Daily Brief China: L’Occitane, China Vanke , Citic Resources Holdings, Jinxin Fertility Group , Hang Seng Index and more

• L’Occitane (973 HK) announced two solid moves this week:  1) Disposing the 70% stake in Grown Alchemist;
• And 2) granting additional call options to Sol de Janeiro CEO Heela Yang of up to 7%.
• The stock is trading at 19x FY25 PE (fiscal year ending March), up from just 14x six months ago.

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.

• China Vanke
• Indika Energy
• Vedanta Resources

• One of a basket of Hong Kong commodity stocks we like
• One off issues in 2023 which should reverse in 2024
• Can also be viewed as  a tangential play on India’s industrial growth

• Jinxin Fertility Group Ltd., China’s largest private provider of in vitro fertility (IVF) services, is buying a stake in an Indonesian peer, venturing into Southeast Asia as demand in China declines with more couples opting not to have babies.
• Hong Kong-listed Jinxin Fertility has signed an equity investment deal to become a “significant shareholder” of PT Morula Indonesia, an IVF specialist affiliated with PT Bundamedik Tbk, a major women- and children-focused health care services group in Indonesia, according to a joint statement Monday.
• It did not specify how much capital Jinxin will invest.

• The Hang Seng Index has been rising for 2 weeks but the uptrend seems slow and weak. The rally may have stalled, a pullback may be behind the corner.
• Based on our MONTHLY seasonal studies for the HSI, the index has a extremely high chance to close April in negative territory.
• You can go SHORT now, or during this coming week if the index keeps rising, target the 17000 to 17300 areas.