Futu News reported on March 28 that Hong Kong stocks surged significantly in the afternoon. The Hang Seng Technology Index rose to 1.7% and eventually closed up 0.94%. The Hang Seng Index and China Index rose 1.11% and 1.22% respectively.
By the close, Hong Kong stocks were up 946, down 866, and closed at 1,180.
The specific industry performance is as follows:
On the sector side, the majority of TechNet stocks rose, with Tencent up more than 4%, Meituan up more than 2%, JD and Baidu up nearly 2%, Bilibili up more than 1%, and Alibaba falling more than 1%.
Mobile game stocks are trending strongly. Dream World rose more than 9%, Tencent rose more than 4%, Jinshan Software rose nearly 3%, NetEase rose nearly 2%, and Xindong rose more than 1%.
Most auto stocks strengthened, with Zero Sports up nearly 13%, Xiaopeng Motors and Great Wall Motors up more than 4%, Ideal Auto up more than 3%, and BYD shares up more than 1%.
Biotechnology has been weak throughout the day, with Tengsheng Biotech falling more than 9%, Gizi Biotech falling nearly 9%, Rongchang Biotech falling nearly 8%, and Cansino Biotech and Nuochengjianhua falling more than 5%.
Some domestic housing stocks rose. Greentown China rose nearly 9%, Yuexiu Real Estate rose more than 6%, and Rongxin China and Agile Group rose nearly 2%.
In terms of individual stocks,$TENCENT (00700.HK)$It surged more than 4%. On March 27, Tencent Holdings restarted the repurchase and repurchased 960,000 shares on the Hong Kong Stock Exchange. The price of each share ranged from HK$362.8 to HK$372.8, involving approximately HK$352 million.
$PICC P&C (02328.HK)$It surged more than 10%, and net profit returned to mother increased by 19% in '22. Haitong indicates that its leader in the industrial insurance market is stable and undervalued.
$TINGYI (00322.HK)$It fell more than 10%, and net profit to mother fell by 30.8% in 2022, which is lower than expected.
$IDREAMSKY (01119.HK)$Gaming stocks rose by more than 9%, and institutions said lax version approval boosted industry valuations.
$GREATWALL MOTOR (02333.HK)$With an increase of more than 4%, the new energy vehicle products under the Haval brand have set up a new independent channel.
Today's Top 20 Hong Kong Stock Turnover
Hong Kong Stock Connect Capital
On the Hong Kong Stock Connect side, today's net inflow of Hong Kong Stock Connect (southbound) was HK$2,893 million.
Agency Perspectives
J.P. Morgan Chase: Lowering Meituan's target price to HK$190 and increasing rating
According to a report published by J.P. Morgan Chase, it is expected that starting from the second quarter of this year,$MEITUAN-W (03690.HK)$Shifting its business strategy to competition in the in-store market, mainly due to the recovery and recovery of local consumer demand, market traffic resets Meituan and Douyin's positioning competition. The bank anticipates that investors' concerns about Douyin's competition will turn into reduced attention and the recent impact can be quantified. The bank is expected to respond positively to this result in Meituan's stock price in the near future. Motong expects that Meituan's in-store revenue growth for the first quarter and the second quarter of this year will return to 23% and 44%, respectively. At the same time, Meituan's in-store operating profit margin will drop 35% in the next quarter, while this year and next year's in-store revenue growth may rebound to 35% and 25%. The bank lowered Meituan's target price from HK$200 to HK$190, maintaining an increase in holdings rating.
Macquarie: Raised Tencent's target price to HK$496, rated “outperforming the market”
According to Macquarie's research report,$TENCENT (00700.HK)$The fourth quarter's results were positive. Among them, the pace of recovery in the advertising business was stronger than expected, strengthening the bank's confidence that Tencent's growth prospects have recovered. According to the report, Tencent's many businesses continue to improve, the advertising business continues to perform well, new game products will continue to be launched, and the fintech market has also recovered. It predicts that the compound annual growth rate of the company's profit from 2022 to 2025 will reach 19%, and the earnings forecast per share will be raised by 8% and 3% for this year and next two years. The bank expects Tencent to have many long-term growth drivers such as video accounts, artificial intelligence, and the corporate Internet. It believes that artificial intelligence will become a long-term growth multiplier and drive synergy within the WeChat ecosystem. It reaffirms the “outperform the market” rating, and the target price has been raised from HK$453 to HK$496.
Goldman Sachs: Slightly raised Tencent Music's target price to HK$31.4, neutral rating
Goldman Sachs published a research report stating that$TME-SW (01698.HK)$Results for the fourth quarter of last year were in line with expectations. Revenue and net profit were 1% and 2% higher than the bank's expectations, respectively. The bank estimates that Tencent Music's revenue mix will be healthier this year. The main drivers include steady subscription growth (reduced discounts) and the company's advertising growth rate faster than peers after reopening. The bank raised Tencent Music's revenue forecast for this year and next by 1% each, and its net profit forecast under non-GAAP was largely unchanged. The bank slightly increased its target price from HK$31.3 to HK$31.4, maintaining a neutral rating.
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