Big moves | Oriental selection target price cut! Wall Street bullish on Hong Kong's gambling stocks.
According to the Q3 report, EAST BUY's earnings were significantly higher than expected by analysts, with a 23% lower forecast. Due to the lower live streaming profit margin, Daiwa has lowered its GMV forecast for the 2024-25 fiscal year by 4-5%, and lowered its EPS forecast by 17-19%.
Daiwa: Maintains EAST BUY's "Hold" rating, lowers target price by 56.3% from HKD 64 to HKD 28
If calculated at the latest price of HKD 25.9, this price implies an 8% upside!
The bank stated that EAST BUY's GMV (total merchandise volume) reached its peak in December last year. Based on the performance of EAST BUY's Q3 2023 fiscal year, the bank's revenue was 23% lower than expected. Due to the lower live streaming profit margin, Daiwa lowered its 2024-25 fiscal year GMV forecast by 4-5% and lowered its EPS forecast by 17-19%.
In addition, Yu Minhong, the chairman of the new EAST BUY, recently talked about the issue of corporate succession in the EAST BUY live broadcast room, saying that the new EAST BUY is a company with almost all public shares, so he does not have the problem of second-generation succession. However, talents like Dong Yuhui may still be considered for succession in the future. CICC recently stated that the market has doubts about EAST BUY's business in terms of traffic acquisition, GMV growth, and brand influence.
Citigroup: Maintains PetroChina's "Buy" rating, raises target price by 21% from HKD 5.3 to HKD 6.4
If calculated at the latest price of HKD 5.39, this price implies a 19% upside!
The bank stated that PetroChina's first-quarter net profit increased by 12% year-on-year and 50% quarter-on-quarter. Except for the chemical business, all other businesses performed better than expected. Although the core refining profit per barrel fell to USD 5.1 per barrel, it is still at a high level from a historical perspective. The high gasoline or fuel production is one of the reasons, but the bank believes that discounted Russian crude oil may also play a role, and the loss of imported natural gas has decreased by about RMB 3 billion quarter-on-quarter.
Given the strong performance in Q4 2022 and Q1 2023, the bank believes that PetroChina investors are gradually seeing higher profits of the group, and has raised its profit forecast for 2023 to 2025 by 2-9% to reflect higher total refining profits and lower losses from imported natural gas.
Morgan Stanley: Gives MGM China a "Buy" rating with a target price of HKD 13
If calculated at the latest price of HKD 10.8, this price implies a 20% upside!
The bank believes that MGM China's stock price will outperform the market within 60 days, with a probability of more than 80%. The report pointed out that MGM China's Q1 performance exceeded market expectations, and the growth of Macau's gaming revenue in April is also favorable for the stock.
Morgan Stanley: Upgrades General Motors from "Equal-weight" to "Overweight" with a target price of USD 38
Truist: Maintains a "hold" rating on Chevron, with a target price lowered by 1.5% to $190.
If calculated at the latest price of $167.24, this price means there is still a 14% upside!
Chevron's first-quarter financial report showed a decline in both quarter-over-quarter and year-over-year free cash flow due to increased capital expenditures. Analysts say the company also plans to continue expanding its capital expenditures in several new energy companies, such as the large-scale carbon capture project at Bayou Bend, but its capital will still be focused on higher-margin businesses.