Credit Suisse: new refinancing rules Citic (06030), Huatai (06886) and CICC (03908) are all rated as "outperform the market".
Credit Suisse published a research report that the CSRC issued new rules on refinancing on February 14 to expand the range of companies eligible for refinancing, improve investment attractiveness and simplify approvals.
The bank said that compared with the previous version, the placing ratio of the final version was relaxed from 20% to 30%, and the grace period for submitting applications was relaxed. Assuming that the final amount of refinancing returns to an average of about 1.1 trillion yuan in 2013-2017, this will be converted into fee income equivalent to 6.1 billion yuan, or about 1.7 per cent of total income in 2019.
The bank said it expected that future capital market reforms would target direct financing and would help securities firms with research teams, institutional clients and strong capital, with CITIC preferred.(06030), Huatai (06886) and CICC (03908) are all rated as "outperform the market", with target prices of HK $17.80,15.50 and HK $17.2respectively.
Credit Suisse: maintainSunny Optical Technology(02382) the target price of "outperform the market" rating is HK $161,
Credit Suisse published a research report that Sunny Optical Technology (02382) shipments last month increased better than expected, mobile phone lens module shipments increased 38% year-on-year, mobile phone lens increased 33%, respectively, higher than the bank's full-year forecast growth rate (19% and 27% respectively). Car lens shipments rose 13 per cent year-on-year, below the bank's full-year forecast of 28 per cent growth. Shunyu Optics's market share rose to 39% in the fourth quarter of last year, compared with 33% in the fourth quarter of 2018.
The bank said it maintained Shunyu Optical's "outperform" rating with a target price of HK $161.
Western Securities:Guangzhou Automobile Group(02238) January sales were stronger than the industry to maintain a "buy" rating
The wholesale sales performance of Western Securities in January is better than that of the industry, with obvious signs of stabilization of its own brand, good terminal feedback after the listing of Guangben Haoying, and attractive pricing of Guangfeng Weilanda, which is expected to become the next popular style. Give a "buy" rating with a target price of HK $10.8.
GAC sold 172000 vehicles in January, down 15.9% from a year earlier, outperforming the industry and equivalent to 8% of its annual sales target in terms of target achievement rate, in line with Western Securities expectations.
Guangfa overseas:Hua Hong Semiconductor(01347) the depreciation pressure of the new plant still maintains the "hold" rating in the initial response phase.
Guangfa overseas released a research report that Hua Hong Semiconductor's (01347) 4Q income and gross profit margin are in line with expectations, but the net profit is lower than expected. The depreciation pressure of the new factory is still in the initial reaction stage, maintaining the "hold" rating and giving the target price HK $14.3.
According to the report, the company's 4Q revenue and gross profit margin are in line with market expectations: the 2% month-on-month increase in revenue is due to the fact that the 12-inch plant in Wuxi began to contribute revenue (although 8-inch revenue decreased by 2% from the previous month). The decline in gross profit margin from 31% of 3Q to 27.2% of 4Q is due to depreciation pressure caused by the slope climbing of Wuxi 12-inch plant capacity. The net profit (26 million) was lower than market expectations (39 million), which was judged to be due to the corresponding increase in R & D costs brought about by the 12-inch production.
Daiwa: maintainFlat Glass Group(06865) "Buy" rating raised target price to HK $8.30
Daiwa released a report that maintained Flat Glass Group's (06865) "buy" investment rating, raising the target price from HK $7 to HK $8.30.
The bank believes that the demand for glass in the mainland will be delayed from the first quarter of this year to the second to third quarters of this year. In addition, the delayed expansion of factory capacity in Vietnam will support the gross margin of photovoltaic glass business and the price of photovoltaic glass, raising Flat Glass Group's gross margin forecast for this year by 2 percentage points to 33.4%. Flat Glass Group's share price is expected to continue to catch up, and its trading volume has also improved recently, raising its 2020-2021 net income forecast by 3%.
Daiwa: BABA's (09988) business is expected to rebound strongly and raise its target price to HK $260m.
According to a report by Daiwa, BABA's (09988) business is expected to rebound strongly, slightly raising its H-share target price by 4 per cent to HK $260.
The bank said the recent increase in demand for online fresh products and groceries could reshape the shopping behavior of mainland consumers in the long run, which is good for BABA's new retail investment and has growth potential in the cloud services market.
CICC: upward adjustmentSemiconductor Manufacturing International Corporation(00981) maintain an "better than market" rating at HK $18
China International Capital CorporationSemiconductor Manufacturing International Corporation (00981) achieved results in the fourth quarter of last year in line with expectations, while guidance for the first quarter and the whole year exceeded expectations, according to a report. The bank said it raised its target price by 38 per cent to HK $18, maintaining a "better than the market" rating.
CICC said it raised its forecast for SMIC's revenue and net profit this year to 1 per cent and 28 per cent respectively, adding that SMIC had benefited from the localization of Huawei's supply chain.
CICC: upgrade King Pacific (01813) target price to HK $13.60 to maintain "better than the market" rating
China International Capital Corporation released a report saying that Hexing Pacific (01813) has a good quality of land reserves and a stable financial position, so it raised its target price by 24% to HK $13.6, maintaining a "better than the market" rating.
CICC said that given the regional layout of Hejing Pacific, there is a high degree of certainty in the launch and sales deployment for the whole year, and the company's core net profit is expected to grow 30% year-on-year this year and 25% year-on-year in 2020 and 2021.
CICC also said that Hexing Pacific is expected to spin off its property management sector in the second half of this year, conservatively estimating the fair value of its business to more than HK $1 per share corresponding to the current outstanding shares, which has some support for the company's current valuation.
Bernstein: lBYDThe target price of the shares (01211) to "keep pace with the market" will be raised to HK $50.
Bernstein, the US brokerage, reported that the mainland's policy of supporting the electric car industry would be good for Byd Company Limited's long-term growth in 01211, so it upgraded its H-share investment rating from "inferior to the market" to "in line with the market", raising its target price by 66.67 per cent to HK $50.
Demand for electric cars and batteries in the mainland is expected to grow this year, driven by the double points policy and an increase in the target for electric cars by 2025, the bank said.
CICC: the slowdown in the gas market is conducive to the emergence of recommendations for integrating M & An opportunities.China Resources Gas（01193）及ENN Energy（02688）
China International Capital Corporation said in a release that the mainland gas market is expected to slow down this year and opportunities for integration and mergers and acquisitions will emerge. The bank recommends China Resources Gas (01193), ENN Energy (02688) and Beijing Holdings(00392), and Shenzhen Gas, which is expected to earn more than expected from LNG ((liquefied natural gas) terminal.
The bank said the growth of national natural gas demand slowed further, and natural gas consumption was expected to grow by 5 per cent this year, down from 8.4 per cent for the whole of last year. After the establishment of the pipeline company, upstream gas prices may be high in the short term, aggravating the losses of local small and medium-sized gas companies with low operational efficiency, or being driven out of the market. Moreover, after the industry threshold is raised, it will also promote industry integration.
The bank believes that the comprehensive gross margin of gas sales for the whole of 2020 is expected to continue to fall to 0.02 yuan per cubic meter compared with the same period last year, the gas filling station business is facing a contraction in structural demand, and it is expected that the new cost-profit index will reduce the connection fee per household by 200,300 yuan this year, but the negative impact is limited. On the engineering side, the company will rush to work in the second half of the year, and it is expected that the impact of gas sales for the whole of this year will be greater than that of connection projects.