On June 19th, northbound funds sold A shares net amounting to 7.236 billion yuan for the 8th consecutive day.

Kweichow Moutai, Midea Group, and China Yangtze Power suffered net sales of 747 million yuan, 289 million yuan, and 202 million yuan respectively; Chongqing Sokon Industry Group Stock, Zhongji Innolight, and Foxconn Industrial Internet received net purchases of 493 million yuan, 313 million yuan, and 261 million yuan respectively.

Southbound funds today had a net purchase of HKD 2.368 billion in Hong Kong stocks.

Bank of China, Industrial and Commercial Bank of China, and Zijin Mining Group received net purchases of HKD 578 million, HKD 351 million, and HKD 314 million respectively; Tracker Fund of Hong Kong, Bilibili, and Semiconductor Manufacturing International Corporation suffered net sales of HKD 337 million, HKD 153 million, and HKD 11.61 million respectively.

Individual Stocks Concerned: China Mobile: On the news front, Goldman Sachs issued a research report stating that the company's management maintained its expectations for stable growth in revenue and profit in 2024. Due to increased R&D and marketing expenses for enterprise business (cloud, artificial intelligence, industrial internet, etc.), EBITDA profit margin continued to show a downward trend, but the slowdown in depreciation costs helped support the trend of stable net profit margin. The management believes that the dividend payout ratio can be increased from 71% to the target of 75% in 2026. Goldman Sachs believes that stable business growth and steady capital expenditures should help China Mobile gradually increase its dividends. Chinahongqiao:

Nan Shui increased its holdings for 3 consecutive days.Chongqing Sokon Industry Group Stock:As previously disclosed, Sokon's gross margin has increased to 21.5% in Q1 this year. According to data released by the Passenger Vehicle Market Information Joint Committee of the China Automobile Circulation Association, the retail sales of new energy vehicles reached 790,000 units in May, an increase of 36% YoY and 17% MoM. A total of 3.242 million vehicles were retailed since the beginning of this year, up 34% YoY.

Guizhou Moutai:A research report from Guotai Junan pointed out that the fluctuation of this round of Feitian batch pricing of Kweichow Moutai is due to short-term market behavior in channels under weak demand, and it is estimated that there is relatively limited downside space at the current batch price. After the risk is cleared, it is expected that the batch price and stock price of Moutai will gradually stabilize and enter into a new balance. It maintained the 'buy' rating and target price of RMB 2,286.53.

China Yangtze Power:The company stated in the investor relations platform in response to investor inquiries that the annual general meeting of shareholders for 2023 held on May 23 approved the '2023 Profit Distribution Plan', and dividends will be distributed within two months after the approval of the profit distribution plan at the general meeting of shareholders. The company currently has no plan for quarterly dividends.

Materials of the companies of North Water

Northbound funds continued to increase their holdings.China Mainland Banking (Bank of China, Industrial and Commercial Bank of China, China Construction Bank):Huafu Securities stated that there are three driving factors for the bank sector's trend this year. First, the logic of selecting stocks through dividend yields has spread within the sector, and the high-dividend strategy has expanded from state-owned banks to small and medium-sized banks. The second is the relaxation of real estate policies. The third is the market's expectation of a slowdown in the downward slope of banks' net interest margins and the approaching of the bottom of the fundamentals. Looking ahead, the bank sector needs to verify the effectiveness of previous policies and the trends of future fundamentals. It is recommended to pay attention to the area banks with outstanding performance under the dividend yield diffusion logic, such as the Bank of Suzhou with growth logic and the Bank of Nanjing with potential reversal logic.

Zijin Mining Group:On June 18th, Zijin Mining Group announced that it had completed a USD 2.5 billion refinancing in the Hong Kong stock market for overseas investors, of which USD 2 billion was for convertible bond financing and USD 500 million was for share placement financing. It is reported that this financing is the largest financing in the history of Zijin Mining Group, exceeding its IPO fundraising scale of RMB 9.982 billion.

SMIC:The company announced that on June 19th, 2024, non-company directors issued 7,500 shares of common stock due to exercising the restricted stock unit granted under the 2014 share incentive plan (adopted on June 13th, 2013).