Futu News reported on May 7 that the three major Hong Kong stock indices collectively retreated. The Hang Seng Technology Index fell 2.13% to 4,000 points and recovered. The Hang Seng Index and China Index fell 0.53% and 0.7% respectively, and the Hang Seng Index stopped rising for 10 consecutive years.
By the close, Hong Kong stocks were up 962, down 991, and closed at 1,058.
The specific industry performance is as follows:
On the sector side, TechNet stocks generally fell, with Bilibili falling more than 6%, Kuaishou falling by nearly 5%, Meituan by nearly 4%, JD and Baidu by more than 2%, Ali and Tencent falling by more than 1%, and Xiaomi by nearly 1%.
There was a partial correction in biotechnology stocks. Pharmaceutical and Ming Union fell nearly 6%, while Jinsirui Biotechnology, Pharmaceutical Biotech, and Clover Biotech fell more than 2%.
Copper concept stocks strengthened. Wanguo International Mining rose nearly 10%, China's non-ferrous mining industry rose more than 4%, China Gold International rose nearly 4%, and Jiangxi Copper shares rose more than 1%.
Photovoltaic solar energy stocks rose; GCL New Energy and Follett Glass rose more than 4%, while Fuyao Glass and Xinyi Solar Energy rose more than 1%.
Domestic housing stocks were popular. Xincheng Development rose nearly 6%, Shimao Group rose 4%, China Resources Land rose nearly 4%, and Sunac China rose more than 1%.
Auto stocks generally fell; Ideal Auto fell by more than 2%, NIO fell nearly 2%, Xiaopeng Motor fell nearly 1%, and Great Wall Motor rose nearly 2%.
In terms of individual stocks,$LK TECH (00558.HK)$It rose more than 15% at the end of the session. Previously, a total of 12 million shares were repurchased. The company said it may repurchase further shares.
$NTES-S (09999.HK)$With a drop of nearly 5%, Macquarie recently lowered the NetEase H share target price from HK$249 to HK$215, giving it a “outperforming the market” rating.
$CHALCO (02600.HK)$It rose more than 4%, and Q1 net profit to mother increased 63% month-on-month.
Today's top 10 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$2,142 billion.
Agency Perspectives
CCB International: Raising the target price of Haidilao to HK$21, slightly increasing the annual profit forecast
CCB International released a report saying that demand for food and beverage was stable during the May 1st Golden Week.$HAIDILAO (06862.HK)$It served 7.5 million customers on the first four days of the holiday season. Passenger traffic increased 15% year-on-year, which is better than the bank's expected low-teen (low-teen) growth. I believe that holiday consumption reflects structural changes. More young travelers spend more, and pay more attention to cultural and flavor experiences. However, travelers are more cautious about spending, reflecting continued pressure on short-term per capita consumption.
The bank slightly raised Haidilao's profit forecast by 1% to reflect the assumed increase in same-store transaction volume and raised the valuation base from 18 times to 19 times, reflecting more resilient and visible catering demand. Therefore, it raised its target price from HK$19.7 to HK$21 to maintain a “outperforming the market” rating, in line with its brand effect, leading position in the market, diversified service model and strong execution capacity. I believe the company is worthy of a valuation premium.
Bank of America Securities gave Yuexiu Real Estate a “buy” rating for the first time, with a target price of HK$7.5
Bank of America Securities published a report, first$YUEXIU PROPERTY (00123.HK)$“Buy” rating. Target price is HK$7.5. Since the mainland real estate industry policy is more favorable for developers to take inventory, the bank's view of the industry's prospects has become more positive, so the bank regards Yuexiu Real Estate as a high beta investment within the bank. The bank expects the fastest increase in the company's contract sales to be corrected in June.
Macquarie: NetEase's target price was lowered to HK$215, and profits are expected to grow moderately in the first half of the year
Macquarie published a report, which means$NTES-S (09999.HK)$The valuation gap with other gaming peers has widened significantly. It is expected to be affected by lower expectations for new game releases and weak performance of old games. However, it is believed that this is reflected in stock prices. The report also expects NetEase's profit to record a moderate increase in the first half of this year. According to the report, NetEase continues to show strong game development capabilities; a stable product line in the second half of the year is expected to accelerate growth momentum. Considering game releases that were weaker than market expectations and the weak performance of old games, the bank lowered the company's earnings estimates for 2024 and 2025 by 9% and 5%, respectively, and lowered the target price of H shares from HK$249 to HK$215, giving it a “outperforming the market” rating.
Editor/Somer