Halister News

(Bloomberg) -- Investors should buy big Chinese pharmaceutical cos. as the sector will consolidate in next five years and drug quality standards will improve, while the market should see double-digit growth in 2019-2021 as insurance coverage expands and new products are approved, Credit Suisse says.

• Sino Biopharmaceutical Ltd. is top pick, rating upgraded to outperform and PT raised 69% to HK$12 from HK$7.10, analysts led by Serena Shao write in Oct. 31 note
• Top 10 China pharma cos. should double market share by 2022, while more than 50% of local smaller cos. will be forced out of business due to quality concerns
• Credit Suisse also likes hospital sector due to rising demand for higher quality services and expansion opportunities from privatization of public hospitals
  • Initiates coverage on China Resources Phoenix Healthcare Holdings Co. with outperform rating and PT of HK$13, implying 26% upside from Monday’s close
• Other favored big Chinese pharma names include Jiangsu Hengrui Medicine Co., CSPC Pharmaceutical Group Ltd. and China Medical System Holdings Ltd.; Credit Suisse has outperform ratings on all three
• Also likes Shanghai Fosun Pharmaceutical Group Co.; has outperform rating on co.’s H shares, neutral on A shares
• Neutral on distributors
• NOTE: MSCI China Healthcare Index has risen 5.2% over past month, led by Shanghai Fosun Pharmaceutical with 18% gain; MSCI China Index +3.6% over same period
• ALSO: CSI 300 Healthcare Index +8.2% in past month vs +4.2% for CSI 300 Index
• Read More: China Consumer Stocks Soar as Defensive Ploys Pay Off

To contact the reporter on this story: Will Davies in Hong Kong at wdavies13@bloomberg.net To contact the editors responsible for this story: Robin Ganguly at rganguly1@bloomberg.net Ron Harui, Will Davies

(Bloomberg) -- Indonesia’s 10-year yield is likely to decline to 6.50 percent as the debt is oversold and the economy’s fundamentals are improving, says Ray Choy, head treasury strategist at CIMB Bank in Kuala Lumpur.

• Indonesian notes offer attractive carry, which would lure longer-term money
• 10-year yield is appealing given its above- average spread against short end
• Expects USD/IDR to drop to 13,500 by year-end and reach 13,300 by end-March
• Rupiah to be supported as BI has damped speculation it’ll embark on a rate- cut cycle
• “Furthermore, inflation used to be a perennial problem in Indonesia and policy credibility has been demonstrated through declining inflation, amidst Indonesia’s full investment grade rating,” says Choy
• NOTE: The yield on Indonesia’s bond due May 2027 jumped 27bps to 6.81% in October
• NOTE: USD/IDR gained 0.7% this month to 13,567

To contact the reporter on this story: Liau Y-Sing in Kuala Lumpur at yliau@bloomberg.net To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net Patricia Lui

Economic Release Details: {JFYFCPI1 Index ECOD} --HENRY HOENIG

Economic Release Details: {BOJDPBAL Index ECOD} --KYOKO SHIMODOI

Economic Release Details: {BOJDPRLT Index ECOD} --KYOKO SHIMODOI

(Bloomberg) -- Jefferies is positive on China’s power sector as the government reins in new projects and consolidates the industry, which should materially improve margins and free cash flow, analysts including Edison Lee write in note initiating coverage.

• “Strong signals” that China will consolidate nine independent power firms into three or four and put them under mixed ownership reform
• High coal prices are temporary and set to fall as state steps in
• China Resources Power PT at HK$20.71, the highest tracked by Bloomberg; Huaneng Power H-shares PT at HK$6.89
• Initiates CGN Power with buy rating; Huadian Power H- shares with hold rating; Datang International H-shares, China Power International with underperform, according to data compiled by Bloomberg

To contact Bloomberg News staff for this story: Ryan Lovdahl in Shanghai at rlovdahl@bloomberg.net To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net Will Davies

Economic Release Details: {CPMINDX Index ECOD}