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<Research Report>HSBC Global Research Highlights 4 Main Themes for CN Developers, with 14 Stock Names
After the Chinese property developers experienced a strong momentum in the first quarter, the market sentiment turned from optimism to disappointment, HSBC Global Research spotted....
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<Research Report>HSBC Global Research Highlights 4 Main Themes for CN Developers, with 14 Stock Names
Recommend
91
Positive
97
Negative
114
 
 

After the Chinese property developers experienced a strong momentum in the first quarter, the market sentiment turned from optimism to disappointment, HSBC Global Research spotted. The broker issued a report saying that recovery in the Chinese property market and related upstream and downstream sectors stagnated and rapidly turned into a reality check, dampened by weak data in April-May. In the broker's view, however, the market should not be overly pessimistic, because market expectations are low, and the current valuations provide a good entry point. Some analysts of the broker even raised their ratings on some stocks of the sector.

HSBC Global Research highlighted four themes for Chinese property developers and recommended 14 stocks. The four themes are 1) earnings visibility, such as scheduled production volume growth for air conditioners; 2) opportunities linked to "618" promotion; 3) export exposure; and 4) companies that benefit from structural shifts in business model. The broker assumed that if there are unexpected surprises in the number of new housing starts and completions in the Mainland, the recovery of demand in related sectors of the Mainland housing industry is hopeful.

Related NewsM Stanley's China SOE Reform Investment Theme Stock List (Table)
HSBC Global Research listed out the preferred stocks relevant to the theme of sluggish property recovery in the Mainland:

Shares│Ratings│Target prices

Property developers and brokers
CHINA RES LAND (01109.HK)  -0.300 (-1.261%)    Short selling $92.11M; Ratio 33.308%   |Buy|HK$47.9
CHINA OVERSEAS (00688.HK)  +0.020 (+0.174%)    Short selling $78.92M; Ratio 37.160%   |Buy|HK$26.8
COUNTRY GARDEN (02007.HK)  0.000 (0.000%)   |Buy|HK$2.9
KE Holdings (BEKE.US)      |Buy|US$23.3

Related NewsUBS's Newest CN Stock Top Picks (Table)
Construction machinery and heavy-duty trucks
HANGCHA GROUP (603298.SH)  +0.080 (+0.252%)   |Buy|RMB23.8
SINOTRUK (03808.HK)  +0.250 (+1.136%)    Short selling $3.44M; Ratio 8.957%   |Buy|HK$15.5

Construction
CHINA STATE CON (03311.HK)  -0.040 (-0.459%)    Short selling $1.14M; Ratio 3.701%   |Buy|HK$13.5
POWERCHINA (601669.SH)  +0.010 (+0.191%)   |Buy|RMB11.9

Construction materials
CONCH CEMENT (00914.HK)  0.000 (0.000%)    Short selling $45.60M; Ratio 38.866%   |Buy|HK$34
CNBM (03323.HK)  -0.040 (-1.444%)    Short selling $8.91M; Ratio 11.483%   |Buy|HK$8.5

Related NewsHSBC Global Research Lists 'Bottom-up' Stock Ideas in CN Offshore Mkt (Table)
White goods
GREE APPLIANCES (000651.SZ)  -0.060 (-0.150%)   |Buy|RMB51
MIDEA GP (000333.SZ)  0.000 (0.000%)   |Buy|RMB67

Furniture
MAN WAH HLDGS (01999.HK)  -0.080 (-1.533%)    Short selling $2.10M; Ratio 9.295%   |Buy|HK$9.1

TiO2, waterproofing, coatings
LBG (002601.SZ)  +0.120 (+0.593%)   |Buy|RMB18.8
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-04-19 16:25.) (A Shares quote is delayed for at least 15 mins.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

Related NewsCNBM Warns of 1Q Loss Widening to RMB1.3B

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