Futubull News on June 24th, Hong Kong's three major stock indexes quickly rebounded in the afternoon, and the Hang Seng Index regained the 18,000 level it lost earlier, dropping more than 1.4% in the morning. The decline of the Hang Seng Tech Index narrowed to 0.65%, and the overall trend shows a bottoming out and rebounding market.
At the close, 586 stocks rose, 1385 fell, and 1081 remained unchanged on the Hong Kong Stock Exchange.
The specific industry performance is shown in the following figure:
In terms of sectors, technology stocks were mixed, with Kuaishou falling by more than 4%, Ctrip falling by nearly 2%, and Bilibili rising by more than 1%.
Semiconductor stocks fell across the board, with CE Huada Tech falling nearly 7%, Huahong Semiconductor and Shanghai Fudan both down about 5%, and SMIC down more than 3%.
Electric power stocks rose against the trend, with CGN Power up more than 2%, China Longyuan Power, Huaneng Power International, and China Power up more than 1%.
Biotech stocks were mixed, with Akeso up more than 7%, Juzi Bio down more than 5%, and Zai Lab up nearly 3%.
Apple concept stocks continued to fall, with AAC Tech falling nearly 2% and Q-Tech down more than 3%.
In terms of individual stocks,$MIDEA REAL EST (03990.HK)$Rises nearly 70%, plans to divest its real estate development business and distribute HK$5.9 per share or physical dividends.
$AKESO (09926.HK)$Rose more than 7%, the price of Calotinib antibody decreased by more than 50%, and the efficacy of the Phase III clinical trial of Yida was significant.
$SMOORE INTL (06969.HK)$Rose more than 6%, FDA website announced the approval of 4 menthol-flavored electronic cigarettes for sale in the US market, all of which are produced by Smore.
$J&T EXPRESS-W (01519.HK)$Fell more than 10%, with a turnover of nearly HK$1 billion, the stock was included in the Hong Kong stock connect at the end of last month.
$HUA HONG SEMI (01347.HK)$Fell more than 5%, and the United States pushes new regulations to restrict investment in the high-tech industry in China.
Today's top 10 Hong Kong stock turnover
Hong Kong Stock Connect Fund
Regarding the Hong Kong stock connect, the net outflow of Hong Kong stocks (southbound) today was HK$2.097 billion.
Institutional perspective
Jefferies: If Wuxi AppTec slows down production capacity expansion, it will benefit cash flow and maintain buy rating.
Jefferies issued a report stating that $WUXI BIO (02269.HK)$if Wuxi's slowing down of production capacity expansion has a positive effect on the company's free cash flow, maintaining a "buy" rating and a target price of HK$42. On June 18th, when asked by the media about the progress of the expansion in the United States, the company responded that "all bases will have design adjustments during the construction process, which is normal operation." This has led to speculation that the expansion in the United States is slowing down, pausing, or even ending. The bank believes that any slowdown/reduction in the company's capital expenditures will allow for stronger free cash flow in the short term. It also allows the company to stay low-key and spend more time (1-2 years) evaluating the situation, including whether the "Biosecurity Law" has been passed, and observing customer behavior and pace before deciding on the next step. Jefferies believes that if a bill is passed, there is likely to be a grace period, and there may still be new projects added. Customers may want to maximize Wuxi's production capacity.
JPMorgan: Maintains a "buy" rating on Midea Real Est with a target price of HK$6.85.
JPMorgan issued a research report stating that $MIDEA REAL EST (03990.HK)$it maintains a "buy" rating and a target price of HK$6.85. The report stated that the company plans to divest its real estate development business and transfer the business to the private company Midea Jianye, and shareholders can choose to receive physical dividends by accepting 1 share of Midea Jianye stock or receiving HK$5.9 in cash per share. The above split plan will release the value of Midea Real Estate's real estate development and retained business. Although the relevant split plan will face strict approval conditions, given the 57% premium of the company's stock and the convenience of reinvesting cash benefits in low-valuation businesses, the bank holds a positive attitude toward independent shareholder approval of the split.
Citigroup: Gives Haidilao a "buy" rating with a target price of HK$26.2
Citi released a research report giving a buy rating with a target price of HKD 25.5. The report predicted an increase in China's electrical utilities demand for this year from the previous growth rate of 6% to 7.5%, and next year's growth rate to 7%. The expected increase in demand for electrical utilities mainly comes from charging services, machinery and equipment manufacturing, rare earth metal smelting, as well as the development of artificial intelligence and electrified transportation related railroad transport industries. The anticipated higher demand for electrical utilities is expected to benefit power grid equipment suppliers to strengthen their capital expenditure and improve the utilization of coal-fired power plants. The preferred choices are Henan Pinggao Electric, Sieyuan Electric, and China Res Power.$HAIDILAO (06862.HK)$Rated as "buy", it is believed that its overall turnover rate increased by 20% year-on-year in May, a similar increase to that of April. The bank maintains Haidilao as the preferred stock in the mainland dining industry, with a target price of HKD 26.2. The company announced a change in CEO. The report stated that this is a re-adjustment of the group's ecosystem's top management resources. The group's store restructuring plan (Woodpecker plan) from November 2021 to the first half of 2022, and store reopening plan (Tough Bone plan) from the second half of 2022 to the first half of 2024 have been successful. Compared to the successfully restructured store network led by outgoing CEO Yang Lijuan, the bank believes that Haidilao's future growth will be driven more by innovation (including the announcement of a franchise business model) and digitization.
Editor/Feynman