CMBI Research Focus List of China Stock Picks (June 2023)
Li Auto, Great Wall Motor, Zoomlion Heavy Industry, CR Gas, Yum China, CR Beer, Tsingtao, Prada SpA, Kweichow Moutai, Innovent Biologics, AK Medical, AIA, Tencent, Pinduoduo, NetEase, Alibaba etc.
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 monthly list of 20+ high conviction stock ideas - namely Chinese stock picks (see our front page for a full list of TAGS, including China tags, for our EM Stock Pick Tear Sheets).
Their list is subject to additions (three for June) and deletions (another three). See our previous post summarizing their May stock picks: CMBI Research Focus List of China Stock Picks (May 2023).
Stocks covered by the CMBI June list (including additions and deletions) and in this post include:
Li Auto, Great Wall Motor, Zoomlion Heavy Industry, Yancoal Australia, Sany Heavy Equipment International Holdings, CR Gas, Xtep, YUM China, Xiabu Xiabu Catering or XBXB, Midea, CR Beer, Tsingtao Brewery, Prada SpA, Kweichow Moutai, Innovent Biologics, AK Medical, AIA Group, Tencent, Pinduoduo, NetEase, Alibaba, Kuaishou Technology, CR Land, BOE Varitronix, Wingtech, & Kingdee International Software Group
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 the 30 page research document itself:
Therefore, this post will NOT be quoting directly from the Focus List document itself; but you might want to open CMBI Research Focus List (June Edition) – Our best high conviction stock ideas on your phone or in another tab or browser. Then you can scroll through the file and this post at the same time.
This post includes:
A quick description of the stock pick plus links to it’s IR page and stock quote from Yahoo! Finance.
A link to any Wikipedia page (for what it might be worth…)
A link to the latest CMBI research report 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.
While most were covered in our May post, this post has updated charts, statistics and the above link to the latest CMBI research report for June.
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…
Again, many of these stocks have come up in our EM Fund Stock Picks posts. Substack provides readers with two ways to perform rudimentary searches of a Substack (highlighted below):
Li Auto
Li Auto (NASDAQ: LI) designs, develops, manufactures, and sells premium smart electric vehicles. See: Top 10 Chinese Automakers By Electric Vehicle Sales Stock List & Graphic
Link to latest CMBI reports:
Forward P/E: 135.14 / Forward Annual Dividend Yield: N/A (Yahoo! Finance)
Great Wall Motor
Founded in 1984, privately owned Great Wall Motor (HKG: 2333 / SHA: 601633 / FRA: GRV / OTCMKTS: GWLLF / GWLLY) develops, manufactures, and sells automobiles, and automotive parts and components in China, Russia, South Africa, Australia, Saudi Arabia, Chile, and internationally. The company offers SUVs, sedans, pick-up trucks, and energy vehicles primarily under the Haval, WEY, ORA, Tank, and Great Wall Pickup brand names. It also provides auto molds, warehousing, investment and financing, logistics, buildings rental, business information consultation, scrap car recycling, finance leasing, asset management, investment and financing, automotive parts technology development, financial guarantee, economic information consultation, and after-sales services, as well as automotive technology research, development, and technical consultation services.
Link to latest CMBI report:
Forward P/E: 12.59 / Forward Annual Dividend Yield: 3.81% (Yahoo! Finance)
Zoomlion Heavy Industry
Founded in 1992, Zoomlion Heavy Industry (HKG: 1157 / SHE: 000157 / FRA: 8CZ / OTCMKTS: ZLIOY / ZLIOF) is mainly engaged in developing and manufacturing major high-tech equipment in the areas of agricultural, building, energy, environmental, and transport engineering. Zoomlion is said to be China's largest and world's fifth largest construction machinery enterprise.
Link to latest CMBI report:
Forward P/E: 8.15 / Forward Annual Dividend Yield: 9.06% (Yahoo! Finance)
Yancoal Australia
NOTE: Removed from the list. See the “Latest additions/deletions from CMBI Focus List” on page three of the PDF for an explanation.
Yancoal Australia (ASX: YAL / HKG: 3668 / FRA: YA1 / OTCMKTS: YACAF) is a leading low-cost Australian coal producer in the global seaborne market, producing a mix of premium thermal, semi-soft coking and PCI coals for export. Since 2004, Yancoal has built its business through strategic acquisitions; now owning, operating or participating in 11 coal mines across NSW, Queensland and Western Australia. In 2020, Yancoal produced 38.3 million tonnes of saleable coal for export into international markets. Over the past two years, Yancoal has paid dividends to shareholders totaling almost $1 billion.
Link to latest CMBI report:
Forward P/E: 1.66 / Forward Annual Dividend Yield: 31.25% (Yahoo! Finance)
