<Research> JPM: Start of Risk-Off Rotation; Investors Advised to Move Towards Quality Underperformers

Written by Emily J. Thompson, Senior Investment Analyst

00322+0.41%

00728+1.35%

00762+1.97%

Source: aastocks

Updated: Oct 13 2025

0mins

Source: aastocks

US-China Tensions and Market Impact: Resurgent tensions between the US and China are increasing geopolitical risk, prompting JPMorgan to highlight potential challenges in upcoming trade negotiations and pressure on earnings estimates for the CSI 300 Index.
Sector Recommendations: JPMorgan upgraded the consumer staples sector to Overweight while downgrading discretionary and healthcare sectors, advising a shift from crowded growth stocks to quality laggards like Haier Smart Home.

00322

$12.2+Infinity%1D

Analyst Views on 00322

Wall Street analysts forecast 00322 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 00322 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

0 Analyst Rating

0 Buy

0 Hold

0 Sell

Current: 12.150

Low

Averages

High

Current: 12.150

Low

Averages

High

Macquarie

maintain

$15

2026-01-09

Reason

Macquarie

Price Target

$15

AI Analysis

2026-01-09

maintain

Reason

The analyst rating of Outperform for TINGYI (00322.HK) by Macquarie is based on the expectation that the new management will implement strict cost management and focus on revenue recovery, which is anticipated to lead to sustainable growth starting in 2026. Additionally, the report emphasizes the attractiveness of TINGYI's expected dividend yield, with projected rates of 7% and 8% in 2025 and 2026, respectively. Macquarie also raised its target price for TINGYI by 2%, indicating a positive outlook for the company's performance.

BofA Securities

downgrade

$427

2026-01-06

Reason

BofA Securities

Price Target

$427

2026-01-06

downgrade

Reason

The analyst rating from BofA Securities is influenced by the ongoing downturn in China's consumption, which has lasted nearly four years. The report highlights that historical downturn cycles have averaged four years, and while the broker cannot predict if this pattern will continue, it notes that fundamental factors such as employment, consumer confidence, corporate spending, real estate issues, and a lack of strong consumption stimulus policies are likely to keep pressure on the market in the short term. Despite this, BofA Securities believes that share prices may not be as adversely affected as the fundamentals suggest. Consequently, they have lowered EPS forecasts for 15 Chinese consumer stocks and reduced their average target price, while also initiating coverage on WANCHEN GROUP with a "Buy" rating, indicating a selective optimism in certain stocks that combine growth and yield potential amidst changing market conditions.

Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for 00322

Unlock Now

Daiwa

Outperform -> Hold

downgrade

$535 -> $427

2026-01-05

Reason

Daiwa

Price Target

$535 -> $427

2026-01-05

downgrade

Outperform -> Hold

Reason

The analyst rating for MIXUE GROUP was downgraded from Outperform to Hold due to several factors highlighted in the Daiwa research report. The primary reasons include: 1. Potential Downward Valuation Reassessment: The company is facing a potential reassessment of its valuation, influenced by a slowdown in future earnings growth. 2. Unvalidated Growth Engine: The second growth engine, which includes the overseas market and the Lucky Cup initiative, has yet to be validated, raising concerns about its effectiveness. 3. High Market Expectations: The broker believes that the market may have overly high expectations for this second growth engine. 4. Limited Product Innovation and Pricing Flexibility: MIXUE GROUP's mass market positioning restricts its ability to innovate products and adjust pricing compared to mid-tier competitors. 5. Valuation Adjustments: Daiwa lowered its valuation basis from a projected 2026 PE ratio of 28x to 22x and reduced the target price from $535 to $427. Despite some resilience in same-store sales growth and potential support from network expansion, these concerns led to the downgrade in rating.

JPMorgan

upgrade

2025-10-13

Reason

JPMorgan

Price Target

2025-10-13

upgrade

Reason

The analyst rating from JPMorgan reflects a strategic shift in response to increasing geopolitical risks stemming from heightened US-China tensions. The firm upgraded the consumer staples sector to Overweight while downgrading the discretionary and healthcare sectors to Equalweight. This decision is based on the anticipation of a "de-risking" phase, where investors are advised to move away from crowded growth stocks towards less crowded quality laggards in the consumer sector. The report highlights concerns over high thresholds for US-China trade negotiations, potential downside pressure on earnings estimates for the CSI 300 Index, and the stabilization of US treasury yields limiting equity risk premium easing. Overall, JPMorgan sees opportunities to increase exposure to China and suggests a rotation back to growth stocks as key events unfold in the coming weeks.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

GET FREE REAL TIME NOTIFICATIONS

Stock Monitor for 00322?

Get Started Free

FREE STOCK RECOMMENDATIONS DAILY

Stock Bullish Tomorrow

Get Started Free

70% BACKTESTED ACCURACY!

Should I Buy 00322?

Get Started Free

<Research> JPM: Start of Risk-Off Rotation; Investors Advised to Move Towards Quality Underperformers

Analyst Views on 00322

About the author

Top News

Oil Firms Cautious on Venezuela Investment Push

GM Reports $7.1 Billion Charge Amid EV Shift

Stock Market Wraps 2025 with Double-Digit Gains

Novo Nordisk's Weight-Loss Pill Approval: Key Impacts

Related Articles

Nvidia Forecasts $1.4 Trillion AI Data Center Spending by 2030

Nvidia and Tesla Could Reach $45 Trillion Market Value by 2030

Sigh Up to Get Intellectia Insights

How did the company's recent strategic decisions impact its latest financial performance?

Can you explain the factors behind the recent changes in the company's stock price?

What are the expected impacts of current market trends on the company's future growth?

Based on the latest earnings report, what are the company's forecasted revenues for the next quarter?

How does the company's performance compare to its main competitors in the same sector?

People Also Watch