On July 24, Futu News reported that the three major Hong Kong stock indexes continued their decline from yesterday. As of the close, the Hang Seng Tech Index fell 1.52%, the Hang Seng Index fell 0.91%, and the GEM Index fell 0.85%, all hitting new lows since the adjustment began.
As of the midday close, 566 stocks on the Hong Kong stock market rose, 1,216 fell, and 1,285 remained unchanged.
The specific industry performance is shown in the following figure:
In terms of sectors, most network technology companies have declined. NetEase-S rose 4.57%, Meituan-W fell 4.06%, SenseTime-W fell 3.33%, Xiaomi-W fell 2.48%, JD.com-SW fell 1.95%, and Kuaishou-W fell 1.91%.
Electric power stocks rose against the trend, with CGN Power up 5.67%, Datang Renewables up 4.90%, China Resources Power up 4.16%, China Power up 3.56%, Huaneng Power International up 1.87%, and Power Assets up 1.36%.
Auto stocks fell, with Great Wall Motor down 5.24%, Yadea down 5.06%, Xpeng-W down 5.01%, Li Auto Inc-W down 4.06%, Leapmotor down 3.29%, and BYD Company down 2.27%.
Semiconductor stocks are weak, asmpt fell 23.14%, Semiconductor Manufacturing International Corporation fell 1.72%, Hua Hong Semiconductor fell 2.96%, and Shanghai Fudan fell 2.48%.
Lithium battery stocks were weak, with Ganfeng Lithium down 3.49%, BYD Company down 2.27%, BYD Electronic down 1.71%, Tianqi Lithium Corporation down 1.46%, and Chaowei Power down 1.40%.
In terms of individual stocks, $GANFENGLITHIUM (01772.HK)$fell more than 3%, as lithium carbonate prices continued to fall and were subject to outflows of over HKD 10 million by Morgan Stanley.
$ASMPT (00522.HK)$fell more than 23%, with first-half net profit halved and reduced dividends, and third-quarter revenue guidance down on a quarter-on-quarter basis.
$CRRC (01766.HK)$rose more than 3%, with fixed asset investment in railways hitting a new high in the first half of the year, and progress being made in the expansion of the Pan-Asia Railway Network.
$CHINA VANKE (02202.HK)$fell nearly 7%, leading the decline in mainland real estate stocks, as property sales continue to decline and the industry is still seeking a new balance.
$BUD APAC (01876.HK)$fell more than 5%, with the company set to release its performance next month. Goldman Sachs said that weak consumption is affecting the beer market.
TOP 10 trading volume today
Hong Kong Stock Connect Fund
On the Hong Kong Stock Connect, the net outflow was HKD 75.8 million today.
Institutional perspective
DBS Bank: Maintains "Buy" rating for ASMPT, target price HKD 130
Morgan Stanley released a research report stating that it is bullish on the momentum of the growing advanced packaging business, maintains the "Buy" rating, and sets the target price at HKD 130. The company's Q2 results were lower than expected, with revenue of CNY 3.342 billion, which was 4% and 3% higher than the bank's and the market's expectations, respectively. Net profit was CNY 0.135 billion, which was 25% and 34% lower than the bank's and the market's expectations, respectively. On a median basis, the company expects Q3 revenue to decline by 6.4% on a quarter-on-quarter basis, which is 17% and 20% lower than the bank's and the market's expectations, respectively. The company still sees a bright future for the advanced packaging business in the short term and believes that the semiconductor mainstream business will take longer to recover.$ASMPT (00522.HK)$The momentum of growing advanced packaging business led to a "shareholding" rating with a target price of HKD 130. The report stated that the company's Q2 performance was lower than expected, with revenue of CNY 3.342 billion, which is 4% and 3% higher than the bank's and the market's expectations, respectively. The net profit was CNY 0.135 billion, which is 25% and 34% lower than the bank's and the market's expectations, respectively. Based on the median, the company expects Q3 revenue to decline by 6.4% QoQ, which is lower than the bank's and the market's expectations by 17% and 20%, respectively. The company still bullish on the prospects of advanced packaging in the short term and believes that the mainstream semiconductor business will take a longer time to recover.
UBS Bank: Maintains "Neutral" rating for HKEX, lowers target price to HKD 261
UBS Group released a research report stating that it maintains its...$HKEX (00388.HK)$"Neutral" rating, considering the market performance, the ADT (average daily turnover) forecast for 2024-2026 is lowered to 110 billion, 123 billion and 137 billion yuan respectively. The corresponding EPS forecast is lowered by 1%, 2% and 3%, to 9.7, 9.9 and 10.1 yuan. The target price is lowered from HKD 275 to HKD 261. The report stated that HKEX is expected to announce its interim performance on August 21, with a forecasted after-tax net profit of 3.2 billion yuan for the second quarter of this year, an increase of 10% and 7% year-on-year and quarter-on-quarter, respectively; the expected quarterly revenue is 5.5 billion yuan, an increase of 11% and 7% year-on-year and quarter-on-quarter, respectively. The bank's revenue and profit forecasts are in line with market expectations.
Goldman Sachs: Maintains a "neutral" rating on Chow Tai Fook with a target price of HKD 10.5
Goldman Sachs released a research report stating that although$CHOW TAI FOOK (01929.HK)$Although the retail value for the first fiscal quarter ending June this year dropped by 20%, and same-store sales in Hong Kong and Macao dropped by 31%, Goldman Sachs maintains a target price of HKD 10.5 for the company's next 12 months and a "neutral" investment rating. Goldman Sachs explained that Chow Tai Fook has a complete brand leadership position and the ability and scale of product development, thus holding an optimistic view of increasing its market share and improving its profit margin. The bank pointed out that it is waiting for the results of Chow Tai Fook's optimization of its store network and brand upgrade measures, in order to have a more constructive development.
Editor/Feynman