Market NewsDaily rating of Big Bank | the outlook for the industry is bleak, and BofA reiterates that Weichai Power is outperforming the big city rating.
Lyon: lower the target price of 06969.HK from HK $35 to HK $25, reiterating the rating Buy Lyon released a research report that Seymour's overseas business is expected to remain the main growth driver this year, offsetting weakness in the domestic market. After the implementation of the e-cigarette policy and the company's disclosure of last year's results, the bank estimates that the company's overseas business grew at an average annual compound growth rate of 29% in the 21-24 fiscal year, while the domestic business is expected to fall 44% in fiscal 22. The bank said that Seymour international management revealed that the R & D spending rate was 10% to promote the medical application of its e-cigarette technology and strengthen its technical barriers. The bank cut its revenue forecast for fiscal year 22-23 by 7% to 9%, while its adjusted earnings forecast was cut by 27% to 29% to reflect higher R & D spending ratios and shrinking gross margins as a result of changes in product mix.
Lyon: downgrade 02018.HK rating to sell, target price lowered to HK $15 Lyon released a research report that Shunyu Optical Technology (02382.HK) and AAC competed fiercely in mobile lens (HLS) business, resulting in both sides' lower-than-expected performance in the second half of last year. The price war is mainly due to the increase in capacity utilization of AAC HLS. Shunyu is expected to fight back and the competition may last for more than a year. That will not change until AAC spun off its optical business held by Chengrui Optics to go public, or when AAC is under financial pressure. The bank pointed out that the competition will cause Shunyu to lose 900 million yuan in profits each year, dragging down AAC's profits by about 400 million to 500 million yuan. For AAC, Lyon believes that recent optical business guidance and strategy will still weigh on its profitability, and the bank has cut its profit forecast for this year by 8 per cent, taking into account the decline in the average selling price and profit margin of HLS.
Fu Rui: raise the target price of 02202.HK to HK $26.04 and maintain its buy rating. Wanshiyun, a property management company owned by Vanke (2202.HK), submitted an application for listing in Hong Kong. Fu Rui issued a research report that its fair value is estimated to be about 58 billion yuan, equivalent to about 16% of Vanke's market capitalization. Although the split may provide short-term share price support, it believes that the company's medium-term fundamentals are weak. The bank raised its target price for Vanke's H-shares to HK $26.04 from HK $25.62, maintaining its buy rating. The bank said it expected the deal to be completed in the third quarter of this year, based on the fact that peer spin-offs usually take three to four months to approve, adding that earnings per share forecasts for this year and next were cut by 7 per cent to 18 per cent due to disappointing results last year and low profit margins.
UBS: cut 0322.HK 's target price to HK $18.70 Buy UBS issued a report that 0322.HK 's pricing power was undervalued, maintained its buy rating, and lowered its target price by 18.5% to HK $18.7. UBS said investors focused on the impact of cost pressure on Kangshi's gross profit margin, ignoring the company's price increases and rising market share, resulting in discounts in valuations, including only seven times EV/EBITDA in 2023 and a projected dividend yield of 10 per cent this year and next, about 4 per cent more attractive than the industry. Although profits fell last year due to high base and cost pressure, revenue and recurrent net profit still increased by 20% and 44% respectively over 2019; the bank expects Kangshi's net profit in 2023 to increase by 13% over last year, mainly based on high annual income growth and price increases for instant noodles and beverage products, and its dividend policy can also support value revaluation.
Citigroup: downgrade the target price of Alibaba (09988.HK) to HK $171. buy Citi released a rating report that due to the impact of COVID-19 's epidemic and city closures, 09988.HK suffered a setback in profit growth in the fiscal fourth quarter ending at the end of March this year, and believes that the impact may continue into the first quarter of 2023 fiscal year ending at the end of June this year, in order to delay the momentum of recovery in the second half of this year. In response to continued support from merchants and the shift of income mix to low-margin or loss-making businesses, Alibaba's overall EBITA growth is still under pressure. The bank said it considered Ali's current level attractive, considering buyback plans, strong cash generation and near-historically low valuations. Citi lowered its target price for H shares from HK $194 to HK $171, maintaining its buy rating and slightly adjusted the group's total revenue forecast for fiscal 2022 to Rmb844.8 billion, or 17.8 per cent year-on-year, slightly below the low end of the company's guidance range of 20 to 23 per cent. and compared with market expectations of RMB 856 billion or an annual increase of 20 per cent.
Credit Suisse: cut the target price of 06690.HK to HK $43.80 to outperform the market Credit Suisse reported that 06690.HK 's performance last year was in line with expectations, with revenue and net profit growing by 15.8 per cent and 37 per cent respectively. In the fourth quarter alone, income and net profit increased by 4.1% and 21.3% year-on-year, an improvement from the decline of 0.6% and 12.4% in the third quarter. Credit Suisse cut Haier Zhijia's earnings per share forecasts for this year and next by 6 per cent and 3 per cent respectively to reflect the impact of geo-conflict, making the rise in raw material prices last longer than expected. The bank also lowered the target price of the group's shares from HK $48.2 to HK $43.8, keeping its rating outperforming the market.
