On December 9, Futu news reported that the Hong Kong stock market surged sharply in the afternoon, with the technology index rising over 4% to lead the gains. The three major indices in Hong Kong all rose, $Hang Seng Index (800000.HK)$ up 2.76%,$Hang Seng TECH Index (800700.HK)$ up 4.30%, $Hang Seng China Enterprises Index (800100.HK)$ up 3.14%.
As of the close, there were 1,374 stocks rising, 682 stocks falling, and 1,031 stocks unchanged.
The specific industry performance is shown in the following figure:
In terms of sectors, aviation companies saw a faster recovery in domestic supply and demand for domestic flights in August, with passenger traffic reaching the highest monthly level this year. Relaxing access may optimize the route structure. Looking ahead to the fourth quarter, the landing of vaccines during the year is a high-probability event. As domestic aviation demand continues to recover, aviation companies will continue to reduce losses. The favorable oil prices and exchange rates will provide advantages, and the aviation sector will also usher in both valuation and profit restoration. I recommend investors to actively allocate related stocks in the Hong Kong stock market, such as Meilan Airport (00357), Air China Limited and other related symbols.
Network technology stocks rose, SenseTime-W increased by 8.19%, netease-S rose by 6.04%, Meituan-W rose by 5.73%, jd.com-SW rose by 3.82%, alibaba-W rose by 3.51%, Xiaomi Group-W rose by 3.51%, Kuaishou-W rose by 1.79%, and tencent increased by 1.50%.
Digital health stocks rose, jd health increased by 8.29%, ali health rose by 5.82%, za online increased by 5.34%, pa gooddoctor rose by 1.82%, Dingdang Health closed flat, and Meidi Weikang closed flat.
Apple supplier stocks all rose, BYD Electronics increased by 9.29%, q tech rose by 6.84%, sunny optical rose by 6.84%, aac tech rose by 4.34%, vstecs rose by 4.10%, cowell rose by 4.00%, fih fell by 2.11%, and tk group hldg rose by 2.06%.
China-affiliated brokerage stocks all rose, china merchants increased by 13.65%, everbright rose by 7.82%, swhy rose by 6.69%, csc rose by 6.33%, china international capital corporation rose by 5.85%, china galaxy rose by 5.70%, haitong sec rose by 2.97%, and htsc rose by 2.86%.
Mainland real estate stocks surged, with sunac rising 17.24%, ronshinechina increasing by 14.68%, shimao group over 13.33%, r&f properties up 10.49%, cifi hold gp rising 8.7%, and china vanke increasing by 8.04%.
Biotechnology stocks are performing strongly, with wuxi xdc rising 10.43%, wuxi apptec rising 9.62%, wuxi bio rising 9.57%, and gd muhandan-b rising 3.57%.
Building materials stocks generally rose, china tianrui cement increased by 1212.50%, cnbm rose by 10.00%, china lesso rose by 5.63%, cr bldg mat tec rose by 4.65%, westchinacement rose by 4.29%, conch cement rose by 4.07%, huaxin cement rose by 3.05%, and bbmg corporation rose by 2.38%.
Sports stocks are all rising, with anta sports up 5.41%, li ning up 5.06%, xtep int'l up 4.29%, topsports up 4.18%, and 361 degrees up 1.67%.
In terms of individual stocks,
$BYD ELECTRONIC (00285.HK)$Up over 9%, the stock price has reached a new high in over 3 years, with the company expected to significantly benefit from Apple's new products in the second half of next year.
$JD LOGISTICS (02618.HK)$Up nearly 3%, planning to acquire the remaining 36.43% equity of Kua Yue Express.
$SENSETIME-W (00020.HK)$Up over 8%, the group has completed the strategic organizational restructuring, institutions say it will help accelerate achieving break-even.
$CG SERVICES (06098.HK)$Surged over 3%, Citi has lowered the company's profit forecast and target price for this year and next.
$NTES-S (09999.HK)$Surged over 6%, "The Legend of Yan Yun" is set to premiere on December 27, and "Marvel Showdown" has surpassed 10 million players.
$IMOTIONAUTOTECH (01274.HK)$Surged over 7%, will reach a strategic cooperation with Horizon to develop a full-stack intelligent driving solution based on J6E.
$MIDEA GROUP (00300.HK)$Currently up over 8%, the sales of upgraded household appliances exceed 200 billion, Citigroup is optimistic about the company's steady sales growth.
