Since the beginning of 2022, the Hong Kong stock market has gradually picked up after sweeping away last year's "haze". By the close of trading on January 21, the Hang Seng Index, the State-owned Enterprises Index and the Hang Seng Science and Technology Index had risen 6.7%, 6.69% and 3.52% respectively since the beginning of the year.

According to the market view, the rebound of Hong Kong stocks at the beginning of the year is supported by three major factors: the rebound in valuation, the bottoming of funds and the leading performance. Looking forward to 2022, a number of institutions believe that economic "steady growth" has been in a prominent position, a number of industry policy risks are expected to be cleared, and Hong Kong stocks already have strategic investment opportunities.

Strategy to long Hong Kong stocks, what about tactics?

Through combing, we found thatIn the idea of allocation, "high dividend strategy" is a key word commonly mentioned in institutional research and newspaper.As GF Securities Co., LTD. pointed out, the dividend payouts of financial stocks, energy stocks, telecommunications stocks and Hong Kong local stocks are stable and are the mainstay of the economy, benefiting from economic recovery and rising inflation and interest rates.At present, most of the high dividend stocks are not expensive, and they not only have the ability of defense in the future, but also have considerable probability and space of upward convergence.

Zhang Yidong, chief global strategist at Societe Generale Securities, believes that Hong Kong stocks will have a "technical bull market" in 2022, with 20% room to rise.Low-risk investors can buy value stocks and dividend-receiving stocks, such as Hong Kong's local financial stocks and utilities stocks, which will benefit from China's economic stabilisation and loose monetary policy.

Founder Securities believes that the narrowing of the PPI-CPI scissors gap between Hong Kong stocks and the mainland is conducive to the profit repair of enterprises in the middle and lower reaches, and the high AH premium highlights the performance-to-price ratio of Hong Kong stocks.The characteristic of high dividend has a certain degree of defense.

Wind data displayFrom the nature of the front company, finance, energy, public utilities and other industries that are regarded by the market as "not sexy" have become the absolute main force of positive dividends.

It is worth mentioning that, as the "pillar" of the Mid-Geng Fund, the four funds managed by Qiu Dongrong disclosed the reports of the four seasons of last year, and some media found that the proportion of Hong Kong stocks held by Hong Kong stocks increased significantly.$Yanzhou Mining Energy (01171.HK) $、$CNOOC Limited (00883.HK) $、$China Overseas Land & Investment (00688.HK) $Waiting to be increased.

In the quarterly reportQiu Dongrong is still bullish on coal, energy and resources companies.He said that in terms of market pricing and valuation,Such companies are regarded as cyclical assets with extremely low valuations, good cash flow, low capital expenditure, high dividend yield and high expected return corresponding to the current price.

Which Hong Kong energy stocks have the highest dividend yield?

Specific to the industry, affected by the tightening of supply and demand, thermal coal prices have rebounded recently, and prices for the whole year may remain high. Some institutions are optimistic about the performance and dividends of listed coal enterprises. And coal listed companies have always been "generous" dividends, the market is expected to increase the high dividend yield of stocks in this sector.

CICC saidCoal prices hit an all-time high in 2021, industry profits have expanded sharply, average performance growth is expected to be close to 80 per cent, and dividend yields are expected to remain attractive.Although coal prices are expected to fluctuate in 2022, they remain high as a whole, and the overlay agreement price is likely to rise, and the plate boom is expected to remain high, with plate valuations currently at historically low levels. In the context of better performance expectations and stabilized macroeconomic expectations, the valuation repair of leading companies is expected to be further promoted.

A reporter from the Securities Times has calculated that among the coal stocks that ordinary investors do not like, they are the leaders of coal stocks.$China Shenhua Energy (01088.HK) $The average price of H shares was about 18 yuan in 2018, and the company paid a total dividend of HK $4.56 from 2018 to 2020. This means that after the dividend, the buying cost of investors has been diluted to HK $14, and if the dividend rate of 90% in 2020 continues, China Shenhua Energy's dividend in 2021 will most likely be more than 2.20 yuan, and investors' interest rate will be as high as 15%.

In addition to the long-term positive fundamentals on the table, institutions believe that coal companies also have a hidden positive that has not been fully tapped by the market:That is, most listed coal enterprises have the ability and motivation to transform to new energy.

Zhongtai Securities pointed out that under the dual-carbon goal, coal enterprises urgently need to transform.A group of industry pioneers such as Yanzhou Mining and Shenhua mainly focus on new energy operation, hydrogen energy and energy storage.The coal industry has the advantages of strong cash flow and rich land resources in the operation of new energy, as well as its ability and willingness. The transformation in the direction of new energy will help to improve the valuation level of the overall sector (the current PE valuation is 5-6 times). Coal assets need to be repriced and are optimistic about the investment value of the sector.

The solid "family background" provides a solid foundation for the transformation of coal enterprises to the depth of the industrial chain and the direction of new energy and new materials. at present, many coal enterprises have made considerable achievements in the layout of new energy.

For example, in the operation direction of Green Power, the representative company China Shenhua Energy plans to add no less than 600MW of new energy installed capacity each year during the 14th five-year Plan period (mainly wind power and photovoltaic). Take construction and operation and equity investment mergers and acquisitions to carry out the layout.

Daiwa released a research report reiterating China Shenhua Energy's "buy" rating, raising the target price from HK $22 to HK $24.50, raising its earnings per share forecast by 1.5 per cent in 2021 and 0.8 per cent in 2022, and raising its earnings per share forecast for 2023 by 1.3 per cent to reflect the latest operating data. The company's commercial coal production rose 10% year-on-year in December and 8% year-on-year for the whole year, the report said.The bank sees the recent rise in coal prices and the potential rise in long-term coal contract prices as positive catalysts for future share prices, noting that the company accounted for 83.5 per cent of Prida's long-term contract coal at the end of September.

Changjiang Securities pointed out that Yanzhou Mining Energy actively distributes three major coal bases in Shandong, Shaanxi, Inner Mongolia and Australia.It is the only coal enterprise in China with considerable overseas resources.. As of the first three quarters of 2021, the company's ROE was 18.8%, up 9.5% from a year earlier, and the company's ROE has risen to the top of a major comparable company. In addition,The company's dividend rate is in the forefront of comparable companies in recent years, with a guaranteed dividend rate of 50% in the next four years.The dividend rate of the company has significantly exceeded 50% in the past two years, so the high dividend can further strengthen the investment value of the company.