Great read | BYD remains the top choice in the new energy vehicle industry! CKH HOLDINGS and HSBC's target prices have been raised!
Morgan Stanley said that even though subsidies for new energy vehicles are insufficient, BYD's first-quarter profits are in line with expectations, rising 411% year-on-year to RMB 4.1 billion, and the company is believed to accelerate its core profitability and profit potential in the new energy vehicle business in the second quarter of this year.
JPMorgan: Maintains BYD "Overweight" rating, target price of HKD 275, still the bank's top pick
If calculated based on the latest closing price of HKD 232, this price implies a 18.5% upside potential!
The bank stated that even though the subsidies for new energy vehicles are insufficient, BYD's first-quarter profit met expectations, rising 411% YoY to RMB 4.1 billion, and the bank believes that the company's core profitability and profit potential in the new energy vehicle business may accelerate in the second quarter of this year. The bank expects the company's new energy vehicle sales to reach 2.6 million units this year, implying a YoY increase of 44%.
Bank of America: Maintains CKH HOLDINGS "Buy" rating, raises target price by 7% to HKD 64
If calculated based on the latest closing price of HKD 52.65, this price implies a 22% upside potential!
The bank stated that, by business segment, it is expected that the company's retail business under CKH HOLDINGS will benefit from the domestic economy's recovery this year. The bank also estimates that CKH HOLDINGS' port EBITDA performance is weak, mainly due to the significant decline in profits from shipping joint ventures and low storage income, as well as continued inflationary pressure in Europe and low energy contributions.
Morgan Stanley: Maintains HSBC "Overweight" rating, raises target price by 3.5% to HKD 67.5
If calculated based on the latest closing price of HKD 58.85, this price implies a 15% upside potential!
The report stated that the company's first-quarter adjusted pre-tax profit exceeded expectations by 26%, and the basic guidance was maintained. The bank believes that this was a good quarter, and the resumption of quarterly dividends of USD 0.1 per share and the announcement of a USD 2 billion share buyback should provide support. The bank also stated that although the company has performed well, it does not expect any substantial changes in market expectations. HSBC Holdings remains the bank's top pick in the Hong Kong and ASEAN markets.
Citigroup: Gives China Mobile a "Buy" rating, target price of HKD 81
If calculated based on the latest closing price of HKD 66.85, this price implies a 21% upside potential!
The bank stated that the company's opportunities for digital economic development have increased, and it is expected that the revenue of the DICT business will maintain a stable growth trend. Among Chinese telecommunications stocks, its H shares are still the bank's top pick.
Macquarie: Maintains Ganfeng Lithium "Outperform" rating, slightly lowers target price by 0.3% to HKD 77.7
If calculated based on the latest closing price of HKD 53.85, this price implies a 44% upside potential!
The bank stated that Ganfeng Lithium's first-quarter net profit fell 32% YoY to RMB 2.4 billion, while the gross profit margin remained flat QoQ at 37%, mainly due to the better product mix. The bank believes that the inventory loss of RMB 1.2 billion recorded in the previous quarter was a one-time impact, and the lithium price has bottomed out in April. The bank lowered its earnings per share forecast for the next two years by 17% and 2%, respectively.