Research Reports and Commentaries

Daily Commentary

18 Mar 2019

Market Outlook

The HSI is expected to consolidate at around 29,000 points.

Eye on the Sino-US trade war: South China Morning Post quoted sources as saying that US President Trump held talks with Chinese President Xi Jinping to end the trade war, and that may be postponed until June this year because they could not reach an agreement before May.

Focus on results announcement: The market focuses on the results of the big blue chip, and it is expected that the market has a high chance of short-term consolidation.

Eye on the Fed rate meeting: Fed will hold a meeting on Tuesday and Wednesday local time. Investors are concerned about Chairman Powell's statement of economic prospects, interest rate forecasts and any issues related the end of balance sheet trimming.

Daily Pick

HK Stocks

SHK PPT (00016.HK)

(Rating: Buy; Target Price: HKD154; Current Price: HKD129.3)

The Company’s sales volume recorded a decent growth.

Its revenue from rent remained strong.

It has a sufficient land reserve.


Contemporary (300750.SZ)

(Rating: Buy; Target Price: RMB102; Current Price: RMB89.83)

Net profit after deducting non-recurring gains and losses might increase 30.95% YoY in 2018.

Lithium battery industry leader, market share continues to improve.

Layout of overseas business to enhance overseas competitiveness.

Sector and Company News

The following stocks will announce earning results: CSPC Pharma(01093)(18th Mar), Wuxi Bio (02269)(18th Mar), China Telecom(00728)(19th Mar), Xiaomi-W(01810)(19th Mar), Sunny Optical(02382)(19th Mar), Sun Hung Kai(00086)(20th Mar), Power Assets(00006)(20th Mar), China Oversea(00688)(20th Mar), CKI Holdings(01038)(20th Mar).

WH Group (00288) announced annual results ended December 2018. The turnover rose 1% YoY to USD22.605 bn. Net profit before biological fair value adjustments amounted to USD1.046 bn, down 4% YoY. Final DPS was HK15 cents.

Fuyao Glass (03606) announced annual results ended December 2018. The revenue rose 8.1% yoy to RMB20.225 bn. Net profit grew 30.9% yoy to RMB4.12 bn.

China Coal (01898) announced annual results ended December 2018. Revenue amounted to RMB104.14 bn, up 27.8% YoY. Net profit amounted to RMB4.488 bn, up 33.3% YoY. Final DPS was RMB0.078.

Prada (01913) announced annual results ended December 2018. Net profit amounted to EUR205 mn, down 17.5% YoY. Final DPS was EUR0.06.

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