![](https://wp-static.smartkarma.com/../assets/uploaded/2022/05/ChinaTencentAlibabaGroupShenzhenExpresswayCoHLenovoActivisionBlizzardandmore.png)
In today’s briefing:
- Hang Seng Index Constituents
- Alibaba (9988 HK): Well Controlled Expense in 4Q22 and Forthcoming Turning Point in June, Buy
- Shenzhen Expressway (548 HK): Cautiously Optimistic
- Morning Views Asia: Adani Ports & Special Economic Zone, Bharti Airtel, Lenovo, Vedanta Resources
- FPA U.S. Core Equity Fund Q1 2022 Commentary
Hang Seng Index Constituents
- The Hang Seng index constituents have moved away from just local Hong Kong shares to being dominated by China H and China-centric shares
- Focusing on these constituents adds much value, especially with shifting liquidity away from US-listed ADS to HKEX listed shares.
- It brings together a more diverse investor base ranging from local Hong Kong, mainland China and the rest of the world.
Alibaba (9988 HK): Well Controlled Expense in 4Q22 and Forthcoming Turning Point in June, Buy
- Operating margin improved in 4Q22 due to well controlled expenses in minor businesses.
- We believe the state council meeting will provide a turning point in June.
- We set an upside of 31% and a price target at HK$106.
Shenzhen Expressway (548 HK): Cautiously Optimistic
- Shenzhen Expressway Co H (548 HK) guided that many drivers are presented for the rest of the year to support growth, after a 24% YoY decline in 1Q22 net profit.
- Toll road business should benefit from organic growth and project completions, while clean energy and waste treatment businesses will experience astronomical growth from capacity acquisitions.
- There exists room to leverage up for growth as liabilities-to-asset ratio is still 11pp below its tolerance level of 65%. Besides below-average PERs, FY22F yield of 10% is attractive too.
Morning Views Asia: Adani Ports & Special Economic Zone, Bharti Airtel, Lenovo, Vedanta Resources
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.
FPA U.S. Core Equity Fund Q1 2022 Commentary
- FPA is a Los Angeles-based institutional money management firm practicing a disciplined approach to value investing, prudently seeking superior long-term returns while maintaining a focus on capital preservation.
- In the first quarter of 2022, the FPA U.S. Core Equity Fund, Inc.’s (“Fund”) performance was -12.25% (-12.01% before fees and expenses).
- I believe secularly growing mid- to large-capitalization companies trading at compelling valuations will continue to be a favorable place to invest for the long-term—especially relative to U.S. Treasuries and other investment alternatives.
Before it’s here, it’s on Smartkarma