CICC DAILY FOCUS

类别:策略 机构:中国国际金融股份有限公司 研究员: 日期:2020-07-02

  Xiaomi Corp (01810.HK): Internet business has limited exposure in India -- Maintain OUTPERFORM

      India is an important market for Xiaomi. In 2019, Xiaomi became the biggest smartphone and TV brand in India, with a shipment of 44mn smartphones (one-third of its total global shipment); revenue reached US$5bn (Rmb34.8bn), 17% of the group’s total revenue. We believe Xiaomi’s demand and supply in India will steadily recover from the impact of COVID-19.We will monitor business developments closely. The stock is trading at 23.4x/19.9x 2020e/2021e non-GAAP P/E. We maintain OUTPERFROM and TP of HK$15.00 (24x 2021e P/E, 17% upside), considering the recovery from COVID-19.

      Kingsoft Office Software (688111.SH): 2C business growth resilient; IT innovation business starts materializing -- Maintain OUTPERFORM

      Kingsoft’s businesses have experienced rapid development recently. Its 2C (to consumer) business growth has beat our expectations and IT innovation business has started materializing. MAU of 2C business is growing steadily and users have kept their telecommuting habits following the COVID-19 outbreak. Kingsoft has taken various measures to raise paying user rate. We keep our 2020 and 2021 earnings forecasts unchanged. Given better-than-expected MAU growth, smooth progress of cloud business and materializing of IT innovation business, we lift 2021 SOTP-based TP 22% to Rmb373, implying a market cap of Rmb171.8bn and offering 9.2% upside. Maintain OUTPERFORM.

      Goertek (002241.SZ): 1H preannouncement beats consensus; upbeat on AirPods and VR/AR -- Maintain OUTPERFORM

      Goertek preannounced that its attributable net profit will likely rise 45-50% YoY to Rmb760-786mn in 1H20 and grow 45-53% YoY to Rmb465-492mn in 2Q20, in line with our expectation but above market expectation. We attribute high earnings growth in 2Q20 to the strong performance of AirPods business backed by the faster-than-expected recovery of capacity utilization in May. We leave our 2020 and 2021 EPS forecast unchanged at Rmb0.68 and Rmb1.08. The stock is trading at 39.1x 2020e and 24.7x 2021e P/E. We maintain OUTPERFORM and lift our TP 27% to Rmb33.0 (considering easing impact from COVID-19 and rising expectations for business growth), implying 48.3x 2020e and 30.5x 2021e P/E, offering 24% upside.

      By-health (300146.SZ): Earnings growth to accelerate in 2Q20, fundamentals to improve -- Maintain OUTPERFORM

      By-health preannounced 1H20 results: attributable net profit should rise 0-20% YoY despite -Rmb30-40mn non-recurring gains and losses; 2Q20 median attributable net profit and recurring net profit likely will grow 13% and 29% YoY. The firm expects its 2Q20 revenue and earnings to record positive growth. We continue to believe its fundamentals will improve QoQ in 2Q20 and HoH in 2H20. We maintain our 2020 and 2021 EPS forecasts at Rmb0.85 and Rmb1.04. Given higher sector valuation, we raise TP 9% to Rmb25, implying 30x 2020e P/E and offering 26% upside. The stock is trading at 23x 2020e and 19x 2021e P/E. We maintain an OUTPERFORM rating.