Daily Brief China: Hope Education Group Co Ltd, Melco Resorts & Entertainment, Agile Property Holdings, Goldlion Holdings and more

• Despite the plunge in share price after FY22 result, we think Hope Education Group Co Ltd (1765 HK) has not yet reached its bottom given the challenging outlook faced.
• We are concerned about stretched financial position with gearing surged 32.5pp in last year. Heavy capex and need to repay outstanding convertible bonds will strain its cash flow.  
• Market earnings expectations are still overly optimistic. New schools looks to drag on near-term margins while surge in staffing, primarily teacher, costs is an added pressure.

• As investors we are faced with a deluge of noisy breaking news, business media talking heads, and what has felt like non-stop Fed speakers offering their differing views on the economy and the path of rate hikes going in 2023.
• This week was no different. Fed Chair Jay Powell was front and center suggesting that interest rate hikes will likely be stepped down to 50bps in the upcoming December Fed meeting in a few weeks.
• This was already discounted and expected by the market and effectively didn’t offer much of anything Wall St. didn’t already know.

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.

• Anton Oilfield
• China Datang Corp Renewable Power
• Shui On Land

• In this post I tracked my performance on stock mentioned in my blog, and I would like to officially close some ideas here.
• I will start doing that from now on. Something I did privately but not on the blog publicly.
• Either because they have worked out and upside is no more attractive, or because the facts have changed.