Futu News June 19th, the Hong Kong stock market welcomed a long-lost big increase. The three major indexes showed a high opening and continued to rise. As of the close, the Hang Seng Index rose by 2.87% and up more than 500 points, returning to above 18,000 points. The CSI and Hang Seng Tech indexes rose by 3.45% and 3.65%, respectively. The ChiNext index returned to above 3,800 points.
As of the close, 1,273 stocks in Hong Kong rose, 685 stocks fell, and 1,093 stocks were flat.
The specific industry performance is as follows:
In terms of sectors, large-scale network technology stocks are strong, Bilibili rose by nearly 19%, Xiaomi rose more than 6%, Meituan rose more than 5%, Tencent and NetEase rose more than 3%, and Alibaba rose nearly 3%.
China mainland banking stocks rose, with CM Bank rising more than 4%, Agricultural Bank of China and Industrial and Commercial Bank of China rising nearly 4%, China Construction Bank and Bank of China rising more than 3%.
Oil and gas stocks had mixed performance, with CNOOC rising nearly 6%, Sinopec Corp rising more than 4%, Sinopec Chemical rising more than 3%, and United Energy Group falling more than 3%.
Apple supplier stocks had a weak trend, BYD Electronic and Sunny Optical rose nearly 1%, and AAC Tech fell slightly.
In addition, Asian gold demand continued to be strong, and gold stocks were once again active. The real estate market policy continued to exert force, and the collection and storage of stocks may accelerate. Mainland real estate and property management stocks rose together. Auto stocks, Tesla concept stocks, heavy infrastructure stocks, coal industrial concept stocks, and casino stocks generally rose.
In terms of individual stocks,$BILIBILI-W (09626.HK)$Bilibili rose nearly 19%, and the revenue ranking of the mobile game "Three Kingdoms: Destiny of the Dragon" jumped to the top three. It is expected to contribute more than one billion yuan in revenue.
$TENCENT (00700.HK)$Tencent rose more than 3%. The performance of the Dungeon and Fighter mobile game exceeded market expectations, and Tencent's ingame coin will be officially launched soon.
$XPENG-W (09868.HK)$Meituan rose more than 5%. Xiaopeng Automotive made progress in Huitian, and CEO Wang Fengying denied her resignation.
$CHINA LIFE (02628.HK)$Mainland insurance companies rose more than 4%, and the guidance opinions to promote high-quality development of the insurance industry are expected to be introduced.
$MEITUAN-W (03690.HK)$NetEase rose more than 5%, and the new share repurchase plan highlights the company's confidence in development. The trend of the company's core business is optimistic.
Today's top 10 Hong Kong stock turnover
Hong Kong Stock Connect Fund
In terms of the Hong Kong stock connect, the net inflow of south-bound Hong Kong stock connect was 2.368 billion HKD today.
Institutional perspective
Citi: Raised Bilibili-W rating to "buy" and target price to 165 HKD.
JPMorgan released a research report and raised the investment rating of Bililbili to "overweight" from "neutral", and the target price from HKD 110 to HKD 165. The bank expects the company's second quarter performance to be the next catalyst for its share price, and it anticipates that it will achieve its first break-even since its listing, and is expected to revise up its third quarter forecast, supported by strong game performance. JPMorgan predicts that the company's revenue growth for each year from this year to 2026 will accelerate respectively by 20%, 13%, and 9%, and the net profit margin will expand by 28 percentage points from 2023 to 2026. The bank believes that the new strategic mobile game launched by the company recently has become a hit, and is confident in its durability. Game revenue is expected to grow 44% and 26% YoY in the current year and the next.$BILIBILI-W (09626.HK)$the outlook for the stock price in the next 6 to 12 months is more positive, and the investment rating has been upgraded from "Neutral" to "Buy", and the target price has been raised from HKD 110 to HKD 165. The bank expects the company's second-quarter results to be a catalyst for its stock price for the first time since going public, and expects the market to raise its third-quarter forecast, supported by strong game performance. The bank predicts that the company's year-on-year revenue growth will accelerate to 20%, 13%, and 9% from this year to 2026, and the net profit margin will expand by 28 percentage points from 2023 to 2026. The bank pointed out that the new strategic mobile game recently launched by the company became popular and has confidence in its sustainability. The bank expects that the year-on-year game revenue in the two-year period of this year and next year will each increase by 44% and 26%.
Citi: Rated Sunny Optical as "buy" and set target price at 63.5 HKD.
Citi released a research report giving a buy rating with a target price of HKD 25.5. The report predicted an increase in China's electrical utilities demand for this year from the previous growth rate of 6% to 7.5%, and next year's growth rate to 7%. The expected increase in demand for electrical utilities mainly comes from charging services, machinery and equipment manufacturing, rare earth metal smelting, as well as the development of artificial intelligence and electrified transportation related railroad transport industries. The anticipated higher demand for electrical utilities is expected to benefit power grid equipment suppliers to strengthen their capital expenditure and improve the utilization of coal-fired power plants. The preferred choices are Henan Pinggao Electric, Sieyuan Electric, and China Res Power.$SUNNY OPTICAL (02382.HK)$Citi rated Sunny Optical as a 'Buy' with a target price of HKD 63.5. The management expects the company's share in high-end mobile phone products to further increase. Some of it is due to its increased share among international customers, which will support the company's better gross margin and product average selling price performance this year. Also, Sunny Optical aims to maintain its position in the automotive camera industry and increase its market share in related businesses through expanding its customer base.
Citi: Raised its Mainland China's electricity demand growth forecast to =7.4% YoY for CY21, and said China Resources Power is its top pick among the utilities.
Citi released a research report giving a buy rating with a target price of HKD 25.5. The report predicted an increase in China's electrical utilities demand for this year from the previous growth rate of 6% to 7.5%, and next year's growth rate to 7%. The expected increase in demand for electrical utilities mainly comes from charging services, machinery and equipment manufacturing, rare earth metal smelting, as well as the development of artificial intelligence and electrified transportation related railroad transport industries. The anticipated higher demand for electrical utilities is expected to benefit power grid equipment suppliers to strengthen their capital expenditure and improve the utilization of coal-fired power plants. The preferred choices are Henan Pinggao Electric, Sieyuan Electric, and China Res Power.$CHINA RES POWER (00836.HK)$Buy rating, target price of HKD 25.5. The expected increase in demand for electrical utilities is expected to benefit power grid equipment suppliers to strengthen their capital expenditure and improve the utilization of coal-fired power plants. The preferred choices are Henan Pinggao Electric, Sieyuan Electric, and China Res Power.$Henan Pinggao Electric (600312.SH)$, $Sieyuan Electric (002028.SZ)$China Res Power.
Editor/Alan