"Daily Research selection" closely follows the latest research trends of institutions, insights and combs the views of the most representative big cities, industries and individual stocks, provides Niu you with third-party institutional analysis and rating reference, and helps Niu you to provide an overview of investment banking trends. Easy to grasp investment opportunities!

Focus Today

1. Haitong: before there is an obvious stabilizing signal in the market, it is recommended to rely on high selling and low suction to reduce the cost of positions.

2. Central Plains Securities: investors are advised to wait and see in the short term, and the middle line will continue to pay attention to the investment opportunities of undervalued blue chip stocks.

3. CICC: crude steel takes the initiative to limit production and pre-supply contraction helps to improve and maintain industry profits

4. Galaxy Securities: real estate sales are still at the bottom stage, looking forward to greater support policies.

5. Soochow Securities: the pace of automobile intelligence is moving forward steadily, and we continue to look forward to investment opportunities in vehicle modules, connectors and other links.

6. Huatai: the household leader who pays attention to the solid internal skills and the second-tier leader whose valuation is still low.

7. UBS: downgrade Tencent (00700.HK) target price to HK $450m, rating "buy"

8. Deutsche Bank: downgrade JD.com Group-SW (09618.HK) target price to HK $354, rating "buy"

9. CITIC: the most stressful time for Byd Company Limited (01211.HK) has passed, and the subsequent net profit will improve quarter by quarter.

10. Nomura: downgrade Ping An Insurance (02318.HK) target price to HK $80.33, rating "buy"

11. Guotai Junan (Hong Kong): maintain China Merchants Bank (03968.HK) "buy" rating with a target price of HK $83.36

12. Guosheng Securities: maintain Li Ning Co. Ltd. (02331.HK) "buy" rating, or achieve high double-digit growth for the whole year

Selected viewpoints of research and newspaper

I. Macro-market

• Haitong: before there is an obvious stabilizing signal in the market, it is recommended to rely on high selling and low suction to reduce the cost of positions.

Haitong pointed out that the market is likely to maintain a volatile trend in the short term, but does not rule out the possibility that the index may continue to decline. The bank said that there is no shortage of funds in the market, and the main problem lies in the frequent switching of hot spots and poor investor sentiment, and the failure to have a sustained rise in strong plates to lead the market higher as a whole; and the spread of the epidemic has greatly affected the performance of early hot track stocks, and it is difficult to have a new track to carry out a new round of impact in the short term. Operationally, before the market appears obvious stabilizing signals, we should reduce the operation of large funds and rely on high selling and low suction to reduce position costs.

• Central Plains Securities: investors are advised to wait and see in the short term, and the middle line will continue to pay attention to the investment opportunities of undervalued blue chip stocks.

Zhongyuan Securities pointed out that the current stock index is in a weak consolidation stage, and the future is faced with the choice of breakthrough direction. Before the trend is clear, investors are advised to see more and move less, and pay close attention to the changes in policy, capital and outer disk. The bank advises investors to wait and see in the short term, while the middle line continues to focus on investment opportunities for undervalued blue chips.

II. Industry plate

• CICC: crude steel takes the initiative to limit production and pre-supply contraction helps to improve and maintain industry profits

China International Capital Corporation believes that crude steel consumption is expected to decline slightly in 2022 under the drag of real estate demand, so no increase or slight decline in crude steel production is a predictable benchmark. The bank pointed out that the current market-oriented production reduction in the industry means that profits may remain low or even lose money for a period of time, but active production restrictions precede supply contraction, which will help improve and maintain industry profits in the long run.

• Galaxy Securities: real estate sales are still at the bottom stage, looking forward to greater support policies.

Galaxy Securities believes that from January to March in 2022, sales area and sales volume decreased by 13.8% and 22.7% respectively. In March, sales volume and sales area increased by-18% and-26%, respectively, compared with last month-8pct and-7pct, respectively. The boom has been worse than in any period since 2010, and sales are still at the bottom stage. The average price of housing sales in March was 9671,-8% year-on-year and-5% month-on-month. The decline in average sales price reflects the sales strategy of housing enterprises to exchange price for volume. At present, supply-side and demand-side policies are gradually coming into force, and local policy relaxation is also gradually increasing, but with the policy pace of 14-15 years, the degree of relaxation of each dimension is far from enough. We look forward to greater efforts to support the introduction of policies in the follow-up.

• Soochow Securities: the pace of automobile intelligence is moving forward steadily, and we continue to look forward to investment opportunities in vehicle modules, connectors and other links.