Credit Suisse: lowering its target price for 02160.HK to HK $4.20 outperforms the market Credit Suisse reported that revenue of Xintong Healthcare (02160.HK) rose 76.1% year-on-year in the second half of last year to 115 million yuan (the same below), while the net loss shrank to 113 million yuan in the second half of last year. Both revenues and losses exceeded the bank's expectations. According to management guidance, TAVR planting will grow to about 4000 in fiscal year 2022, compared with the bank's estimate of 3500. The company plans to conduct FIH trials on several TMV products in fiscal year 2022. In addition, the bank postponed its timetable for achieving a balance of payments until around 2025. The bank is expected to widen its losses in 2022 / 23 to RMB 170 million and RMB 257 million respectively, lowering its target price from HK $6.45 to HK $4.20, maintaining its rating to outperform the market.
Credit Suisse: downgrade the target price of 00384.HK to 15 yuan to outperform the big market Credit Suisse published a research report pointing out that several local cities in the mainland, such as Hunan, have recently issued natural gas price guidelines, most of which suggest that prices / costs will not be cut in the off-season (April-October this year) after the peak winter season. The bank believes it will have a negative impact, as the market was originally expected to be after winter. The cost of natural gas will fall by 10% to 15%. The bank believes that the higher-than-expected cost of natural gas may affect the unit gross margin and sales growth of urban gas distributors. Credit Suisse expects 00384.HK 's net profit to fall 23% to 8 billion yuan in the 2022 fiscal year ending in March this year, and it is estimated that net profit growth will recover in the 2023-2024 fiscal year. The bank cut its earnings per share forecast for 2022-2024 by 7 per cent to 16 per cent and its target price from HK $26 to HK $15. Based on the fact that the valuation price of China fuel is more discounted than that of its peers, the bank is more optimistic about China fuel among gas stocks and maintains its outperformance rating.
Daiwa: cut the target price of Air China (00753.HK) from HK $6.80 to HK $6.50. Daiwa issued a rating report that Air China management directed capital expenditure of 25.7 billion yuan this year (compared with 20.2 billion yuan last year), mainly for the purchase of aircraft and engines, while the capital expenditure plan for 2023-25 will depend on factors such as the recovery in passenger demand and the development of the global epidemic. Due to the mainland epidemic, which may delay the recovery of passenger demand, the bank expects a larger net loss this year than in the past, and cut its earnings per share next year by 5 per cent, lowering its target price from HK $6.8 to HK $6.50, maintaining its rating as a buy.
HSBC Research: reduce the target price of Quanfeng Holdings (02285.HK) from HK $75.50 to HK $70.30. According to a report released by HSBC Research, Quanfeng Holdings' revenue is expected to grow by 23% year-on-year this year, of which original brand manufacturing (OBM) is expected to grow by 25% and original design and manufacturing (ODM) is estimated to grow by 20%. On the ODM side, the bank expects challenges to remain, mainly due to the cooling of the US real estate market due to inflation. However, the bank remains bullish on the "EGO" brand, and the group is expected to sell about 10, 000 sitting lawnmowers last year. HSBC has cut its target price for its shares from HK $75.5 to HK $70.3 to maintain its buy rating.
Bank of America Securities: Weichai Power (02338.HK) target price from 13.3 Hong Kong dollars to 11.2 Hong Kong dollars, the rating outperformed the big city BofA Securities issued a report that due to the bleak outlook for the industry, reiterated that the company outperformed the market rating. The company's goal is to maintain a stable market share of heavy trucks, and the export market will be a key driving force. The company's engine and heavy truck (HDT) engine exports increased by 58 per cent and 72 per cent respectively last year, and engine exports are expected to rise to 100000 this year from 35000 last year. The company believes that long-term export sales are expected to account for 15 to 20 per cent, up from less than 10 per cent last year.
Piper Sandler: give AAPL.O (AAPL) an overweight rating with a target price of $200. Piper Sandler analyst Harsh Kumar gives AAPL.O an overweight rating, with a target price of $200. Analysts point out that Apple's proportion of smartphone users in Piper Sandler's spring 2022 youth survey is still near an all-time high; 87 per cent of the 7100 respondents have an iPhone, down slightly from the record 88 per cent in the spring 2021 survey. Analysts also pointed out that 87 per cent of teenagers surveyed were willing to buy, and more than 23 per cent planned to upgrade to iPhone 13 in the spring or summer this year. Analysts say the survey results show that Apple still dominates among teenagers.
Morgan Stanley: MRK.N holds a rating with a target price of $80 Morgan Stanley analyst Terence Flynn gives a rating to MRK.N with a target price of $80. Flynn said that while the U.S. pharmaceutical industry is generally in a constructive context, the upcoming patent cliff (Patent cliff) needs to be screened, and he believes that companies that can achieve growth over the next five years are in the best position. He believes that the future outlook for the company's stock depends on three areas, namely, the success of the anticancer drug Keytruda life cycle management strategy, progress in non-cancer businesses, and the success of the M & A strategy, and the analyst expects limited visibility and solutions in the short to medium term.
Morgan Stanley: give PFE.N a wait-and-see rating of $55 Morgan Stanley analyst Terence Flynn gives Pfizer a wait-and-see rating of $55. Analysts say that while the US pharmaceutical industry is generally constructive, the upcoming "Patent cliff" requires investors to be selective. He thinks companies that can grow over the next five years are in the best position. Analysts believe that Pfizer's COVID-19 vaccine and oral therapy revenue is expected to face upward pressure in the short term, while his revenue and earnings per share expectations for the company's fiscal year 2022 are also higher than market expectations. Analysts said they would like to see the company continue to implement pipeline expansion after the outbreak and be more constructive in terms of shares.
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