Research Reports and Commentaries

Daily Commentary

24 May 2019

Market Outlook

HSI is expected to consolidate around 27,200 today.

US suppressing Huawei: US President Trump said that "Huawei is very dangerous" and that Huawei may become part of a trade agreement with China. In addition, a group of bipartisan senators proposed the legislation to prohibit the use of Huawei and ZTE products in US 5G networks.

British Prime Minister to stay or quit: Informed sources revealed that British Prime Minister Theresa May plans to announce her departure timetable on Friday, chance of hard Brexit increases.

Weak US economic data: ISM manufacturing index in May fell to 50.6, less than expected, a nine-year low, increasing the signs that the economy may slow down this quarter; market demand for safe haven increased, US 10-year bond yields have fallen to 2.2922%, the lowest in 19 months.

Today’s Focus Stock

HK Stocks

AIA (01299.HK)

(Rating: Buy; Target Price: HKD91; Current Price: HKD74.90)

Benefited from 12 new opening-up measures of CBIRC to enter China market.

Strong momentum of Hong Kong and China business.

1Q19 achieved record-high new business value growth rate at 18%.

CSPC Pharma (01093.HK)

(Rating: Buy; Target Price: HKD16; Current Price: HKD12.90)

Strong sales growth of innovative drugs leads to higher gross profit margin.

Fast growing sales team and more penetration into low tier hospitals.

Strong R&D pipeline to maintain long-term growth.


CITS (601888.SH)

(Rating: Buy; Target Price: RMB80; Current Price: RMB75.33)

It divested the unprofitable business to focus on tax-free business continuously.

It will extend its international business.

Its business expansion is in a decent speed.

Sector and Company News

Lenovo Group (00992) announced annual results ended March 2019. The turnover rose 12.5% YoY to USD51.038 bn. Its net profit amounted to USD597 mn, against USD189 mn in loss for the previous year. Final Dividend was HK21.8 cents.

Meituan-W (03690) announced first quarter results ended March 2019. Its revenue grew 70.1% YoY to RMB1.433 bn. Loss narrowed to RMB1.433 bn from RMB21.065 bn in a year ago's period.

Dynam Japan (06889) announced annual results ended March 2019. Its revenue grew 7.8% YoY to HKD10.352 bn while its net profit grew 11% YoY to HKD891 mn. Final dividend was JPY6.

Capital VC (02324) announced its interim results ended 31 March 2019. Its losses narrowed from HKD125 mn to HKD66.44 mn. No interim dividend was declared.

Baytree Group (01761) released a negative profit alert. It is expected that the Group will record a loss for the six months ending June 30, 2019 as compared to an adjusted profit of RMB122.3 mn for the corresponding period in 2018.

Read More

Research Report

Stock Report
28/02/2019 Focus List
Sector Report