Quick Look from Major Banks | KUAISHOU-WR Target Price Downgraded! BYD, XPENG-W, and Leapmotor Receive Positive Outlook
Morgan Stanley believes that the mainland will reach a turning point in semi-autonomous driving next year. They are optimistic about BYD and LEAPMOTOR among the vehicle manufacturers, followed by GWMOTOR. They also see great potential in XPENG-W's leading position in the field of autonomous driving technology and will seek more attractive market entry opportunities.
Nomura: Reiterates "Neutral" rating for Kuaishou, lowers target price by 6% to HKD 68
If calculated based on the latest closing price of HKD 56.3, this price implies a 21% upside potential!
The bank believes that Kuaishou may face saturation in the live-streaming e-commerce market and intensified competition from Tencent's Video Account. It predicts that the Chinese live-streaming e-commerce industry is moving towards structural slowdown, with the industry's GMV growth rate expected to further decline to below 20% next year.
The bank has raised its profit forecasts for Kuaishou in 2023 and 2024 by 12% and 15% respectively, while keeping its revenue expectations largely unchanged.
Furui: Initiates "Buy" rating for AIA, with a target price of HKD 90
If calculated based on the latest closing price of HKD 70.15, this price implies a 28% upside potential!
The report states that the company has reversed the declining profit margin trend in AIA China over the years, which is a pleasant surprise. In addition to reversing the profit trend in the third quarter of this year, AIA China has also seen a 20% increase in its new business value, with the rising demand for critical illness products being a significant driving factor.
The bank indicates that in Vietnam, there have been allegations of improper life insurance sales in the insurance industry, mainly in the bancassurance channel. It is expected that the related insurance sales will be affected. The bank has raised its forecast for this fiscal year's Annualized New Premium (ANP) by 3% and its forecast for new business value by 3%. It is expected that ANP and new business value will grow by 44% and 31% respectively this year.
J.P. Morgan: Mainland China's semi-autonomous driving to reach a turning point next year, car companies optimistic about BYD and Leapmotor
The bank believes that marketing activities targeting young Chinese car buyers will increasingly emphasize that Level 3/4 semi-autonomous driving functions are not just desirable but necessary. This will prompt them to demand such features when purchasing new cars, which means that products without such functions may have difficulty selling in the future.
The bank is optimistic about BYD and Leapmotor among the automakers, followed by Great Wall Motors. It also sees potential in the strategic partnership between Changan Automobile and Huawei, which will enhance Changan Automobile's product competitiveness in the long run.
In addition, the bank sees Xiaopeng's leading position in autonomous driving technology and will look for more attractive entry points. As for Geely and other original equipment manufacturers, the bank believes that their stock prices may remain stagnant due to weak profitability.