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China Money Supply / Huizhou Desay SV / Kweichow Moutai
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Economics | Money Supply
Jul 26's M1 growth held at 4.0% yoy, marginally above consensus, while M2 growth eased to 7.7% yoy (-0.3ppt mom), missing expectations. New bank loans turned negative at -Rmb0.34t (-Rmb1.95t mom), a record low, although new TSF of Rmb1.40t (-Rmb1.97t mom) beat forecasts on stronger bond issuance. Outstanding bank loans growth slipped to 5.1% yoy (-0.1ppt mom), another record low, while outstanding TSF growth held at 7.4% yoy. The contraction in bank credit warns of persistent demand weakness.
Company Results | Huizhou Desay SV (002920 CH/BUY/Rmb90.64/Target: Rmb135.00)
DSV’s 2Q26 net profit rose 22.3% yoy to Rmb783m, beating our estimate as R&D and selling expenses fell, though 2Q26 revenue grew only 7.0% yoy. We cut 2026-28 revenue growth to 5%/12%/12% respectively. We also reduce impairment charges, raise 2026 net profit by 3.9% and trim 2027-28 forecasts by 4.0%/7.5% respectively. Maintain BUY. Target price: Rmb135.00.
Company Results | Kweichow Moutai (600519 CH/HOLD/Rmb1,341.99/Target: Rmb1,295.00)
Moutai’s 2Q26 revenue declined 5% yoy and net profit dropped 7% yoy, missing consensus by 8% and 9% respectively. By channel, direct sales rose 34% yoy, while wholesale channel sales declined 35% yoy. i-Moutai sales grew 283% yoy to Rmb18.7b in 2Q26, driven by its continued DTC transformation. As of end-2Q26, stated-owned investors, including Central Huijin Asset Management and China Securities Finance Corporation, no longer appear among Moutai's top 10 shareholders. Maintain HOLD; cut target price by 7% to Rmb1,295.00.
Top Stories
Economics | Money Supply
Jul 26's M1 growth held at 4.0% yoy, marginally above consensus, while M2 growth eased to 7.7% yoy (-0.3ppt mom), missing expectations. New bank loans turned negative at -Rmb0.34t (-Rmb1.95t mom), a record low, although new TSF of Rmb1.40t (-Rmb1.97t mom) beat forecasts on stronger bond issuance. Outstanding bank loans growth slipped to 5.1% yoy (-0.1ppt mom), another record low, while outstanding TSF growth held at 7.4% yoy. The contraction in bank credit warns of persistent demand weakness.
Company Results | Huizhou Desay SV (002920 CH/BUY/Rmb90.64/Target: Rmb135.00)
DSV’s 2Q26 net profit rose 22.3% yoy to Rmb783m, beating our estimate as R&D and selling expenses fell, though 2Q26 revenue grew only 7.0% yoy. We cut 2026-28 revenue growth to 5%/12%/12% respectively. We also reduce impairment charges, raise 2026 net profit by 3.9% and trim 2027-28 forecasts by 4.0%/7.5% respectively. Maintain BUY. Target price: Rmb135.00.
Company Results | Kweichow Moutai (600519 CH/HOLD/Rmb1,341.99/Target: Rmb1,295.00)
Moutai’s 2Q26 revenue declined 5% yoy and net profit dropped 7% yoy, missing consensus by 8% and 9% respectively. By channel, direct sales rose 34% yoy, while wholesale channel sales declined 35% yoy. i-Moutai sales grew 283% yoy to Rmb18.7b in 2Q26, driven by its continued DTC transformation. As of end-2Q26, stated-owned investors, including Central Huijin Asset Management and China Securities Finance Corporation, no longer appear among Moutai's top 10 shareholders. Maintain HOLD; cut target price by 7% to Rmb1,295.00.
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