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Quick Summary BYD has lost over US$60 billion in market value  since May amid a sharp sell-off China EV demand is cooling faster than expected , with subsidies fading Rising battery and chip costs are crushing margins Investors fear widespread earnings downgrades  across the sector What’s Happening Shares of  BYD Co  have come under heavy pressure, with Hong Kong-listed stock down about  7% this week  following weak sales data. The decline extends a months-long sell-off that has erased  more than US$60 billion  in market capitalisation. The rout has spilled over to other Chinese EV names, amplifying concerns over the sector’s  profitability and growth outlook . Demand Is Cooling — Fast Investors were already bracing for slower growth in 2026 as  government subsidies were reduced , but the pace of the slowdown has surprised the market. BYD January domestic sales:   109,569 units ,  ~50% lower YoY XPeng : Deliveries  down ov...

Bank of Tianjin Co., Ltd. (HKG:1578) delivered a  42% share price gain  over the past year, significantly outperforming its earnings per share (EPS) growth of just  1.2% . The total shareholder return (TSR), which includes dividends, was even higher at  54% , suggesting strong investor sentiment despite modest underlying profit growth. Market Sentiment Boost The sharp rise in the stock compared to earnings growth indicates the market now places a higher value on the company than a year ago. Over three years, the share price is up  20% , showing steady but slower long-term performance. Dividends Matter TSR outpacing share price return highlights the role of dividends in boosting investor gains. Bank of Tianjin’s consistent payouts contributed significantly to the overall return. CEO Pay and Fundamentals The company’s CEO earns less than peers at similar-sized banks, which some investors view positively. However, the key question remains whether the bank can accel...

Beijing just fired a serious shot across the bow — and coal markets are paying attention. The  National Energy Administration (NEA)  has kicked off a month-long inspection blitz across China’s top coal-producing provinces, including  Shanxi, Inner Mongolia, Shaanxi, and Xinjiang , targeting rampant overproduction that has driven coal prices to a  four-year low . This is more than just energy market housekeeping — it’s  a clear signal of Beijing’s broader agenda : Tackle industrial overcapacity   Mitigate deflationary risks   Reinforce long-term economic stability What’s Happening China is  facing coal oversupply , with intense competition and weak prices. In response, the NEA is stepping in with surprise audits and production limits. Coal sector joins steel, EVs, and solar in Beijing’s overcapacity crackdown list. Why It Matters While this move may  rebalance the supply-demand equation  over the long term, investors should brace for...

China Suntien Green Energy has been a  five-year stock market darling , returning a stunning  +189%  to long-term shareholders. But behind the impressive share price rally, a key metric is raising red flags. Return on Capital Employed (ROCE): A Closer Look ROCE is a valuable measure that tells us  how effectively a company reinvests its profits . Ideally, we want to see companies not only reinvesting — but doing so at  increasing rates of return . Unfortunately,  that’s not what’s happening here . ROCE = 6.0% , based on EBIT of CN¥3.8B and capital employed of CN¥64B. Down from 7.8% five years ago. That’s a  declining trend , and while 6% is close to the industry average, it’s  not compelling  — especially in the high-growth world of green energy. Capital Is Going In, But Not Much Is Coming Out Suntien  is  increasing its capital base — but  sales have barely budged  over the past 12 months. This might mean: Management is i...

While many HK construction stocks are trading at rock-bottom valuations,  Central New Energy Holding Group (HKG:1735)  is going the other way — and investors are  still  buying.   P/S Ratio: 5.8x That’s nearly  20x higher  than the sector median. Insane? Not if you’re buying  future growth. What's the Hype? +50% YoY revenue growth +110% revenue forecast  for next year — vs just 16% industry average 3-year compound growth? Incredible. This isn’t a turnaround story. It’s a  momentum machine.  And if the lone analyst covering the stock is right, that momentum is just getting started. So What’s Priced In? Yes, the stock  looks  expensive — but  high P/S doesn’t always mean overvalued.  In this case, the market is betting: This company isn’t just  riding  the clean energy wave — it’s  steering it Revenue is sticky and scalable The risks of reversal are low (for now) The high multiple  only makes se...

Bestore Co. , a premium Chinese snack company, is selling a 21% stake to a  local government-owned firm  after  cutting prices by 45%  to stay competitive — a move that reflects the growing toll of China’s deflationary squeeze on private businesses. What Happened: Ningbo Hanyi Venture Capital, Bestore’s largest shareholder (>35%), and another investor will transfer 21% of shares to a government entity. The deal is worth  1.05 billion yuan (RM620.67 million) . Once completed, the  local government will become Bestore’s largest shareholder . Why It Matters: Bestore, known for dried fruits and puffed snacks, was the  first premium snack retailer  to list in Shanghai (2020). Revenue has declined since 2022, with expected  1H 2025 losses exceeding 75 million yuan . A  price war  has ravaged China’s F&B sector, forcing brands to slash prices unsustainably. Deflation Fallout: Intense competition has hurt multiple industries — from s...

  Analyst Recommendation : BUY Target Price : HKD  5.20 Current Price : HKD  4.70 Potential Upside :  +10.6% Dividend Yield :  3.0% Analyst Consensus : Buy: 19 Hold: 2 Sell: 0 Key Financials Metric FY2025F FY2026F FY2027F Revenue (HKD m) 693,802 724,286 758,069 Net Profit (HKD m) 255,967 261,661 273,432 Net Margin ~36.9% ~36.1% ~36.1% Forward P/E 7.36x Market Cap HKD 1.88 tn Technical Overview Price Trend : Holding above both  20-day  and  50-day EMAs  – short-term  bullish  trend. MACD  in positive territory and above the signal line –  bullish momentum . Resistance/Support : Resistance : HKD  4.80  (52W high), HKD  5.00 Support : HKD  4.60 , HKD  4.48 A breakout  above HKD 4.80  with volume may drive it towards  HKD 5.00+ . Performance Highlights YTD Return :  +25.8% Free Float : 95% Exchange : Hong Kong Key Takeaways Stable growth  expected: ~6% net profit CAGR over 3 ye...

