Futu News, August 9th - The three major Hong Kong stock indexes were active throughout the day, with a slight pullback in the afternoon but still maintaining a strong market. As of the close, the Hang Seng Index rose 1.17%, back above the 17,000-point level, the National Index rose 1.29%, and the Hang Seng Tech Index rose 2.08%, with a strong performance and a big gain of 3.5% at one point during the day.
As of the close, 1,067 Hong Kong stocks rose, 708 fell, and 1,288 closed flat.
The specific industry performance is shown in the following figure:
In terms of sectors, network technology stocks rose together, Xiaomi Group-W rose 3.54%, NetEase-S rose 3.09%, Kuaishou-W rose 3.08%, Baidu Group-SW rose 2.84%, Alibaba-SW rose 1.70%, Meituan-W rose 1.53%.
Mainland real estate stocks rose, Shimao Group rose 8.57%, China Vanke rose 3.65%, Sunac rose 2.88%, China Resources Land rose 2.68%, China Overseas rose 2.54%, and Longfor Group rose 1.67%.
Automaker stocks did well, Li Auto-W rose 5.45%, Xpeng-W rose 3.75%, BYD Company rose 3.18%, NIO-SW rose 3.10%, Leap Motor rose 1.92%, and Great Wall Motor rose 1.10%.
Nonferrous metal stocks rose, China Hongqiao rose 4.26%, Zhaojin Mining rose 2.68%, Aluminum Corporation of China rose 2.64%, Jiangxi Copper rose 2.63%, CMOC Group Limited rose 2.55%, and Zijin Mining Group rose 1.74%.
In addition, oil and gas stocks continued to rise in recent days, with PetroChina rising more than 2%; telecommunication stocks plummeted again, wiping out gains from the past two days, with China Unicom and China Telecom falling nearly 4%.
In terms of individual stocks,$ROBOSENSE (02498.HK)$ Lidar is up nearly 11%, and the automatic driving is expected to drive a surge in sales and substantial sales growth.
$CHINA RE (01508.HK)$ Li Auto Inc rose more than 6% again, with a total cumulative increase of 25%, and the company expects the net profit in the first half of the year to increase up to twice.
$SMIC (00981.HK)$ NetEase is up nearly 5%, with Q2 net profit far exceeding market expectations, and the company expects Q3 revenue to increase by more than 13% on a quarter-on-quarter basis.
$LI AUTO-W (02015.HK)$ Great Wall Motor is up more than 5%, as the company's sales have stabilized and rebounded, and the September-October peak sales season is expected to continue to improve.
$U-PRESID CHINA (00220.HK)$ Shimao Group is up nearly 3%, with the first-half performance slightly exceeding market expectations, and management expects gross margin to continue to expand.
$TOPSPORTS (06110.HK)$ Nike's shares fell nearly 3%, as Citigroup took a cautious view on the growth prospects in the sporting goods industry.
TOP 10 trading volume today
Hong Kong Stock Connect Fund
On the Hong Kong Stock Connect side, the net inflow of funds from the Hong Kong Stock Connect (Southbound) today was HKD 2.278 billion.
Institutional perspective
Goldman Sachs: maintains a “neutral” rating on Semiconductor Manufacturing International Corporation, with a target price of HKD 21.4.
Goldman Sachs has released a report stating that $SMIC (00981.HK)$ guidance for third-quarter revenue growth of 13 to 15% quarter-on-quarter, with a median revenue exceeding the bank's and market expectations by 10% and 16%, respectively. The gross margin guidance is 18% to 20%, compared to 13.9% in the second quarter. The recovery progress is faster than expected. Second-quarter revenue was $1.9 billion, up 9% quarter-on-quarter, slightly above the guidance range, and the gross margin of 13.9% also exceeded expectations. The bank believes this was due to the support of a quarter-on-quarter increase of 18% in shipments, which supported capacity utilization. Goldman Sachs is optimistic about the long-term growth of Semiconductor Manufacturing International Corporation due to the growth in demand from local semiconductor design companies, but short-term profit growth is slow, primarily due to the downturn in the industry and the slowdown in demand from smart phone and consumer electronics products. The stock is now at the average historical P/E ratio, and the bank believes the valuation is reasonable. The bank maintains a “neutral” rating on Semiconductor Manufacturing International Corporation with a 12-month target price of HKD 21.4, reflecting a forecast P/E ratio of 26 times next year.
Goldman Sachs maintains a "shareholding" rating on Swire Properties and raises the target price to HKD 16.2.
JPMorgan has released a research report stating that $SWIREPROPERTIES (01972.HK)$ The announcement of a 1.5 billion yuan share buyback plan brought a surprise, and the stock price rose by 12% yesterday. Maintain a "shareholding" rating because the stock is relatively stable in the Hong Kong real estate industry, and SwireProperties is one of the few companies that promise to increase dividends by mid-single digits. Although rental income from Hong Kong office buildings may continue to decline, the contribution of new shopping malls and reserved development plans will offset the drag, and the target price has been raised from HK$15 to HK$16.2. Regarding whether the stock price rebound can continue, the bank pointed out that based on historical experience, after Hong Kong developers announced share buyback plans, the stock price typically rose by an average of 7% within one day. After a day of rebound, the stock price usually maintains a good momentum.
Citigroup: Maintain "buy" rating on China Mobile, with target price raised to HK$82.3.
Citigroup issued a research report stating that it has raised its target price for China Mobile to HK$82.3 based on high dividends and defensive qualities, and listed it as a top pick for maintaining a "buy" rating. Profit forecasts for the company from 2024 to 2026 were lowered by 1% to reflect lower revenue and cost budgets. The report stated that the company's performance in the first half of the year was roughly in line with expectations. It is expected that revenue and EBITDA growth may accelerate in the second half of the year, and capital expenditure control will improve depending on actual demand. The year-on-year decline in free cash flow of 15% is mainly due to increased accounts receivable and post-cash received from government-related enterprises, and free cash flow will stabilize in the second half of the year. $CHINA MOBILE (00941.HK)$
Editor/Feynman