Jefferies Predicts Inevitable Consolidation in CN Market; POEs Present Massive Growth Potential
China's Economic Transition: Under the "15th Five-Year Plan," China is shifting towards an AI and high-tech manufacturing era, focusing on private enterprise and presenting significant growth opportunities, as highlighted by a Jefferies research report.
Investment Themes for 2026: Jefferies identified five key investment themes for 2026, including high-growth technology stocks, companies with upwardly revised earnings forecasts, and those with sustainable yields and buyback programs.
Recommended Stocks: The report suggests various Hong Kong-listed companies for investment, such as TENCENT, ICBC, and WUXI APPTEC, based on their growth potential and financial metrics.
Focus on A-Shares and ROIC: Attention is also directed towards A-shares that may list in Hong Kong and stocks with high Return on Invested Capital (ROIC), while advising against those whose ROIC has peaked.
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Jefferies Predicts Inevitable Consolidation in CN Market; POEs Present Massive Growth Potential
China's Economic Transition: Under the "15th Five-Year Plan," China is shifting towards an AI and high-tech manufacturing era, focusing on private enterprise and presenting significant growth opportunities, as highlighted by a Jefferies research report.
Investment Themes for 2026: Jefferies identified five key investment themes for 2026, including high-growth technology stocks, companies with upwardly revised earnings forecasts, and those with sustainable yields and buyback programs.
Recommended Stocks: The report suggests various Hong Kong-listed companies for investment, such as TENCENT, ICBC, and WUXI APPTEC, based on their growth potential and financial metrics.
Focus on A-Shares and ROIC: Attention is also directed towards A-shares that may list in Hong Kong and stocks with high Return on Invested Capital (ROIC), while advising against those whose ROIC has peaked.
HSBC Research Reduces Target Price for WANT WANT CHINA (00151.HK) to $5.2, Adjusts Revenue and Net Profit Projections Downward
Financial Performance: WANT WANT CHINA reported a 2.1% year-on-year increase in revenue but a 7.8% decrease in net profit for the first half of the fiscal year, falling short of HSBC Global Research's expectations due to higher operating expenses.
Operational Changes: The company reorganized its product departments starting FY2025, resulting in increased administrative expenses and higher advertising costs linked to new product launches.
Forecast Adjustments: HSBC Global Research revised its revenue forecasts for WANT WANT CHINA down by 1.9% to 2.2% for FY2025-2027 and increased its sales and administrative expense ratio forecasts.
Target Price Revision: The broker lowered its target price for the stock from $5.7 to $5.2 while maintaining a "Hold" rating, citing the company's dividend yield as below industry standards.
WANT WANT CHINA Sees Over 2% Decline After Noon as Interim NP Decreases by 7.8%
Stock Performance: WANT WANT CHINA (00151.HK) experienced a decline, trading at HKD4.91, down 2.58%, with a trading volume of 4.415 million shares.
Financial Results: For the interim period ending September 2025, the company's net profit fell by 7.8% year-over-year to RMB1.717 billion, with earnings per share (EPS) at RMB14.55 cents and no dividend declared.
WANT WANT CHINA Reports Interim NP of RMB1.717B, a 7.8% Decrease
Company Overview: WANT WANT CHINA (00151.HK) reported its interim results for the period ending September 2025, showing a turnover increase of 2.1% year on year to RMB11.108 billion.
Profit Performance: The net profit for the company was RMB1.717 billion, reflecting a decline of 7.8% compared to the previous year.
Earnings Per Share: The earnings per share (EPS) was reported at RMB14.55 cents.
Dividend Status: No dividend was declared for this reporting period.
HSI Drops 185 Points as BIDU, NIO, and LENS Decline
Market Performance: The HSI fell by 185 points (0.7%) to close at 26,159, while the HSCEI and HSTECH also experienced declines of 0.9% and 1.5%, respectively, with total market turnover reaching $294.57 billion.
Stock Movements: BIDU-SW dropped 5.4% following a report of a 6% YoY decline in August MTS, while MAXNERVA TECH surged 103% after signing a cooperation memorandum. Other notable declines included LENS (-7.1%), BYD ELECTRONIC (-3.1%), and automakers like NIO-SW (-5.9%).
Jefferies Predicts Inevitable Consolidation in CN Market; POEs Present Massive Growth Potential
China's Economic Transition: Under the "15th Five-Year Plan," China is shifting towards an AI and high-tech manufacturing era, focusing on private enterprise and presenting significant growth opportunities, as highlighted by a Jefferies research report.
Investment Themes for 2026: Jefferies identified five key investment themes for 2026, including high-growth technology stocks, companies with upwardly revised earnings forecasts, and those with sustainable yields and buyback programs.
Recommended Stocks: The report suggests various Hong Kong-listed companies for investment, such as TENCENT, ICBC, and WUXI APPTEC, based on their growth potential and financial metrics.
Focus on A-Shares and ROIC: Attention is also directed towards A-shares that may list in Hong Kong and stocks with high Return on Invested Capital (ROIC), while advising against those whose ROIC has peaked.
HSBC Research Reduces Target Price for WANT WANT CHINA (00151.HK) to $5.2, Adjusts Revenue and Net Profit Projections Downward
Financial Performance: WANT WANT CHINA reported a 2.1% year-on-year increase in revenue but a 7.8% decrease in net profit for the first half of the fiscal year, falling short of HSBC Global Research's expectations due to higher operating expenses.
Operational Changes: The company reorganized its product departments starting FY2025, resulting in increased administrative expenses and higher advertising costs linked to new product launches.
Forecast Adjustments: HSBC Global Research revised its revenue forecasts for WANT WANT CHINA down by 1.9% to 2.2% for FY2025-2027 and increased its sales and administrative expense ratio forecasts.
Target Price Revision: The broker lowered its target price for the stock from $5.7 to $5.2 while maintaining a "Hold" rating, citing the company's dividend yield as below industry standards.
WANT WANT CHINA Sees Over 2% Decline After Noon as Interim NP Decreases by 7.8%
Stock Performance: WANT WANT CHINA (00151.HK) experienced a decline, trading at HKD4.91, down 2.58%, with a trading volume of 4.415 million shares.
Financial Results: For the interim period ending September 2025, the company's net profit fell by 7.8% year-over-year to RMB1.717 billion, with earnings per share (EPS) at RMB14.55 cents and no dividend declared.
WANT WANT CHINA Reports Interim NP of RMB1.717B, a 7.8% Decrease
Company Overview: WANT WANT CHINA (00151.HK) reported its interim results for the period ending September 2025, showing a turnover increase of 2.1% year on year to RMB11.108 billion.
Profit Performance: The net profit for the company was RMB1.717 billion, reflecting a decline of 7.8% compared to the previous year.
Earnings Per Share: The earnings per share (EPS) was reported at RMB14.55 cents.
Dividend Status: No dividend was declared for this reporting period.
HSI Drops 185 Points as BIDU, NIO, and LENS Decline
Market Performance: The HSI fell by 185 points (0.7%) to close at 26,159, while the HSCEI and HSTECH also experienced declines of 0.9% and 1.5%, respectively, with total market turnover reaching $294.57 billion.
Stock Movements: BIDU-SW dropped 5.4% following a report of a 6% YoY decline in August MTS, while MAXNERVA TECH surged 103% after signing a cooperation memorandum. Other notable declines included LENS (-7.1%), BYD ELECTRONIC (-3.1%), and automakers like NIO-SW (-5.9%).
