Equity Research Report Strategy Midstream Capital/Traded Goods, New Infrastructure Outperformed Huatai Research 13 August 2024 | China (Mainland) Monthly Midstream capital/traded goods, new infrastructure outperformed According to our model, in July 2024, the business climate of all sectors and all non-financial sectors in the A-share market picked up slightly, while some still saw increased sales volume but decreased selling prices, with demand yet to improve, consistent with China's July PMI data. Specifi ...

Equity Research Report Strategy Market Dynamics Post Carry Trade Reversal Huatai Research 13 August 2024 | China (Mainland) Weekly Market to remain volatile in short run, with focus on high-low rotation Weak M1 data in yoy terms, low expectations for the long-term credit cycle, and foreign capital outflow due to election trading have rapidly driven up market risk premiums since June. Strengthened expectations for Fed rate cuts and RMB appreciation have unlocked room for domestic monetary policy, in our view ...

Equity Research Report Sunny Optical Technology Group (2382 HK) July: Changes in Product Mix Impacted CCM Shipments Huatai ResearchCompany Update 13 August 2024 | China (Hong Kong)Electrical Components Our core views: handset lens grew robustly, CCM shipments fell On 9 August 2024, Sunny Optical (Sunny) released its shipment data for July. The handset CCMlens shipment volumes changed by -19.5/+20.7% yoy or +5.5/+6.1% mom. Management commented in the announcement that growth in handset lens shipments was mai ...

Equity Research Report Jafron Biomedical (300529 CH) Earnings Grew Strongly in 2024 Huatai ResearchInterim Results Review 13 August 2024 | China (Mainland)Medical Devices Earnings growth continued to pace up in 2Q24; maintain BUY Jafron Biomedical (Jafron) registered 1H24 revenue/attributable net profit (NP) of RMB1,496/553mn (up 47.8/99.1% yoy) and 2Q24 revenue/attributable NP of RMB751/268mn (up 70.9/230.6% yoy), which further picked up from the growth rates in 1Q24 (revenue/attributable NP: up 30/44.9% y ...

Equity Research Report Canmax Technologies (300390 CH) Lithium Ore Price Falls Dented Earnings, Awaiting Turnaround Huatai ResearchInterim Results Review 13 August 2024 | China (Mainland)Other New Materials & Processing 1H24 attributable NP down 39.26% yoy, maintain OVERWEIGHT Canmax has posted its interim results, with 1H24 revenue/attributable net profit (NP)/recurring NP down 44.09/39.26/55.92% yoy to RMB3,713/835/523mn. For 2Q24, revenue/attributable NP arrived at RMB1,959/333mn (-36.89/-32.49% yoy, +11 ...

Equity Research Report Fixed Income Reviewing Bond Market Volatility in Terms of Financial Security Huatai Research 13 August 2024 | China (Mainland) Weekly Analyst SAC No. S0570518110002 SFC No. AMB145 +(86) 10.6321.1166 Our core views The financial system exhibits pro-cyclical characteristics, and central bank regulation plays a crucial role in maintaining financial stability and policy credibility. However, given the current economic fundamentals and the pace of fiscal efforts, the PBoC is unlikely to ma ...

Equity Research Report Strategy Prospects for Export Chain Trade Huatai Research 13 August 2024 | China (Mainland) Themes Analyst SAC No. S0570520060001_wangyi012893@htsc.com SFC No. BMQ373 +(86) 21 2897 2228 Our core views: export chain to stay resilient, upside to weaken In this report, we analyze the excess return outlook for China's export chain in terms of environment and fundamentals. 1) The win rate of the export chain is 100% amid an increased manufacturing PMI overseas, with excess returns averagin ...

Equity Research Report Strategy Behind Shifts in Large and Small Cap Styles Huatai Research 13 August 2024 | China (Mainland) Weekly Our core views While the market underwent a pulsed rebound due to policy-driven trading in the middle of last week, sustainability remains to be seen. Recession trading has intensified recently in external markets, yet there has been no sign of inflow into China assets from allocation-oriented foreign capital, necessitating further observation on foreign capital reallocation. ...

Equity Research Report Queclink Wireless (300590 CH) Earnings Grew Rapidly in 1H24, Profitability on the Rise 1H24 earnings in line with profit alert, profitability improving Queclink Wireless reported 1H24 results, logging revenue of RMB480mn (+12.7% yoy), attributable net profit (NP) of RMB100mn (+59.2% yoy), and recurring attributable NP of RMB90mn (+31.9% yoy, in line with its profit alert). For 2Q24, revenue/attributable NP/recurring attributable NP were RMB270/60/60mn, up 7.1/ 48.4/7.5% yoy, slowing v ...

Equity Research Report Financials Shenzhen MTC (002429 CH) 1H24 Revenue/NP Positive; Dual Growth Driver Strategy Effective Huatai Research Interim Results Review 12 August 2024│China (Mainland)Audio & Visual Equipment 1H24 revenue and NP showed robust performance, maintain BUY Shenzhen MTC (MTC) has released 1H24 results, posting revenue/attributable net profit (NP) for 1H24 of RMB9,520/911mn (+23.07/24.04% yoy), with the figures for 2Q24 up 33.98/41.25% yoy. We maintain our 2024/2025/2026 EPS forecasts at ...