Big Moves | AMD Target Price Cut! "Chinese Head" Benefits from State-Owned Enterprise Revaluation, Expected to Rise at Least 40%?

Morgan Stanley: Cuts AMD's target price by 5% to $97, down from $102

If calculated at the latest closing price of $81.62, this price means there is still a 19% upside!

The bank said that AMD's server and personal computer business sales in the first quarter were lower than expected, but will improve in the second quarter.

Goldman Sachs: Raises YUM CHINA's target price to $75

If calculated at the latest closing price of $62.57, this price means there is still a 20% upside!

The bank said that YUM CHINA's first-quarter profit performance was strong and better than expected, emphasizing that restaurant profit margins were higher than in the pre-epidemic period (i.e., the first quarter of 2019) and almost reached a historical high since listing.

The report pointed out that the strong profit margin was due to improvements in capital expenditures and rent for new stores, as well as optimization of store combinations, both of which may continue to perform well. Although the company has launched various price promotions to increase traffic and work efficiency, food costs have declined.

Entering the second quarter, the same-store sales recovery during the Labor Day holiday period is also encouraging. Although food prices and wage inflation may rise in mid-year, management emphasizes that the company has the ability to cope with pressure in food innovation, supply chain management, and labor efficiency.

JPMorgan: Raises target price for CHINA RAILWAY, CHINA RAILWAY Construction, and China Communications Construction

The bank raised the target price of CHINA RAILWAY stock from HKD 7.3 to HKD 10.1, an increase of 38%, and maintained a "buy" rating;

Raised the target price of CHINA RAILWAY Construction H shares from HKD 7.8 to HKD 10.3, an increase of 32%, and maintained a "buy" rating;

Raised the target price of China Communications Construction H shares from HKD 6.4 to HKD 8.2, an increase of 28%, and maintained a "buy" rating.

If calculated at the latest closing price, this price means there is still 63%, 42%, and 53% upside respectively!

The bank said that under the investment theme of the revaluation of state-owned enterprises, the average stock price of CHINA RAILWAY, CHINA RAILWAY Construction, and China Communications Construction has risen by about 50% since the beginning of the year, which is significantly better than the performance of the index during the same period. Looking ahead, it is expected that the revaluation space of the infrastructure industry will continue to exist during the remaining time of the "14th Five-Year Plan" and the period from 2023 to 2025. In the face of increasing economic uncertainty, its stable growth prospects will be recognized by investors.

Citigroup: Reiterates "Buy" rating on HSBC Holdings, raises target price to HKD 71.7

If calculated at the latest closing price of HKD 58.65, this price means there is still a 22% upside! The bank has updated its forecast for HSBC's sale of its Canadian and French retail businesses, raising its share buyback forecast to $4 billion this year and an expected $6 billion next year. The basic earnings per share forecast has been raised by 6% to 14%, mainly due to revenue growth (driven by net interest income this year and non-interest income in subsequent years), reduced impairment (mainly this year) and buybacks. In addition, as the bank expects the sale of its Canadian business to be completed next year, it may have an impact on earnings per share this year.

Bank of America: Initiates coverage of Kingsoft Software with a "Buy" rating and a target price of HKD 44

At the latest closing price of HKD 33.3, this price implies a 32% upside potential!

The bank is optimistic about Kingsoft Software's dual subscription model for personal and institutional users, which has led to rapid expansion of office software revenue, stable growth in gaming business, and attractive valuation. The bank expects Kingsoft Software's revenue compound annual growth rate (CAGR) to be 21% from 2022 to 2025, and its operating profit margin to expand from 24.5% in 2022 to 25.3% in 2025.

The bank's target price includes a 20% discount for the holding company. In addition, it reflects a forecast price-to-earnings ratio of 60 times for the next 12 months. Downside risks include delays in launching new games, lower-than-expected growth in office software revenue, and increased net losses for Kingsoft Cloud.

The bank expects the CAGR of Kingsoft Software's office software business revenue to be 32% during the same period, with personal and institutional subscription business CAGR expected to be 41% and 43%, respectively.

In terms of gaming business, Kingsoft Software is expected to maintain stable growth in the Chinese market and become a new growth driver for gaming business by launching new games in the global market.