Futu News, March 20, reported that the three major indices of the Hong Kong stock market dropped.$Hang Seng Index (800000.HK)$Down 2.23%, $Hang Seng TECH Index (800700.HK)$Down 3.39%, $Hang Seng China Enterprises Index (800100.HK)$Down 2.33%.
As of the market close, 781 stocks in Hong Kong rose, 1295 fell, and 1042 remained unchanged.
The specific industry performance is shown in the picture below:
In terms of sectors, Network Technology stocks performed sluggishly, with Baidu-SW down 5.44%, JD-SW down 4.94%, KUAISHOU-W down 4.64%, MEITUAN-W down 4.43%, Alibaba-W down 3.97%, TENCENT down 3.80%, XIAOMI-W down 2.92%, and NTES-S down 2.18%.
Auto stocks strengthened against the trend, with BYD Company up 1.73%, hitting a new historical high during the session; Great Wall Motor up 3.3%, Guangzhou Automobile Group up 2.13%, and Brilliance CHI up 0.74%.
Digital Health stocks declined, with ALI HEALTH down 6.44%, ZA ONLINE down 5.21%, JD HEALTH down 3.49%, and PA GOODDOCTOR down 3.39%.
Sporting Goods stocks were lower, with TOPSPORTS down 5.37%, XTEP INT'L down 4.86%, ANTA SPORTS down 4.85%, LI NING down 4.76%, CHINA DONGXIANG down 4.55%, 361 DEGREES down 2.48%, YUE YUEN IND down 1.24%, and EAGLE NICE up 0.25%.
Mobile Game stocks weakened, with CMGE down 14.00%, KINGSOFT down 5.55%, Bilibili-W down 4.22%, TENCENT down 3.80%, BOYAA down 2.56%, NTES-S down 2.18%, XD INC down 1.93%, and ZX INC up 0.24%.
Property Services and Management stocks fell, with S-ENJOY SERVICE down 11.64%, CHINA RES MIXC down 5.48%, GREENTOWN SER down 5.08%, POLY PPT SER down 3.91%, CG SERVICES down 3.75%, Wanwu Cloud down 3.67%, CHINA OVS PPT down 3.15%, and GREENTOWN MGMT up 1.49%.
Alcoholic Beverages stocks weakened, with GRACEWINE down 10.71%, PALINDA GROUP down 5.17%, CHINA RES BEER down 3.99%, ZJLD down 3.80%, TSINGTAO BREW down 3.64%, BUD APAC down 2.87%, and SAN MIGUEL HK down 2.53%.
In terms of individual stocks,$LEAPMOTOR (09863.HK)$Up more than 6%, continuing to set new highs, Institutions expect that the gross profit in the first quarter will likely exceed market expectations, Bullish on the company's new car cycle.
$MINIEYE (02431.HK)$Up nearly 23%, the company has been appointed for the smart cockpit projects of Volkswagen and Audi, and has recently invested in the establishment of a robotics technology company.
$INNOSCIENCE (02577.HK)$Up nearly 13%, the EPC patent was ruled invalid, and INNOVENT BIO achieved final victory in the ITC case.
$INNOVENT BIO (01801.HK)$Up over 3%, XINBIMIN has completed its first batch of shipments, and the company has reached a strategic cooperation with Meinian Onehealth Healthcare Holdings.
$GEELY AUTO (00175.HK)$Up over 1%, with last year's revenue reaching an all-time high, net profit increased by more than 2.1 times year-on-year.
$SIHUAN PHARM (00460.HK)$Up over 3%, the medical beauty business is expected to continue rapid growth, and the efficacy of pirfenidone refreshes industry perception.
$DONGFENG GROUP (00489.HK)$Up nearly 9%! The restructuring of state-owned enterprises is expected to accelerate reforms, and institutions are bullish on the company’s multi-dimensional recovery.
Top 10 transaction amounts today.
Hong Kong Stock Connect funds.
Regarding the Stock Connect, there was a net outflow of 0.408 billion HKD from the Hong Kong Stock Connect (Southbound) today.
Institutional Views
Citigroup: Downgrades the Target Price of CKI HOLDINGS to 49 HKD, rating downgraded to 'Neutral'.
Citi published a research report indicating that... $CKI HOLDINGS (01038.HK)$Last year, net profit increased by 1.1% year-on-year to 8.115 billion HKD, below market expectations by 3%; based on recurring basis, operating profit last year increased by 10% year-on-year, and final dividend increased by 0.5% year-on-year to 1.86 HKD. Since the listing, the company has maintained an upward trend in dividends, with the annual dividend per share increasing by 0.02 HKD year-on-year.
The bank indicated that, fundamentally, CKI HOLDINGS may acquire Thames Water in the UK, but it is expected that this will not happen in the next few months due to complex debt restructuring work before any potential acquisition. The bank lowered its net profit forecast for the company for 2025-2026 by 8% to 12%, and its Target Price was adjusted from 63 HKD to 49 HKD, with the rating downgraded from 'Buy' to 'Neutral'.
Bank of China International: Raises the Target Price for China United Network Communications to HKD 15.02, reiterating a 'Buy' rating.
Bank of China International released a research report stating that, benefiting from strict cost control, $CHINA UNICOM (00762.HK)$the operating profit for the second half and the entire year is expected to grow by 7.7% and 10.1% year-on-year, meeting the bank's expectations. The bank noted that the dividend per share is raised by 5 percentage points year-on-year, highlighting the management's commitment to increasing shareholder returns.
The bank indicated that capital expenditures increased by 28% year-on-year, which will be used for computing power, while total capital expenditures decreased by 10%, reflecting a shift in focus while enhancing returns. The bank noted that it will leverage its advantages in networks, data, and applications to ride the AI wave; it raised its target price from HKD 14.77 to HKD 15.02, reiterating its 'Buy' rating.
Bank of America: Slightly reduces the target price for FUYAO GLASS to HKD 62, viewing this year as the company's transformation period.
Bank of America Securities released a report stating that $FUYAO GLASS (03606.HK)$ In the fourth quarter of last year, revenue rose 17% year-on-year to 10.9 billion yuan, which is 6% lower than market predictions. The gross margin fell by 4.4 percentage points year-on-year to 32.1%. Based on the company's accounting changes, packaging fees were moved from promotion expenses to sales costs, and the adjusted gross margin increased by 0.16 percentage points quarter-on-quarter to 37.2%. The bank has lowered its forecast for the company's deliveries and sales this year by 2%, and adjusted the profit forecast down by 3% based on accounting adjustments.
The bank views this year as a transformation period for the company, with relatively subdued sales growth. This is due to the ongoing Construction of new factories in Anhui and Fujian, and increased capacity utilization at the second-phase factory in the USA. Sales growth is expected to accelerate next year, based on sufficient capacity coming online. The bank has slightly lowered the target price for FUYAO GLASS from 62.1 HKD to 62 HKD and maintains a "Buy" rating.
Editor/danial
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
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