“Neutral” Rating Continues in Hong Kong
Watch the video with Andrew Stotz or read Watching the Street: Hong Kong below.
Consensus Recommendations: Hong Kong
What we can see in this chart are the consensus recommendations over five years. Analysts remain “neutral” on Hong Kong, a streak that began earlier this year, after 4 years of rating the country a “buy” in Asia.
Learn more: How to Benefit from Our Watching the Street Charts
China Lesso manufactures plastic pipes for a vast range of purposes. Its recommendations remain strong after a 30% share price increase in the past 6 months.
China Huishan Dairy’s chairman and majority shareholder Yang Kai borrowed money to buy back shares in 2015, which caused the share price to double in less than 3 months. But the company’s share price has seen poor performance ever since.
Consensus Earnings Estimates: Hong Kong
In the past analysts usually have expected single-digit growth and this is the case for 2016 as well.
Lenovo Group’s earnings are expected to rebound from the loss in FY2016 as PC and smartphone shipments have started to pick up.
Despite expectations about lower revenue and earnings for Shougang Fushan, the share price is up by about 80% YTD.
Consensus Target Prices: Hong Kong
The 12-month forward expected return is now at 21% vs 13% in August 2016. This can to a large extent be explained by the Hang Seng Index performing poorly.
All stocks with the highest target price expected return have fallen 40% or more YTD, except Joy City Property, which has “only” fallen by 10% YTD.
China Huishan Dairy is also the company with most target price downside, due to its price jump in 2015.
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