China stayed positive as the Hang Seng inched upwards to go black for the year.
Life Insurance Companies:
Life insurers got a boost thanks to an upgrade by Deutschebank, Although it recognized the potential negative impact on earnings of lower rates, it believed that the sector could benefit from a relatively mild rate decline, low guarantee rates, sufficient long-term assets (more than 10 years) to cover fixed-rate liabilities and low penetration. The research house reiterated all of the Chinese H-share life insurers under coverage at Buy. Industry top picks are CHINA LIFE and CHINA TAIPING, 00966 with upward adjustments of target prices to $29.9/ $30.8 from $27.8/ $27.4. Both stocks were rated at Buy.
China Life, HK 02628, up 3.027%
Ping An, 02318.HK, up 1.864%
AIA, 01299.HK up 1.613%
China Tiaping, 00966 HK, up 3.151%
Great Wall Motor, 02333.HK, up 3.645%, announced a pending release of it’s new SUV, Haval, H7. While passenger car sales were up only about 6.9% overall in 2015, SUV’S have shown stronger in the Chinese market, up 46% in March over 2015, as reported in the Wall Street Journal.
Filings of Note:
Zoomlion, 01157. HK, down 2.976%, Profit Warning, 1st quarter loss to increase from 383.3 Mill rmb in 2015 to 600 to 680 million rmb. The opaque bidder on Terex, TEX NYX was equally opaque on its reasons but did mention personnel changes as well as currency fluctuations. Year end 2015 saw a negative currency impact of 470 million rmb exacerbating a revenue drop of 22% and a profit after tax drop of 95% thanks to an increase in finance costs of 70%. (An analysis in this blog to follow this weekend.)