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Updated2024/11/29 15:10
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<Research>CICC Expects Overseas CN Stocks to Earn 6%+ More in 1H; Predicts CRRC, TRIP.COM, BYD, GWMOTOR & Others to Report Beat Results
CICC released its Hong Kong equity strategy report. Ahead of the mid- to late-August peak season for corporate results announcements, the broker analysed 433 overseas Chinese stock...
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<Research>CICC Expects Overseas CN Stocks to Earn 6%+ More in 1H; Predicts CRRC, TRIP.COM, BYD, GWMOTOR & Others to Report Beat Results
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CICC released its Hong Kong equity strategy report. Ahead of the mid- to late-August peak season for corporate results announcements, the broker analysed 433 overseas Chinese stocks in its coverage area based on industry analysts' forecasts, in particular for areas that are likely to exceed expectations.

CICC forecasted an overall slowdown in 1H24. The bottom-up aggregated industry analysts' forecasts for individual stocks indicate that earnings are expected to grow by 6.4% in RMB terms during 1H, a decline from 13% in full-year 2023. This is mainly due to the lack of endogenous momentum in the domestic economy, the slow recovery of investment and consumption, and the overall pressure on prices.

In terms of sectors, only upstream resource products, export chain-related home appliances and marine transport, water, electricity and gas, and education services were expected to perform better, while most other industries were projected to slow down YoY.

According to CICC, the market consensus is for overseas Chinese stocks to grow at a rate of 6.4% in 1H24, broadly the same as the 6.4% forecast by the broker's industry analysts. These analysts are more optimistic than the market on the technology hardware, retail, media and entertainment, and hotel, restaurant and leisure sectors, while their earnings expectations for the automotive, pharmaceuticals and biotechnology, textile and apparel and luxury goods, and oil and gas sectors are lower than current market expectations.

At the individual stock level, CICC's industry analysts expected CRRC (01766.HK)  +0.010 (+0.220%)    Short selling $3.79M; Ratio 5.055%   , TRIP.COM-S (09961.HK)  +7.500 (+1.497%)    Short selling $156.77M; Ratio 21.416%   , ZMJ (00564.HK)  +0.120 (+1.266%)    Short selling $277.85K; Ratio 3.455%   , ANE (09956.HK)  +0.120 (+1.489%)    Short selling $546.07K; Ratio 12.740%   , KERRY LOG NET (00636.HK)  +0.090 (+1.241%)    Short selling $150.96K; Ratio 2.335%   , GWMOTOR (02333.HK)  -0.160 (-1.264%)    Short selling $55.48M; Ratio 27.943%   , BYD COMPANY (01211.HK)  +1.400 (+0.555%)    Short selling $106.95M; Ratio 10.855%   , FUYAO GLASS (03606.HK)  -0.200 (-0.381%)    Short selling $608.30K; Ratio 1.160%   , and Tuya (TUYA.US)      to Outperform. Meanwhile, the analysts projected the results of Hello Group (MOMO.US)      , FE HORIZON (03360.HK)  -0.020 (-0.380%)    Short selling $646.19K; Ratio 3.327%   , FLAT GLASS (06865.HK)  +1.080 (+8.451%)    Short selling $20.74M; Ratio 7.832%   . XINYI SOLAR (00968.HK)  +0.150 (+4.559%)    Short selling $75.18M; Ratio 20.683%   , TRIUMPH NEW EN (01108.HK)  +0.080 (+2.025%)   , SUPER HI (09658.HK)  +0.020 (+0.122%)    Short selling $4.20M; Ratio 12.761%   , and JIUMAOJIU (09922.HK)  +0.130 (+4.050%)    Short selling $16.78M; Ratio 19.091%   to be under pressure, and may not perform as well as the market expects.

(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-11-29 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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