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On September 7th, Haitong International released a report stating that NIO (09866.HK)s third-quarter delivery guidance is 108,000 to 111,000 vehicles, a year-on-year increase of 24.0% to 27.5%, and a quarter-on-quarter increase of only 0.3% to 3.1%, basically flat compared to the second quarter; revenue guidance is RMB 33.29 billion to RMB 34.05 billion, implying an average selling price increase of approximately 2% to 3% quarter-on-quarter. Management expects the cost per vehicle in the second half of the year to increase by RMB 2,000 to 3,000 compared to the second quarter, and plans to maintain the gross margin of automobiles at approximately 18% in the third and fourth quarters, with a positive non-GAAP operating profit for the full year. However, considering the thin profit in the second quarter, the limited quarter-on-quarter sales growth in the third quarter, and the continued rise in costs, the visibility of continued profitability in the second half of the year remains low. Demand for the ES8 and ES9 is relatively stable, but the target of more than 40,000 vehicles per month in the fourth quarter still depends on the recovery of the Ledao and the increase in the Firefly model. The bank lowered its 2023 delivery forecast by 7% to 424,000 vehicles, and projected revenues of RMB 123.9 billion, RMB 155 billion, and RMB 155.2 billion for 2026, 2027, and 2028, respectively, representing a 2% decrease, a 13% increase, and a 13% increase. The target price was lowered from HKD 46.22 to HKD 32.7, while maintaining a neutral rating.On September 7th, HSBC issued a report maintaining its target price of HK$58 and buy rating for Bank of China (Hong Kong) (02388.HK). The bank stated that Bank of China (Hong Kong)s shareholder return plan has attracted the attention of most investors, and the specific details of the returns for 2027-2028 need to be reviewed later. The companys management announced a shareholder return plan of at least HK$10.5 billion for fiscal years 2026-2028 in its 2026 interim results. The bank believes that share buybacks are unlikely to be carried out when valuations are high, especially given that Bank of China (Hong Kong) is a subsidiary of a mainland state-owned bank. Bank of China (Hong Kong)s net interest income growth is stable, its growth prospects appear stable, its RMB business has advantages, and its wealth and insurance businesses remain strong.On September 7th, Jefferies issued a report stating that while Zhipus (02513.HK) guidance of US$2.4 billion in annual recurring revenue by the end of 2026 exceeded expectations, its sustainability is questionable due to a high base in August, uneven growth in computing power supply, high customer concentration, and low switching costs. The report indicated that although Zhipus cloud business gross margin improved in the first half of 2026, it may decline in the second half due to the launch of new domestic GPU clusters and the resumption of the Coding Plan. The target price was lowered from HK$1299.8 to HK$1183.79, while maintaining a "hold" rating. The bank raised its revenue forecasts for Zhipu from 2026 to 2029 by 37% to 119%, reflecting faster growth in the cloud segment, and lowered its net loss forecast by 14% to 21%. In the sum-of-the-parts valuation, the cloud segment multiple was reduced from 50 times the projected annual recurring revenue for 2026 to 30 times to better align with overseas peers. The bank still believes that Chinas large language model industry is too crowded. Compared with independent AI labs, it is more optimistic about full-stack cloud service platforms with advantages in computing power, data and monetization, such as Alibaba (09988.HK) and ByteDance.Fitch Ratings: Japanese corporate credit performance has become more uneven.According to APK-Inform, a Ukrainian agricultural information and analysis consulting agency, Ukraines exports of major grains increased by 80% to 433,700 tons during the week of August 27 to September 2.

Large Indiana corporations Eli Lilly and Cummins oppose the state's proposed limitations for abortion

Aria Thomas

Aug 08, 2022 11:00

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Eli Lilly, one of Indiana's major employers, has said that the state's newly approved law banning abortions will force the company to relocate.


In a statement made on Saturday, Lilly admitted that abortion is "a controversial and profoundly personal matter on which there is no clear consensus among Indiana people."


Eli Lilly remarked that Indiana has opted to establish one of the strictest anti-abortion laws in the United States despite the lack of consensus. "We are concerned that this rule may hinder Lilly's and Indiana's capacity to attract diverse scientific, engineering, and commercial talent from across the world. This new law will oblige us to plan for the creation of more jobs outside of our home state."


Following the Friday overturning of Roe v. Wade by the U.S. Supreme Court, Indiana's legislature became the first in the nation to enact a new bill restricting access to abortions. After the June Supreme Court decision that eliminated constitutional protections for the procedure, the Louisiana legislature was one of the earliest under Republican leadership to explore harsher abortion legislation.


Since approximately 145 years, Lilly has maintained its headquarters in Indianapolis, Indiana, with over 10,000 people.


The engine maker Cummins, which employs more than 10,000 people in Indiana, also opposed the new regulation over the weekend.


"The freedom to make decisions regarding reproductive health ensures that women have an equal opportunity to fully participate in our employment and that our workforce is varied," stated a spokesperson for the company.


A spokeswoman for Cummins explained, "There are provisions in the legislation that conflict with this, harm our personnel, hinder our ability to recruit and retain top talent, and influence our decisions as we continue to expand our footprint with an emphasis on selecting friendly and inclusive places."


The two firms join a growing number of enterprises, such as computer giant Apple and denim retailer Levi Strauss, that provide reproductive care alternatives to their employees in countries with limitations.


Eli Lilly announced on Saturday that "this may not be adequate for certain present and potential employees" despite the fact that the pharmaceutical company has expanded its employee health plan coverage to include travel for reproductive treatments.


The Indiana abortion ban is scheduled to take effect on September 15. There are exceptions, such as in cases of rape or incest and to protect the mother's life.


President Joe Biden's administration has also denounced Indiana's decision. The White House press secretary, Karine Jean-Pierre, referred to it as a "devastating step."


"This is just another radical step by Republican legislators to restrict women's reproductive rights and independence and place personal health-care decisions in the hands of politicians rather than women and their physicians," she said in a statement.