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

22-02-2024(Thu) 21-02-2024(Wed) 20-02-2024(Tue) 19-02-2024(Mon) 16-02-2024(Fri)
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©
23 Apr, 2020 (Thursday)

            
ASM PACIFIC(522)
Analysis¡G
Despite a challenging quarter with the COVID-19 outbreak, ASM Pacific (522) managed to register bookings of US$668.9 million which increased 45.3% and 50.2% over the same period of last year and the preceding three months, respectively. The bookings for this quarter was the 2nd highest first quarter bookings after the record booking performance in Q1 2018. All 3 business segments of the Group registered double-digit % bookings growth, QoQ and YoY. Multiple factors drove the strong booking performance of the Group, including 5G infrastructure built up, localization of the China semiconductor supply chain, recovery of the Optoelectronic market and the Group`s strong position in Advanced Packaging. The Group anticipated revenue in Q2 2020 to be in the range of US$500 million to US$580 million, representing QoQ growth of 15.2% to 33.6%. Gross margin is expected to be in the range of 34.5% to 36.5%, higher than the 33.5% in Q1 2020. (I do not hold the above stock)
Strategy¡G
Buy-in Price: $80.00, Target Price: $88.00, Cut Loss Price: $76.00


CHINACOMSERVICE(552)
Analysis¡G
China Communications Services, a subsidiary of China Telecom, is a telecommunications infrastructure and outsourcing services provider that principally serves the three major telecommunications providers in China. However, it has also vigorously expanded its non-operators customer base and "smart application" business segments during the past years. And which have become the engine of the Group`s growth. Along with the revenue from non-operator customers increased by 25.2% YoY in FY19, the company`s operating income, net profit and operating cash flow have also risen to 117.4 billion yuan, 3.049 billion RMB and 4.243 billion RMB, respectively, a 10.6%, 5.1%, and 17.4% YoY increase, with a total dividend of 0.1585 RMB. As the National Development and Reform Commission of China is going to launch a new infrastructure development guidance that implements the "New Infrastructure" and 5G development in China more firmly, we should expect the company to benefit from such development plans. With the increased capital expenditures and operation expenditures of operators on infrastructure and system upgrades, the industry comes with golden opportunities.
Strategy¡G
Buy-in Price: $5.60, Target Price: $6.35, Cut Loss Price: $5.25



Yongda (3669.HK) - The Proportion of Premium Cars Keep Increasing

Investment Summary

The Revenue Increased by More than 10%, and the Profit Increased by 18%

The revenue of Yongda Automobiles was RMB62.71 billion in 2019, up 13.4% yoy; the profit attributable to shareholders stood at RMB1.473 billion, up 17.6% yoy, with the EPS of RMB0.8. Considering the possible recurrence of the outbreak and the potential merger and acquisition opportunities, and for the reason of caution, the management has announced no final dividend, but will pay a dividend of no less than 30% in the middle of this year if the subsequent situation is optimistic.

The Proportion of Premium Cars Increased, and the Structure was Continuously Optimized

In 2019, the sales volume of the premium cars in China increased against the trend. Benefiting from the prosperity in the premium cars market and channel expansion, the Company's overall sales volume of new cars was up 11.6% yoy to 197,400, with the sales volume of the premium cars up 15.5% yoy to 128,600, faster than the industry average of 9.7%.

Among the segmented brands, the sales volume of BMW was up 13.5% yoy to 67,500 units, basically the same as the industry average; the sales volume of Porsche was up 25.4% yoy to 9,871, which is far higher than 8% of the industry average.

The annual sales revenue of new cars was up 13.3% yoy to RMB52.94 billion, among which the revenue of premium cars was up 14.5% yoy to RMB43.77 billion. The sales structure was further improved, and the sales volume and sales revenue of premium cars were up by 2.3 ppts and 0.9 ppts yoy to 65.2% and 82.7%, respectively.

The after-sales revenue was up 15.6% yoy to RMB8.37 billion, mainly due to the rise in the proportion of premium cars in the after-sales business of 2.2 ppts yoy to 83.9%.

The automobile finance had a sustainable development. Revenue of automobile finance was up by only 4.5% yoy to RMB1.617 billion, which was related to the moderate slowdown in proprietary finance supply of the Company. To be specific, the revenue of insurance agency business was up 10% yoy to RMB1.1 billion, while the proprietary finance business was down 6% to RMB511 million.

The car rental business maintained the consistent superiority with a rapid revenue growth of 29% to RMB530 million. The current rental fleet size is about 7800 units.

Gross Margin Basically Stayed Flat, and Operation Efficiency was Enhanced

The gross margin of the sales of new cars basically stayed flat at about 2.4%, which mainly resulted from the overall stable price and accelerated turnover efficiency of the premium cars market, and Porsche maintained a better gross margin. The inventory turnover of the Company's new cars in 2019 was down 6.6 days yoy to 36.5 days, and the inventory turnover of components was down 7.6 days yoy to 43.2 days. The expense ratio was down 0.11 ppts yoy to 6.87%. The financing costs was RMB780 million. We expect the Company to benefit from the domestic overall easing financing environment in the future.

Outlets Expansion was Kept, and the Objectives Remained Unchanged

By the end of 2019, the number of dealerships of the Company increased to 208, with a net increase of 14. Among them, there was 119 luxury brands, which had a net increase of 8. The number of those who had got licenses was 12. Within the year, there was 13 new self-built dealerships and 6 by mergers and acquisitions, including such luxury brands as Porsche/Mercedes-Benz/Lexus/Volvo/Lincoln/Aston Martin as well as the new energy brands like Tesla/WM/Xpeng/Byton.

The outbreak affected the sales in the first quarter, but now, as things get better, the Company is rapidly recovering orders and store visitors, and is expected to return to normal levels in the past in April. In view of the favourable factors such as the newly acquired stores, the increased license plate quota in Shanghai and the support policies of the automobile manufacturers, the management still maintains the original operational objectives and hopes to make up the leeway in the rest of this year.

Investment Thesis

We expect the company's EPS for 2020/2021 to reach 0.92/1.11 yuan and the target price of HK$8.6, corresponding to 2020/2021 8.1/6.9x P/E. We gave a Buy rating. (Closing price as at 17 April)

Financials

Click Here for PDF format...




Recommendation on 23-4-2020
RecommendationBUY
Price on Recommendation Date$ 6.800
Suggested purchase priceN/A
Target Price$ 8.600
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 ]