GMT EIGHT - Research - HK Stock

Overseas: Hong Kong stocks welcome the opportunity to increase allocation, expected to outperform A shares in the second half of the year.

Important meetings are approaching in the near future, and China and the United States are entering a period of relaxation. With the accumulation of positive factors, it is a good time to increase allocation in the Hong Kong stock market. It is expected to outperform A-shares in the second half of the year.

UBS looks ahead to China's automotive industry Q2 earnings: New Forces increase control costs and boost efficiency, while traditional car companies focus on exports.

New energy electric vehicle manufacturers, such as Ideal Auto, NIO, and Xiaopeng, are relatively strict in cost control, while traditional car companies like BYD, Great Wall Motor, and Geely are seizing opportunities in exports and high-end market to resist profit margin pressure. UBS expects that most companies' profits in the second quarter will meet or slightly exceed buyers' expectations.

China Merchants Securities International: Raised the target price for GEELY AUTO (00175) to 32 Hong Kong dollars. The company is currently significantly undervalued.

The bank estimates that, considering the current high growth and low valuation of Hong Kong-listed companies, it is highly likely that they will choose to swap shares in order to obtain better opportunities for value enhancement.

CICC International: Raises TONGCHENGTRAVEL (00780) target price to 25.9 Hong Kong dollars, maintains "outperform" rating.

The company stated that the key challenge lies in supply chain construction, with limited expected competition risk, and that Tongcheng's hotel commission rate will remain stable in the short term.

CICC: Maintains YIHAI INTL(01579) target price of 15 Hong Kong dollars, with a rating of "outperform the industry".

Long-term, the company's overseas business expansion is proceeding in an orderly manner, with the completion of the formation of other B-end teams and a clear strategy. The bank is expected to open up growth opportunities.

CICC: Raises target price of FRIENDTIMES (06820) to 1.06 Hong Kong dollars, rated "outperform industry"

The chairman of the company has committed that he will not sell his shares through the open market in the next 12 months from the date of the performance forecast release. The bank believes that this also demonstrates the company's confidence in its current business and products.

Citigroup: KB LAMINATES (01888) stock price is under short-term pressure, target price is 14 Hong Kong dollars.

The controlling shareholder Jian Tao Group (00148) will offer up to 78.5 million shares of Jian Tao laminate flooring. After the transaction is completed, Jian Tao Group's stake in Jian Tao laminate flooring will decrease from 73.76% to 71.25%.

JP Morgan: Second-quarter performance of Chinese clean energy companies shows a trend of differentiation, raising target prices for DATANG RENEW (01798), Goldwind Science & Technology (02208), and China Longyuan Power Group Corporation (00916).

In this field, Daquan New Energy (DQ.US) is the preferred target of the industry. The bank believes that SunPower (300274.SZ) and CICC (688408.SH) show positive profit potential.

BOCOM INTL: ANTA SPORTS (02020) achieved steady improvement in overall business performance in the first half of the year, with a target price of 110.2 Hong Kong dollars.

The management team maintained the growth guidance for all brands throughout the year (Anta, FILA, and all other brands increased high single digits, mid single digits of 30%) compared to the same period last year.

JP Morgan: This year, the Chinese healthcare industry has shown a significant rebound. We are optimistic about AKESO (09926), INNOVENT BIO (01801), and Jiangsu Hengrui Pharmaceuticals (01276).

This line indicates that stocks with catalytic factors emerging this year have the potential to outperform the market due to current strong trends or having a sustained period in the short term.

Bank of America Securities: Potential oversupply hinders profitability rate, downgrades XINYI SOLAR (00968) and FLAT GLASS (06865) to "underperform" rating.

The industry believes that it is difficult to change the supply-demand pattern unless mandatory production cuts similar to those during the supply reform period of 2016 to 2017 are implemented.

HSBC: CHINAHONGQIAO(01378) long-term prospects are optimistic, target price raised to 20.6 Hong Kong dollars.

HSBC Bank has released a research report, raising China Mengniu Dairy's target price from HK$18.5 to HK$20.6 and maintaining a "buy" rating.

Lyon: LI AUTO-W (02015) BEV i8 order data surprises the market.

The line said that, according to the release of similar car models, initial orders are likely to a normalized monthly sales volume of 5000 to 6000 units.

Bank of America Securities: raises China Resources Mixc (01209) target price to HK$44, reiterates "buy" rating.

Bank of America Securities believes that the stock still has catalysts in the future, including the possibility that same-store sales in the second half of the year may improve further from the high unit growth in the first half of the year due to a low comparison base.

UBS: Unexpected subsidies for takeout wars expected to peak in August. Valuations of BABA-W(09988) and JD-SW(09618) are attractive.

In the catering industry, the industry is optimistic about Yum China (09987) and Dasee (01405). As the competitive landscape becomes clearer, the industry value is expected to further manifest.

JP Morgan: The eleventh round of national centralized drug procurement has higher transparency, and the impact on pharmaceutical companies is gradually weakening.

The expected price reduction of the 11th batch of VBP is expected to be relatively moderate, and the impact on large Chinese pharmaceutical companies will gradually diminish.

Bank of America Securities: Raise oil price forecast, increase PETROCHINA (00857) target price to 8 Hong Kong dollars.

Bank of America Securities expects PetroChina's second quarter performance to meet expectations, with a net profit of 39.7 billion yuan in the second quarter of 2025, down 15% from the previous quarter and 7% year-on-year.

Morgan Stanley: Mid-term performance of gas stocks is flat, KUNLUN ENERGY (00135) will outperform industry peers.

Daiwa sees promising growth prospects for Kunlun Energy, with low valuation and high-quality balance sheet assets. It predicts that its first-half profit growth will reach single digits, and rates it as "outperforming the market."

Citigroup: The 11th batch of national centralized drug procurement officially supports industry innovation and rational competition, expecting a moderate decrease in drug prices.

Overall, the impact of the predicts collection on major pharmaceutical companies is limited (<3%).

Goldman Sachs: Targets ANTA SPORTS (02020) at HK$117, "Buy" Rating.

The line said that from a group perspective, the steady operation of the FILA brand/small brand should be able to offset the fluctuations of the ANTA brand.

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