Consumers Sector

Re: Consumers Sector

Postby winston » Tue Nov 15, 2011 11:53 am

DJ MARKET TALK: HK Consumer Sector's Selloff A Buy Chance -JPMorgan

1126 [Dow Jones] JPMorgan says the sell-off of the consumer sector against solid fundamentals in the past two months, was mostly macro-driven.

And the de-rating has resulted in attractive valuations of 16.6X forward P/E for consumer discretionary sector (ex-sportswear), based on its "reasonably conservative" earnings estimates, below the sector's long-term average of 19X.

That said, "near-term volatility seems inevitable to us, in light of the increasing talk of slowdown from retailers and the consensus earnings cut."

JPM says as the share price generally reacts ahead of earnings revisions - around three months based on the 2008/09 experience - it sees good entry points for investors eyeing a long-term sustainable recovery cycle, which it expects to start early next year.

Its top picks remain Trinity (0891.HK), Golden Eagle (3308.HK), and I.T (0999.HK).

Source: Dow Jones Newswire
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Re: Consumers Sector

Postby winston » Fri Nov 18, 2011 11:00 am

China Consumption

DJ MARKET TALK: China Consumption Theme Attracts HK Investors


1024 [Dow Jones] News that Coach Inc. (COH) plans to list in Hong Kong via depositary receipts, Tingyi (0322.HK) and Want Want China (0151.HK) will become blue chips, and the majority of the recent MSCI China index newcomers are China consumption plays all point to one thing, and that is the rising importance of China consumers.

With the export engine faltering and China appears can't build more roads and bridges, domestic consumption is taking on an increasingly important role in boosting China's economic growth, and while sector valuations appear to be on the demanding side, flip side is that it shows investors' relative upbeat view on the sector.

Amid the HSI's fourth straight session of declines, Want Want China is only down 0.3% at HK$7.44, Lenovo (0992.HK) gains 1.1% to HK$5.41, GOME (0493.HK) is up 1.4% at HK$2.23.

Source: Dow Jones Newswire
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Re: Consumers Sector

Postby winston » Mon Nov 28, 2011 2:28 pm

DJ MARKET TALK: China Consumption Names Strong But P/E High

1358 [Dow Jones] A scan of Monday's outperforming blue chips includes such names as China Resources Enterprise' (0291.HK), rallying 5.7% to HK$26.10, Hengan (1044.HK) rises 3.1% to HK$72.70, Belle (1880.HK) adds 3.6% to HK$13.84, vs the HSI's 1.9% rebound.

All of them are China consumption plays; while the common complaints against investing in them are their lofty valuations, such premium is for a reason given their likely solid earnings growth in years ahead.

Want Want China (0151.HK), set to join blue chip in early December, is up 4.9% at HK$7.70, and is trading at a lofty 32X this year and 25X FY12 consensus earnings based on Thomson Reuters, although looks further out to FY13, prospective P/E will drop to 21X.

Source: Dow Jones Newswire
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Re: Consumers Sector

Postby winston » Wed Dec 21, 2011 9:03 am

Singapore Consumer Sector

Maintain NEUTRAL on sector.

Given its sharp correction over the past year, we deem further intensive sell-offs to be unlikely, barring any escalation of current woes.

We maintain our cautious approach to the sector and leave our NEUTRAL outlook unchanged.

We favour Sheng Siong Group [HOLD;FV: S$0.44] for its defensive nature and strong fundamentals as our top pick while maintaining our preferences for Viz Branz [HOLD; FV: S$0.32] and BreadTalk Group [HOLD; FV: S$0.52] given their larger revenue contribution from China.

Source: OCBC
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Re: Consumers Sector

Postby winston » Fri Dec 30, 2011 3:48 pm

DJ MARKET TALK:China Consumer Staples May Outperform More In 1Q-SHKF

1533 [Dow Jones] Among the blue-chip outperformers this year have been China consumer staples stocks such as Hengan (1044.HK) and Tingyi (0322.HK), which rose about 9% and 18% respectively, vs the HSI's around 20% fall in 2011.

SHK Financial strategist Daniel So says these stocks' defensive nature makes them resilient amid the weak equity market conditions this year.

"We expect these stocks to continue their outperformance in the first quarter of 2012," So says, as falling raw material prices should have a positive effect on their profit margins.

He adds, Hengan now trades close to its long-term average forward P/E of 27X, and technically, the stock is approaching resistance at HK$75, and could correct in the short term.

But he advises accumulating the stock near HK$70. Hengan falls 2.5% to HK$72.95.

