Futu News reported on December 31 that the last trading day of Hong Kong stocks in 2024, by the close, $Hang Seng Index (800000.HK)$ An annual cumulative increase of 17.67% marks the end of the previous four years of decline; during the same period. $Hang Seng TECH Index (800700.HK)$ and $Hang Seng China Enterprises Index (800100.HK)$ there were increases of 18.7% and 26.37% respectively.
By the close, 947 Hong Kong stocks rose, 871 fell, and 1279 closed flat.
In terms of sectors, most Network Technology stocks fell, with Bilibili down 2.07%, KUAISHOU-W down 1.31%, Baidu down 1.31%, JD-SW up 0.97%, MEITUAN-W down 0.72%, Alibaba up 0.49%, TENCENT down 0.48%, and XIAOMI-W up 0.15%.
Coal Industrial Concept stocks rose, with China Shenhua Energy up 3.07%, China Coal Energy up 2.77%, KINETIC DEV up 2.38%, SHOUGANG RES down 1.95%, YANKUANG ENERGY up 1.82%, E-COMMODITIES up 0.77%, MONGOL MINING down 0.42%, and YANCOAL AUS down 0.16%.
Holiday Entertainment Concept stocks rose, with TSINGTAO BREW up 3.74%, H World Group up 3.17%, and HAIDILAO up 2.58%.
Semiconductors stocks weakened, with HUA HONG SEMI down 4.42%, HG SEMI down 4.29%, Semiconductor Manufacturing International Corporation down 2.45%, SHANGHAI FUDAN down 2.45%, CE HUADA TECH down 2.34%, BEIC Micro up 2.06%, SOLOMON SYSTECH down 1.00%, and INNOSILICON up 0.81%.
Securities and Brokerage stocks mostly fell, with SWHY down 2.94%, China International Capital Corporation down 2.44%, China Galaxy down 2.34%, China Merchants down 2.08%, CSC down 1.41%, HTSC down 0.76%, Guolian down 0.43%, and HAITONG SEC up 0.15%.
Alcoholic Beverages stocks rose, with DYNASTY WINES up 3.77%, TSINGTAO BREW up 3.74%, SAN MIGUEL HK up 2.44%, ZJLD up 1.95%, HUAYUEXPRESSWAY up 1.92%, TIBET WATER down 1.41%, BUD APAC up 1.22%, and CHINA RES BEER down 0.20%.
Petroleum stocks all rose, with CHINA OILFIELD up 2.33%, SINOPEC CORP up 1.60%, CNOOC up 1.38%, PETROCHINA up 1.16%, KUNLUN ENERGY up 0.96%, SHANGHAI PECHEM down 0.83%, SINO OIL & GAS flat, and YANCHANG PETRO flat.
In terms of individual stocks,$POP MART (09992.HK)$Up over 4%, the company benefits from WeChat's new gifting feature, and Citigroup states that the company is expected to expand into the IP commercialization field.
$BEAUTYFARM MED (02373.HK)$Up nearly 4% reaching a new high for the year, previously fully acquiring Nairuier, which helps expand the business territory.
$ZHAOJIN MINING (01818.HK)$Up over 3%, Ruihai Mining's two TBMs successfully completed assembly and debugging ahead of schedule.
$CHINAGOLDINTL (02099.HK)$Up over 8%, Jiamu Mine's output this year will exceed the annual output guidance, and institutions are bullish on the upward trend of gold and copper prices.
$CANGGANGRAILWAY (02169.HK)$Soared over 13%, with the stock price nearing doubled within the month, Cangzhou plans to improve the planning of the Huanghua Port railroad collection and distribution system.
$CRRC (01766.HK)$Increased nearly 4%, recently signed several projects involving over 69 billion yuan, the company is expected to benefit from the locomotive update and replacement process.
$GWMOTOR (02333.HK)$Increased over 3%, its RISC-V automotive-grade chip company 'Zijing Semiconductor' officially established in Nanjing.
Top 10 by trading volume in the half day.
