Comprehensive Analysis of Key Companies in Greater China

Broker: UOB Kay Hian

Date of Report: 10 December 2024

Anta Sports (2020 HK): A Strategic Buy

Anta Sports has shown a robust financial performance with its 1H24 revenue climbing by 13.8% year-on-year to RMB 33.74 billion. This growth was further accentuated by a soaring net profit which rose by 57.7% year-on-year to RMB 8.77 billion, showcasing the company’s strong market position and operational efficiency. The company declared an interim dividend of HK\$1.18 per share, reflecting its commitment to delivering shareholder value.

From a technical standpoint, the stock has rebounded after reaching a low of HK\$75.55 on 28 November 2024. Currently trading within a range of HK\$83.10-84.00, the stock is positioned above its major moving averages. The MACD indicator suggests a preliminary buy signal, supported by the 14-day RSI breaking through the midline of 50. This technical setup indicates potential further momentum, making Anta Sports a favorable trading buy with a target price range of HK\$88.85 to HK\$92.10, and a protective stop set at HK\$77.00.

China Southern Airlines (1055 HK): Positive Trajectory

China Southern Airlines has displayed commendable financial results with a 9M24 revenue increase of 12.7% year-on-year, reaching RMB 134.66 billion. The net profit attributed to shareholders surged by 48.9% year-on-year to RMB 1.97 billion, underscoring the airline’s resilience and growth potential amid challenging market conditions.

Technically, the stock has been on an upward trajectory since mid-October, forming a series of higher highs and higher lows. It achieved a historical high, fully refilling the long black candlestick formed on 8 October 2024. The stock’s momentum is reflected in the formation of a white candlestick for three consecutive trading days and its position above all major moving averages. The MACD gives a bullish signal with the fast line crossing above the slow line. Investors are advised to consider buying on slight price retreats, targeting a price range of HK\$4.33 to HK\$4.54, with a protective stop set at HK\$3.86.

China Resources Land Ltd (1109 HK): Strong Buy Recommendation

China Resources Land Ltd is highlighted as a strong buy with a current share price of HK\$24.65 and a target price of HK\$32.40, reflecting a potential upside of 31.4%. The company’s market capitalization stands at HK\$175,777.7 million, with a projected PE ratio of 6.6x for 2024 and 6.3x for 2025. The company is expected to deliver dividend yields of 5.6% and 6.3% for 2024 and 2025, respectively, making it an attractive investment for income-focused investors.

Sunac China Holdings Limited (1918 HK): Sell Recommendation

Sunac China Holdings Limited is rated as a sell, with its current share price at HK\$2.89 and a significantly lower target price of HK\$1.06, indicating a downside of 63.3%. The company’s market cap is HK\$26,895.1 million, and it is not expected to generate any meaningful earnings, as reflected by the absence of PE and yield figures for 2024 and 2025.

China Overseas Land (688 HK): Buy and Hold

China Overseas Land is marked as a buy with a share price of HK\$14.20 and a target price of HK\$18.60, offering a 31.0% potential upside. The company’s market cap is HK\$155,417.3 million, with a PE ratio of 7.0x for 2024 and 7.4x for 2025. The anticipated dividend yields are 4.6% for 2024 and 4.8% for 2025, providing a steady income stream for investors.

Longfor Properties (960 HK): Promising Outlook

Longfor Properties is recommended as a buy with a current share price of HK\$11.94 and a target price of HK\$17.20, suggesting a 44.1% upside. The company has a market cap of HK\$82,244.7 million, with expected PE ratios of 6.3x for 2024 and 7.3x for 2025. The dividend yields are projected to be 3.9% for both years, highlighting the company’s stability and attractiveness in the property sector.