Evaluation of Hong Kong stocks

Futu News August 23 | afternoon index gains collectively narrowed. The Hang Seng Index rose 1.05% to 25109 points, the National Index rose 0.84% to 8815 points, and the Hang Seng Technology Index rose 2.14% to 6021 points.

Plate aspectMost large technology stocks rose, with NetEase, Inc up nearly 6%, XIAOMI up nearly 4%, Kuaishou Technology up more than 2%, Tencent up nearly 2%, Meituan up more than 1%, and BABA down more than 3%.

The biomedical sector rose, with Zai Lab Limited up more than 15%, Genscript Biotech Corporation more than 13%, CANSINOBIO more than 12%, and Wuxi Biologics more than 7%.

The military sector continued to rise in the afternoon, with AVIC up more than 10%, China Shipbuilding Defense up more than 3%, mainland Aviation Technology up more than 13%, and Aerospace Holdings up more than 3%.

Power stocks are strong, Huaneng International Power is up more than 22%, China Power is up more than 19%, Datang Power is up more than 14%, Huadian International Power and China Resources Power Holdings are up more than 13%.

Evergrande concept stocks fell, China Evergrande Group's decline widened to 12%, China Evergrande New Energy Vehicle fell nearly 27%, Evergrande Property Services fell more than 9%.

Individual stocks$Xtep International (01368.HK) $It rose by more than 9%, and the company reported at noon that its first-half net profit rose 72% from a year earlier.Xtep International released its results for the six months ended June 30, 2021, with revenue up 12.4% year-on-year to 4.135 billion yuan (RMB, the same below); profit attributable to common equity holders of the company was 427 million yuan, up 72% from the same period last year. Basic earnings per share are 17.09 cents, with an interim dividend of HK11.5 cents per share. The revenue growth during the period was mainly due to the growth of replenishment orders from distributors, e-commerce business and children's business, which led to income from representative brands of popular sports. The group's overall gross profit margin rose 1.3 percentage points to 41.8% (2020: 40.5%).

Guanghui Baoxin (01293.HK) $The rise of more than 21% led the rise of car dealers, and the Ministry of Commerce encouraged the expansion of the circulation of used cars.According to media reports, Minister of Commerce Wang Wentao said at a news conference today that there is still great potential for traditional consumption, including household appliances, furniture, cars and catering, which are also regarded as the "top four" of consumption, accounting for about 1% of the total. For example, to promote the transformation of cars from purchase management to use management, especially to expand the circulation of second-hand cars, during this period of time is devoted to the study of second-hand cars to promote echelon consumption and circular consumption. After the car ownership reaches a certain extent, the second-hand car market will begin to expand, which is also a regular problem of international automobile consumption, and the second-hand market will also be a big market in the future.

$Dongyue Group (00189.HK) $It rose nearly 17% and broke the top again, and the net profit of Dongyue Silicon increased by 343.42% in the first half compared with the same period last year.Dongyue Group announced that its subsidiary Dongyue Silicon had revenue of 1.654 billion yuan in the first half of the year, up 43.14% from the same period last year, and net profit of 370 million yuan, up 343.42% from the same period last year. According to a research report released by Cinda Securities, it is estimated that 105500 tons of new PVDF capacity is expected to be put into production after 2022, according to 30% of which can be used for lithium electricity. The supply of PVDF for lithium power will reach 37250 tons after 2023, and the supply tension is expected to ease, but prices will remain high in the past 1-2 years.

$Datang New Energy (01798.HK) $Wind power stocks rose by more than 13%, with installed wind power capacity rising 34.4% from January to July compared with the same period last year to 290 million kilowatts.The National Energy Administration released national power industry statistics from January to July. By the end of July, the country's installed power generation capacity had reached 2.27 billion kilowatts, an increase of 9.4 percent over the same period last year. Of this total, the installed capacity of wind power was 290 million kilowatts, an increase of 34.4% over the same period last year. The installed capacity of solar power generation was 270 million kilowatts, an increase of 23.6 percent over the same period last year.

$China Evergrande Group (03333.HK) $The decline widened to 12%, with a market capitalization of less than HK $60 billion, with news that Evergrande planned to sell its Hong Kong headquarters building to Yuexiu property for HK $10.5 billion, with an earlier intended price of 15.6 billion.China Evergrande Group plans to sell his Hong Kong headquarters building to Yuexiu Real Estate for 10.5 billion yuan, Sing Tao Daily quoted people familiar with the matter as saying. It has been reported that Evergrande has previously proposed an intended price of 15.6 billion yuan, and the negotiation for the purchase of the whole property is coming to an end, and the two sides have reached a consensus on the relevant negotiations and formally signed a contract in the near future.

Hong Kong stock exchange fund

As for Hong Kong Stock Connect, there was a net inflow of HK $423 million from Hong Kong Stock Connect (southbound) today.

Today's turnover of Hong Kong shares TOP20

Message surface

General Office of the State Council: carry out cross-border accounting audit supervision cooperation in accordance with the law.The State Office issued the opinions on further standardizing the financial audit order and promoting the healthy development of the CPA profession. Among them, it is pointed out that we should carry out cross-border accounting and audit supervision cooperation in accordance with the law, safeguard the national economic information security and the legitimate rights and interests of enterprises, and enhance international credibility and influence.

