Brokerage Morning Briefing Highlights | Favorable Infant Formula Market Outlook
In today's brokerage morning briefing, Huatai Securities expressed a favorable outlook for the infant formula market; CITIC Securities proposed that the long-term coal price midpoint may rise with marginal costs; and CITIC Securities Research believed that Hong Kong-listed medical devices have strong innovative capabilities, focusing on valuation repair and internationalization opportunities.
Xinhua Finance Agency reported on July 29 that the market yesterday rebounded after a turbulent day, with the ChiNext Index leading the way. The Shanghai and Shenzhen stock exchanges saw a daily turnover of RMB 17.4 trillion, down from RMB 18 billion the previous trading day. Sector-wise, PCB, film and television, CPO, military equipment, etc. were among the top gainers, while coal, steel, Hainan Free Trade Zone, and precious metals fell.
In today's brokerage morning briefing, Huatai Securities expressed a favorable outlook for the infant formula market; CITIC Securities proposed that the long-term coal price midpoint may rise with marginal costs; and CITIC Securities Research believed that Hong Kong-listed medical devices have strong innovative capabilities, focusing on valuation repair and internationalization opportunities.
Huatai Securities: Favorable Outlook for Infant Formula Market
Huatai Securities believes that the current nationwide population stimulus policies are accelerating their implementation. Policies will continue to refine their implementation, with central government fiscal policy releasing significant signals, which may drive local governments to accelerate their follow-up efforts, launch multiple measures to stabilize consumer confidence, and combine new births with an increase in maternal demand, leading to a favorable outlook for the infant formula market.
CITIC Securities: Long-term Coal Price Midpoint May Rise with Marginal Costs
CITIC Securities believes that the second half of this year will see coal supply released more rationally, combined with demand or marginal improvements, leading to a potential upward trend in coal prices. This will benefit the industry's profitability repair. Looking ahead, the industry's profitability sustainability is key, and CITIC Securities expects the long-term coal price midpoint to rise with marginal costs, favoring companies with excellent resource endowment and low costs to weather the cycle.
CITIC Securities Research: Hong Kong-listed Medical Devices Have Strong Innovative Capabilities, Focus on Valuation Repair and Internationalization Opportunities
CITIC Securities Research believes that Hong Kong-listed medical device companies have strong innovative capabilities. Several companies are about to enter the phase of profit recovery or rapid earnings release. Since the beginning of this year, there have been innovative products listed, technological breakthroughs realized, and license-out opportunities catalyzed, as well as cash-rich companies with rapid earnings growth and low valuations, which have seen their share prices more than double; some high-growth stocks with low valuations have also performed well. This maps to the investment opportunities in A-share medical devices, CITIC Securities Research is optimistic about the sector's outlook, particularly for companies with optimized procurement policies, innovative products listed, and international business growth.