Futu News, August 28th - The three major Hong Kong stock indexes performed weakly throughout the day, with overall sentiment being depressed. At the close, the Hang Seng TECH Index dropped by 1.59%, showing the weakest performance, while the Hang Seng Index and the HSI Index fell by 1.02% and 1.27% respectively.
At the close, there were 615 gainers, 1233 decliners, and 1216 stocks remained unchanged.
The specific industry performance is shown in the following figure:
In terms of sectors, technology stocks in the network industry generally declined. Meituan-W dropped by 3.20%, Baidu-SW dropped by 3.19%, NetEase-S dropped by 2.51%, Kuaishou-W dropped by 2.25%, Tencent Holdings dropped by 1.99%, JD.com-SW rose by 1.77%, and Alibaba-W dropped by 1.06%.
Mainland real estate stocks declined, with Yuexiu Property dropping by 6.37%, China Resources Land dropping by 5.22%, China Vanke dropping by 4.15%, China Overseas Development dropping by 4.59%, C&D International Group dropping by 3.14%, and Longfor Group dropping by 2.09%.
Auto stocks performed weakly, with Li Auto-W dropping by 3.45%, Leapmotor dropping by 3.79%, NIO-SW dropping by 2.17%, Great Wall Motor dropping by 3.00%, and BYD Company dropping by 1.82%.
Most gold-related stocks declined, with Chi Silver GP dropping by 3.51%, China Gold Intl dropping by 3.06%, Zijin Mining Group dropping by 2.47%, Lingbao Gold dropping by 2.10%, Zhaojin Mining dropping by 2.07%, and SD Gold dropping by 1.85%.
Building materials stocks generally declined, with CNBM dropping by 6.67%, Asia Cement (China) dropping by 5.41%, Conch Cement dropping by 3.29%, China Lesso dropping by 3.15%, CR Bldg Mat Tec dropping by 1.92%, and Huaxin Cement dropping by 0.59%.
In terms of individual stocks, $HANSOH PHARMA (03692.HK)$ The stock price rose more than 13%, and net profit in the first half of the year increased by over 1.1 times year-on-year, with innovative product revenue increasing by 80%.
$ANTA SPORTS (02020.HK)$ Up more than 4%, the mid-term net profit increased by 62.6% year-on-year, with a plan to repurchase no more than HKD 10 billion.
$CHINA RES POWER (00836.HK)$ The stock price fell more than 5%, and net profit in the first half of the year increased by nearly 40% year-on-year, with the company's profit margin facing potential pressure.
$SHENZHOU INTL (02313.HK)$ Dropped more than 5%, with a nearly 38% increase in net profit in the first half of the year, and a significant increase in gross margin.
$CHINA OVERSEAS (00688.HK)$ Dropped nearly 5%, with a 23.54% year-on-year decrease in net profit in the first half of the year, and the interim dividend reduced to 30 Hong Kong cents.
$BJ ENT WATER (00371.HK)$ Dropped over 6%, with an 18.08% year-on-year decrease in net profit in the first half of the year, and the interim dividend maintained at 7 Hong Kong cents.
TOP 10 trading volume today
Hong Kong Stock Connect Fund
In terms of the Hong Kong stock Connect, the net inflow of the Hong Kong stock Connect (Southbound) today was 2.668 billion Hong Kong dollars.
Institutional perspective
UBS: Reiterates "Buy" rating for Hansoh Pharma, target price raised to HKD 22.1.
UBS released a research report, reiterating their recommendation for $HANSOH PHARMA (03692.HK)$ as their top pick and maintaining a "Buy" rating. They have raised their earnings forecasts for 2024 to 2026 by 16%, 9%, and 6%, with some of the increase offset by the expected rise in R&D expense ratio. The target price has been raised from HKD 20.8 to HKD 22.1. The report states that the company's performance in the first half of the year exceeded expectations, with sales growth of 44%, surpassing UBS and the market's 5% and 11% expectations respectively, and net profit growth of 111.5%, exceeding expectations by 32% and 39%. UBS noted the significant improvement in Hansoh Pharma's profit margin, with a 3-percentage-point increase in gross margin and a 17.6-percentage-point increase in operating margin compared to the same period last year. They believe that the company's performance is encouraging amidst the differentiated performance of Chinese pharmaceutical companies.
Citi: Raises target price for China Resources Power to HKD 27, reiterates "Buy" rating.
Citi issued a research report, reiterating their $CHINA RES POWER (00836.HK)$ Maintaining a "buy" rating and the preferred position of run electric in independent coal-fired power plants (IPP), citing its ideal performance in the first half of the year, with a net profit growth of nearly 39% year-on-year, mainly benefiting from the decrease in fuel costs, which has increased the profit of the thermal power business. Run Electric stated that it aims to add 10 gigawatts of wind power and photovoltaic projects to the grid this year, with a large number of projects expected to be connected to the grid in the second half of this year. Citi expects run electric's renewable energy production capacity to grow by 45.4% for the whole year, contributing to a 14% year-on-year increase in net profit next year.
Credit Suisse: maintaining a 'buy' rating on Anta Sports and expecting the stock price to rise in the next 15 days.
Morgan Stanley has released a report, predicting that the market will react positively to the better-than-expected earnings performance in the first half of the year and the 10 billion yuan share buyback by Anta Sports. The report also mentioned that the management has reiterated its goal of achieving double-digit growth in Anta brand sales this year, which is better than market expectations. It is expected that the company's stock price will rise in the next 15 days. Morgan Stanley believes that considering the strong performance of the company in the past 18 months, including exceeding earnings expectations, Anta has a 70% to 80% chance of being re-evaluated. Therefore, they maintain a 'buy' rating on the company with a target price of 117 Hong Kong dollars. $ANTA SPORTS (02020.HK)$ Morgan Stanley published a report, expecting the market to react positively to the better-than-expected earnings in the first half of the year and the 10 billion yuan share buyback by Anta Sports. The report also mentioned that the management has reiterated its goal of achieving double-digit growth in Anta brand sales this year, which is better than market expectations. It is expected that the company's stock price will rise in the next 15 days. Considering the strong performance of the company in the past 18 months, including exceeding earnings expectations, they expect Anta to have a 70% to 80% chance of being re-evaluated. Therefore, they maintain a 'buy' rating on the company with a target price of 117 Hong Kong dollars.
Editor/Feynman
