Deep Dive into UOB Kay Hian’s Stock Picks: December 4, 2024 Report
Tencent Holdings (700 HK): The Communication Services Giant
Tencent is poised for a substantial upside of 44.2%, with a target price set at 570.00 HKD. Currently priced at 395.20 HKD, Tencent’s PE ratios for 2025 and 2026 are expected to be 15.3x and 13.5x, respectively, with a dividend yield of 1.5%. As a dominant player in the communication services sector, Tencent’s growth is robust, and the recommendation is a strong BUY.
Desay SV (002920 CH): A Leader in Consumer Discretionary
Desay SV is projected to see a significant rise of 48.7% with a target price of 190.00 CNY. The current price is 127.80 CNY. The company’s PE for 2025 stands at 26.8x and decreases to 20.2x in 2026, with a modest dividend yield of 1.0%. Desay SV’s strategic positioning within the consumer discretionary sector makes it a top pick, recommended as a BUY.
Fuyao Glass (3606 HK): Driving Forward in Consumer Discretionary
Fuyao Glass is expected to rise by 31.7% to reach a target price of 68.00 HKD from its current 51.65 HKD. The company’s PE ratios for 2025 and 2026 are 14.2x and 12.7x, respectively, offering a healthy dividend yield of 3.9%. Fuyao Glass remains a strong contender in the consumer discretionary field, earning a BUY recommendation.
Geely (175 HK): Accelerating Growth in Consumer Discretionary
Geely is anticipated to boom by 76.9%, targeting a price of 23.00 HKD from 13.00 HKD. With PE ratios of 11.5x for 2025 and 9.4x for 2026, and a dividend yield of 2.8%, Geely’s prospects in the consumer discretionary sector are promising. The stock is recommended as a BUY.
Haier Smart Home (6690 HK): Innovating in Consumer Discretionary
Haier Smart Home is expected to grow 60.9% to a target of 42.00 HKD, up from 26.10 HKD. The company’s PE for 2025 is 10.0x and 8.7x for 2026, with a commendable dividend yield of 4.3%. Haier Smart Home’s innovative approach in the consumer discretionary sector makes it a BUY.
Meituan (3690 HK): Leading the Charge in Consumer Discretionary
Predicted to rise by 37.0%, Meituan’s target price is set at 222.00 HKD from 162.00 HKD. The PE ratios are projected at 16.6x for 2025 and 12.1x for 2026. Despite a 0.0% dividend yield, Meituan’s strong market position warrants a BUY recommendation.
Mengniu Dairy (2319 HK): A Staple in Consumer Staples
Mengniu Dairy is set for a 41.7% increase, aiming for a price target of 23.5 HKD from 16.58 HKD. With PE ratios of 11.2x in 2025 and 9.8x in 2026, and a dividend yield of 4.3%, Mengniu Dairy is a solid choice for investors in the consumer staples sector, marked as a BUY.
Sands China (1928 HK): Gaming Strong in Consumer Discretionary
Sands China is expected to climb 52.9% to a target of 28.60 HKD from 18.70 HKD. The company’s PE ratios are 13.4x for 2025 and 10.6x for 2026, with a dividend yield of 3.0%. In the realm of consumer discretionary, Sands China is a compelling BUY.
Trip.com (9961 HK): Navigating High in Consumer Discretionary
Trip.com is projected to appreciate by 27.6%, targeting a price of 640.00 HKD from 501.50 HKD. With PE ratios of 20.7x for 2025 and 18.7x for 2026, and a 0.0% dividend yield, the company is a dominant player in the travel sector, recommended as a BUY.
Ping An (2318 HK): Financials Powerhouse
Ping An is looking at a 55.8% increase, with a target price of 69.00 HKD from 44.30 HKD. The PE for both 2025 and 2026 is 6.0x, with a substantial dividend yield of 5.2%. Ping An’s solid footing in the financial sector makes it a strong BUY.
Ali Health (241 HK): Advancing in Healthcare
Ali Health is projected to rise by 42.0% to a target of 5.00 HKD from 3.52 HKD. The company’s PE ratios are 26.0x for 2025 and 19.3x for 2026, with a 0.0% dividend yield. As a leader in healthcare, Ali Health is a recommended BUY.
CSCEC (601668 CH): Building Strength in Industrials
CSCEC is poised for a 12.2% increase, with a target price of 6.61 CNY from 5.89 CNY. The PE ratios are 4.4x for 2025 and 3.9x for 2026, and a dividend yield of 4.9%. In the industrials sector, CSCEC is a strategic BUY.
Han’s Laser (002008 CH): Precision in Industrials
Han’s Laser is expected to grow 32.2%, targeting a price of 34.00 CNY from 25.71 CNY. The PE for 2025 is 20.1x and 16.9x for 2026, with a dividend yield of 0.8%. Han’s Laser stands out in the industrials sector, making it a BUY.
JD Logistics (2618 HK): Delivering Growth in Industrials
JD Logistics is anticipated to appreciate by 54.9%, reaching a target of 22.00 HKD from 14.20 HKD. The PE ratios are 11.8x for 2025 and 10.9x for 2026, with a 0.0% dividend yield. The stock is a promising BUY in the logistics domain.
Xiaomi (1810 HK): Innovating in Information Technology
Xiaomi is projected to see an 18.0% rise, targeting a price of 33.50 HKD from 28.40 HKD. The PE ratios are expected at 22.3x for 2025 and 18.4x for 2026, with a 0.0% dividend yield. Xiaomi’s innovation in IT makes it a recommended BUY.
Zijin Mining (2899 HK): Excavating Opportunities in Materials
Zijin Mining is set for a 41.7% increase, with a target price of 21.20 HKD from 14.96 HKD. The company’s PE for 2025 is 9.5x and 8.9x for 2026, with a dividend yield of 2.8%. Zijin Mining is a strategic BUY in the materials sector.
COLI (688 HK): Building Value in Real Estate
COLI is expected to grow by 41.8%, targeting a price of 18.60 HKD from 13.12 HKD. With PE ratios of 6.9x for 2025 and 6.6x for 2026, and a dividend yield of 5.0%, COLI is a solid BUY in the real estate market.
