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China Resources Beer / Crystal International / Fuyao Glass / Hong Kong Exchanges and Clearing / Kuaishou Technology / Ping An Healthcare and Technology / Sino Biopharmaceutical
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Company Results | China Resources Beer (291 HK/BUY/HK$21.06/Target: HK$28.60)
CR Beer’s 1H26 earnings missed expectations. For the full year, we adopt a softer outlook on beer business, with volume expected to be roughly flat and ASP to show a slight increase. For baijiu, there may be further goodwill impairment in 2H26. On dividends, management guides for payout to remain above 55% and aims for yoy flat DPS. In the mid-to-long term, it targets a payout of 60-70%. Maintain BUY; cut target price by 6% to HK$28.60.
Company Results | Crystal International (2232 HK/BUY/HK$6.92/Target: HK$8.34)
Crystal’s 1H26 net profit grew 10.6% yoy to US$109m, representing 43% of our full-year estimate, driven by solid order growth from key customers, ongoing efficiency improvement and operating leverage. Management targets high single-digit yoy revenue growth in 2026 on solid order growth momentum and continued worker additions in 2H26. We believe that Crystal’s share gain is intact, backed by its cross-category product innovation capabilities amid vendor consolidation. Maintain BUY and raise target price to HK$8.34 from HK$7.84 based on 12.0x 2026F PE.
Company Results | Fuyao Glass (3606 HK/BUY/HK$58.30/Target: HK$84.00)
2Q26 core net profit grew 10.4% yoy to Rmb2.6b, missing our estimate but meeting consensus forecasts. The 2Q26 earnings miss stemmed from a top-line miss, offsetting the margin beat. We trim our 2026-28 net profit forecasts by 1.5%/0.5%/2.5% respectively on a lower sales volume and higher gross margin. Management stated that 2Q26 was the industry trough, and customer rolling forecasts point to a recovery in 3Q26. Maintain BUY on FYG and cut target price from HK$100 to HK$84 on lower target PE multiple.
Company Results | Hong Kong Exchanges and Clearing (388 HK/BUY/HK$405.00/Target: HK$480.00)
HKEX delivered upbeat 2Q26 results as revenue and earnings rose 18%/21% yoy, thanks to: a) strong core revenue growth of 29% yoy on the back of elevated trading turnover and listing activities; and b) one-off valuation gains from unlisted equities, partly offset by softer underlying NII on declining HIBOR and heavier opex. We upgrade our 2026 earnings forecast by 12% after raising ADT assumptions to HK$287b to reflect improving market sentiment. Maintain BUY but cut target price to HK$480.00.
Company Results | Kuaishou Technology (1024 HK/BUY/HK$37.80/Target: HK$63.00)
2Q26 results came in within expectations. Revenue increased 1.4% yoy to Rmb35.5b, largely as expected. Gross profit margin dipped 4ppt yoy to 52%. Non-IFRS net profit dropped 30% yoy to Rmb3.9b due to increased AI investment and R&D spending, in line with our and consensus forecasts. Kuaishou guided for 3Q26 revenue to decline 7.5% yoy and adjusted net profit to decrease to Rmb700m (2.2% margin), below our expectations. Maintain BUY on Kuaishou with a lower target price of HK$63.00.
Company Results | Ping An Healthcare and Technology Company (1833 HK/BUY/HK$7.13/Target: HK$10.00)
PAGD’s 1H26 revenue decreased 0.7% yoy amid run-off of non-core business, while adjusted net profit rose 37.7% yoy on strong margin expansion, beating our and consensus’ 2026 estimates. We lower our 2026 revenue growth estimates to 0.2% yoy, but forecast revenue and adjusted net profit CAGR of 14% and 38% for 2026-28, with continued business mix optimisation towards corporate health management and AI enablement. Maintain BUY with a lower target price of HK$11.00, with medium-term earnings momentum still intact.
Company Results | Sino Biopharmaceutical (1177 HK/BUY/HK$4.79/Target: HK$7.20)
Sino Biopharm reported satisfactory 1H26 results, with revenue up 10.6% yoy to Rmb19.44b; underlying net profit was Rmb3.34b, up 8.1% yoy, or 92.3% yoy if excluding the Sinovac LS dividend received in 1H25. Embracing AI, the company has achieved breakthroughs in its AI-driven drug discovery and significantly enhanced operating efficiency. Maintaining its double-digit 2026 revenue growth target, the company expects innovative drugs sales and out-licensing income to further boost earnings in 2026. Maintain BUY and target price of HK$7.20.
