On November 6th, Futu News reported that the Republican presidential candidate, Donald Trump, announced today that he won the 2024 presidential election. The Hong Kong stock market fell sharply, with all three major indices declining: the Hang Seng Index dropped by more than 2%, the Technology Index fell by 2.54%, and the National Index declined by 2.56%.

At the close, 626 stocks in the Hong Kong stock market rose, 1402 fell, and 1046 remained unchanged.

The specific industry performance is shown in the following figure:

In terms of sectors, network technology stocks declined, with JD.com-SW falling by 4.16%, Alibaba-W down by 4.07%, Kuaishou-W decreasing by 3.84%, Bilibili-W dropping by 2.66%, Meituan-W sliding by 2.32%, Xiaomi-W declining by 2.13%, Tencent Holdings falling by 1.87%, and Sensetime-W decreasing by 1.22%.

Multiple lithium battery stocks trended downwards, with BYD Company dropping by 3.81%, BYD Electronic falling by 3.64%, Gcl Tech down by 3.35%, Tianneng Power rising by 1.53%, Tianqi Lithium Corporation increasing by 0.73%, Chaowei Power going up by 0.69%, Ganfeng Lithium down by 0.65%.

Insurance stocks experienced a decline, with China Pacific Insurance falling by nearly 4%, China Taiping dropping by over 3%, New China Life Insurance decreasing by nearly 5%, Ping An Insurance declining by over 3%, China Life Insurance down by almost 4%, and AIA falling by nearly 3%.

Alcoholic beverages stocks generally dropped, with Bud APAC falling by 4.33%, China Resources Beer decreasing by 3.59%, ZJLD down by 3.40%, and Tsingtao Brewery falling by 1.62%.

Golden industrial concept stocks mostly declined, with Zhaojin Mining falling by 4.25%, SD Gold decreasing by 3.47%, Zijin Mining Group down by 3.25%, Chi Silver GP dropping by 3.17%, Lingbao Gold declining by 2.67%, Chinagoldintl falling by 2.48%, RA Silk Road decreasing by 2.04%, and Tongguan Gold remaining unchanged.

Photovoltaic solar energy stocks fell, Xinyi Solar Energy dropped by 5.43%, Flat Glass fell by 5.39%, Xinte Energy dropped by 4.87%, GCL Tech fell by 2.91%, Triumph New En fell by 2.47%, Xinyi Energy dropped by 2.27%, Xinyi Glass fell by 2.10%, Fuyao Glass fell by 2.01%.

Multiple stocks in the Apple supplier sector trended downward, Sunny Optical Tech dropped by 4.53%, BYD Electronic dropped by 3.64%, Cowell Electronics rose by 3.37%, TK Group Holdings fell by 3.24%, AAC Tech fell by 3.19%, Q Tech fell by 2.65%, Vstecs rose by 0.43%, Fih remained unchanged.

In terms of individual stocks, $BYD COMPANY (01211.HK)$ Nearly a 4% decline, UBS Group expects mainland new energy vehicle demand to soften in the first quarter of next year, adopting a cautious view on the industry.

$CSC (06066.HK)$ Rising over 3%, CSC Securities and Citic Securities are set to exchange general managers soon.

$CHINA LIFE (02628.HK)$ Dropped nearly 4%, institutions are concerned that the market is overdrawn on insurance demand in the short term.

$COSCO SHIP ENGY (01138.HK)$Dropped nearly 3%, net profit in the third quarter fell by 41% quarter-on-quarter, institutions suggest paying attention to changes in global crude oil production after the US presidential election.

$SINOTRUK (03808.HK)$Dropped over 3%, heavy truck sales in October decreased by 24% year-on-year, the old-for-new policy will take effect in the fourth quarter.

TOP 10 trading volume today

Hong Kong Stock Connect Fund

As for the Hong Kong stock connect, today the Hong Kong stock connect (southbound) had a net inflow of 21.487 billion Hong Kong dollars.

Institutional perspective:

• Lyon: Raises Bilibili's target price to $25, expecting stable performance in the third quarter.

Lyon expects $BILIBILI-W (09626.HK)$ to deliver a solid performance in the third quarter, benefiting from the turnaround in gaming business and strong growth in advertising. The bank expects the company's quarterly revenue to increase by 27% year-on-year to 7.4 billion yuan, with adjusted pre-tax profit turning positive to 0.181 billion yuan. Driven by the popular Three Kingdoms themed game, the bank predicts a nearly doubled year-on-year growth in gaming revenue for the quarter, with the game consistently ranking in the top ten of the Chinese gaming revenue chart. The bank has raised its adjusted net profit forecasts for the company for next year and the following year by 8% to 10%, and increased the ADR target price from $16.8 to $25, maintaining an "outperform" rating.

• CICC: Raises Xiaomi's target price to HK$32.29, expecting third-quarter revenue and adjusted net profit to exceed expectations.

CICC's report stated that $XIAOMI-W (01810.HK)$ Expected to disclose third-quarter performance at the end of November, the bank expects its revenue and adjusted net profit to grow by 28% and 1.4% respectively year-on-year, to 90.5 billion and 6.1 billion yuan, exceeding market expectations by 1% and 6% respectively. This is mainly due to the increase in its global market share of smart phones, strong performance in artificial intelligence, Internet of Things (IoT), and Internet business, as well as the strong momentum of the SU 7 series electric vehicles. The bank reiterated a 'buy' rating on Xiaomi with the target price raised from HK$24.4 to HK$32.29.

• Citi reiterates a 'buy' rating on BYD, expecting it to potentially become an industry average price indicator.

Citigroup's report states that Xiaomi's SU7 announced that it delivered more than 0.01 million vehicles in August this year, marking the third consecutive month that it has exceeded 0.01 million vehicles. It maintains its expectation of achieving a full-year delivery target of 0.1 million vehicles in November. Citigroup believes that Xiaomi has already achieved more than 50% of its target of 0.1 million vehicles this year, or approximately 45% of its target of 0.12 million vehicles. The stock price of Xiaomi is expected to be supported by its solid core profit prospects and improving gross margin for electric vehicles. Currently, the price-earnings ratio is about 15 times for its smartphone, internet of things, and internet services business, and about 2 times for its smart electric vehicle business. The target price is set at HKD 22.7, and Citigroup believes that the valuation level is reasonable, recommending a "buy" rating. $BYD COMPANY (01211.HK)$ Management expects three key sales drivers for 2025. The first is smart advanced driver assistance systems vehicles for both low-end and high-end segmented markets, the second is further increase in sales of electric vehicles, and the third is high-voltage fast-charging products. Citi believes that BYD's key competitive factors in 2025 are sales volume, average selling price, cost per vehicle, and market share. The bank indicated that BYD has competitive advantages in these areas, potentially making it a benchmark for setting industry average prices. Therefore, the 'buy' rating is reiterated, with a target price of 500 Hong Kong dollars.

编辑/Wade