In today’s briefing:
- A Comprehensive List of Hong Kong F&B Names to Play the Reopening
- Q4FY22 Earnings | HDFC Bank: All Is Well!
- Jinxin Fertility: Shenzhen and Yunnan Acquisitions
- Adi Sarana Armada (ASSA IJ) – Mobility, Logistics, and the Digital Economy
- ASMP (522.HK): 1Q22 Results and 2Q22 Forecast- A Warm up in 2022 and It Should Be Another Hike in 3Q
- China Banks – 4Q21 KPIs Support Our Stock Picks
- Intuitive Surgical (ISRG US): 1Q22 Review- Procedure Volume Growth Overshadowed by Macro Headwinds
A Comprehensive List of Hong Kong F&B Names to Play the Reopening
- HK F&B is set to have a reprieve as dine-in services at catering businesses can now remain open from 6 pm-10 pm ( max seating up to 4 people).
- We provide a list of 34 names that will benefit from the removal of restrictions ( some with further catalysts down the road as they are exposed to China)
- Our favorite pick remains Taste Gourmet Group (8371 HK) which we have written about in our insight Taste Gourmet: Multibagger Reopening Play.
Q4FY22 Earnings | HDFC Bank: All Is Well!
- HDFCB’s stock has seen significant volatility over the past one month. The Street seems to have four major concerns, which we think are either unfounded or too myopic.
- A recent concern has been around the compression in NIMs, where the Street is missing the point that this is well offset by lower operating/credit costs per the shifting product-mix.
- HDFC Bank has been gaining market share and with its distribution expansion, the growth is only going to accelerate further. Overall, the current valuations offer an attractive entry point.
Jinxin Fertility: Shenzhen and Yunnan Acquisitions
- Jinxin announced in recent days that it further increases stake in Shenzhen Hospital, Jiuzhou Hospital and Hewanjia Hospital.
- In this note, we analyze the impact on the company. We think the acquisition is sensible when the market sentiment is weak.
- We also summarize recent industry development and the company’s FY2021 results. We are turning relatively more bearish.
Adi Sarana Armada (ASSA IJ) – Mobility, Logistics, and the Digital Economy
- Adi Sarana Armada (ASSA IJ) booked a strong set of FY2021 results with sales growing by +68% and net profit by +64%, driven by a strong performance from logistics business.
- Anteraja now makes up 54% of sales and broke even in FY2021, delivering an average of 650,000 parcels per day in 2021, expected to rise to 1.5m by December 2022.
- Adi Sarana Armada (ASSA IJ) is a proxy for mobility through car leasing, online and offline used car sales through Autopedia, and last-mile deliveries through Anteraja.
ASMP (522.HK): 1Q22 Results and 2Q22 Forecast- A Warm up in 2022 and It Should Be Another Hike in 3Q
- Revenue of HK$5.27 billion (US$674.8 million), +21.5% YoY and -15.1% QoQ, was at the high end of revenue guidance issued in 1Q22.
- Revenue guidance was US$670 million to US$740 million, which was +5.8% YoY and +4.5% QoQ at mid-point in Q2 2022.
- Usually, the 1st quarter is the weakest of the year. The booking magnitude might be showing how is the industry customers’ confidence now.
China Banks – 4Q21 KPIs Support Our Stock Picks
- CCB is our preferred pick, given its attractive valuations, strong capital adequacy, healthy ROE and sound credit quality; CCB’s real estate exposure is limited and it sector delinquency is low
- We also pick PSBC for its good value, its attractive PEG ratio and healthy credit quality and coverage; its real estate exposure, and its related delinquency, are both very low
- We are negative on China Minsheng due to its low ROE, poor delinquency and NPL coverage, its high exposures to real estate relative to its peers and fast rising delinquency
Intuitive Surgical (ISRG US): 1Q22 Review- Procedure Volume Growth Overshadowed by Macro Headwinds
- Intuitive Surgical (ISRG US) Q1 revenue and EPS beat consensus. High-teens procedure volume growth is the brightest spot and management raised full-year 2022 procedure growth guidance to 12–16%.
- After a strong placement in last couple of quarters, Intuitive is seeing some near-term softening of its system placement pipeline in the U.S.
- In near-term, macro headwinds including regional waves of COVID, staffing pressure at hospitals, component and raw material availability, and logistic delays will remain biggest overhang for the company.
Related tickers: HDFC Bank (HDBK.NS), Jinxin Fertility Co Ltd (1951.HK), Adi Sarana Armada (ASSA.JK), ASM Pacific Technology (0522.HK), China Construction Bank H (0939.HK), Intuitive Surgical (ISRG.O)
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