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CITIC Securities expects that with the gradual application of new technologies in new products, SIMMER International (06969) is expected to support product pricing and gross profit space, while technological innovation iteration, brand matrix improvement, and diversification of atomization scenarios are expected to jointly build medium- and long-term competitive barriers.
Xiaomo reiterated WuXi AppTec's (02359) "overweight" rating, raised its 2021-23 earnings forecast by 23%/9%/8%, raised its price target to HK$178, and considered it the first choice for China's CRO or CDMO industry.
Goldman Sachs raised its Brent oil price forecast for 2022 and 2023 to $96 and $105/b, and expects that rising oil prices this year will drive significant free cash flow from Asian oil companies, mainly optimistic about PetroChina (00857) and CNOOC (00883).
Simmer International (06969) released a new generation of ultra-thin electronic atomization solutions and was unanimously sung by the organization
CITIC Securities: Maintains a "Buy" rating at Smore International (06969) with a target price of HK$56
CITIC Securities said that it is optimistic that Smore International (06969) will continue to consolidate its leading position in atomization technology and brand, and share the medium- and long-term penetration growth dividend of the new tobacco industry with the most certainty, with a target price of HK$56. The company released THE NEW TECHNOLOGY OF FEELMAir OVERSEAS, AND THE THREE INNOVATIONS & SEVEN BREAKTHROUGHS ARE COMMITTED TO THINNER VOLUME, STRONGER PERFORMANCE, AND IMPROVEMENT OF HARM REDUCTION, further consolidating the global leading position of ceramic atomization technology. The bank expects that with the gradual application of new technologies in new products, it is expected to support product pricing and gross profit space, while technological innovation iteration, brand matrix improvement, and diversification of atomization scenarios are expected to jointly build medium- and long-term competitive barriers. The weakening of demand at home and abroad under the short-term policy disturbance does not change the company's medium- and long-term business trend, waiting for PMTA to catalyze.
CICC: Maintaining the "Outperforming Industry" rating of Smore International (06969) with a target price of HK$50
CICC is firmly optimistic about the leading competitive barriers and broad development prospects of Simar International (06969), and scientific and technological innovation and technology iteration help the global atomization leader to become stronger. The bank believes that the company has established a strong comprehensive competitive advantage in the patent system, production capacity scale, product quality, customer advantages, etc., and is expected to maintain its global leading position and profit level through continuous R&D investment, scientific and technological innovation, and technological iteration. The bank expects that the company will continue to develop differentiated atomization solutions in the future to meet the segmentation needs of different fields and price bands and create the "ultimate sensory experience" to improve the comprehensive layout of multi-category coordinated development. It is optimistic that the company continues to benefit from the double dividend of the rapid growth of the atomized track and the concentration of share to its head customers, reiterating the trend of the stronger the stronger.
WuXi AppTec (02359) Fa YingXi Komo and Nomura have raised their target prices
Xiao Mo: Reiterating WuXi AppTec (02359) "overweight" rating The target price rose to HK$178
Xiaomo raised WuXi AppTec(02359) 2021-23 profit forecast by 23%/9%/8% and considered it the first choice for China's CRO or CDMO industry. WuXi's WuXi AppTec expects annual operating income to range from RMB228.19 to RMB22.902 billion (the same below), an increase of 38% to 38.5% year-on-year; Net profit ranged from $4,973 million to $5,032 million, an increase of 68% to 70%; Excluding non-recurring gains and losses, net profit is expected to be between $4,007 million and $4,055 million, an increase of 68% to 70%, with a net profit forecast higher than market expectations.
Nomura: Maintain WuXi AppTec (02359) "Buy" rating with a target price of HK$208.86;
Nomura said WuXi AppTec (02359) had a revenue increase of 38%-38.5% year-on-year to 22.82 billion yuan (RMB. The same below) to 22.9 billion yuan, in line with the bank's expectations, slightly better than market expectations; Net profit rose 68%-70% year-on-year to 4.97 billion-5.03 billion yuan, better than expected. Core business growth is primarily driven by the chemical business, which is considered to reflect the company's strong growth as an industry leader in contract research institutions (CRO).
Nomura: Maintain citic securities (06030) "buy" rating The target price rose to HK$26.93
Nomura raised CITIC Securities (06030) earnings forecasts of 6.7% and 10.1% for the next two years, raising its price target from HK$25.65 to HK$26.93. The company announced last year's profit forecast, profit increased by 54.2% year-on-year, of which operating income and operating profit increased by 40.8% and 56.6% respectively, which means that the operating profit in the fourth quarter of last year increased by 130.6% year-on-year, which is believed to be mainly driven by the reduction of loan provisions and the growth momentum of asset management/margin financing income.
