Country Daily
Greater China Strategy July Alpha Picks/JBM Healthcare
Analyst
Top Stories
Strategy | Alpha Picks:
July Conviction Calls Chinese equities extended their pullback in June despite undemanding valuations, with the HSI and MSCI China Index declining 9.1% mom and 7.5% mom respectively. We expect further volatility in July, but see this as a window to go long, with the July Politburo meeting providing potential catalysts. We add BYD, Midea and Plover Bay to our BUY list, take profit on Li Auto and NAURA, and cut losses on CR Mixc and Trip.com.
Small/Mid Cap Highlights | JBM Healthcare (2161 HK/BUY/HK$1.97/Target: HK$3.16)
We held a luncheon with management. For FY27, JBM sees core brands driving revenue growth and expects rising operating profit from its PCM segment after taking into account the upcoming marketing campaign for Tin Hee Pills in Aug 26. We expect revenue/net profit to grow 5.5%/6.9% yoy respectively in FY27, led by the growth momentum of its proprietary brands, omni-channel expansion and stringent marketing and administrative cost controls. Maintain BUY. Raise target price to HK$3.16 based on 12.0x FY27F PE.
Technical Analysis
Hang Seng Index And Hang Seng Tech Index Outlook
Top Stories
Strategy | Alpha Picks:
July Conviction Calls Chinese equities extended their pullback in June despite undemanding valuations, with the HSI and MSCI China Index declining 9.1% mom and 7.5% mom respectively. We expect further volatility in July, but see this as a window to go long, with the July Politburo meeting providing potential catalysts. We add BYD, Midea and Plover Bay to our BUY list, take profit on Li Auto and NAURA, and cut losses on CR Mixc and Trip.com.
Small/Mid Cap Highlights | JBM Healthcare (2161 HK/BUY/HK$1.97/Target: HK$3.16)
We held a luncheon with management. For FY27, JBM sees core brands driving revenue growth and expects rising operating profit from its PCM segment after taking into account the upcoming marketing campaign for Tin Hee Pills in Aug 26. We expect revenue/net profit to grow 5.5%/6.9% yoy respectively in FY27, led by the growth momentum of its proprietary brands, omni-channel expansion and stringent marketing and administrative cost controls. Maintain BUY. Raise target price to HK$3.16 based on 12.0x FY27F PE.
Technical Analysis
Hang Seng Index And Hang Seng Tech Index Outlook
Analyst
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