Hong Kong Stock Connect funds
Regarding the Stock Connect, today's net inflow for the Hong Kong Stock Connect (southbound) reached 6.277 billion HKD.
Institutional perspective
Citi: Reiterates 'Buy' rating on XIAOMI-W, with future catalysts including growth in SU7 Ultra orders and potential subsidies for phones.
Citi's report indicates that $XIAOMI-W (01810.HK)$ Last Friday, a full ecosystem partnership conference for vehicles and homes was held in Peking, reiterating that R&D expenditures for this and next year will be 24 billion and 30 billion yuan respectively, estimating over 100 billion yuan in R&D expenditures between 2022 and 2026, mainly concentrated on AI, operating systems, and chip development.
The company also expects smart phone deliveries to reach 0.17 billion units this year, a 16% increase year-on-year, meeting expectations. Among these, high-end smart phone deliveries are expected to rise 43% year-on-year to 12 million units. The company aims to increase high-end smart phone sales by 10 million units every three to five years, reaching 30 million units sold within seven to eight years. The company has also launched a comprehensive ecosystem developer incentive program and disclosed that SU7 electric vehicle deliveries have exceeded 0.13 million units, compared to the predicted 0.131 million units. Currently, the company has opened 200 electric vehicle stores in 58 cities.
The firm reaffirms its "Buy" rating on Xiaomi, with a target price of 34.9 Hong Kong dollars. Future major catalysts include an increase in SU7 Ultra electric vehicle orders, the launch of a new smart driving system, potential mobile phone subsidy policies, and the introduction of the YU7 electric vehicle.
UBS Group: Tencent and NetEase have each secured approval for major games.
UBS Group published a report indicating that the National Press and Publication Administration announced the approval results for the latest batch of game licenses in December, involving 122 local games and 7 imported games. The bank views the approvals as a continued demonstration of a favorable regulatory environment for the gaming industry, based on over 100 local game licenses approved monthly, with an increase in import game approvals last month and this month, reflecting a relaxation of overseas content regulation, benefiting TENCENT, which has substantial investments and collaborations with overseas copyrights and studios.
The bank also stated that $TENCENT (00700.HK)$ the mobile game and PC game "Monster Hunter Outlanders", as well as $NTES-S (09999.HK)$ The mobile game, PC game, and PS5 platform game "Infinite" have been approved, reflecting good development progress for both games, thus increasing the possibility of their launch next year. This is especially positive for NetEase's "Infinite", as market expectations initially suggested that this game would not be released until 2026.
China International Capital Corporation: The benchmark target for the Hang Seng Index next year is 22,000 points, with a focus on three industry categories.
China International Capital Corporation published a strategy report on Hong Kong, stating that looking ahead to 2025, the Mainland credit cycle and fiscal policy will still be important factors in determining market trends. China International Capital Corporation believes that when the potential for incremental stimulus in the Mainland is limited, the market may maintain a volatile pattern, more similar to the weak equilibrium under the structural market situation following the rebound in 2019. In the benchmark scenario, the bank expects profit growth of 2-3% in 2025, roughly comparable to 2024, and with sufficient repair of valuation and risk premium, therefore the Index has limited room, corresponding to around 22,000 points for the Hang Seng Index.
The bank recommends focusing on three categories of Industries: first, sectors where industry supply and policy environments are fully cleared, especially if there is marginal demand improvement, such as certain parts of Internet Plus-Related CSI Leading Consumption and Services Index, home appliances, textile and apparel, and electronics. Second, policy support directions, such as old-for-new appliance and auto exchanges, as well as trends in self-developed Technology areas like computers and Semiconductors; third, stable returns, like high dividends from state-owned enterprises. However, specific to the internal dividend assets, on one hand, the bank suggests focusing on symbols in the Hong Kong stock market with a high proportion of net cash relative to market cap, as these shares have some discount in the market; on the other hand, within dividend assets, the transmission along the economic environment may follow the sequence of cyclical dividends, bank dividends, defensive dividends, treasury bonds, and cash.
Editor/rice
