Daily Brief China: WH Group, West China Cement, JD.com , Health And Happiness (H&H), PDD Holdings and more

• Since my previous insight on WH Group (288 HK) in October 2023, the stock is up 17%, massively outperforming the Hang Seng Index (HSI INDEX).
• The company is still trading at 6x forward PE, compared to an average forward PE of 11x since 2016. 
• With the US business recovering as well as its potential IPO, and a stable China business, the stock remains a buy with limited downside. 

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess West China Cement’s ESG as “Adequate”, in line with its “Adequate” Environmental and Governance scores. That said, the company’s Social pillar is “Weak”. Controversies are “Immaterial” and Disclosure is “Adequate”.

• JD.com, Inc. managed to surpass the revenue and earnings expectations of Wall Street.
• The company broadened its free shipping reach in the third quarter by leveraging enhanced logistics capabilities.
• The company strategically reduced the minimum order value for free shipping services, granting JD Plus members unlimited free shipping for 1P products.

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

1. Sunny Optical Technology Group
2. Yuexiu Property
3. Vedanta Resources
4. Tata Motors Ltd
5. Adani Ports & Special Economic Zone

and more…

• PDD Holdings Inc. surpassed Wall Street’s revenue and earnings expectations, with total revenue reaching RMB 68.8 billion, marking a 94% year-on-year increase.
• In the third quarter, they responded to a growing demand for consumption upgrades by introducing impactful promotions like the Summer Carnival, Duo Duo Harvest Festival, National Brand Festival, and Duo Duo Reading Month.
• PDD also collaborated with over 100 Chinese national brands for the National Goods Festival, promoting top brands through live streaming sessions.