  Expected Net Loss (1H25): ¥10–12B USD Equivalent: ~US$1.4B–1.67B Sales Revenue: ¥69.1B Stock Reaction:  ↓1.88% (HKEX) Key Points Widening Losses:  Vanke flagged a  larger net loss  for 1H25 compared to the ¥9.85B loss in the same period last year, citing weak project settlements and low gross margins. Asset Impairments:  Additional provisions also contributed to the deeper red ink. Management Response:  Vanke issued an apology and pledged business improvements. Shenzhen Metro Group continues to provide state-backed financing support. Context: China’s Property Slump Vanke’s warning  reflects systemic challenges  in China’s real estate market, now entering its  4th year of contraction . Despite government intervention and localized stimulus,  homebuyer sentiment remains weak , with  June home sales continuing to fall . Shenzhen authorities  assumed management control earlier in 2025 to stabilize operations. Liquidity &...

Contemporary Amperex Technology Co. Ltd. ($CATL), the world’s battery giant, is now  30% more expensive in Hong Kong  compared to its Shenzhen counterpart — a rare premium driven by: ✅ Strong global investor demand ✅ Post-listing lock-up limiting liquidity ✅ Short squeeze dynamics 📈 Since debuting in May, CATL’s Hong Kong shares have  jumped 46% , reflecting intense interest in the EV and battery sector. For context, most dual-listed Chinese firms trade at a  discount  in HK due to tax and access differences. ⚠️  Analysts at JPMorgan warn a pullback is possible  after this rapid rally.

JD Health, China’s leading online healthcare platform and pharmacy operator, continues to deliver robust fundamentals with  three-year net profit CAGR projected at 15%  and stable net margins of  6%–7% . Backed by rising demand for digital healthcare, an aging population, and a growing focus on wellness and prevention, JD Health is positioning itself as a  long-term structural growth story  in the consumer healthcare space. Technical Strength The stock has rebounded above its 20-day EMA on stronger volume. The MACD line is trading above its signal, confirming short-term momentum. With support at HKD 41.80, a move toward HKD 44.60 is likely. 📊  Financial Highlights FY Revenue (HKD m) Net Profit (HKD m) 2025F 72,874 4,938 2026F 82,269 5,506 2027F 92,522 6,211 Why We Like JD Health Leader in online pharmacy and integrated healthcare services. Strong scalability with an expanding user base and product portfolio. Resilient e-commerce distribution model in a fas...

  Why Consider LINK REIT? Solid Technical Momentum: Price recently broke out above HKD 42.20 and holds above both 20-day and 50-day EMAs, signaling continued bullish momentum. A close above HKD 43 could open the path toward HKD 45–46 resistance zone. Consistent Financials: Expected revenue and net profit growth through FY2027, with stable profit margins above 48%. Net profit CAGR projected at 2%. Attractive Dividend: With a 6.4% yield, LINK REIT provides an appealing income stream in a volatile market. Strong Portfolio: Diversified assets including malls, parking, and retail properties across Hong Kong and overseas markets. Investor Note: With a healthy combination of capital appreciation potential and steady dividends, LINK REIT offers a relatively low-risk opportunity for income-focused and conservative growth investors.

Lens Technology Co. Ltd , a key Apple Inc. supplier, has successfully priced its  HK$4.8 billion (US$607 million)  Hong Kong listing at the  top of its marketed range , reflecting strong investor demand despite ongoing market volatility. The  Shenzhen-listed manufacturer of mobile phone glass covers  sold  262.3 million shares at HK$18.18  apiece—the highest end of its HK$17.38 to HK$18.18 price band. Key Highlights: Pricing & Valuation : The HK$18.18 offer price  represents a 30% discount  to its last Shenzhen closing price of  CNY 23.74 , creating a valuation buffer for incoming Hong Kong investors. Trading Debut : Lens Tech shares are expected to  begin trading in Hong Kong this Wednesday , expanding its investor base and increasing liquidity. Use of Proceeds : Funds raised will fuel: Expansion of its  product & service portfolio Growth in  overseas markets Smart manufacturing upgrades , including AI-driven auto...

Market Recap & Analysis: Hong Kong stocks retreated to a two-week low on Monday, with investors taking a risk-off stance ahead of a pivotal week for global trade. The  Hang Seng Index (HSI)  declined 0.5% to  23,808.91 , marking its lowest level since June 23, while the  Hang Seng Tech Index  edged down 0.2%. The mainland CSI 300 and Shanghai Composite indices mirrored the pullback, falling 0.6% and 0.2%, respectively. Investors are bracing for clarity on US trade policy as the  90-day tariff pause  initiated by President Trump approaches its  July 9 expiration . With expectations that the US will announce new country-specific tariff rates effective August 1, uncertainty has escalated, prompting market participants to trim exposure. Sector Highlights: Tech and Exporters Weak:  Heavyweights like  Alibaba (-0.3%) ,  Meituan (-2.4%) , and  Lenovo (-2.2%)  dragged on sentiment amid trade concerns. Export-centric firms such...