Evaluation of Hong Kong stocks

Fortune News, October 7 | Hong Kong stocks rose sharply today, large-scale technology stocks are collectively boiling, A-shares are about to open tomorrow, will the market continue to be buoyant?

By the close, the Hang Seng Index was up 3.07% at 24701 points, the National Index was up 3.57% at 8173 points, and the Hang Seng Technology Index was up 5.21% at 6172 points. Hong Kong stocks rose 1413 today, falling 528 to close flat.

Plate aspectLarge scaleScience and technology stockWhen the collective broke out, Kuaishou Technology rose by more than 8%, Meituan by nearly 10%, BABA by more than 7%, and Tencent by more than 5%. Some analysts said that at a time when the whole is still not very optimistic, Hong Kong stocks have obviously rebounded today or look forward to the reopening of Beishui tomorrow.

Power stocks rose in the afternoon, Datang Power was up nearly 7%, Huaneng International Power was up more than 2%, China Resources Power Holdings was up more than 1%, and China Power was up 0.5%.

Photovoltaic glass stocks rose generally, with Flat Glass Group up nearly 5%, Xinyi Solar up more than 3%, and Luoyang Glass shares up more than 1%.

Hong Kong's local property stocks strengthened, with Chinese property buyers up more than 31%, Swire Properties up nearly 5%, Sun Hung Kai Properties and Hang Lung Properties up more than 2%.

Inner housing stocks rose generally, Metro Development rose by more than 6%, Shimao Group by nearly 5%, Longguang Group and China overseas Hongyang by more than 3%, Zhengrong Real Estate, Baolong Real Estate and Rongxin China by more than 3%.

Insurance stocks continued their gains yesterday, with Ping An Insurance up more than 7 per cent and the market capitalization back to HK $1 trillion; Zhongan Online rose 5 per cent, China Pacific Insurance more than 2 per cent, China Life Insurance Company Limited and PICC more than 1 per cent.

Consumer stocks were active. China Resources Beer rose more than 5%, Budweiser Brewing Company APAC Limited rose more than 3%, Tsing Tao Beer rose more than 2%, Bao Lion Dragon rose more than 23%, PRADA S.p.A. rose over 9%, and Zhou's Black Duck rose nearly 5%.

Hong Kong banking stocksCollective strength, of which Bank of East Asia and Dah Sing Banking Group rose by more than 3%, Standard Chartered PLC by more than 2%, HSBC Holdings PLC and Hang Seng Bank by more than 1%, and BOC Hong Kong (Holdings) Limited followed.

Automobile stocks rose collectively, with Great Wall Motor up by more than 5%, China Evergrande New Energy Vehicle, XPeng Inc. and Li Auto Inc. by more than 4%, and Byd Company Limited by more than 3%.

Following the decline in oil stocks, Hong Kong oil and gas equipment and services stocks fell, Baiqin Oil Service fell by more than 8%, Hailong Holdings and Honghua Group fell nearly 7%, Huayou Energy fell nearly 6%, Jutao Offshore Oil Service fell 5%, COSL and China Petroleum & Chemical Corp fell more than 1%.

Individual stocks$Chinese Home ownership (00127.HK) $It rose more than 31%, the company announced on October 6th, the offeror (Solar Bright Ltd.) And the company jointly announced that on September 28, 2021, the offeror requested the board of directors to submit the proposal to the planned shareholders to privatize the company.

$Nuocheng Jianhua-B (09969.HK) $It rose by more than 6%, Goldman Sachs Group reported, reiterating his constructive view on the company's solid fundamentals and maintaining its buy rating.

$Development Pharmaceutical Industry-B (09939.HK) $Rebounding by nearly 11%, COVID-19 recently completed its first patient administration in the United States in its phase III clinical trial and is seeking approval from more regulators in Europe and Asia.

$Hagia Medical (06078.HK) $It rose nearly 12%, and received a large net purchase by Beishui + major shareholders to increase their holdings at the end of September.

$Datang New Energy (01798.HK) $It rose 7%, and the market capitalization exceeded 30 billion Hong Kong dollars. Recently, the electricity price ceiling for market transactions has been raised.

China Construction International (03311.HK) $It rose for the second day in a row, closing up more than 10% today, and the share price continued to hit a new high for more than three years.

