In today’s briefing:
- China Tourism Group Duty Free (1880 HK): Headwinds Persist
- Pullback Underway; Further Downside Limited?; Buys in Defensives and Commodity-Related Sectors
- Mmg Limited 1208.HK – It’s Got It All – Copper, EV’s, and AI!
China Tourism Group Duty Free (1880 HK): Headwinds Persist
- Since my previous insight on China Tourism Group Duty Free (1880 HK) in October 2023, the stock has declined 33%, and year-to-date, the stock has declined 13%.
- The company faces headwinds from continued overall weakness in Hainan duty free sales and potentially increased competition in Hainan.
- The company already announced preliminary 1Q24 results, with sales down 9% yoy and net profit flat. The company is trading at 18x 2024 earnings.
Pullback Underway; Further Downside Limited?; Buys in Defensives and Commodity-Related Sectors
- A pullback in global equities is underway following steep uptrend violations on MSCI ACWI (ACWI-US) and EURO STOXX 50. Both are 4-5% off their highs; further downside may be limited.
- Several 5%-10% pullbacks are to be expected in any given year, particularly after the historic 5-month rallies, so we view this as healthy and normal within the ongoing bull market.
- ACWI-US is currently testing important support at $105; if this area were to break, next major supports are $102 and $99; this is where we would be buying.
Mmg Limited 1208.HK – It’s Got It All – Copper, EV’s, and AI!
- Low-Cost producer of copper and zinc with two of the biggest ten mines in the world.
- Recent mine acquisition and increased production at existing mines will grow earnings.
- The supply and demand imbalance in copper will lead to higher prices.
💡 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