Goldman Sachs: Raise oil price forecasts for this year and next year Optimistic about PetroChina (00857), CNOOC (00883)
Goldman Sachs raised its Brent oil price forecast for 2022 and 2023 from the original $81 and $85/b to $96 and $105/b, pointing out that global inventories are low under the epidemic, estimating that OECD inventories will fall to their lowest point since 2000 this summer, and OPEC's spare capacity has also fallen to the lowest level since 2004, so oil prices are expected to rise to promote inventory growth. If the market needs to reach equilibrium, long-term oil prices are expected to rise to $90 per barrel, and brent futures spot prices may reach $105 per barrel by 2023. Asian oil companies lack active hedging plans, spot oil price exposure is the largest in the industry, it is expected that the rise in oil prices this year and next year will drive Asian oil companies to generate significant free cash flow, and raise the average EBITDA forecast for 2022/23 by 18%/19%, mainly optimistic about PetroChina (00857), CNOOC (00883), the same "buy" rating.
Tianfeng Securities: Maintained Li Ning's (02331) "Buy" rating
Tianfeng Securities expects that Li Ning (02331) has a net profit of 4.9/6.2 billion yuan and a PE of 32/25x in 2022-23, and continues to be optimistic about the company's product operation and expansion dividend release driven by the brand upwards, continuing to lead the national brand, and it is recommended to pay active attention. After channel investigation, it is expected that Li Ning's offline flow growth rate has accelerated since January, the scale offline flow in the first half of the month has increased at the same time or more than 40%, and some factors may be caused by the early Spring Festival in 22 years and the early sales season.
On the one hand, the product development, design and IP and other serial product matrix is perfect. Core technologies such as 䨻弜 have ranked among the world's first-class, consolidating the image of professional sports brands; The design deeply integrates Chinese culture and avant-garde art, interacts with young groups to create topics, and has a strong response to urban limitations and story IP markets; Some products gradually enjoy a first- and second-level premium reflecting the success of rebranding. On the other hand, since 2019, the reform of channels and commodities has continued to deepen, and efficiency is expected to continue to grow. 1) At the channel level, we will continue to close loss-making and inefficient stores, open large stores, and the flow of water is expected to double the cash; 2) Standardized single stores and ordering models gradually cover wholesale stores from direct stores, and the effect of refined management appears, improving the efficiency of stores and people; 3) SKU and inventory management, multiplier payment plus single, and online commodity resource investment multi-dimensional guarantee to drive scale growth.
CICC: Maintaining China Resources Power (00836) 'Outperform industry' rating with a target price of HK$30.92
CICC said that maintaining The rating of China Resources Power (00836) as "outperforming the industry", taking into account the higher electricity prices and the expansion of growth space for thermal power transformation + the steady development of new energy, it will give a target price of HK$30.92 (12.9/11.3 times the price-to-earnings ratio in 2022/23), with an upside of 46%. Taking into account the loss of thermal power due to high coal prices and the lower than expected scale of new energy production in 2021, the profit forecast for 2021/22 was lowered by 58.9%/3.7% to 37.4/11.54 billion Hong Kong dollars, and 13.2 billion Hong Kong dollars were introduced in 2023. The current share price is trading at 8.9/7.7x P/E ratio in 2022/23.
Damo: Pharmaceutical stocks preferred Cinda Bio (09996) and WuXi Biologics (02269)
Damo said that after the pharmaceutical industry has experienced a volatile 2021, it is believed that the industry has restructured this year, the bank continues to prefer pharmaceutical companies with innovative drug product lines this year, due to the improved mood in the biotechnology sector, it is expected that CDMO (commissioned development and production) related stocks have the potential to rebound. With increased domestic competition, increased regulatory standards for pharmaceutical development, and declining visibility of overseas approval pathways, it is expected that innovation and biotechnology stocks, which already have global channels and ongoing R&D programs, will be the most popular in the short term, such as Cinda Biotech (09996).
The bank mentioned that as the leading pharmaceutical or biotechnology industry in the mainland seeks to transform into the global stage, overseas may strengthen the requirements for clinical data of mainland drug trials, so Damo is optimistic about the leading R&D services, such as WuXi Biologics (02269), and expects its global development footprint and international R&D expertise to become its potential to outperform the market.