Top Stories
Company Results | China Resources Beer (291 HK/BUY/HK$21.06/Target: HK$28.60)
CR Beer’s 1H26 earnings missed expectations. For the full year, we adopt a softer outlook on beer business, with volume expected to be roughly flat and ASP to show a slight increase. For baijiu, there may be further goodwill impairment in 2H26. On dividends, management guides for payout to remain above 55% and aims for yoy flat DPS. In the mid-to-long term, it targets a payout of 60-70%. Maintain BUY; cut target price by 6% to HK$28.60.
Company Results | Crystal International (2232 HK/BUY/HK$6.92/Target: HK$8.34)
Crystal’s 1H26 net profit grew 10.6% yoy to US$109m, representing 43% of our full-year estimate, driven by solid order growth from key customers, ongoing efficiency improvement and operating leverage. Management targets high single-digit yoy revenue growth in 2026 on solid order growth momentum and continued worker additions in 2H26. We believe that Crystal’s share gain is intact, backed by its cross-category product innovation capabilities amid vendor consolidation. Maintain BUY and raise target price to HK$8.34 from HK$7.84 based on 12.0x 2026F PE.
Company Results | Fuyao Glass (3606 HK/BUY/HK$58.30/Target: HK$84.00)
2Q26 core net profit grew 10.4% yoy to Rmb2.6b, missing our estimate but meeting consensus forecasts. The 2Q26 earnings miss stemmed from a top-line miss, offsetting the margin beat. We trim our 2026-28 net profit forecasts by 1.5%/0.5%/2.5% respectively on a lower sales volume and higher gross margin. Management stated that 2Q26 was the industry trough, and customer rolling forecasts point to a recovery in 3Q26. Maintain BUY on FYG and cut target price from HK$100 to HK$84 on lower target PE multiple.
Company Results | Hong Kong Exchanges and Clearing (388 HK/BUY/HK$405.00/Target: HK$480.00)
HKEX delivered upbeat 2Q26 results as revenue and earnings rose 18%/21% yoy, thanks to: a) strong core revenue growth of 29% yoy on the back of elevated trading turnover and listing activities; and b) one-off valuation gains from unlisted equities, partly offset by softer underlying NII on declining HIBOR and heavier opex. We upgrade our 2026 earnings forecast by 12% after raising ADT assumptions to HK$287b to reflect improving market sentiment. Maintain BUY but cut target price to HK$480.00.
Company Results | Kuaishou Technology (1024 HK/BUY/HK$37.80/Target: HK$63.00)
2Q26 results came in within expectations. Revenue increased 1.4% yoy to Rmb35.5b, largely as expected. Gross profit margin dipped 4ppt yoy to 52%. Non-IFRS net profit dropped 30% yoy to Rmb3.9b due to increased AI investment and R&D spending, in line with our and consensus forecasts. Kuaishou guided for 3Q26 revenue to decline 7.5% yoy and adjusted net profit to decrease to Rmb700m (2.2% margin), below our expectations. Maintain BUY on Kuaishou with a lower target price of HK$63.00.
Company Results | Ping An Healthcare and Technology Company (1833 HK/BUY/HK$7.13/Target: HK$10.00)
PAGD’s 1H26 revenue decreased 0.7% yoy amid run-off of non-core business, while adjusted net profit rose 37.7% yoy on strong margin expansion, beating our and consensus’ 2026 estimates. We lower our 2026 revenue growth estimates to 0.2% yoy, but forecast revenue and adjusted net profit CAGR of 14% and 38% for 2026-28, with continued business mix optimisation towards corporate health management and AI enablement. Maintain BUY with a lower target price of HK$11.00, with medium-term earnings momentum still intact.
Company Results | Sino Biopharmaceutical (1177 HK/BUY/HK$4.79/Target: HK$7.20)
Sino Biopharm reported satisfactory 1H26 results, with revenue up 10.6% yoy to Rmb19.44b; underlying net profit was Rmb3.34b, up 8.1% yoy, or 92.3% yoy if excluding the Sinovac LS dividend received in 1H25. Embracing AI, the company has achieved breakthroughs in its AI-driven drug discovery and significantly enhanced operating efficiency. Maintaining its double-digit 2026 revenue growth target, the company expects innovative drugs sales and out-licensing income to further boost earnings in 2026. Maintain BUY and target price of HK$7.20.
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