CIMC

CIMC opened lower and rallied during the afternoon session, closing at HKD 7.59, up 5.42% from the prior close of HKD 7.20. The intraday low was HKD 7.22 and the high reached HKD 7.64, with total turnover of approximately HKD 30.6 million. The rebound followed a gradual absorption of the earlier shock from US DOJ price-fixing charges, which had sent A-shares limit-down and HK shares to a 5-month low. In Q1, revenue fell 4.02% YoY to HKD 37.03 billion and net profit plunged 59.32% to HKD 237 million, with net margin at only 0.64%. Still, the stock trades at a PB of 0.76x and remains 40.7% below its 52-week high of HKD 12.8, well below both the MA20 (HKD 8.382) and MA60 (HKD 9.681). One broker raised its target price to HKD 16.05 with a Buy rating.