"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. CITIC: the prosperity of the coal industry is likely to be high, and the low valuation company is still attractive.

2. CICC: the market fluctuates greatly and is optimistic about the low valuation and high growth leader of the port.

3. Bank of America Securities: lower metal price forecast, lower target prices of Chinalco, Zijin and Jiang Copper

4. Xiaomo: Longyuan is the first choice for wind power stocks, while solar energy stocks are optimistic about Xinyi Energy.

5. Xiaomo: the callback of telecom operators is a good opportunity to buy, China Mobile Limited is the first choice.

6. Morgan Stanley: it is expected that under the optimistic situation of JD.com Group, the potential upward space in the next three years is more than 200%.

7. UBS: lower Sino Biopharmaceutical's target price to HK $8, rating buy

8. China Merchants (Hong Kong): maintain Li Auto Inc. 's "buy" rating with a target price of HK $159,

9. Credit Suisse: maintain Xtep's international "outperform" rating, lowering the target price by 14.7% to HK $15

10. CICC: maintain Yanzhou Mining's outperform industry rating, with a target price of HK $31
    

Selected viewpoints of research and newspaper

I. Industry plate

• CITIC: the prosperity of the coal industry is likely to be high, and the low valuation company is still attractive.

CITIC research newspaper pointed out that the profitability of the coal sector has improved significantly in 2021, and the amount of dividends in the coal sector has also increased rapidly under the background of improved profits and limited increase in capital expenditure. In the first quarter of 2022, high overseas energy prices and limited expansion of domestic supply continued to push up domestic coal prices, and the sector's performance exceeded expectations. Looking forward to the whole year, the industry boom is likely to be high, and under the new round of performance expectations, low-valued companies are still attractive.

• CICC: the market fluctuates greatly and is optimistic about the low valuation and high growth leader of the port.

China International Capital Corporation said in an article that when the market is volatile, the port industry is often able to outperform the market because of its steady growth. In the long run, after years of pressure on port rates, with the substantial improvement in the performance of upstream shipping companies, we expect port rates to gradually stabilize. We are optimistic to occupy the hinterland location advantage, undervalued, high dividend, high flexibility of the individual stocks.

• Bank of America Securities: lower metal price forecast, lower target prices of Chinalco, Zijin and Jiang Copper

BofA Securities reported that metal prices and volatility have increased in recent quarters due to logistics bottlenecks, inflation, high energy prices in Europe and low inventories. BofA cut its forecast for metals prices, with aluminium prices forecast to fall 18 per cent to $3315 a tonne this year (34 per cent year-on-year) and copper prices to $9999 a tonne (7 per cent year-on-year). At the same time, the bank lowered the price of Chinese metal stocks.$Aluminum Corporation Of China Ltd (02600.HK) $The target price was lowered from HK $5.50 to HK $5, the rating maintained buying, and the profit forecast for this year and next year was lowered by 3% and 8%.$Zijin Mining Group (02899.HK) $The target price was lowered from HK $16 to HK $15, reiterating the buying rating, and this year's earnings test fell by 1%; as for$Jiangxi Copper (00358.HK) $The target price was lowered from HK $18 to HK $16, also reiterating the buy rating, with the earnings survey downgraded by 2% this year.

• JPMorgan Chase & Co: Longyuan is the first choice for wind power stocks, while solar energy stocks are optimistic about Xinyi Energy.

JPMorgan Chase & Co published a research report saying that due to the high base effect, the number of wind power utilization hours recorded an annual decline in the first quarter of this year, resulting in a 23% to 28% drop in the first quarter profits of wind power stocks covered. It is expected that the impact of the base effect will moderate after the second quarter. The bank believes that$China Longyuan Power Group Corporation (00916.HK) $Can benefit from catalysts such as subsidized recovery speed improvement and asset injection, Lilongyuan is the first choice, maintaining the overweight rating, and the target price is lowered from HK $24.05 to HK $23.1. Secondly, it is optimistic.$Datang New Energy (01798.HK) $Also maintain the overweight rating, with the target price lowered from HK $4.15 to HK $3.85. Motors advises investors to choose companies with medium-term growth capacity, pointing out that solar stocks have generally underperformed the big market so far this year, and are optimistic.$Lutheran Energy (03868.HK) $The rating was increased and the profit forecast for 2022-2024 was lowered by 1%, and the target price was lowered from HK $6.10 to HK $5.90.

• Xiaomo: the callback of telecom operators is a good opportunity to buy, China Mobile Limited is the first choice.

