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In today’s briefing:
- Guoco (53 HK): Fourth Time’s A Charm?
- Alibaba (9988 HK) 3Q24 Earnings Preview: Could Be Unimpressive, But Just Reorganized Main Business
- Morning Views Asia: Lippo Malls Indonesia Retail Trust, Road King Infrastructure
- Zhangzhou Pientzehuang Pharmaceutical (600436.CH) 2023 Results – Get Ready for More Downside Ahead
- Morning Views Asia: Sunny Optical Technology Group
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Guoco (53 HK): Fourth Time’s A Charm?
- Conglomerate Guoco Group (53 HK) has fielded three privatisation Offers from Guoline (the Quek family) over the past twenty years.
- Elliott Advisors, then holding 9.72% of shares out, backed the most recent Offer of HK$135/share in November 2018; but it was voted down at a Scheme Meeting.
- Elliott has now, surprisingly, exited. This may open the door for a fourth Offer. Shares popped 14% on the news.
Alibaba (9988 HK) 3Q24 Earnings Preview: Could Be Unimpressive, But Just Reorganized Main Business
- Alibaba Changed its Tmall Taobao business unit from three centers to six departments.
- We believe the change means Alibaba is moving its focus from cost cut to revenue growth.
- We set the stock upside at 26% and the price target at HK$91. Buy.
Morning Views Asia: Lippo Malls Indonesia Retail Trust, Road King Infrastructure
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.
Zhangzhou Pientzehuang Pharmaceutical (600436.CH) 2023 Results – Get Ready for More Downside Ahead
- Pientzehuang’s 2023 results were well below expectations. The performance in 23Q4 was terrible. 2024 performance would continue to be under pressure, without any reversal signals to be seen.
- In the process of China’s de-financialization, growth potential of assets with strong financial attributes would weaken.Pientzehuang’s ability to raise prices won’t be as strong as rigid-demands such as telecommunications tariffs.
- Pientzehuang’s stock price performance doesn’t follow traditional TCM companies.It’s not surprising if Pientzehuang’s valuation drops to PE of 15x or even lower. We recommend investors not to rush to bottom-fish.
Morning Views Asia: Sunny Optical Technology Group
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.