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<Research>UBS's Newest CN Stock Top Picks (Table)
Recommend
36
Positive
60
Negative
26
UBS commented in a China Equity Strategy report that the escalation in Middle East conflicts could have several potential impacts on China's stock market. The first is increased asset price volatility and heightened risk sentiment, the second is that it could lead to higher input costs for companies, which could drag down earnings performance, and the third is that higher headline inflation could affect investors' interest rate expectations. However, the broker remained constructive on the Chinese market and continues to focus on high dividend stocks as a core component of its portfolio.

The broker updated its list of top picks for Chinese stocks, inducting Trip.com (TCOM.US), ZIJIN MINING (601899.SH), YUTONG BUS (600066.SH), CRRC (601766.SH), AGRICULTURAL BANK (601288.SH), and YANGTZE POWER (600900.SH) into the list. At the same time, ANTA SPORTS (02020.HK), MINDRAY BIO-MEDICAL (300760.SZ), CHINA DUTY FREE (601888.SH) and MENGNIU DAIRY (02319.HK) were removed from the list.

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UBS listed its top picks for Chinese stocks:

(1) Existing Top Picks
Stock│Target Price
CHINA RES BEER (00291.HK)│HK$43.7
TENCENT (00700.HK)│HK$428
Yum China (YUMC.US)│US$54
New Oriental Education & Technology (EDU.US)│US$119.5
KUAISHOU-W (01024.HK)│HK$85
MEITUAN-W (03690.HK)│HK$135
CHINA RES LAND (01109.HK)│HK$42

(2) Newly Included Stocks
Stock│Target Price
Trip.com (TCOM.US)│US$52
ZIJIN MINING (601899.SH)│RMB17.5
YUTONG BUS (600066.SH)│RMB28
CRRC (601766.SH)│RMB8.6
AGRICULTURAL BANK (601288.SH)│RMB4.2
YANGTZE POWER (600900.SH)│RMB26.1

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(3) Removed Stocks
Stock│Target Price
ANTA SPORTS (02020.HK)│HK$107.5
MINDRAY BIO-MEDICAL (300760.SZ)│RMB390
CHINA DUTY FREE (601888.SH)│RMB110
MENGNIU DAIRY (02319.HK)│HK$24.9





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