123%      lifted 0.1%. HANG SENG BANK (00011.HK)    +1.400 (+0.718%)       Short selling $33.27M; Ratio 14.112%      rose 0.7% to $196.3. BANK OF E ASIA (00023) continued higher 2.1% on report that its profit surged 1.5 times last year.  Chinese property developers escalated. COUNTRY GARDEN (02007.HK)    +0.880 (+6.215%)       Short selling $1...

HSBC lifts Dynagreen Env (01330) to HK$5.4 HSBC Global  Research lifted its target price for Dynagreen Environmental (01330) to HK$5.4 from HK$5.3, and reiterated its "buy" rating.   The research house continues to like Dynagreen for its strong growth of cash-based  project operation income as a result of the continuous commencement of new projects.  Despite construction revenue showing a lower growth rate in 1H 2017, there is still good  visibility on the company's project pipeline, given only 38% of its contracted capacity is in operation.   HSBC said Dynagreen is currently tra...

Nomura lifts China Vanke (02202) to HK$44.7  Nomura lifted its target price for China Vanke  (02202) to HK$44.7 from HK$32.5, and reiterated its "buy" rating.   The research house expects close to 40% core earnings growth for Vanke's FY2017 results, driven by 20% revenue growth and 3pp gross margin improvement. For 2018 sales, Nomura expects at least 20% growth to CNY635bn, supported by abundant saleable resources of 60mn sqm at an ASP of CNY15k/sqm, implying 70% sell-through rate.   In January, Vanke achieved CNY68bn sales, a historical high. Cash collection ratio was  very...

CLP (00002) 2017 net seen up 4% to HK$13.3bn CLP Holdings (00002) will report its 2017 results on 26 February. CLSA expects its full-year net profit of HK$13.3bn, YoY growth of 4%.   The research house also forecast Hong Kong (accounting for around two-thirds of total profit) earnings growth of 3% driven by increase in net fixed assets. Australia earnings  should recover strongly as a result of high and stable wholesale market prices, but this  is already in consensus expectations. CLSA forecast 13% full-year earnings growth in  Australia.   After an 8% share-price correction fro...

BofAML lifts Bank of East Asia to HK$23.8 BofA Merrill Lynch lifted its target price for  Bank of East Asia (BEA)(00023) to HK$23.8 from HK$22.75, and reiterated its "underperform" rating as it struggled to justify BEA's 1x P/B or 18x P/E multiples.   The research house said BEA's FY2017 net profits more than doubled YoY to HK$8.7bn, beating by 8%, boosted mainly by the one-off gain from the Tricor disposal (HK$3bn).  Underlying profit from continuing operations rose 89% YoY, while pre-provision profit rose 21% YoY. DPS was 5% higher than expected at HK$1.28 in 2017, wi...

[I-bank focus]BofAML ups MTR Corporation (00066) to HK$42.5 BofA Merrill Lynch lifted its target price for  MTR Corporation (00066) to HK$42.5 from HK$41, and reiterated its "underperform" rating on unattractive valuation.   The research house fundamentally believes demand for MTRC's rail operations remains stable, but its inability to offset cost growth with fare hike under the Fare Adjustment  Mechanism (FAM) suggests margin pressure may persist near term.   Medium term, there is some risk that MTRC may have to bear a small portion of the construction cost overrun at Shatin-Central Link....

Harmonicare (01509) sees annual profit to decrease 70% Harmonicare Medical (01509) said it expects the profit for the year ended 31 December 2017 will record about 70% decrease as compared to  the profit for the previous financial year.   Such expected decline is mainly attributable to a decrease in the income and gross  profit from some of Harmonicare's hospitals as compared to those during 2016; an exchange loss recorded during 2017 due to the depreciating exchange rate of the US dollar and Hong Kong dollar against Renminbi, leading to a relatively large exchange loss fro...

IDT Int'l (00167) INED gets administrative penalties by CSRC IDT International (00167) said the China Securities Regulatory Committee (CSRC) has issued a formal decision of administrative penalties against Shenji Group Kunming Machine Tool Company (00300) and its directors and senior management, including Yang Xiongsheng, an independent non-executive Director and the chairman of the audit committee of IDT International, regarding information disclosure irregularities and breach of securities laws and regulations.   Yang was at the material time an independent non-executive director and chairman of the audit committee of Shenji....

China Telecom (00728) 4G net adds rise to 5.73m in January  China Telecom (00728) said it added 5.73 million 4G subscribers in January, adding pace from 4.74 million in the previous month, bringing  the total number of 4G subscribers to 187.77 million by the end of last month.    On wireline broadband business, China Telecom added 1.03 million customers in January,  up from 660,000 in the previous month, with the total number of wireline broadband  subscribers of 134.56 million. By end-December 2017, China Telecom had about 126.17 million Fibre-to-the-Home (FTTH) users, with a ne...

HSI Closes Up 558 pts, Led by Tencent, CN Financials Hong Kong stocks rebounded today (21 February). Hang Seng Index followed the trend of ADR this morning and opened higher 176 pts. It ended higher 558 pts or 1.8% to 31,431. Hang Seng China Enterprises Index jumped 290 pts or 2.3% to close at 12,686. Market turnover reached $96.784 billion. Blue chips were broadly in good shape. TENCENT (00700.HK)    +12.200 (+2.737%)       Short selling $1.16B; Ratio 12.510%      rallied 2.7% to $458 at close, contributing 86 pts to HSI alone. HSBC HOLDINGS (00005.HK)    +0.650 (+0.803%)       Short selling $1.38B; Ratio 31.877%      rose 0.8% to conclude at $81.6. HANG SENG BANK (00011.HK)    +3.300 (+1.744%)       Short selling $74.41M; Ratio 21.850%      climbed 1.7% to $192.5 on report of better than expected 2017...