Zhitong Tip:
Credit Suisse said Youran Animal Husbandry (09858)'s close relationship with Yili should help support stable demand for raw milk and believes the company has the ability to continue to expand its herd.
Macquarie said Aikang Medical (01789) was the cheapest winner of both hips and knee joints and expects earnings to grow by 70 per cent in 2022.
According to Lyon, China Mengniu Dairy (02319) is one of the most defensive companies in the food industry, with a target price of HK $60.
According to Guoyuan International, China Longyuan Power Group Corporation (00916) 2021H1 performance grew steadily, with operating income of 17.877 billion yuan, an increase of 25.7% over the same period last year.
Credit Suisse: for the first time, Youran Animal Husbandry (09858) "outperform the market" rating target price of HK $7.50
Credit Suisse said the close relationship between Youran Animal Husbandry (09858) and Yili should help support stable demand for raw milk and cope with external fluctuations related to raw milk prices.
According to the report, the company is the leader in the upstream dairy market in China, covering integrated business models across all business sectors, including raw milk production, feed, breeding and ruminant breeding products. The bank believes that the company has the ability to continue to expand its herd size, with cross-sectoral synergies and rising raw milk prices over the next two years, supported by strong downstream demand, to boost milk production expectations, which should translate to a compound annual income growth rate of 17 per cent in 2020-23 (high-teen).
Daxing Qisheng Aikang Medical (01789) target price up to HK $12.97,
Macquarie: raise Aikang Medical (01789) to "outperform" rating target price by 82% to HK $12.97
Macquarie said Aikang Medical (01789) was the cheapest winner of both the hip and knee joints. Due to the better-than-expected winning bid of the centralized Drug Purchasing Organization (GPO), the target price was raised by 82 per cent to HK $12.97.
The bank said the company's share price, which has fallen 41 per cent from its peak three months ago, now looks attractive and expects earnings to grow by 70 per cent in 2022 and 26 per cent in 2023, and expects potential bid-winning and better growth.
China Bank International: maintain Aikang Medical (01789) "Buy" rating target price raised to HK $11.45
China Merchants International said that the net profit forecast of Aikang Medical (01789) for 2021-23 was lowered by 4%, 11%, 2%, to reflect the impact of volume procurement, but was optimistic about long-term growth prospects. Its comprehensive product portfolio and strong R & D capabilities are expected to lead to high performance growth in 22 years, with the target price raised to HK $11.45.
The bank said that joint products nationwide with volume procurement results announced yesterday (14), the average product price reduction of 82%, in line with the bank's expectations. Aikang Medical has successfully won the bidding process related to all four types of initial hip and knee system products in volume procurement. It is believed that the Group's share in the redistribution market will have huge growth space. And the group 3D products have strong innovation ability, I believe that will continue to develop 3D products.
Lyon: maintain China Mengniu Dairy's (02319) "buy" rating target price of HK $60
Lyon said it maintained China Mengniu Dairy's (02319) target price of HK $60, making it one of the most defensive companies in the food industry. For management's sales target for fiscal year 2021, this means low double-digit growth in the second half of this year, while Mengniu is expected to grow faster than the industry, driven mainly by fresh milk, cheese and ice cream, the report said. As for profit margins and costs, management believes that gross margins are expected to improve, driven by improved product and category mix. Given the higher profit margins of the world's leading peers, management believes that margins have the potential to expand further.
Guoyuan International: maintain China Longyuan Power Group Corporation's "buy" rating target price to HK $20.70 in 00916
Guoyuan International said it maintained China Longyuan Power Group Corporation's (00916) "buy" rating, raising the target price to HK $20.70, equivalent to 24 times and 20.5 times PE in 2021 and 2022, with 22% room for increase from the current price. 2021H1, the company's performance grew steadily, with an operating income of 17.877 billion yuan, an increase of 25.7% over the same period last year, and a net profit of 4.42 billion yuan, an increase of 37.7% over the same period last year.
Citigroup: maintain BYD Electronic's (00285) "buy" rating and lower the target price to HK $46
Citigroup said it cut BYD Electronic's profit forecast for this year by 25 per cent in 00285 to reflect slower-than-expected business progress and 18 per cent lower earnings forecasts for next year and 2023, mainly because of more conservative growth assumptions, with the target price falling from HK $49 to HK $46.
The report said the company's recent weak share price performance was estimated to be due to disappointing business progress, but believed that some of the factors were temporary and expected to be resolved later this year, and that the stock had been oversold. The bank said that BYD Electronic has a positive view on medium-and long-term development, while the Group has an increased market share in Apple Inc's supply chain and has a good position in the Internet of things and automotive business. It is believed that the Group's current share price is too much discount to its growth potential. Once it recovers in the relevant short-term challenges, the share price is expected to be revalued.
Bank of America Securities: maintain Tencent's (00700) "Buy" rating by 2.5% to HK $626
BofA Securities said that maintaining Tencent's (00700) "buy" rating, tightening restrictions on underage login games in the mainland and increasing pressure on the game industry, but there are many approved games in the pipeline of large game developers, the bank believes that the contribution of Tencent's new popular games revenue from the second half of this year to the first half of next year is limited, and the total revenue forecast for this year to the year after next will be reduced by less than 1.5%, and the launch of new games may be further blocked. The target price has been reduced from HK $642 to HK $626.