Futu News, July 18th: Hong Kong's three major stock indexes had mixed performance with the Hang Seng Index and the State Index showing slightly stronger trends, rising by 0.22% and 0.15% respectively. The Hang Seng Tech Index performed poorly throughout the day, having fallen as much as 1.9% at one point and ultimately closing down 0.76%.
By the close, 890 stocks had risen, 885 had fallen, and 1300 had remained unchanged.
The specific industry performance is as follows:
In terms of sectors, network technology stocks lagged behind, with Ctrip falling more than 3%, while Baidu and Ke Holdings fell more than 2%, and Tencent, Alibaba, Bilibili, and Kuaishou fell nearly 1%.
Insurance stocks rose collectively, with PICC P&C Insurance up nearly 4%, China Pacific Insurance and China Life Insurance up nearly 2%, and Ping An Insurance and People's Insurance Company of China Limited (PICC) up nearly 1%.
Electric power stocks generally rose, with China Longyuan Power and CKI Holdings rising nearly 3%, CGN Power rising more than 2%, and Power Assets rising more than 1%.
Telecommunications stocks saw a slight rebound, with China Telecom up nearly 2% and China United Network Communications and China Mobile up more than 1%.
Automotive stocks had mixed performance, with Xiaopeng Motors falling more than 5%, NIO Inc. falling nearly 4%, Leap Motor falling nearly 3%, Brilliance Chi rising nearly 4%, and BYD Company rising nearly 1%.
In addition, oil and gas stocks saw a slight rebound, with CNOOC and Sinopec up nearly 2%; gold stocks bottomed out and rebounded, with Lingbao Gold up nearly 4%; mainland real estate, mainland banking, biomedical and coal industrial concept stocks edged up, while Apple supplier stocks fell slightly.
In terms of individual stocks,$NONGFU SPRING (09633.HK)$Hong Kong Consumer Council apologized and increased its rating by more than 6% in response to the bromate incident.
$COSCO SHIP ENGY (01138.HK)$The company's second-quarter profit is expected to be stable and rising. Institutions are bullish on H-share valuation raising to average level.
$YAN PALACE (01497.HK)$Increasing by more than 11%, the online channel market share has steadily increased, and revenue is expected to grow by 10% to 15% in the first half of the year.
$BRILLIANCE CHI (01114.HK)$Brilliance BMW received compensation of CNY 0.45 billion for the land requisition. UBS is bullish on the provision of free cash flow from Brilliance BMW.
$PICC P&C (02328.HK)$Up nearly 4%, the company's first-half performance is still healthy, with the possibility of improved ROIs by end of year.
$SH PHARMA (02607.HK)$Up nearly 4%, innovative business models continue to be realized, with strong growth performance.
Today's top 10 Hong Kong stock turnover
Hong Kong Stock Connect Fund
Hong Kong Stock Connect (Southbound) saw a net inflow of HKD 2.396 billion today.
Institutional perspective
Goldman Sachs expects Tencent Music-SW subscription revenue to increase by 30%, with a 'buy' rating and target price of HKD 62.3.
Goldman Sachs released a research report stating that despite the general weakness of the Chinese market due to macroeconomic concerns, $TME-SW (01698.HK)$the stock price of Tencent Music has remained strong since its financial results on May 10th. The report rates Tencent Music as 'buy' with a target price of HKD 62.3. According to the report, Tencent Music's strong stock price reflects the group's lean towards collection and average revenue per user (ARPU) growth, driving the momentum of its music business with greater certainty. Moreover, Tencent Music's performance is not based on a drastic increase in market share, and the industry's second-ranked Netease Cloud Music has also achieved steady growth, indicating that the scale of the music industry's subscription/advertising revenue is continuously expanding this year.
Morgan Stanley has raised Budweiser Brewing Company APAC's rating to 'hold' with a target price of HKD 16, up nearly 4%, and expects the company's Q2 profit to stabilize and rise, with an average increase in valuation by institutions.
Morgan Stanley issued a research report stating that it gave a “shareholding” rating and believed that the limited space for stock prices to rise would be driven by OOIL's mid-term performance. Risks include the peak of the container shipping market atmosphere and the possibility of price adjustments to the current transport cost. The target price is HKD 89. Morgan Stanley believes that there is a 70% to 80% chance that the company's stock price will fall in the next 60 days. The company's second-quarter operating data was moderate, with a year-on-year increase of 1% in transportation volume, but a decrease in transportation capacity, possibly due to the drag on realigned flight routes. Compared with the same period, revenue per standard box rose 13.4%, but this is still lower than the year-on-year increase of 53% in China's container shipping rate index (CCFI). Revenue increased 14.4%, but was still behind Taiwan's counterparts.$BUD APAC (01876.HK)$"Buy" rating, viewing the Olympics as a catalyst for Budweiser's stock price with a target price of HK$16. The report pointed out that the Olympics, held once every four years, will be held in France between July 26 and August 11 this year. Due to the time difference, most events will be held in the evening of East Asian time. The bank believes that this may lead to more social gatherings, especially stimulating beer consumption in summer nightlife channels, which is estimated to be beneficial to Budweiser APAC's product unit price and profitability, thereby providing positive support for the stock price, and the possibility of positive results for the stock price is 80%.
Futu rates Pop Mart as "buy" with target price of HKD39.3.
Futu releases research report stating that Pop Mart is rated as "buy", citing the continuous popularity of the company's intellectual property (IP), and it is expected that sales in the second quarter of this year will increase by 40% year-on-year, with China and overseas sales expected to increase by 22% and 174% respectively. The target price is set at HKD39.3. The bank stated that it maintains its sales forecast of RMB4 billion in the first half of this year for Pop Mart and expects that sales will still have the potential to rise in the second quarter of this year. At the same time, it is assumed that the adjusted net profit margin for the first half of this year will reach 20%, the operating profit margin will increase by 3.3 percentage points year-on-year, and the stock-based incentive will be RMB44 million.$POP MART (09992.HK)$
Editor/Feynman