Futu News on August 7th, the three major Hong Kong stock indexes continued to rise throughout the day, and all rose more than 2% in the afternoon. At the close, the Hang Seng Index and the National Index both rose 1.38%. The Hang Seng Tech Index rose 1.19%. The market experienced a significant rebound after the recent big drop.
At the close, 1,030 Hong Kong stocks rose, 815 fell, and 1,222 remained unchanged.
The specific industry performance is shown in the following figure:
In terms of sectors, network technology stocks rose across the board, with Tencent up 2.54%, JD.com-SW up 2.10%, Alibaba-SW up 1.66%, Baidu-SW up 1.56%, NetEase-S up 0.82%, and Kuaishou-W up 0.82%.
Photovoltaic power stocks rose together, with Fuyao Glass up 7.80%, Xinyi Energy up 4.71%, Xinte Energy up 2.60%, Fuyao Glass down 2.31%, Concord NE up 1.72%, and Xinyi Glass up 0.91%.
Electric power stocks rose, with China Longyuan up 4.93%, CGN Power up 4.73%, China Res Power up 4.08%, Power Assets up 3.77%, CLP Holdings up 2.67%, CKI Holdings up 2.44%, Huaneng Power up 1.99%, and Huadian Power up 1.26%.
Education stocks continue to strengthen, with New Oriental-S rising 6.29%, Tianli International Holdings rising 6.36%, China Education Group rising 4.92%, Scholar Education rising 4.18%, and China East Education rising 1.98%.
Apple suppliers are strong, with AAC Tech up 5.28%, Cowell up 5.06%, Sunny Optical up 3.97%, FIH up 2.74%, and BYD Electronic up 2.35%.
In addition, coal industry stocks performed well, with China Shenhua Energy rising more than 2%; petroleum stocks rose, with PetroChina and Sinopec rising nearly 3%; Mainland China banking, golden industrial concept, semiconductor stocks and insurance stocks rebounded slightly.
In terms of individual stocks,$CHINA RE.HK$ rose nearly 9%, both insurance and investment business improved, and net profit for the first half of the year is expected to increase up to 2 times.
$NEW ORIENTAL-S.HK$ Further rising by over 6%, expanding the share repurchase program to $0.7 billion, and planning to declare a special dividend.
$GIANT BIOGENE.HK$ Up nearly 6%, there is significant differentiation among beauty brands, and expected approval strengthens medical beauty products.
$CTIHK.HK$ Up over 4%, tobacco prices are in an upward cycle and cigarette export business is expected to continue to have high growth.
$XPENG-W.HK$ Down over 3%, autos sales are falling behind, and the full-year delivery target achievement rate is only 23%.
TOP 10 trading volume today
Hong Kong Stock Connect Fund
As for the Hong Kong Stock Connect, there was a net inflow of 11.673 billion Hong Kong dollars from Southbound trading.
Institutional perspective
UBS raises Fuyao Glass's target price to HKD 58, and its Q2 performance exceeded expectations.
UBS published a research report which stated, $FUYAO GLASS.HK$ In the first half of this year, revenue growth under non-GAAP was strong, mainly due to its continuous increase in global market share; the proportion of high value-added products in the sales mix has increased, and the average selling price of automotive glass is expected to increase by 8% annually. The bank expects that Fuyao Glass will maintain a healthy profit growth driven by its sales and rising average selling prices. UBS also expects Fuyao Glass to have the opportunity to employ more American employees and raise their wages in the future. If the company raises the wages of American employees by 25%, it is expected to drag down the net income for the fiscal year 2025 by about 3%. The bank raised the target price for Fuyao Glass from HKD 57 to HKD 58 and maintained a "buy" rating.
Citigroup: Maintains a "hold" rating on Techtronic Industries and slightly lowers the target price to HKD 90.8.
Citigroup released a research report stating that it maintains a "buy" rating and raises the target price from HKD 116 to HKD 120. The bank pointed out that although macroeconomic data such as employment and Purchasing Managers' Index (PMI) in the United States have deteriorated, management does not believe that any order slowdown has occurred in recent months. The bank remains bullish on Milwaukee's growth prospects in the second half of the year as the development prospects of artificial intelligence in grid and data center construction, overall solutions, and non-electric tool categories are optimistic. The bank still lists Techtronic Industries as its preferred stock in China's industrial stocks. The bank expects the company's revenue growth in the second half of the year to be about 7%, which is the same as the first half of the year. Under the continuous year-on-year rise in gross profit and EBIT, net profit is expected to increase by 17% YoY to USD 0.586 billion. $TECHTRONIC IND.HK$
Morgan Stanley: The news of New Oriental's increased shareholding and proposal for a special dividend is positive, with a target price of USD 79.
Morgan Stanley's research report stated that it has a positive outlook on the increased shareholding and proposal for a special dividend by New Oriental, but given the company's past record of share repurchases falling short of expectations, it believes that close attention needs to be paid to the execution of the plan. The bank believes that the timing of announcing the share repurchase and special dividend reflects the recent weakness of the stock price after the announcement of the fourth quarter results for the fiscal year 2024 was lower than expected, as well as the uncertain gross profit outlook. The bank's target price for the company's US stock is USD 79, with a "buy" rating. $NEW ORIENTAL-S.HK$
Editor/Feynman