$Kangfang Bio-B (09926.HK) $Rebound about 6% of the focus AK112 has been approved to conduct clinical research on breast cancer.

$Macro Lighting (06908.HK) $Rose more than 6%, officially changed the stock referred to as "Hongguang Semiconductor".

Today's turnover of Hong Kong shares TOP20

Message surface

Carrie Lam delivered his Policy address yesterday. On the one hand, shares traded southward by the Hong Kong Stock Connect will be allowed to be denominated in RMB; on the other hand, the Policy address proposes to vigorously develop scientific and technological innovation industries.Shenzhen and Hong Kong have always been highly complementary in the co-operation of science and technology and innovation. Hong Kong's capital and financial systems have always been the "best partners" with the scientific and technological start-up enterprises in the Great Bay area. The Policy address also proposes a number of measures to support the upgrading of scientific and technological innovation cooperation between Hong Kong and Shenzhen, including the construction of a new metropolitan area and a new scientific and technological innovation area in the northern part of Hong Kong, the formation of a Shenzhen-Hong Kong scientific and technological innovation cooperation zone with Shenzhen Science and Technology Innovation Park, and the discussion of many new initiatives in connectivity.

The net purchase of northbound funds in the first three quarters has reached nearly 300 billion, with an average daily turnover of more than 120 billion.According to the Securities Times, in the first three quarters of this year, the cumulative net purchase amount of funds from Shanghai Land Stock Exchange was close to 300 billion yuan, reaching 291.847 billion yuan, which has exceeded the net purchase amount for the whole of 2020. If you follow this net buying trend, the annual net purchase of Land Stock Tong this year will be more likely than 2019, thus creating the largest annual net purchase ever. Statistics show that in the first three quarters of this year, the total turnover of funds in the North Land Stock Exchange was 21.3 trillion yuan, with an average daily turnover of 123.158 billion yuan, compared with an average daily turnover of 91.293 billion yuan in 2020.

Liaoning: go all out to protect electricity and coal to keep warm, the power load gap has narrowed from more than 5 million kilowatts at the end of September to about 2 million kilowatts at present, and the power supply situation has gradually improved.According to Liaoning Daily, since September 27, thanks to the joint efforts of the government and all parties, the implementation of orderly power consumption in Liaoning has been further strengthened, and there has been no further power restriction in Liaoning power grid. By suspending the production of fused magnesium enterprises, about 2 million kilowatts of power are released for the power grid, and 18 coal-deficient power stations with a total of 6.15 million kilowatts in the province are connected to the grid one after another. At present, the reserves of thermal coal in thermal power plants have gradually increased, the inventory of thermal coal in the main thermal power plants has increased from a minimum of 1.89 million tons in mid-September to the current 2.36 million tons, and the gap in power load has narrowed from more than 5 million kilowatts at the end of September to about 2 million kilowatts at present. the power supply situation is gradually improving. On September 29th, the Provincial Development and Reform Commission, together with the Provincial Department of Housing and Construction, led power generation and heating enterprises to Shanxi to sign a contract of 3.5 million tons of coal resources. In addition, the installation progress of fully mechanized mining face in Daqiang Coal Mine of Iron Coal Group is accelerating, and the normal production of coal is planned to be completed at the end of October, and the heating season is expected to increase the supply of 500000 tons of coal for Liaoning. The expansion of 3 million tons of Baiyinhua No. 4 Mine of Fuzhou Mining Group is also expected to be approved in the near future.

National Day report in 2021: the national average one-way ticket price is 821 yuan, and the travel time around the high-speed railway has been raised to 2 days.Trip.com released the "2021 National Day Holiday Travel Summary report", showing that after the high opening and low departure of summer tourism, various places ushered in a compensatory travel boom during the National Day, and the number of well-known scenic spots across the country reached a peak for many days in a row. During this year's National Day Golden week, the national average one-way ticket price is 821 yuan, up 7 percent from 768 yuan in the same period last year, according to Trip.com. At the same time, with the increasing thematic and personalized needs of tourism, the length of in-depth exploration of tourists in one place continues to increase, and the length of stay around the high-speed railway has increased from 1.5 days last year to nearly 2 days.

