CMBI China and Hong Kong Equity Research (June 2023)
Topsports, Intron Technology, China Gas Holdings, Atour Lifestyle, EC Healthcare, Li Auto, Great Wall Motor, CR Power, Cafe De Coral, WuXi Biologics, NIO Inc, Trip.com, Bilibili, JOYY Inc, etc.
CMB International Capital Corporation is a wholly owned subsidiary of China Merchants Bank (HKG: 3968 / SHA: 600036 / OTCMKTS: CIHKY / OTCMKTS: CIHHF) - one of the largest banking groups and the largest privately-owned bank in China. They come out with (and post on their website) a steady stream of free research pieces - namely China and Hong Kong stock picks (see our front page for a full list of TAGS for our EM Stock Pick Tear Sheets)
Stocks covered by CMBI for the month of June and covered by this post include:
Bosideng International Holdings, Topsports, FIT Hon Teng, Q Technology, Intron Technology, China Gas Holdings, Atour Lifestyle Holdings, EC Healthcare, Li Auto, Great Wall Motor, Dalipal Holdings, CR Power, Cafe De Coral, WuXi Biologics, Sunny Optical, BOE Varitronix, NIO Inc, Trip.com, Sany Heavy Equipment International Holdings, CMGE Technology, Baidu, Greentown Service Group Co, Ke Holdings, EVA Precision Industrial Holdings, Bilibili & JOYY Inc
They also come out with (and post on their website) a monthly list of 20+ high conviction stock ideas - namely Chinese stock picks (see our May and June posts summarizing those) BUT these lists do not change too much from month to month. In the future, this post will probably cover those as well.
Note that when I click on CMBI’s website, I receive NO pop-up asking what sort of investor I am or my location; but there is this disclaimer at the end of each research report that readers need to be aware of:
This post will NOT be quoting directly from the research documents themselves (beyond giving the title to the linked research report).
To make your life easier, this post includes:
A heading with the stock name.
A quick description of the stock pick with links to the IR page and stock quote(s) on Yahoo! Finance.
A link to any Wikipedia page (for what it might be worth…)
The title of the report linked to the file page on the CMBI website about the stock pick.
Forward or trailing P/E and dividend yields linked back to the Yahoo! Finance statistics page.
The latest long term technical chart linked back to Yahoo! Finance.
As always, this post is provided for informational purposes only (and to make your life easier…). It does not constitute investment advice and/or a recommendation…
Keep in mind that CMBI would more or less be doing sell side research (with all the usual conflicts of interest that can arise from doing that) and you probably will never see a sell recommendation from them - just like you almost never see a sell recommendation coming from Wall Street…
Bosideng International Holdings
Bosideng International Holdings (HKG: 3998 / FRA: 3BD / OTCMKTS: BSDGY / BSDGF) is a renowned operator in China with down apparel brands. Founded in 1976, the Group commenced its operations in extremely difficult conditions under the leadership of Mr. Gao Dekang.
With a focus on down apparel business, the Group has developed into an expert in down apparel which has been widely recognized by consumers and a leader in the development of the industry. Currently, the Group's down apparel brands include Bosideng, Snow Flying, Bengen, etc. These brands have been supporting the Group in meeting the needs of different groups of customers and enhancing its position as a leader in the PRC market. Among them, the down apparel business under the Bosideng brand maintained a significant lead in the industry for 27 consecutive years (1995 - 2021) in terms of sales volume in the PRC.
Currently, the Group's ladieswear brands include JESSIE, BUOU BUOU, KOREANO, KLOVA; and the school uniform brand is Sameite.
Bosideng (3998 HK) – FY23 results missed and a moderate outlook
Forward P/E: 14.08 / Forward Annual Dividend Yield: 5.25% (Yahoo! Finance)
Topsports
Topsports (HKG: 6110 / OTCMKTS: TPSRF) aims to build a platform catering to the consumers’ need for sportswear and healthy lifestyle and to become the most outstanding global sportswear retailer. The Company operates a consumer-centric, omnipresent and retail operation platform in China.
Through their industry-leading nationwide directly-operated store network, with 6,000+ directly-operated stores across over 300 cities, they provide consumers with superior sports and lifestyle experience through omnipresent engagement across various occasions. The Company has well-established strategic partnerships with 10+ leading sportswear brands, providing them with access to the local market and reference to consumer insights.
Topsports (6110 HK) – Localization and efficiency-led turnaround
Forward P/E: 19.27 / Forward Annual Dividend Yield: 2.81% (Yahoo! Finance)
FIT Hon Teng
FIT Hon Teng or Foxconn Interconnect Technology (HKG: 6088) is a global leader in the supply of precision components with offices and manufacturing sites located in Asia, the Americas and Europe.
Wikipedia (Foxconn)
Forward P/E: 7.73 / Forward Annual Dividend Yield: N/A (Yahoo! Finance)
