In today’s briefing:
- Alibaba (BABA US): What Is Next After Strong Rally?
- Pre-IPO CanSino Biologics – 2022 Annual Results May Be Ugly as MCV4 Commercialization Hit a Snag
- Sany Heavy: Buy
Alibaba (BABA US): What Is Next After Strong Rally?
- Bullish sentiments doubled BABA share price post 20th Party congress, as investors look beyond a soft December quarter and focus on re-opening prospects and flashing regulatory green lights.
- Expect single-Digit GMV growth, more disciplined OPEX and hence margin recovery to generate RMB180 billion non-GAAP net profit for BABA by FY25. Materializing fundamental recovery will support continued re-rating.
- That said, we also see headwinds to multiple expansion and expect 18-20x PER (among lowest in sector) for FY25, implying 21%/28% compounded annual return over FY23-25.
Pre-IPO CanSino Biologics – 2022 Annual Results May Be Ugly as MCV4 Commercialization Hit a Snag
- CanSino Biologics Inc (6185 HK) disclosed plans to publicly list in Switzerland, but the story of the fourth dose of COVID-19 vaccine is difficult to boost its stock price/valuation.
- According to CanSino’s management,MCV4’s commercialization faced some challenges, which means 2022 annual performance may not be good. 2021 would probably be a high point of CanSino’s performance in recent years.
- Share price could pullback when 2022 annual report is released, which offers a better opportunity if investors want to go long, considering CanSino’s long-term investment value analyzed in prior insights.
Sany Heavy: Buy
- China’s construction engineering industry declined more than expected in 2022
- The industry may reach the inflection point by the end of 2023 or 1H24
- Sany Heavy is expected to recover earlier than its peers
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
