Futu Info reported on July 5th that the three major Hong Kong Stock indices collectively fell, with the Hang Seng Tech Index falling by 2% at one point and finally falling by 1.45%. The Hang Seng Index and the H shares Index fell by 1.27% and 1.37%, respectively, with the Hang Seng Index falling below the 18,000 mark again.
At the close, 703 stocks rose, 1196 stocks fell, and 1168 stocks remained unchanged.
The specific industry performance is as follows:
In terms of sectors, network technology stocks fell, with Ctrip falling by nearly 3%, while Xiaomi, NetEase, and Baidu fell by more than 1%, and Tencent and JD.com fell by nearly 1%.
Gold stocks rose against the market, with Zhaojin Mining, Shandong Gold, and Lingbao Gold rising by more than 4%, China Gold International rising by nearly 3%, and Zijin Mining rising by nearly 2%.
Biotechnology stocks are doing well, with Akeso Bio up nearly 7%, Colortec Bio and Tigermed up over 7%, and Genscript Bio up nearly 4%.
Bank stocks weakened, with China Construction Bank Corporation down over 3%, Industrial and Commercial Bank of China, Agricultural Bank of China, and CM Bank down nearly 3%, and Bank of China down over 2%.
Auto stocks were weak, with Brilliance, Geely, and Xiaopeng falling by more than 3%, and Ideal and Leapmotor falling by about 2%.
Apple-concept stocks fell across the board, with Sunny Optical falling by more than 3%, BYD Electronic falling by more than 2%, and FIH falling by more than 4%. AAC Tech fell by more than 1%.
In other aspects, the insurance and mainland real estate stocks showed clear decline, while the oil & gas, semiconductors, telecommunication services, and coal industrial concept stocks experienced slight drops.
In terms of individual stocks,$SENSETIME-W (00020.HK)$It fell more than 16%, and is about to release the "Ri Ri Xin 5.5" large model, which is expected to accelerate the commercialization of AI.
$CTG DUTY-FREE (01880.HK)$It rose nearly 4% again. Tax reform may widen the price gap between duty-free and taxed goods, enhancing the appeal of duty-free shops.
$TOPSPORTS (06110.HK)$It fell by more than 5% again. The company's short-term turnover is weak, and UBS lowered its profit forecast.
$ROBOSENSE (02498.HK)$It fell more than 68%, reaching a new low since its listing, and its market cap shrank from 62 billion to 7.8 billion.
Today's top 10 Hong Kong stock turnover
Hong Kong Stock Connect Fund
Regarding the Hong Kong Stock Connect, the net inflow of funds from Hong Kong to the south was HKD 350 million today.
Institutional perspective
UBS: Gives CNOOC an "add" rating with a target price of HKD 22.7.
UBS issued a research report, giving the company an "add" rating and raising its target price from HKD 19.8 to 22.7. Investors tend to shift to high-yielding stocks. With a yield of over 6%, CNOOC H shares currently provides a relatively high yield compared to the yield on the ten-year bond. This is driving funds into the stock and providing room for a re-rating. The bank expects CNOOC to continue outperforming the other two mainland oil giants in terms of cost performance. In addition, CNOOC's low-cost operational strategy and good execution record will enable the company to benefit fully from high oil prices. The bank pointed out that CNOOC's commitment to per-share dividends and dividend payout ratios for FY2023-2024 may demonstrate the management's confidence in constructive oil prices and the company's performance.$CNOOC (00883.HK)$UBS: Ali's accelerated pace of share buybacks still exceeds expectations, giving it a target price of $105.
UBS issued a report stating that it gives Ali a "buy" rating and a target price of $105. The recent tendency of investors to shift to high-yielding stocks favors companies like Ali, which have a high cash flow and a superior return on invested capital. The bank expects Ali's advertising revenue growth to continue to outperform, as it can attract more small and medium-sized advertisers to its platform by leveraging its superior data analysis capabilities and user insights. In addition, the bank also expects the company's cloud computing business to continue to maintain high growth in the future.
UBS published a report stating that $BABA-SW (09988.HK)$Earlier, it was announced that as of the end of June, Alibaba had used $5.8 billion to repurchase US depositary stocks equivalent to 77 million shares. Under the repurchase plan, there is still a remaining repurchase amount of $26.1 billion, which will be valid until March 2027. The bank believes that Alibaba's accelerated pace of buybacks is still far beyond expectations. The $5 billion convertible note issued by Alibaba in May should indicate that the management's commitment to shareholder returns is solidly executed and could ease investors' concerns. Looking to the future, although Alibaba is undergoing business transformation, its capital actions such as continuous acceleration of buybacks and possible inclusion in the southbound passage should provide downside support for the stock price. The current valuation is equivalent to a forecast PE ratio of 9 times for fiscal year 2025, which is not high. The bank gives Alibaba's US stock a target price of $105 and a rating of buy.
Citigroup: Lower the target price of Mengniu to HK$25.65 and maintain a buy rating.
According to Citigroup's research report, due to weak sales in the industry in the first half of this year, Mengniu's revenue forecast for the next two years has been reduced by 5% and 9%, respectively, and the net profit forecast has been reduced by 19.8% and 16%, respectively. The bank expects the company's 2024 and 2025 sales to remain flat year-on-year and increase by 4% respectively, and its EBIT margins to increase by 50 and 30 basis points year-on-year, to 6.8% and 7.1%, respectively. Citigroup has lowered Mengniu's target price from HKD 31.9 to HKD 25.65, and maintained a buy rating.$MENGNIU DAIRY (02319.HK)$The revenue forecast for the next two years is 5% and 9%, and the net profit forecast is reduced by 19.8% and 16%, respectively. The bank expects the company's sales in 2024 and 2025 to remain flat and increase by 4% respectively. Its pre-tax profit margin is expected to increase by 50 and 30 basis points annually to 6.8% and 7.1%, respectively. Citigroup lowered the target price for Mengniu from HKD 31.9 to HKD 25.65, maintaining a “buy” rating.
Editor/Feynman