01836 Overview

Supreme Court Ruling: The US Supreme Court invalidated several tariffs from the Trump administration, prompting Trump to announce a temporary increase in global tariffs to 15% for 150 days.

Impact on Chinese Exporters: The ruling is seen as beneficial for Chinese exporters, as US customers will face higher equivalent tariffs rather than the additional 15% tariff under Section 122, potentially increasing sales for companies with significant US markets.

Citi's Stock Preferences: Citi has expressed a preference for TECHTRONIC IND (00669.HK) due to its higher dividend yield and lower tariff impact compared to previous years.

Short Selling Data: The report includes short selling data for various stocks, indicating significant short selling activity for DC HOLDINGS (00861.HK) and STELLA HOLDINGS (01836.HK).

US Tariff Announcement: President Trump announced a 100% tariff on Chinese imports starting November 1, along with export controls on key US-made software, leading to potential stock volatility according to Citi Research.

Stock Recommendations: Citi Research identified companies like DINGLI MACHINERY and CHERVON as likely to face profit impacts due to the tariffs, while recommending a sell on certain stocks and maintaining a neutral rating on YEALINK.

Earnings Forecast Adjustment: Citi Research has lowered its earnings forecasts for YUE YUEN IND by 9-10% for 2025-2027 due to declining retail profits and slower manufacturing gross margin expansion, adjusting the target price from $16.5 to $16.3 while maintaining a Buy rating.

Preferred Stocks in China: Among mid-cap high yield stocks in mainland China, Citi Research favors STELLA HOLDINGS, followed by CRYSTAL INTL, YUE YUEN IND, and VTECH HOLDINGS.