3 stocks to avoid this week

China Mobile at the top of the list.

Maquarie Research has identified stocks to watch this week. Among those stocks which are more likely to face downside risks are as follows:

1. China Mobile (941 HK) Lisa Soh notes that while our full year EPS estimates are in line with consensus, we see 5% downside due to data substitution. Consensus estimates are unchanged over the last month & do not appear to have captured this. 

China Mobile (941 HK, HK$85.10, Neutral, TP: HK$76.00, Lisa Soh)

2. Yanzhou Coal Mining (1171 HK) Marquee Sell Idea. Matty Zhao sees 10% downside risks to earnings due to weakness in their Australian operations. Our published estimates are very close to consensus (2%), but the revisions trend here is strongly negative with consensus EPS off 13% in the last quarter. Our 2013 EPS estimates are over 30% below consensus.

Yanzhou Coal Mining (1171 HK, HK$12.94, Underperform, TP: HK$8.00, Matty Zhao)

3. China CITIC Bank (998 HK) Victor Wang sees downside risk as new president is likely to increase credit costs. Our full year estimates are 7% below consensus. 

China CITIC Bank (998 HK, HK$4.19, Outperform, TP: HK$4.90, Victor Wang).