Soochow Securities believes that the current automobile intelligence, as a major trend of the automobile industry, brings users a higher experience of better driving, interaction and entertainment, as well as further improvement in signal transmission, delay and computing power. As a result, the bank continues to look good at the leading players in the layout of automobile modules, connectors, PCB and other links. With the gradual improvement of future car sales and automobile intelligent penetration, it will bring better development opportunities for all aspects of the automotive intelligent industry chain.

• Huatai: the household leader who pays attention to the solid internal skills and the second-tier leader whose valuation is still low.

Huatai pointed out that the subsequent efforts to stabilize growth under the influence of the epidemic are more necessary and urgent. In the near future, local real estate stability maintenance policies are continuing to land, which is expected to support the home valuation and repair market. Under the predicament, the leading alpha ability is outstanding, and the share logic is quickly realized. It is suggested that attention should be paid to the household leader with solid internal strength and the second-tier leader whose valuation is still low.

III. Individual stocks

• UBS: downgrade$Tencent (00700.HK) $Target price to HK $450, rating "buy"

UBS released a report that lowered the target price of Tencent (00700) by HK $450m from Rmb460. it had a "buy" rating. The bank is bullish on Tencent, believing that it will re-accelerate growth later this year, but investors expect limited room to rise in the near term and slightly lower their income forecasts for this year to reflect macroeconomic resistance. The bank believes that Tencent management is taking a close look at a number of businesses, especially those that are losing money, such as video or cloud computing, and are focused on improving efficiency rather than growth.

• Deutsche Bank: downgrade$JD.com Group-SW (09618.HK) $Target price to HK $354, rating "buy"

Deutsche Bank issued a rating report saying that due to the recent Omicron outbreak and epidemic prevention and control measures taken in many regions of the mainland, JD.com (09618.HK) was unstable in the short term and lowered its target price to HK $354, with a rating of "buy". However, the bank points out that demand in the company's key categories remains strong, especially fast-moving consumer goods. The bank expects logistics activities in the mainland to resume gradually from May and fully recover in the third quarter of this year. It is believed that the second quarter may be the most difficult quarter for the company this year.

• CITIC:$Byd Company Limited (01211.HK) $The time when the performance pressure is greatest has passed, and the subsequent net profit will improve quarter by quarter.

CITIC pointed out that BYD Group (00175) sold 286000 new energy passenger vehicles in the first quarter of 2022, accounting for about 26.7% of the domestic new energy passenger vehicle market, ranking first for four consecutive quarters. Under the pressure of the Q1 cost end, it is judged that the net profit of the company's automobile business can still reach about 1000 yuan. The bank said that the most stressful time for the performance of the company's automotive business has passed, and with the profit flexibility brought about by the subsequent price drop in lithium carbonate and the increase in the price of models, superimposed by the company's strong order volume, the company's subsequent net profit will improve quarter by quarter.

• Nomura: downgrade$Ping An Insurance (02318.HK) $Target price to HK $80.33, rating "buy"

Nomura cut Ping An Insurance's after-tax operating profit forecasts for 2022 and 2023 by 2.6 per cent and 5.7 per cent, estimated to grow by 0.1 per cent and 2.8 per cent, respectively, and new business value forecasts for 2022 and 2023 by 6.5 per cent and 6.4 per cent, respectively, down 18 per cent and 7.7 per cent respectively, mainly due to weak return on investment and slowing growth in the life insurance business. The bank maintained Ping An Insurance's "buy" rating and lowered its target price to HK $80.33 from HK $83.17.

• Guotai Junan (Hong Kong): maintenance$China Merchants Bank (03968.HK) $"Buy" rating with a target price of HK $83.36

Guotai Junan (Hong Kong) maintains China Merchants Bank's (03968) "buy" rating and expects earnings per share for the 2022-24 fiscal year to be 5.253 yuan / 6.044 yuan / 6.913 yuan (an increase of 13.9 percent over the same period last year), with a target price of 83.36 Hong Kong dollars. The bank said that as the largest joint-stock commercial bank in mainland China, China Merchants Bank has a good management structure and standard governance, and its operation and performance will not change greatly as a result of changes in the positions of senior executives. It is expected that the company's net fee and commission income will still achieve relatively good growth, and asset quality will remain relatively stable and improved.

• Guosheng Securities: maintain$Li Ning Co. Ltd. (02331.HK) $"Buy" rating, may achieve high double-digit growth for the whole year

Guosheng Securities released a research report saying that to maintain Li Ning Co. Ltd. (02331.HK) "buy" rating, based on the high heat of the industry, strong product / brand strength and commodity, retail and channel strategies, optimistic about the company's future growth, respectively, adjust the 2022-24 return net profit forecast to 47.49C58.49 / 7.094 billion yuan, the current price corresponding to 22 years PE is 27 times. The bank said the company's Q1 had excellent performance and could achieve high double-digit growth throughout the year.