According to a research report released by Xiaomo, the steady growth momentum of non-traditional fixed-line business of Chinese telecom operators may continue in the next few years, and it is estimated that 5G enterprise solutions will grow faster from a low base. The bank's stock selection priority is China Mobile Limited, China Telecom Corporation, China Unicom and China Tower Corporation. The bank expects China's 5G penetration rate to reach about 70 per cent this year, while telecoms companies point to the limited impact of the recent outbreak on its operations. On the other hand, despite the satisfactory performance in the first quarter, Chinese telecom shares have rebounded by 1% to 5% in the past two weeks, up 1% from the Hang Seng Index over the same period, which is believed to provide a good buying opportunity for investors.

II. Individual stocks

• Morgan Stanley: material$JD.com Group-SW (09618.HK) $In an optimistic scenario, the potential upside in the next three years is more than 200%.

Morgan Stanley published a research report, pointing out that JD.com will expand its market share in the short term after the epidemic in the mainland has eased, making it the best positioning enterprise in the mainland e-commerce market. In the long run, the bank expects Jingdong to create more value. With the improvement of supply chain management model and operation efficiency, JD.com 's income and profit growth is expected to outperform the overall market. With the improvement of operating cash flow and the increase of cash holdings, JD.com is expected to further enhance his financial strength and have room to enhance shareholder returns through buybacks and potential dividends. Big Moyu$JD.com (JD.US) $Us stocks are overrated with a target price of $80. In an optimistic scenario, JD.com 's market capitalization could rise to $323 billion within three years, equivalent to $190per share in ADR, meaning that there is more than 200 per cent potential upside in the next three years. In general and pessimistic scenarios, JD.com 's market capitalization is expected to be equivalent to US $222 billion and US $136 billion by 2025, or US $130 and US $80 per share of ADR.

• UBS: health$Sino Biopharmaceutical (01177.HK) $Target price to HK $8, rating buy

UBS released a report that lowered the target price of Sino Biopharmaceutical from HK $11.60 to HK $8, reflecting the company's latest guidelines that sales growth will slow, as well as reduced profits from the joint venture and increased research expenses. however, it is still optimistic about its extensive product pipeline and R & D capabilities, rating and buying. UBS pointed out that revenue and adjusted net profit of Shengsheng Pharmaceuticals increased by 13.6% and 26.6% respectively last year, while oncology, cerebrovascular and smoking departments maintained a steady growth momentum. Due to the increasing R & D resources for innovative drugs and biological agents, the revenue contribution of innovative products rose to 6.4 billion yuan, accounting for 24% of the total sales. According to the report, Zhongsheng Pharmaceuticals is currently trading at 11 times forecast 2023 earnings, which is considered undervalued compared to the average of 20 times for its peers.

• China Merchants (Hong Kong): maintenance$Li Auto Inc.-W (02015.HK) $"Buy" rating, target price of HK $159

China Merchants (Hong Kong) released a research report that maintains Li Auto Inc. 's-W "buy" rating and values 5x2022EP/S with a target price of HK $159.00. At present, the demand for ideal One is strong, with a delivery cycle of 6-8 weeks and 10 weeks in some areas, while the supply chain of the Changzhou plant is still tight and production is expected to remain temporarily under pressure in May. Considering the delay of the Beijing auto show, although the exact launch date of the L9 is still uncertain, the bank expects the company to be able to ensure that delivery begins in the third quarter, and the current L9 market is highly watched and may become a new share price catalyst.

• Credit Suisse: maintain$Xtep International (01368.HK) $"outperform market" rating, target price reduced by 14.7% to HK $15

Credit Suisse released a research report saying that it maintained Xtep's international "outperform" rating, downgraded its 2022-24 earnings forecast by 7% per cent per share, and lowered its target price by 14.7% from HK $17.6 to HK $15. Although affected by the epidemic, it is believed that Xtep is still one of the most resilient companies, with better order performance and revenue visibility in the short term, and lists it as the industry's first choice.

• CICC: maintain$Yanzhou Mining Energy (01171.HK) $Outperform the industry rating with a target price of HK $31

According to a research report released by CICC, Yanzhou Mining maintains its "outperform industry" rating with a target price of HK $31, equivalent to 5 times and 5.2 times forecast earnings for this year and next, compared with 3.6 times and 3.8 times for this year and next. The bank pointed out that the company's first-quarter results are in line with expectations and are optimistic about the profit outlook of the overseas coal business. In the first quarter, the average FOB price of 6000 kcal thermal coal in Newcastle, Australia rose 212% compared with the same period last year, and the average FOB price of coking coal, the main coal mine in Australia, rose 287% year on year. In addition, considering that overseas coal supply and demand is still tight in the short term, the bank believes that overseas coal prices are expected to maintain a high level of operation, and is optimistic that the company's overseas coal business profits will continue to be released.