China Reports 5/18/2023: 3 market leaders you have not heard

W‌ith the economic storm going on it might not be prudent to just look at the US market, but also at the booming market in China, here are some interesting companies which can be worthy of a look i find them interesting not just for their performance but also a close look at their trends can allow one to find startup opportunities

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$Cheng De Lolo Co.,Ltd.(000848)$  ‌

Upgrade to hold: 

It is expected that the company's EPS for the years 2023, 2024, and 2025 will be 0.64, 0.72, and 0.81 yuan, respectively, with year-on-year growth rates of 15%, 13%, and 12%. By using a comprehensive approach combining PE (Price-to-Earnings) and PS (Price-to-Sales) valuation methods, a target price of 12.7 yuan is given, corresponding to a 20 times PE ratio for the year 2023.

Investment rationale: 

Company management is stable, with clear strategic direction. The new product, almond milk, may bring about a health-oriented and nutritious upgrade to the product category, serving as a breakthrough in addressing product aging and providing an important leverage for regional expansion and channel development.

‌$Zhejiang Qianjiang Motorcycle Co.,Ltd.(000913)$  ‌: Market leader in Big motorbikes in China

Buy: 

2023, 2024, and 2025 to be 7.42 billion, 9.62 billion, and 11.80 billion yuan, respectively. The net profit attributable to the parent company is estimated to be 590 million, 780 million, and 990 million yuan, respectively. This corresponds to an EPS of 1.11, 1.48, and 1.87 yuan per share. The corresponding PE ratios based on the current stock price are 17.3, 13.0, and 10.3 times,

Investment rationale: The company has been deeply involved in the motorcycle industry for nearly 40 years and has established a leading position in the middle to large displacement motorcycle sector. With a solid technological foundation, the company is a domestic industry leader in this field, maintaining the industry's top market share for 11 consecutive years. In 2022, the company held a market share of 25% in the domestic middle to large displacement motorcycle market, significantly ahead of its competitors. With the rapid development of the middle to large displacement motorcycle market and the company's continuous efforts in product development and distribution channels, the company's future performance is expected to maintain a high growth trend.

‌$Qingdao Hiron Commercial Cold Chain Co.,Ltd.(603187)$  ‌: Cold chain leader

Buy: 

Investment rationale: The company is a leading domestic enterprise in the commercial refrigeration industry, specializing in the research, development, and manufacturing of commercial display cabinets for food cold chain logistics. Currently, its product portfolio includes four major product systems: commercial frozen display cabinets, commercial refrigerated display cabinets, commercial supermarket display cabinets, and commercial intelligent vending cabinets. These products are widely used in the fast-moving consumer goods industry, such as ice cream, frozen foods, and beverages. The company has a diverse and high-quality customer base, serving as a supplier to renowned domestic and international fast-moving consumer goods brands, including Unilever, Nestle, Yili, Mengniu, Coca-Cola, PepsiCo, and others. The company achieved a revenue compound annual growth rate (CAGR) of 24.4% from 2018 to 2022.