$YIXIN (02858.HK)$Increased by over 8%, with financing transaction volume reaching 0.192 million in the third quarter, the fintech business continues to grow significantly.
$CHINA TIANRUI (01252.HK)$After resuming trading, it surged, closing up over 1200%. The company was suspended in early April this year, with some shares of the controlling shareholder forcibly sold.
TOP 10 trading volume today
Hong Kong Stock Connect Fund
Regarding the Hong Kong Stock Connect, today the net inflow into the Hong Kong Stock Connect (southbound) is 12.777 billion HKD.
Institutional perspective
BOC International maintains a 'neutral' rating on the domestic property industry, gradually approaching sustainable scale amidst continuous destocking.
China International stated in its research reports that, referencing mature economies, the estimated sustainable scale of new housing development in china is about 0.5 billion square meters per year. The bank believes that after more than three years of rapid decline in the property market, the industry is experiencing short-term pain, and the quantity of new housing starts in china is approaching a sustainable development level. Currently, it predicts that the new construction area of residential buildings will reach 0.536 billion square meters in 2024, while it is expected that by 2028, the residential sales area will remain between 0.78 billion and 0.81 billion square meters, reflecting that the market's de-inventory process is still ongoing.
The bank believes that in the short term, the central government will introduce strong support policies to significantly boost market sentiment; however, it is estimated that the recovery in lower-tier cities may not last long. It considers that to achieve a nationwide recovery, the market still needs to further advance the implementation of de-inventory measures, such as government purchases of commercial housing for use as guaranteed housing. Therefore, it maintains a 'neutral' rating on the mainland real estate industry while being more optimistic about developers that are financially stable, have stronger growth prospects, and are undervalued. $CHINA OVERSEAS (00688.HK)$ Nvidia. $POLY PPT SER (06049.HK)$ 。
Haitong Securities: SenseTime has completed an organizational strategic restructuring, with a reasonable value range of HK$2.27 to HK$2.84.
Haitong Securities issued a report stating that $SENSETIME-W (00020.HK)$ Complete the organizational strategic restructuring and establish a "1+X" framework. SenseTime currently has a prominent leading advantage in the AI large model field. On one hand, the company's daily innovating series of models have performed excellently in evaluations, demonstrating the company's strong technical capabilities in large models. On the other hand, the company's AI large model solutions also rank in the top tier of the industry, indicating that the company not only possesses excellent models but also has the capability to apply these excellent models in practical applications.
In addition, the bank indicated that SenseTime ranks in the top 3 among GenAI IaaS service providers. The large apparatus of SenseTime can provide more comprehensive operational support and ultra-large cluster guarantee capabilities for large model business, which has become a solid foundation supporting the company's AI business development. Overall, the company ranks among the domestic leaders across the entire industry chain from large models, AI commercialization implementation, to intelligent computing services, establishing a strong moat in the AI field.
The bank determines that the completion of this strategic organizational restructuring will open a new chapter for the company's development in the AI era. Considering various factors, a forecast of a 16 to 20 times price/sales ratio for SenseTime Group in 2024 is given, corresponding to the company's reasonable value range of 2.27 to 2.84 Hong Kong dollars, with an 'outperform the market' rating.
Goldman Sachs: 'Yan Yun Shi Liu Sheng' will be one of Netease's most important game releases and contributions in 2025.
Goldman Sachs issued a research report indicating, $NTES-S (09999.HK)$ Confirming that 'Yan Yun Shi Liu Sheng' and 'Where Winds Meet' PC versions will officially launch on December 27 at 10 AM Beijing time, with the mobile version to follow. Goldman Sachs expects that the total sales revenue for the first 12 months of 'Yan Yun Shi Liu Sheng' PC/mobile will be 1.8 billion/2.4 billion yuan, equivalent to 7% of the 2025 PC game revenue and 4% of the domestic mobile game revenue in 2025. Goldman Sachs anticipates this will be one of Netease's most important game releases and contributions in 2025.
The report states that as netease's gaming product line begins to release in the next two to three months, goldman sachs expects netease's revenue to accelerate growth compared to Q3 and improve performance visibility for 2025. With the return of blizzard entertainment in August 2024, the launch of new games will further drive strong growth in PC gaming. Goldman sachs also expects netease's global gaming sales to significantly increase in 2025, as more games start to be exclusively released globally by netease.
Editor / jayden
