Zhitong Tip:

Morgan Stanley believes that COSCO Shipping Holdings (01919) parent company's plan to increase holdings is expected to support the stock price.

Citigroup said it was cautious about the outlook for copper prices in the next 3-6 months, and tied Zijin Mining Group (02899) as the industry's first choice.

Morgan Stanley raised Zijin Mining Group's (02899) 2021-23 net profit forecast by 12%, 8.6%, 8.1%, respectively, and said the increase was due to lower-than-expected copper production costs.

Goldman Sachs Group cut Topsports International Holdings Limited's (06110) net profit forecast for the 2022-24 fiscal year by 9% to 13%, and expects the sales of international brands in China to gradually improve.

Nomura cut Ping An Insurance's after-tax operating profit and net profit forecast for this year by 2.8 per cent and 3.5 per cent respectively, and expects the value of its new business to fall 30 per cent in the third quarter compared with the same period a year earlier.

The target price of Zijin Mining Group (02899) is up to HK $16.60.

Citigroup: maintain Zijin Mining Group's (02899) "buy" rating target price up 12.9% to HK $16.60

Citigroup said it maintained Zijin Mining Group's (02899) "buy" rating, with the target price rising from HK $14.70 to HK $16.60, reflecting higher commodity price forecasts and Zijin capacity guidelines, tied for the industry's first choice.

The bank said it was cautious about the outlook for copper prices over the next three to six months as demand slowed but was bullish in the medium to long term. At the same time, the company adjusted its profit forecast for 2021-23 by 7%, 5%, 3%, respectively, to reflect the increase in copper and zinc prices, the lower gold price, the lower gold production forecast, and the lower cost of mining copper.

Morgan Stanley: maintain Zijin Mining Group's (02899) "overweight" rating target price up 5.3% to HK $15.12

Morgan Stanley said it raised Zijin Mining Group's (02899) net profit forecast for 2021-23 by 12%, 8.6%, 8.1%, respectively, and the target price correspondingly increased from HK $14.35 to HK $15.12. The report said that the increase in the profit forecast was due to lower-than-expected copper production costs; an increase in copper production, raising this year's copper production forecast to 580000 tons; but a reduction in gold production, reducing this year's gold production forecast from 53 tons to 50 tons. and it is expected that the target of 53 to 57 tons may not be met for the whole year.

Morgan Stanley: maintain COSCO Shipping Holdings's (01919) target price rating of HK $21.20 "overweight"

Morgan Stanley believes that COSCO Shipping Holdings (01919) parent company's plan to increase holdings is expected to support the stock price, with a target price of HK $21.20. According to the report, the company announced that its controlling shareholder, Cosco Shipping, increased its holdings of 7.9 million A-shares in the company yesterday (18), and planned to continue to increase its A-shares and H-shares in the next six months, totaling 1 billion to 2 billion yuan, and promised not to reduce its holdings in the company during the period of the increase and within the legal time limit.

Morgan Stanley: reduce the target price of Alibaba Health Information Technology's (00241) "overweight" rating by 14.2% to HK $18

According to Morgan Stanley, Alibaba Health Information Technology (00241) was rated as "overweight" and the target price was lowered from HK $21 to HK $18. Observing the recent slowdown in Tmall's flow and sales growth of non-pharmaceutical products, the company lowered its revenue forecasts for the first half of 2022 and 2022, and expected the full-year net loss to expand. It is believed that the increase in promotional activities will promote better growth in the second half of the fiscal year than in the first half of the fiscal year.

The bank said that thanks to the outflow of prescription drugs and the relaxation of online prescription drug sales, the online pharmaceutical e-commerce platform will continue to grow substantially, while Alibaba Health Information Technology relies on the large customer base of the parent company. in the long run, Internet medical services may have significant synergy with pharmaceutical e-commerce.

Goldman Sachs Group: maintain Topsports International Holdings Limited's (06110) "buy" rating, lower the target price by 14.3% to HK $12

Goldman Sachs Group said Topsports International Holdings Limited's (06110) net profit forecast for the 2022-24 fiscal year was cut by 9% to 13% to reflect a weak sales recovery and some deleveraging pressure. The shares are down 31% from their mid-June peak, reflecting a slowing recovery and concerns about consumer sentiment, and the bank believes that the valuation of 13 times earnings for fiscal year 2022 is not high.

The bank said it expected to report results for the first half of 2022 (to the end of August) on the 28th of this month, with group sales expected to fall 3 per cent year-on-year to 15.352 billion yuan and net profit down 5 per cent. The bank believes that while sales trends remain volatile, sales of international brands in China are expected to improve gradually. Based on Topsports International Holdings Limited's strong executive ability, the bank believes that its profit margin should be controllable.

Nomura: maintain Ping An Insurance (02318) "Buy" rating target price down 6% to HK $95.18

Nomura said it cut Ping An Insurance's after-tax operating profit and net profit forecast for this year by 2.8 per cent and 3.5 per cent respectively, reflecting weak returns in the stock market and rising market-to-market losses on lufax's convertible bonds. According to the report, the company's new business value is expected to fall 30% in the third quarter from a year earlier, but its quarterly performance is generally stable, although it will face the challenge of a higher base in the first quarter of next year. The decline in the first half of this year is expected to continue in the second half of this year and is expected to fall by 12% for the

Daiwa: raise China Shenhua Energy (01088) to "buy" rating target price by 15.8% to HK $22

Daiwa said it upgraded China Shenhua Energy's (01088) rating from "outperform" to "buy", raised its target price from HK $19 to HK $22, and raised its earnings per share forecast for 2021-23 by 9% to 12% based on the sharp rise in coal prices.

It is reported that the spot price of 5500 thermal coal in Qinhuangdao Port has climbed to 2372.5 yuan per ton, a year-on-year increase of 2.8 times and an all-time high, according to the report. The bank believes that Shenhua, a major thermal coal producer, has directly benefited from higher coal prices. As the winter heating season approaches and the supply and demand of coal is good, the rise in coal prices is expected to continue at least until the first quarter of next year.