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<Research>HSBC Global Research Favors Companies w/ High Exposure to CN Consumption like Smartphones/ Home Appliances, Prefers XIAOMI-W/ AAC TECH
Recommend 34 Positive 58 Negative 20 |
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If the Chinese government's stimulus policies are successfully implemented, there is potential for growth in consumer electronics and home products sales, HSBC Global Research noted. Companies with high exposure to sales of smartphones, TVs, personal computers, and other durable goods in China are expected to benefit from these stimulus policies. The broker believed that the market already has high expectations for the profitability of downstream brands and OEMs, and investment opportunities may shift toward upstream components and semiconductor chip manufacturers because of concerns over pricing and inventory reduction. The broker particularly favored analog IC, PCB, and Copper Clad Laminate (CCL) vendors. It also preferred companies with strong development capabilities, significant market share growth, and better macroeconomic volatility buffers. In addition, the broker saw companies heavily involved in cloud enterprise spending and semiconductor equipment capital expenditure are less sensitive to the recovery cycle. The broker recommended XIAOMI-W (01810.HK), Luxshare (002475.SZ), AAC TECH (02018.HK), Dongshan (002384.SZ), and Shengyi (600183.SH), all of which are rated as Buy. The TPs for XIAOMI-W and AAC TECH were set at $27.5 and $41.7, respectively. AAStocks Financial News |
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