Halister News

--STEPHEN TRELOAR

(Bloomberg) -- Here’s a roundup of Indian co. debt-rating changes.

• To get this story sent to your inbox real-time, run NI INRATINGS, click on Display & Edit, then Set Alert Delivery

UPGRADES

• GMR Warora Energy
  • NCDs raised to BB- from D at India Ratings
  • Cites timely servicing of entire debt
• J B Ecotex
  • Long-term bank facilities raised to BB+ from BB at Crisil
  • Cites quick ramp-up in sales, moderate profitability
• Mhaiskar Infrastructure
  • Senior project bank loans raised to AA from AA- at India Ratings
  • Cites no additional financial obligation
• Nspira Management Services
  • NCDs raised to AA- from A- at India Ratings
  • Cites robust revenue growth
• Poly Pipes
  • LT bank facilities raised to A- from BBB+ at Care
  • Cites significant increase in income
• Shyam Steel
  • LT bank facilities raised to A from A- at Care
  • Cites increasing sales, improvement in capital structure

DOWNGRADE

• Seven Seas Hospitality
  • LT bank facilities cut to D from B+ at Crisil
  • Cites instance of delay in interest, principal payment on term loan

(Bloomberg) -- Kweichow Moutai Co. shares jumped the most since August 2015 after the distiller’s third-quarter earnings surged more than 130% from a year earlier, prompting Credit Suisse to say the strong results could help a broader rally in consumer stocks.

• Moutai rises as much as 8.4% in Shanghai; +6.5% at 602.44 yuan as of 10:48am
• Co.’s top-line and bottom-line growth both easily beat market expectations, with positive surprise mainly coming from strong volume growth in premium products, Credit Suisse analyst Li Chen writes in Oct. 26 note
• Reserved about high-end volume growth in 2018, but doesn’t rule out possibility that Moutai may continue to exhaust inventory if supply shortage continues: Chen; co. took from inventory in 3Q to ease supply shortage and cool overheated prices
• “Huge positive” surprise in Moutai earnings could trigger investor interest in consumer goods and there will likely be a rally, Chen says
• NOTE: CSI 300 Consumer Staples Index rises 4.7%, most since December 2015
• Goldman Sachs raises price target on Moutai by 9.2% to 648.42 yuan and maintains buy rating; lifts 2017-2021 EPS ests. by up to 10% on higher volume and selling prices
• HSBC also reiterates buy rating and raises PT by 27% to 720 yuan
• Moutai has 27 buy ratings, two holds and zero sell recommendations among analysts tracked by Bloomberg

To contact the reporter on this story: Will Davies in Hong Kong at wdavies13@bloomberg.net To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net Ron Harui, Will Davies

(Bloomberg) -- Nomura cuts Shenzhen Inovance Technology to reduce from neutral and revises down its FY17-FY19 EPS forecasts by 13% each, given its lower estimates for gross margin and higher assumptions for administrative expenses, analyst Patrick Xu writes in note Wednesday.

• Lowers PT to 26.63 yuan from 28.01 yuan
  • Revised PT implies 13% downside from Wednesday’s close
• Shenzhen Inovance Technology’s dependence on insulated-gate bipolar transistors makes it hard for co. to differentiate its products and results in weak bargaining power against both its customers and suppliers
• Nomura expects administrative expenses to increase to 18% of revenue in FY17-FY19 from 16% in FY16, as management spends 1b yuan on R&D for electric passenger vehicles
• NOTE: Stock has 23 buys, 4 holds and 1 sell, with average PT of 30.04 yuan

To contact the reporter on this story: Emma Dai in Hong Kong at edai8@bloomberg.net To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net Ron Harui, Robin Ganguly

--NEHA D'SILVA