Futu News reported on June 28 that the three major indices of Hong Kong stocks fluctuated and retreated after rising in early trading. The weakening impact of technology stocks caused the Hang Seng Technology Index to expand its decline in the afternoon and eventually closed down 0.96%. The Hang Seng Index basically leveled off, and the national index rose slightly by 0.12%.
By the close, Hong Kong stocks had risen 1,069, down 869, and closed at 1,119.
Specific industry performance is as follows:
On the sector side, TechNet stocks fell slightly, with Meituan and Jingdong falling more than 2%, Ali falling more than 1%, and Baidu and NetEase falling nearly 1%.
Power stocks were strong. CGN Power and Huadian Power rose more than 4%, China Electric Power and Huaneng Power rose nearly 4%, and Longyuan Electric Power rose more than 3%.
Apple concept stocks are doing well. Gao Wei Electronics rose more than 5%, and BYD Electronics rose more than 3%.
Oil and gas stocks rose; CNPC rose more than 4%, CNOOC rose nearly 3%, and Sinopec rose more than 2%.
On the other side, port and shipping stocks, telecommunications stocks, coal stocks, and semiconductor chip stocks have mostly risen. Military stocks showed strong performance throughout the day, and gains increased at the end of the session. At one point, China Shipbuilding Defense surged more than 15%.
In terms of individual stocks,$LAOPU GOLD (06181.HK)$On the first day of listing, it surged nearly 73%, with a total market capitalization of over HK$10 billion.
$TIANJUDIHE (02479.HK)$With a drop of nearly 28%, it is the largest comprehensive API data circulation service provider in China. The company's customers include well-known companies such as Tencent, Alibaba, and Baidu.
$CRRC (01766.HK)$It rose more than 6% in the afternoon. The amount of EMU contracts in the first half of the year was the same as last year, and China's railway equipment was frequently showcased overseas.
$BOSIDENG (03998.HK)$With a further increase of nearly 7%, net profit for the whole year increased by nearly 44% and final interest payments. The sales target for the 2026 fiscal year exceeded 30 billion yuan.
$FIT HON TENG (06088.HK)$With a further increase of more than 12%, the company is expected to clearly benefit from the wave of AI servers and AI mobile phones.
$COSCO SHIP ENGY (01138.HK)$With a rebound of more than 5%, off-season freight rates continued to recover in June, and subsequent demand for oil transportation is expected to welcome seasonal trends.
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$3,662 billion.
Agency Perspectives
Xiaomo: ICBC Shareholders' Meeting Reveals Positive, Net Interest Spreads May Exceed Previous Guidelines
According to J.P. Morgan Chase's report, seven domestic banks have held shareholders' meetings in the past few days. Among them, CMB, ICBC, and the Civil Bank announced the minutes of the meetings. The bank believes that since the return on net interest is stabilizing and the quality of assets is stable, it has a positive interpretation of the entire industry. Motong finger,$ICBC (01398.HK)$The advice from the shareholders' meeting was most positive, because management said that net interest spreads may exceed previous guidelines, loan growth will be higher than that of peers, while the non-performing loan formation rate for credit card loans is declining, the LTV (loan value ratio) for real estate developer loans is only 42%, and local government debt relief programs have increased the return on local government financing guarantee loans. These factors have all improved asset quality. According to the report, the revelations from the CMB shareholders' meeting were neutral because there was no new information or guidance at the shareholders' meeting. The implications of the Civil Bank Shareholders' Meeting were negative, as management is cautious about net interest spreads, and asset quality is unlikely to improve significantly from current levels.
Goldman Sachs: Raise Bosideng's target price to HK$5.8 and increase earnings forecast for FY2025-26
Goldman Sachs published a research report saying that although the macroeconomic economy and consumption environment are constantly changing, the bank still believes that$BOSIDENG (03998.HK)$FY2025 will be driven by the expansion of its product range and brand portfolio, which will support its growth in performance. The bank said that in view of the rise in raw material prices, the price of Bosideng's down jackets may follow the rise. At the same time, it is believed that the company's healthy inventory levels are supported by a flexible supply chain and will lay a clear foundation for its healthy sales growth in FY2025. The bank also indicated that Bosideng's steady revenue growth brought it operating leverage, meticulous store management, and effective cost control. The bank raised Bosideng's profit forecast for the 2025-2026 fiscal year by 10% to 14% to reflect the factors supporting the company's steady growth in product range expansion and price increases. Goldman Sachs raised Bosideng's target price from HK$5.5 to HK$5.8 and reaffirmed its “buy” rating.
Citigroup: Maintains Dongfeng Group's “Buy” rating and reduces target price to HK$3.89
Citi released a research report saying, maintain$DONGFENG GROUP (00489.HK)$According to the “buy” rating, since the profit pressure of the joint venture will put pressure on Dongfeng's short-term profit situation, it is predicted that Dongfeng will experience net losses. Net losses from 2024 to 2026 are estimated to be $3.34 billion, $3.16 billion, and RMB 2.23 billion, respectively. The target price was lowered from HK$6.03 to HK$3.89. The bank predicts that Dongfeng Group's sales volume will continue to drop to 1.82 million units, 1.71 million units and 1.68 million units on a quarterly basis from 2024 to 2026. Considering continued poor sales performance and insufficient production capacity of joint venture brands, it is predicted that investment income will remain low at RMB 1.4 billion to RMB 1.8 billion from 2024 to 2026.
Editor/Feynman