China Content Hub HOLT® Reports

HOLT® Reports

HOLT® is Credit Suisse's leading equity analysis and valuation tool that provides investors with unique insights into a company's performance, valuation, future expectations, and risk considerations using a database of over 20,000 companies across 70 countries.

You will be directed to Credit Suisse PLUS to access the full report.

Report

July 21, 2020

HOLT China A-Share Insights: Valuation check; selectively positioning in Growth and Quality

China's market implied discount rate fell by 110bp since March to 4.8% in July, largely driven by the lower discount rate of high growth stocks. Taking into account their outperformance, we screen for Growth ideas that are still attractive on our model. We also highlight Quality screens as the outlook remains resilient and valuation is supportive.

July 8, 2020

HOLT® APAC Viewpoint: Identifying Growth opportunities in Asia

Grouping growth stocks into Quality Growth and Hyper Growth can help investors better understand recent performance and focus on the right company characteristics when screening for ideas. Quality Growth has led market performance in three out of four years in Japan while Hyper Growth has emerged as a more viable investment sub-set in the APxJ.

 

June 9, 2020

HOLT® China A-Share Insights: Screening for opportunities at times of uncertainty

While China A-share is less volatile on a YTD basis vs broader APxJ region due to its more resilient CFROI forecast, we highlight three potential downside risks to forecast returns. Hence we suggest investors seek out high quality and strong momentum stocks and eCAP stocks. The pack also includes sector trend analysis with preferred ideas.

May 20, 2020

HOLT® APAC Viewpoint: Looking beyond 2020 CFROI®

The market has clearly rewarded companies that are expected to maintain or even improve their economic returns (CFROI) in the current environment. In contrast, market remains skeptical on companies with material CFROI decline this year but recovering in 2021. On average, this group of companies has underperformed by –12% in China.

April 24, 2020

HOLT® APAC Viewpoint Drawing inferences from companies updated with 2019 financials

We summarize the observations on the larger cap companies that we have updated in the HOLT APxJ database for December 2019 financials, including the impact of the new lease accounting standard under IFRS 16 and screen implications as forecast 2020 CFROI materially declines.

April 17, 2020

HOLT® Asia ex Japan Insights: Tourism stocks - Who's well positioned and who's at risk when China's outbound tourism slumped?

As people are asked to work at home and travel restrictions are becoming stricter amid the COVID-19 outbreak, tourism related stocks have not fared well. Considering the significance of China outbound tourism across Asia, this report profiled 60 stocks exposed to this theme, within Airline, Airport, Gaming, Hotel, Retail and Travel Agency.

April 2, 2020

HOLT® China Material Insights: Not too late to look at Anhui Conch and CR Cement

Cement stocks exhibited more resilient share price performance in recent month, attributable to their large domestic exposure to the infrastructure and property investment in China. Companies with higher operational quality and stronger balance sheet, such as Anhui Conch and CR Cement, could provide investors with a better exposure into the sector.

March 23, 2020

HOLT® APAC Insights: Seeking stability in higher quality yield stocks

Regional markets continue to exhibit high volatility. This week we screen for dividend stocks that have been sold-off despite having good operational quality, lower debt and strong cash flow profiles. The report also provides an update on HOLT MIDR, P/B and CFROI revisions relative to history.

March 3, 2020

HOLT® China A-Share Insights: Risk assessment using HOLT's Probability of Default and bottom up debt analysis

As CS China economist highlights that the containment efforts against COVID-19 virus may lead to strained cash flows, this report assesses the risk across sectors using HOLT's Probability of Default metric and bottom up debt analysis, and includes thematic screens to position along this theme. 

February 21, 2020

HOLT® China Consumer Insights: A tale of two halves in China baby product – Feihe and Hengan

With the outbreak of the COVID-19 in the region and subsequent strict quarantines and travel bans in place, earnings sentiment appears to have taken a hit in recent weeks. However, as markets appear to be resilient, we highlight companies that are still poised to deliver 2020 CFROI improvements despite their recent earnings cuts.

February 21, 2020

HOLT® Asia Tech Insights – NEV battery supply chain on HOLT

We explore the CFROI outlook for 48 companies in Asian NEV battery supply chain. Based on our observation that high CFROI companies are generally being appreciated within the supply chain, we identify 12 preferred stocks with resilient CFROI outlook as well as conservative valuation relative to respective domestic peers.

February 13, 2020

HOLT® APAC Viewpoint: More downgrades? Stocks that are down but not out

This report leverages the observations from CS CQi team on China baby product market and takes a closer look at the two leading players in either segments – China Feihe and Hengan through HOLT.

February 10, 2020

HOLT® APAC Style Watch: Flight to quality amid macro uncertainty

Regional investors sought the relative safety of high quality companies experiencing positive CFROI sentiment amid heightened macro uncertainty fueled by the coronavirus outbreak.

February 5, 2020

HOLT® APAC Viewpoint: Focusing on Quality stocks that are not overly expensive

Companies with strong HOLT quality attributes have generally worked well during periods of high market volatility. Given the uncertainty due to the ongoing coronavirus outbreak in China, we suggest a tilt back to high quality companies in HOLT focusing on the ones that are not overly expensive and have strong 13-week and 4-week CFROI revisions for China A-shares.

January 10, 2020

HOLT® APAC Style Watch: Value extends its recent gains

Investors across the APAC region generally sought the relative safety of high quality firms for a majority of last year, irrespective of their prevailing momentum or valuation. However, for China A-share market, Momentum was the strongest factor in 2019, followed by Quality. Valuation as a factor did not work well among China A-share stocks last year.

January 9, 2020

HOLT® China A-share Insights: Positioning into 2020

CS China strategist's 2020 outlook for the China markets drew extensively on HOLT® analysis which we further elaborate on herein, highlighting a series of screen ideas by leveraging HOLT's® extensive 1,900 China A-share database that complement the various analysis.

November 25, 2019

HOLT® China Consumer Insights: Opportunities across Household Durables

Household Durables should appeal to investors who want Quality exposure in Consumer with stronger valuation support. Aggregate performance rebounded recently as the pace of earnings cuts stabilized. Also despite rally, valuation is still compelling as HOLT® P/B is trading near long-term median levels and remains at a discount to the broader Consumer sectors. The pack includes sub-industry analysis on Home Appliance, Home Furnishing and Consumer Electronics.

November 11, 2019

HOLT® APAC Ranking Model

The HOLT Ranking Model provides investors with a monthly ranking of APAC markets using a rules-based systematic process. HOLT's® multi-factor model uses Valuation, CFROI Sentiment and Market Sentiment to rank each market. The Taiwanese market is the top-ranked market this month followed by China H and Singapore.

October 4, 2019

HOLT® China A-Share Insights: Systematically identifying industry opportunities through the HOLT framework

To better identify pockets of opportunity in the China A-share market, we rank the 24 industry groups systematically through the HOLT® scorecard based on a company level assessment of Operational Quality, Momentum, and Valuation characteristics. Historically, highly ranked companies on the HOLT® Scorecard have outperformed over the long term.

September 2, 2019

HOLT® APAC Viewpoint: Picking up from August lows

This report screens for stocks that have fallen by at least 20% from its 52-week high share price and at least 4% in August. Given the backdrop of still negative consensus earnings revisions in Asia, our screens also focus on stocks that exhibit higher operational quality rank and a more resilient consensus earnings revision during the month.