Phillip Securities Group
Please note that the Day Light Saving of Europe and US will be effective on April 1st and March 11th respectively. The trading hours for those relevant contracts will be 1 hour earlier. Any questions, please contact us at 22776677.For details, please visit our foreign futures website or contact us at 22776677.Moreover,the spread of USD/JPY is low as one pip.Please click here for details
 
  Phillip Investor Notes

11-05-2020(Mon) 08-05-2020(Fri) 07-05-2020(Thu) 06-05-2020(Wed) 05-05-2020(Tue)
Page : 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 |
Investor Notes - Phillip Securities (HK) Ltd
Past Investor Notes  
Phillip Home Send to Friends Free Subscription Give Comments ¤¤¤åª©
4 Mar, 2020 (Wednesday)

            
CITIC TELECOM(1883)
Analysis¡G
Citic Telecom International Holdings (1883) has announced the financial results for the year ended 31 December, 2019. Profit attributable to sharehholders amounted to HK$1,002.2 million, increasing by 5.4% as compared to the corresponding period of the previous year. Basic earnings per share for 2019 amounted to HK27.5 cents. The Board recommended a final dividend of HK15 cents per share for 2019. Together with the 2019 interim dividend of HK5 cents per share, total dividends per share for 2019 amounted to HK20 cents, representing a 11.1% growth over the previous year and a payout ratio of 74% and dividend yield of close to 7%. The Group is making an all-out effort to develop its international market business and expand the coverage of its global networks. Its VPN network service, TrueCONNECTTM, continues to expand and is currently present in more than 130 countries and regions in the world with approximately 140 Points-of-Presence (¡§PoPs¡¨). (I do not hold the above stock)
Strategy¡G
Buy-in Price: $2.85, Target Price: $3.15, Cut Loss Price: $2.70


ZIJIN MINING(2899)
Analysis¡G
Zijin Mining recently decided to acquire a 100% stake in copper, zinc and gold resources company Nevsun (at a price of 9.36 billion). In the next three years, the company`s mineral gold, zinc, copper, silver, and iron concentrates will reach 49-54 tons, 38-42 tons, 67-74 tons, 242-269 tons, and 299-332 tons, respectively, by 2022. The copper composite content reaches 21.9-26%. . The company`s active overseas presence will gradually usher in the harvest period and is expected to become a global resource leader.
Strategy¡G
Buy-in Price: $3.50, Target Price: $4.30, Cut Loss Price: $3.00


Ryoyo Electro Corporation (8068)
Established in 1961 as a semiconductor retail trading company of Mitsubishi Electric (6503). As an electronics trading company, they handle Mitsubishi Electric products in addition to overseas products such as Intel (INTC), Nvidia (NVDA) and Microsoft (MSFT), etc. For 3Q (Feb-Oct) results of FY2020/1 announced on 28/11, net sales increased by 17.6% to 81.3 billion yen compared to the same period the previous year and operating income increased by 43.2% to 1.647 billion yen. The increase in digital household semiconductors for Asia and the increase in PC software following a renewed demand right before the end of Windows 7 support in Japan have contributed.For its full year plan, net sales is expected to increase by 11.9% to 105 billion yen compared to the previous year and operating income to increase by 51.1% to 1.9 billion yen. There have been indications of a stable increase in semiconductor demand for data centres from Oct 2019 onwards in the financial results of Intel and Nvidia, which are the company's main overseas suppliers, and this is likely to benefit the company's business performance. In addition, there is a predicted increase in demand for AI and IoT-related fields backed by efforts for a work style reform and productivity enhancement.Target Price : 2,100 yenBuy Price : 1,854 yenCut-Loss : 1,676 yen



Minth Group (425.HK) - Constant positive prospects for the Company's high-end path

Investment Summary

New Orders of Aluminium Battery Packs Recognized by the Public

Recently, Minth announced that it received Nomination Letter of European aluminium battery pack from MEB platform of Volkswagen Group headquartered in Germany. MEB platform is an electric vehicle platform for the production of all middle and low-end cars of Volkswagen Group. Formally put into use in 2020, the MEB platform costs overall R&D fee of tens of billions of euros, making it one of the largest electric vehicle platforms in the world. Volkswagen Group plans to launch 80 models of electric vehicles by 2025. It means that with electric vehicles accounting for more than 25% of total sales, global sale of MEB platform cars will reach one million sets and achieve ``carbon neutralization`` in 2050.

