JPMorgan has named five stocks it recommends to buy as the broader Chinese stock market is expected to rise in February. The investment bank said it “remains optimistic” about casino operators Macao Sands China and Galaxy Entertainment, and Hong Kong retail owners Wharf REIC, LINK and Fortune REIT. Strategists at the Wall Street bank attributed last week’s sell-off in Hong Kong-listed shares to some investors taking profits. They also said the broader market is turning into “quality laggards in consumption as well as growth space and value cycles.” The Hang Seng sold off 3.2% in the last 5 trading days of January, even though the index has gained more than 10% for the month. .HSI 5D Line “We see China stocks… move higher in February following the sell-off in late January,” JPMorgan strategists led by Wendy Liu said in a note to clients on Feb. 1. “Some investors seem willing to hold until mid-February”. the growth peak of 2023… while others note that select stocks have performed strongly on the theme of reopening and are keen to take profits and move into shoddy consumer stocks as well. as growth space and value cycle.” Equity analyst and head of Asia gambling, DS Kim, in a separate note on Feb. 1 said Macau demand is growing recovered “from the beginning” since Beijing eased its “no Covid” policy. According to Kim, total revenue from the game has more than tripled from last year despite a lack of high-players and vacations. He also said revenue has recovered to 60-70% from pre-Covid levels. Kim said: “We remain comfortably optimistic about the sector as we view current valuation ~ 12x standardized EV/EBITDA is attractive compared to 13x mid-cycle or 15-16x historical.” 599-FF 1Y average price target of equity analysts polled by Fac tSet points to an 11% increase in the next 12 months for Sands China. The company’s shares have fallen more than 10% in the past two years since authorities in Beijing blocked travel to Macao. Meanwhile, the consensus price target for Galaxy Entertainment is only 1% up. However, JPMorgan’s Kim said analyst expectations were due to move higher based on positive data points. “One thing seems very clear to us: Street estimates will have to increase significantly in Q1 2013 (which we think is about a 35-40% recovery for the masses) and fiscal year 2023 (approximately 60% recovery from 2019), in our study see,” he added.