Energy

Report by Crystal Shore Alpha

Looking at the 50 biggest stocks in the Emerging Markets universe, Crystal Shore currently ranks only 6 in their 1st (Top) Quintile. One of these 6 is Petrobras. They upgraded the stock to their Top Quintile on Jan 19th of this year. Over the ensuing 11 weeks, the stock has delivered a +64% return (USD). MSCI World (USD) was down -8% over the same time period. The 5 other Top Quintile stocks today are China Construction Bank, Bank of China, BYD, Fubon Financial and FirstRand. Crystal Shore ranks 1231 stocks every week in their GTL and GTM datasets.

Financials

Report by Galliano's Financials Research

Victor Galliano screens 10 China banks, including the “Big Four”, using his proprietary database to build bank metrics up-to the 2Q24 results season. He examines the banks’ core profitability and their credit quality metrics to better identify banks that are attractive value, have good earnings growth prospects and have the potential to deliver healthy returns, even in the face of a potentially tough credit quality cycle in China. China Construction Bank is a core GEM bank Buy for its deeply discounted valuations and strong balance sheet; Ping An Bank is the deep value contrarian pick; China Minsheng Banking is Victor’s fundamental Sell.

Financials

Report by Galliano's Financials Research

On the back of 2Q22 results, Victor Galliano screens 9 large Chinese commercial banks’ core profitability, and their credit quality and coverage, to identify banks that are attractive value, have good earnings growth prospects and have the potential to deliver sustainably higher returns going forward. Ping An Bank stands out on valuation (especially PEG ratio). Victor believes that its returns could improve over the medium term especially from lower cost of risk given its credit quality strength. He also retains a positive view on CCB. However, Victor is negative on China Minsheng due to its low ROE, poor delinquency and NPL coverage.