In April, the three major indices of Hong Kong stocks fluctuated upward. By the close of last Friday, the Hang Seng Index had accumulated a cumulative increase of 6.71% throughout the month to close at 17651.15 points; the Hang Seng Technology Index had a cumulative increase of 6.92% to close at 3718.27 points; the State-owned Enterprises Index had the biggest increase of 7.90%, closing at 6269.76 points.
Dongwu Securities pointed out that the domestic and foreign liquidity of Hong Kong stocks has improved. Some of the global and Asian allocations want to reduce Japanese and Indian stock positions, increase the allocation to Hong Kong stocks, and increase the “southward flow” of domestic capital. The inflow of capital in the short term may be based on a four-point logic: valuations are “cheap” and capital is high and low; domestic fundamental/fundamental expectations are improving; Hong Kong stocks are willing and level of dividends are high, blue chip dividends are stable, and white horse is “catching up”; and catalyzing capital market policies.
Specifically, many auto stocks showed strong performance.$BRILLIANCE CHI (01114.HK)$,$GWMOTOR (02333.HK)$During the month, increases of 64.1% and 33.33% were recorded respectively. It is worth noting that the former's stock price has doubled and surged since this year.
Yamato released a research report stating that it raised Brilliance China's rating from “sale” to “buy”, and the target price was raised to HK$8.9. The bank believes that Brilliance China's plan to distribute a special dividend to shareholders will be a major positive factor. The dividend is expected to be 3.5 yuan per share in 2024 and 2 yuan in 2025.
Great Wall Motor's Q1 net profit was 3,228 billion yuan, a year-on-year increase of 1752.55%. CMB International released a research report stating that while maintaining Great Wall Motor's “buy” rating, the target price was raised from HK$13 to HK$14. The company's net profit for the first quarter of this year was 3.2 billion yuan, exceeding investors' original forecasts and strengthening the bank's confidence in its profitability throughout the year.
The increase is amazing!$SENSETIME-W (00020.HK)$The cumulative increase of nearly 70% during the month has recovered all of the year's decline.
According to reports, Shang Tang's newly launched Nichi-Nisshin 5.0 version has significantly improved its abilities in the fields of language, knowledge, reasoning, mathematics, code, etc., reaching or surpassing GPT-4 Turbo in mainstream objective evaluations. According to SDIC Securities, generative AI is gradually moving from technology to application implementation, driving the increase in demand for commercial orders. Based on technical capabilities and customer reputation, the company is expected to gain a certain market share and drive performance growth.
Recorded 13 consecutive gains during the month!$TCL ELECTRONICS (01070.HK)$The cumulative increase this month was nearly 80%, and the stock price nearly doubled during the year.
TCL Electronics' revenue last year was HK$78.99 billion, up 10.7% year on year; net profit to mother reached HK$740 million, up 66.4% year on year; overall gross profit increased 12.5% year on year to HK$14.76 billion, and overall gross margin increased 0.3 percentage points year on year to 18.7% year on year.
On the other hand, the weakest performing stocks this month are as follows:
editor/tolk