Ministry of Commerce: it will open wider to the outside world and sign more free trade agreements.Wang Shouwen, vice minister of commerce and deputy representative of international trade negotiations, said that the Ministry of Commerce will further open wider to the outside world, sign more free trade agreements, and upgrade the current free trade agreements is an important part of opening up to the outside world. We will step up efforts to form a network of high-standard free trade zones based on the periphery, radiating "Belt and Road Initiative" and facing the world, and implement the strategy of upgrading the free trade zone.

Ning Jizhe: during the 14th five-year Plan period, the state will give greater support to the development of Hong Kong.Ning Jizhe, vice minister of the National Development and Reform Commission, said that the outline of the 14th five-year Plan clearly proposes to maintain Hong Kong's long-term prosperity and stability, support Hong Kong to consolidate and enhance its competitive edge, and better integrate into the overall situation of national development. During the 14th five-year Plan period, the state will give greater support to the development of Hong Kong. We believe that by constantly tapping new advantages, Hong Kong will gain more opportunities and achieve greater development in the areas of financial services, digital transformation, international trade, innovation and technology and green development.

Ministry of Industry and Information Technology: in the first seven months, the added value of the electronic information manufacturing industry increased by 18.7% compared with the same period last year.Data from the Ministry of Industry and Information Technology show that from January to July, the added value of the above-scale electronic information manufacturing industry increased by 18.7% compared with the same period last year, an increase of 12 percentage points over the same period last year. In July, the added value of the above-scale electronic information manufacturing industry increased by 13.0% over the same period last year, an increase of 1.2 percentage points over the same period last year. From January to July, the export delivery value of the above-scale electronic information manufacturing industry increased by 15.0% over the same period last year, an increase of 9.9 percentage points over the same period last year.

Institutional viewpoint

Morgan Stanley: believe$Xinjiang Goldwind Science & Technology (02208.HK) $The stock price will rise within 30 days, and the rating will be increased.Morgan Stanley issued a report that Jinfeng's share price will rise within 30 days, with a probability of about 60 to 70 per cent. The target price is 18.12 yuan, and the rating is increased. Big Motors said Xinjiang Goldwind Science & Technology's results in the first half of this year were encouraging, with a net profit of 1.849 billion yuan (the same below), an annual increase of 45 per cent, higher than the bank's 41 per cent forecast. Excluding one-time items, the core profit is estimated to rise to 1.381 billion yuan, compared with 1.027 billion yuan in the same period last year. Morgan Stanley estimates that Xinjiang Goldwind Science & Technology's core profit in the second quarter remained stable on a quarterly basis, as an increase in wind turbine sales and an increase in average selling prices and gross margins offset a decline in wind farm operations due to seasonal factors in the second quarter. The average gross profit margin of wind power is 20.5%, and it is believed that it is expected to achieve the target of 18% gross profit margin of wind power in fiscal year 2021.

JPMorgan Chase & Co: downgrade$XIAOMI Group-W (01810.HK) $The target price is HK $32 and the rating is increased.JPMorgan Chase & Co expects XIAOMI to make a better profit in the second quarter of this year, driven by strong mobile phone shipments, healthy gross margins and the profitability of Internet services. Looking forward to the second half of this year, the performance is expected to be weak in the third quarter of this year, mainly due to upstream supply constraints and seasonal effects, shipments will recover in the fourth quarter. The bank maintains XIAOMI's annual smartphone shipments of more than 204 million units, higher than market expectations of 180 million-190 million, and expects XIAOMI's market share to continue to increase next year. The bank estimates that Internet service growth will accelerate in the second half of the year and next year as the company launches more high-end phones in the Chinese market and the number of monthly active users continues to increase. The bank adjusted XIAOMI's price-to-earnings ratio to 19 times earnings for the coming year, and lowered its target price from HK $35 to HK $32, maintaining its overweight rating.

Credit Suisse: upward adjustment$China Molybdenum (03993.HK) $The target price is HK $5.9, with a neutral rating.Credit Suisse published a research report that China Molybdenum's net profit in the first half of the year rose 139% year-on-year to 2.4 billion yuan, in line with expectations, meaning that net profit in the next quarter rose 1.5 times year-on-year to 1.4 billion yuan, mainly due to higher prices of major products and cost control. The bank noted that, taking into account the upside in copper and cobalt production in its TFM mine and raising its price and sales forecasts for its main products, the bank raised its profit forecasts for 2023 by 38 per cent, 30 per cent and 53 per cent, respectively, and the target price rose from HK $5.50 to HK $5.90, with a neutral rating.

UBS: downgrade$Kingdee International Software Group (00268.HK) $Target price to HK $32, rating buy.UBS issued a report that increased Kingdee International Software Group's licensing income by 14 per cent in 2021 and assumed an annual growth rate of 3.5 per cent due to higher revenues from EAS Cloud and Cosmic Cloud. Cloud computing revenue in 2021 is forecast to remain at 2.8 billion yuan, an annual growth rate of 47 percent. The total income is expected to be 4.3 billion yuan, an annual increase of 28%. The gross margin forecast for 2021 is reduced from 66 per cent to 62 per cent to reflect the higher implementation costs associated with large projects, and the gross margin is expected to return to about 65 per cent after 2023. At the same time, raise the operating expense assumption, and assume a net loss of about 310 million yuan in 2021. The target price was lowered from HK $34 to HK $32, rating buy.