Institutional viewpoint

Daiwa: health$Man Wah (01999.HK) $Rated to "outperform the big market", the target price was lowered to HK $10.Daiwa published a research report entitled "the perfect Storm is taking shape", pointing out that the market generally underestimated Man Wah's gross profit margin pressure from raw materials and transportation costs, and overestimated the sustainability of mainland market growth. The growth of its mainland business is expected to slow significantly in the second half of the financial year to the end of March next year. In the face of greater operating pressure, its rating was downgraded from "outperforming the big market" to "outperforming the big market", and the valuation basis was lowered, from 25 times the average price-to-earnings ratio for the fiscal year 2022-2023, and the target price was reduced from 15 Hong Kong dollars to 10 Hong Kong dollars. The stock is now trading at HK $10.40, with a latest market capitalization of HK $41.1 billion.

UBS: l$HSBC Holdings PLC (00005.HK) $Rated to「Buy」The target price was raised to HK $51.9.UBS issued a research report, pointing out that due to market worries about the outlook for interest rates, the relevant real estate market in mainland China, restructuring and other factors, the share price of currency control has outperformed the market by about 50% since mid-2019, but considering short-term profits and rising interest rates, the bank believes that the financial performance of currency control will turn around next year, and the valuation is particularly attractive.

Macquarie: to$Topsports International Holdings Limited (06110.HK) $「Outperform the big market」Rating, target price of HK $13.6.Macquarie released a report that cut Topsports International Holdings Limited's profit forecasts for fiscal year 2022 and fiscal year 2203 by 11% and 8%, respectively, to take into account the impact of the epidemic and international brand boycotts in the first half of fiscal 2022. The target price was lowered from HK $14.8 to HK $13.6, with a rating of "outperforming the market". Macquarie believes that Topsports International Holdings Limited's profits are still flexible. Thanks to closer cooperation with brand customers and solid retail management capabilities, revenue in the first half of fiscal 2022 is expected to fall by about 1 per cent year-on-year. Baosheng International's revenue is expected to decline by 9 per cent year-on-year over the same period, driven by strict inventory controls and disciplined retail discounts. Profit margins are expected to be generally stable, with profits expected to fall by about 3 per cent year-on-year. Topsports International Holdings Limited is now trading at HK $8.34, with a latest market capitalization of HK $51.7 billion.

Morgan Stanley: the policy address is rightReal estate stockPositive, the current stock price attracts.The Tai Mo Fat Research report pointed out that the additional land supply policy mentioned in the Policy address could help Hong Kong to have more residential land between 2030 and 2048, and at the same time speed up the conversion of agricultural land. It considers that the current valuation of developers is attractive and reiterates its view of "attraction" to the property industry in Hong Kong. The bank pointed out that the content of the Policy address did not change the view on supply in the next five years in the basic context of Morgan Stanley, that there was no increase in supply in the short term and that the lack of cooling measures in the property market was positive for developers. Developers who hold agricultural land, including Sun Hung Kai Properties, Hengdi, New World Development and CK Asset, can have a faster conversion schedule and think that the recent pullback in stock prices is a good starting point.

Everbright Securities: Hong Kong stocks have shown signs of bottoming out and stabilizing, but there is limited room for growth during the year.As the period of intensive introduction of policies has gradually passed, Hong Kong stocks show signs of stabilizing. However, after the Fed begins to scale back its bond purchases, it will have a certain negative impact on Hong Kong stocks, so the rising space of the Hong Kong stock market in the second half of this year may be relatively limited.

Anxin Securities: should be optimistic to look forward to and actively respond to the A-share market performance in October.For the A-share market, during the long National Day holiday, there was a significant adjustment in the overseas equity market for two days, but there has not been a trend decline on the whole. From this point of view, the peripheral market risks worried by the pre-festival market may have basically landed. It should no longer be the core element of market concern. From the cycle analysis that we have been monitoring, although after the previous shock adjustment, and even some indexes have significantly declined, but most of the indexes have no signs of entering a downward trend. On the contrary, the Shanghai and Shenzhen 300 and the gem index, which have been significantly adjusted in the early stage, have shown obvious signs of bottoming or bottoming rebound. Therefore, we believe that we should look forward to and actively respond to the market performance in October.