Source: Dow Jones Newswire
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Re: Consumers Sector

Postby winston » Mon Feb 20, 2012 3:13 pm

DJ MARKET TALK: JPM Prefers China Discretionary Consumer Plays

1439 [Dow Jones] Within China consumer plays, JPMorgan sees the risk/reward profile for discretionary more attractive than staples, mainly due to staples' stretched valuations vs discretionary valuations at one standard deviation below their long-term average, and more upside risk for discretionary with recovery in the macro environment.

The house's top picks amongst retailers are Belle International (1880.HK), Trinity (0891.HK), Golden Eagle (3308.HK) and I.T (0999.HK), and among staples, it is Overweight on Mengniu Dairy (2319.HK) focusing on its long-term potential.

Source: Dow Jones Newswire
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Re: Consumers Sector

Postby winston » Fri Feb 24, 2012 9:10 pm

Dozens of big consumer stocks are near fresh 52-week highs… including Proctor & Gamble, Coca-Cola, Anheuser-Busch, McDonald's, and Kraft.
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Re: Consumers Sector

Postby winston » Thu Mar 08, 2012 4:09 pm

DJ MARKET TALK:China Consumption Plays Rally;To Outperform More-SHKF

1543 [Dow Jones] Hong Kong-listed China consumption plays shine, with sector strength triggered by Want Want China's (0151.HK) post-results rally; Want Want is up 4.3% at HK$8.73 and gains 16.1% in three sessions.

"The main story is a likely margin expansion this year, due to lower raw material prices, which would have a favorable impact on the bottom-lines," says Daniel So, strategist at SHK Financial.

He adds that the sector had underperformed in January and February, and hence more outperformance in March is likely.

Among blue chips, Hengan International (1044.HK) zooms 4.0% higher to HK$73.35, Belle International (1880.HK) rallies 5.4% to HK$13.60.

Outside blue chips, Vinda International (3331.HK) is down 0.3% at HK$11.58 but recovers from an intraday low of HK$11.08; it already hit a 52-week high on Wednesday.

Source: Dow Jones Newswire
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Re: Consumers Sector

Postby winston » Thu May 17, 2012 2:58 pm

not vested

DJ MARKET TALK: Skyworth +9.8%; Home Appliance Subsidy Program

1441 [Dow Jones] Skyworth Digital (0751.HK) zooms 9.8% higher to HK$3.36, while GOME Electrical Appliances (0493.HK) rallies 4.1% to HK$1.28, boosted by China's new subsidy program for energy-efficient home appliance consumption, with the total subsidy, which is set to run for one year, amounting to CNY26.5 billion.

Kim Eng considers the size of the CNY26.5 billion one-year subsidy important and compares it with the CNY66.2 billion subsidy for the previous near three-year "home appliance to the countryside" policy.

It believes that companies including Skyworth, TCL Multimedia (1070.HK) and Haier Electronics (1169.HK) are likely to be the biggest beneficiaries of the policy.

TCL is up 0.7% at HK$4.43 while Haier rises 5.4% to HK$8.96.

Source: Dow Jones Newswire
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Re: Consumers Sector

Postby winston » Tue May 29, 2012 9:33 am

DJ UPDATE: China Announces Subsidies For Televisions, Air Conditioners

-- China unveils rules on subsidies for purchases of energy-efficient appliances
-- Policies are part of a wider push to jump-start consumption
-- Policies should increase consumption by $21.3 billion, the finance ministry estimates

By Aaron Back

BEIJING (Dow Jones)--China's Ministry of Finance on Monday unveiled detailed rules for subsidies on purchases of energy-efficient televisions and air conditioners.

The specific regulations follow a pledge by the State Council earlier this month to roll out subsidies for energy-efficient appliances, part of broader efforts to jump-start consumption and boost growth.

Under the rules, consumers who purchase a 42-inch flat-screen television that meets a certain energy-efficiency standard will qualify for a subsidy of CNY350 to CNY400 ($55 to $63) per set, depending on how well the appliance scores on an energy-efficiency scale. Smaller sets qualify for slightly lower subsidies.

Similarly, air conditioners that meet efficiency standards will qualify for a subsidy of anywhere between CNY180 to CNY400 a unit.

The subsidies should increase consumption by CNY135 billion ($21.3 billion) and achieve annual energy savings of around 12 million megawatt hours, equivalent to four million metric tons of coal, the ministry estimated.

The purchase incentives apply to all appliance makers registered in mainland China, the Ministry of Finance said, a category that should include the local units of foreign-based manufacturers, although this wasn't specified in the statement.

The subsidies are tentatively scheduled to last for one year, starting from June 1.

Source: DOW JONES NEWSWIRES
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