CMBI Research China & Hong Kong Stock Picks (September 2024)
ANTA Sports Products, Haier Smart Home, EVA Precision Industrial Holdings, Topsports, Nio, Haidilao, China Life Insurance, Li Auto, Geely Automobile, Xiaomi, China Life Insurance, etc.
I have spent some time cleaning up our stock Index posts with the one covering greater China stocks being the most cleaned up (I will likely add an emoji link to a Wikipedia entry which can actually be a useful resource - especially IF a stock has ever been involved in a controversy…):
Example:
CMB International Capital Corporation is a wholly owned subsidiary of China Merchants Bank (SHA: 600036 / HKG: 3968 / 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).
However, there are probably other providers of similar types of free stock and other types of research reports for Chinese and Hong Kong stocks (even if you hate these markets, they are too big to completely ignore e.g. Chinese EV, sporting goods, eCommerce etc. companies are increasingly able to compete against and gain market share at the expense of their Western competitors globally…). I am thinking of replacing CMBI Research posts with a monthly or bi-monthly post that covers China stock research from multiple sources using the much shorter stock descriptions from the stock index (at the very least that will shorten and tighten up these posts…) that will probably still include some P/B, P/E and dividend stats plus a long term chart.
It is a pet peeve of mine to have writers etc throw links or stock names (without any links to an IR page or quote) out there and expect readers to be familiar with the stock and what they do. And I do realize that any research from a bank or investment firm like CMBI must be taken with (several…) grains of salt; but what they are saying along with some key stats should tell you whether the stock is worth doing your own due diligence on.
Stocks covered by CMBI Research during the month of September and in this post include:
China Hongqiao Group, ANTA Sports Products, Haier Smart Home, EVA Precision Industrial Holdings, Topsports, Binjiang Service Group, JNBY Design, NIO Inc, New Hope Service Holdings Ltd, China Pacific Insurance (Group), Haidilao International Holding, Jinmao Property Services Co Ltd, Wingtech Technology, Maxscend Microelectronics Co, China Life Insurance, Shanghai United Imaging Healthcare, Atour Lifestyle Holdings, Shenzhen Mindray Bio-Medical Electronics, Sany Heavy Equipment International Holdings, Zoomlion Heavy Industry, Guangzhou Automobile Group, Jinxin Fertility Group, Joinn Laboratories China, China Yongda Automobile Services Holding & China MeiDong Auto Holdings
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, June, July, August, September, October, November, December, January-February, March, April, May, June and July-August posts summarizing those) BUT these lists do not change too much from month to month. Stocks covered by the CMBI September list (including Additions and Deletions) and included in this post with updated stats and charts include:
Li Auto, Geely Automobile Holdings, Zoomlion Heavy Industry, Zhejiang Dingli Machinery, Bosideng International Holdings, JNBY Design, Xtep, Proya Cosmetics, Kweichow Moutai, BeiGene, Shenzhen Mindray Bio-Medical Electronics, China Pacific Insurance (Group), PICC Property and Casualty Co Ltd, Tencent, Alibaba, Pinduoduo, Greentown Service Group Co, CR Land, FIT Hon Teng (Foxconn Interconnect Technology), Xiaomi Corp, BYD Electronic International Co Ltd, Zhongji Innolight Co Ltd, NAURA Technology Group & Kingdee International Software Group
Short Idea: Sinotruk Hong Kong Ltd
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 - please keep the above disclosures in mind).
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.
A price/book (most recent quarter) ratio plus 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.
And 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…
CMBI Research (September 2023)
China Hongqiao Group
China Hongqiao Group (HKG: 1378 / FRA: H0Q / OTCMKTS: CHHQF / CHHQY) is one of the world’s largest aluminum producer covering the entire aluminum industry chain. Hongqiao is specialized in thermoelectric, mining, and producing aluminum products. Its diverse product portfolio includes alumina, hot liquid aluminum alloy, aluminum alloy ingots, rolled cast aluminum alloy products, aluminum busbar, high precision aluminum plates with foil, and new materials. It was listed on the Main Board of the Hong Kong Stock Exchange in 2011. By the end of 2023, the total assets of Hongqiao were RMB 200.32 billion.
China Hongqiao (1378 HK) - Expect higher ASP following China’s stimulus
Price/Book (Most Recent Quarter): 1.06
Forward P/E: 5.55 / Forward Annual Dividend Yield: 9.59% (Yahoo! Finance)
ANTA Sports Products
ANTA Sports Products (HKG: 2020 / FRA: AS7 / OTCMKTS: ANPDY / OTCMKTS: ANPDF) is involved in the design, R&D, manufacturing, marketing and sales of professional sports products, including shoes, apparel and accessories to Chinese consumers. By embracing an all-round brand portfolio including ANTA, FILA, DESCENTE and KOLON SPORT, and by setting up an investor consortium to successfully acquire Amer Sports in 2019 (a global sportswear group that has internationally recognized brands including Arc’teryx, Salomon, Wilson, Peak Performance, Atomic, etc.), ANTA Sports aims to unlock the potential of both the mass and high-end sportswear markets.
Anta Sports (2020 HK) - Takeaways from the Anta Superstore visit
Price/Book (Most Recent Quarter): 4.21
Forward P/E: 17.86 / Forward Annual Dividend Yield: 2.45% (Yahoo! Finance)
Haier Smart Home
Haier Smart Home (HKG: 6690 / SHA: 600690 / OTCMKTS: HSHCY / OTCMKTS: HRSHF) is involved in the research, development, production and sales of smart home appliances such as refrigerators/freezers, washing machines, air conditioners, water heaters, kitchen appliances, small home appliances and smart home scene solutions.
Haier Smart Home (6690 HK) - Takeaway from the post result NDR
Price/Book (Most Recent Quarter): 2.43
Forward P/E: 12.29 / Forward Annual Dividend Yield: 2.81% (Yahoo! Finance)