The aluminium battery packs produced by Minth include short, medium and long models, matching all B, C, D-level electric vehicles produced by Volkswagen Group. Receiving supplier orders from MEB platform again proves the Company's leading role in this field. Based on this plan, it is possible for Minth to reach tens of billions of turnover in aluminium battery packs among future strategic plans.

Positive Development Trend in Overseas Business

In Q3 2019, led by high demand of European market, the Company's overseas business is expected to achieve double-digit growth and the domestic market regain positive growth in turnover, stabilizing gross profit level. At the same time, the Company's factories in Mexico and Thailand are constantly improving operating efficiency.

Constant positive prospects for the Company's high-end path

Minth has always been contributed to the widening of product lines. The company has further developed and expanded products in the field of new energy vehicles such as aluminium battery packs, aluminium door frames and ACC signs since 2017. The implementation of aluminium battery pack business starts first: Minth has entered multiple supplier systems of main engine factories of global electric vehicle platform and has received orders from multiple automobile brands such as BMW, Daimler, Honda, Nissan, Renault, Ford, Volvo, Jaguar and Land Rover, making Minth one of the largest suppliers of aluminium battery pack in the world. In December 2019, the company successfully became aluminium batter pack supplier of Peugeot Citroen Group, taking charge of the design for electric vehicle platform, industrialization planning and production. This year, the Company's aluminium door frames will also be put into mass production.

Judging from new energy strategic plan of major vehicle enterprises across the world, most of them regard the year of 2020 or the year of 2025 as the ``critical year`` for new energy planning. With the further advance of overseas vehicle electrification, previous orders may help the Company strengthen strategic partnership between overseas customers and drive future growth in result.

Focus on operating rebound after the coronavirus outbreak

Some of the Company's factories resumed operation since February 10, which may slightly influence export according to the Management. The Company's factory in Wuhan mainly supplying Honda accounts for low double-digit growth in production. Although this year's outbreak brings challenge to the prosperity of car industry in the first half of 2020, it's assured that there will be a strong result rebound after the outbreak because the Company has abundant orders, high-quality customer structure, gradual mass production of new models and huge improvement prospects in overseas business.

Valuation

We believe that it is reasonable to give the company a valuation of 19/17.6/14.3x P/E in 2019/2020/2021, equivalent to target price of HK$ 33.32 and Buy rating. (Closing price as at 2 March)

Financials

Click Here for PDF format...




Recommendation on 4-3-2020
RecommendationBUY
Price on Recommendation Date$ 27.750
Suggested purchase priceN/A
Target Price$ 33.320
Writer Info
Zhang Jing
(Research Analyst)
Tel: (+86 21 51699400-103)
Email:
zhangjing@phillip.com.cn

Local Index
       Index    Change   Change%

World Index
       Index    Change   Change%
  

A-H spread
Stock Code H share
Price
A share
Price
H share
discount


Oversea Research Reports


Investment Service Centre



Enquiry : 2277 6666 OR investornotes@phillip.com.hk
If you cannot read this e-mail in the proper format, please click here to view the web version.

Information contained herein is based on sources that Phillip Securities (Hong Kong) Limited and/or its affiliates ( the ¡§Group¡¨) believe to be accurate. The Group does not bear responsibility for any loss occasioned by reliance placed upon the contents hereof. The Group (or its employees) may have interests in relevant investment products. For details of different products¡¦ risks, please view the Risk Disclosures Statement on http://www.phillip.com.hk.

If you DO NOT wish to receive further marketing emails from us, please click HERE to opt-out.

ª©Åv©Ò¦³¡A ½¦L¥²¨s¡C

Copyright(C) 2020 Phillip Securities (HK) Ltd. All Rights Reserved.


Copyright © 2011 Phillip Securities Group. All Rights Reserved [ Risk Disclosures Statement ] [ Terms and Conditions ] [ Personal Data Policy ]