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<Research>HSBC Research Raises TPs for FLAT GLASS & ENN ENERGY, Likes GCL TECH/ CHINA LONGYUAN/ CLP HOLDINGS/ CKI HOLDINGS
HSBC Global Research issued a report preferring a number of utilities and power-related stocks.In terms of PV stocks, HSBC Global Research said that the recent macro-measures launc...
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<Research>HSBC Research Raises TPs for FLAT GLASS & ENN ENERGY, Likes GCL TECH/ CHINA LONGYUAN/ CLP HOLDINGS/ CKI HOLDINGS
Recommend
68
Positive
136
Negative
65
 
 

HSBC Global Research issued a report preferring a number of utilities and power-related stocks.

In terms of PV stocks, HSBC Global Research said that the recent macro-measures launched by China may boost PV installations, while the upstream of poly-silicon and solar glass materials will have better opportunities in the next few quarters.

As the current de-stocking implies that the short-term pricing will be supported, the related stocks also tend to react sensitively. The broker preferred FLAT GLASS (06865.HK)  -0.060 (-0.542%)    Short selling $1.52M; Ratio 3.148%   and GCL TECH (03800.HK)  +0.020 (+1.818%)    Short selling $67.91M; Ratio 19.144%   .

For gas stocks, ENN ENERGY (02688.HK)  +1.550 (+2.844%)    Short selling $9.48M; Ratio 9.247%   looks relevant, assuming tailwinds into industrial demand for natural gas and staple spending of home utilities, as its related businesses accounted for 47% of 2023 gross profit. Its core earnings are on track to meet guidance YTD, which should offset the share price correction since April.

The broker liked CHINA LONGYUAN (00916.HK)  -0.110 (-1.625%)    Short selling $10.85M; Ratio 6.443%   among power utilities, based on its 0.6x PB ratio, even though electricity price and capacity utilization were under pressure. Potential subsidy agreements and carbon trading policies are also catalysts to watch.

Hong Kong's utilities offered protection for unexpected market volatility. Therefore, the broker preferred CLP HOLDINGS (00002.HK)  +0.750 (+1.176%)    Short selling $12.63M; Ratio 7.458%   on the back of its strengthened operations and earnings, followed by CKI HOLDINGS (01038.HK)  +1.700 (+3.137%)    Short selling $26.25M; Ratio 12.589%   .

The table below shows HSBC Global Research's ratings and target prices for related stocks:

Stock│ Rating│ TP

FLAT GLASS (06865.HK)  -0.060 (-0.542%)    Short selling $1.52M; Ratio 3.148%   │Buy│$14.1-> $15.9
GCL TECH (03800.HK)  +0.020 (+1.818%)    Short selling $67.91M; Ratio 19.144%   │Buy│$1.7
ENN ENERGY (02688.HK)  +1.550 (+2.844%)    Short selling $9.48M; Ratio 9.247%   │Buy│$67-> $77
CHINA LONGYUAN (00916.HK)  -0.110 (-1.625%)    Short selling $10.85M; Ratio 6.443%   │Buy│$8.6
CGN POWER (01816.HK)  +0.050 (+1.799%)    Short selling $18.77M; Ratio 8.541%   │Hold│$3.6
CLP HOLDINGS (00002.HK)  +0.750 (+1.176%)    Short selling $12.63M; Ratio 7.458%   │Buy│$78
CKI HOLDINGS (01038.HK)  +1.700 (+3.137%)    Short selling $26.25M; Ratio 12.589%   │Buy│$68
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-12-23 16:25.)

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