Futu News on September 3rd, the three major Hong Kong stock indices surged in the morning but fell back in the afternoon, maintaining a relatively small fluctuation. As of the close, the Hang Seng Index and the National Index fell by 0.23% and 0.13% respectively, while the Hang Seng Tech Index rose by 0.29%.
As of the close, 803 Hong Kong stocks rose, 1039 fell, and 1219 remained unchanged.
The specific industry performance is shown in the following figure:
In terms of sectors, the performance of network technology stocks varied. Meituan-W rose by 2.24%, Netease-S fell by 1.60%, Kuaishou-W fell by 1.52%, Baidu Group-SW fell by 0.85%, Alibaba-W rose by 0.75%, and Xiaomi Group-W rose by 0.63%.
Bank stocks declined, with CM Bank falling by 3.11%, Bank of Communications falling by 3.02%, Agricultural Bank of China falling by 2.82%, Industrial and Commercial Bank of China falling by 2.06%, Bank of China falling by 2.00%, and Postal Savings Bank of China falling by 1.69%.
Coal industrial concept stocks declined, with China Qinfa rising by 7.14%, China Coal Energy falling by 2.31%, China Shenhua falling by 2.26%, Yankuang Energy falling by 1.95%, Shougang Res rising by 1.14%, and Mongol Mining falling by 0.87%.
Electric power stocks weakened, with CGN Power falling by 5.94%, China Resources Power falling by 2.33%, China Longyuan falling by 2.32%, China Power falling by 2.25%, CKI Holdings falling by 1.47%, and Power Assets falling by 0.92%.
Biotechnology stocks performed well, with Genscript Bio rising by 4.14%, Akeso falling by 2.49%, WuXi Apptec rising by 2.27%, SJEC Corp-B rising by 1.14%, WuXi Bio rising by 1.10%, and Legend Biotech-B rising by 1.09%.
In terms of individual stocks,$QUANTUMPH-P (02228.HK)$ Up nearly 17%, the company has risen over 70% in the past five trading days, becoming the first 18C specialized technology stock.
$GENSCRIPT BIO (01548.HK)$ Up more than 4%, legend biotech's "Siderolimab" has been approved for listing in China.
$MIDEA REAL EST (03990.HK)$ Up nearly 4%, the restructuring plan has been approved by a high vote, and the chairman has recently increased his stake by over 0.2 billion Hong Kong dollars.
$CHINA RAILWAY (00390.HK)$ Dropping more than 3%, infrastructure funding is under pressure, and the net profit in the first half of the year decreased by 12.1% year-on-year.
$CGN POWER (01816.HK)$ Falling nearly 6%, the company's core business profit declined in the second quarter, and Citigroup is bullish on the reduction in downtime in the second half of the year.
TOP 10 trading volume today
Hong Kong Stock Connect Fund
As for the Hong Kong stock connect, today's net inflow of southbound Hong Kong stock connect is 2.619 billion Hong Kong dollars.
Institutional perspective
Citigroup: Tencent is the preferred choice for Chinese Internet stocks, and also bullish on Meituan and Ctrip, etc.
Citigroup's report states that the profit growth rate of mainland internet stocks in the second quarter of this year is higher than the revenue growth rate. It believes that the income for this quarter may be lower than expected due to macro challenges and the companies' active reduction of subsidies to focus on returns. This in turn supports stronger profit growth for more companies. Several companies have significantly accelerated their buybacks in the second quarter, which helps to reassure investors about management's commitment and support confidence in future growth prospects. The bank points out that in the second half of this year, among Chinese internet stocks, $TENCENT (00700.HK)$ is still the bank's top pick, and it is also bullish on Meituan and Ctrip's related service businesses. The bank also sees the growth potential in Manbang and views Tencent Music as an attractive defensive investment given its recent stock price adjustment.
Credit Suisse: Maintains a 'shareholding' rating for Xiaomi Group-W, with a target price of HKD 26.
Morgan Stanley released a research report stating that it maintains a "shareholding" rating and expects more positive developments for Xiaomi in the next 12 months, so it sets a new target price of HKD 26. $XIAOMI-W (01810.HK)$ The bank gives a 'shareholding' rating and expects more positive developments for Xiaomi in the next 12 months, so it sets a new target price of HKD 26. According to the report, the group's performance in electric vehicles and AIoT (artificial intelligence of things) in the first half of this year exceeded expectations, and the bank believes this can support positive growth prospects for the group. If the gross margin of smartphones reaches a bottom in the third quarter, the recovery of gross margin could be another positive catalyst from the second quarter to 2025.
Morgan Stanley: Lowers Netease's target price to HKD 170 and takes a conservative view on the growth of game revenue in the second half of the year.
Morgan Stanley's research report stated that due to weak deferred revenue in the second quarter of this year, the bank has a more conservative view on the growth of gaming revenue in the second half of this year. At the same time, the target price for its H-share has been lowered from HKD 200 to HKD 170, while maintaining a 'buy' rating. The bank has lowered its revenue forecasts for this year and next year by 5% and 8% respectively, mainly due to the downward adjustment of estimates for games and value-added services. It is expected that gaming revenue will increase by 6% annually in both this year and next year, while adjusted profit forecasts for this year and next year have been lowered by 8% and 9% respectively to reflect the downward adjustment of profit forecasts for the gaming business. $NTES-S (09999.HK)$ Morgan Stanley's research report stated that due to weak deferred revenue in the second quarter of this year, the bank has a more conservative view on the growth of gaming revenue in the second half of this year. At the same time, the target price for its H-share has been lowered from HKD 200 to HKD 170, while maintaining a 'buy' rating. The bank has lowered its revenue forecasts for this year and next year by 5% and 8% respectively, mainly due to the downward adjustment of estimates for games and value-added services. It is expected that gaming revenue will increase by 6% annually in both this year and next year, while adjusted profit forecasts for this year and next year have been lowered by 8% and 9% respectively to reflect the downward adjustment of profit forecasts for the gaming business.
Editor/Feynman
