Evaluation of Hong Kong stocks

Futu Information on March 26 | the Hang Seng Index fluctuated and fell in the afternoon, with ordinary trading heat, and individual stocks fell more and rose less. By the close, the Hang Seng index closed down 0.74% at 23352.34, while the state-owned enterprises index fell 0.86% to 9447.56. The main board had a turnover of HK $121.779 billion throughout the day, a slight decrease from the previous trading day.

On the market side, Asia-Pacific stock markets closed mixed, with the Korean Composite Index falling 1.09% at 1686.24, the Nikkei 225 Index closing down 4.51% at 18664.60, Australia's ASX200 Index closing up 2.3% at 5113.3, and New Zealand's NZX50 Index up 3.97% at 9632.47.

As for individual stocks, the results were announced last night.Unified Enterprise China (00220.HK) $It fell sharply today, closing down 1.67% at HK $7.08, with a turnover of HK $61.99 million, with a total market capitalization of HK $30.58 billion. According to the financial report, the company's income in 2019 was 22.0197 billion yuan, an increase of 1.1 percent over the same period last year, slightly lower than market expectations, of which the revenue from the instant noodle business was 8.5 billion yuan, up 0.9 percent from the same period last year (3.2% in 2018), accounting for 38.6 percent of the total income; profit attributable to equity holders was 1.3662 billion yuan, up 32.7 percent from the same period last year; gross profit margin was 36 percent, up 2.5 percentage points over the previous year.

$Yongda Motor (03669.HK) $The share price rose steadily today, closing at HK $6.23, up 9.49%, with a turnover of HK $108 million, with a total market capitalization of HK $11.5 billion. Yongda announced at noon yesterday that net profit attributable to shareholders for 2019 was 1.473 billion yuan, up 17.5 per cent from a year earlier. During the period, income and gross profit increased rapidly. Net cash from operating activities in 2019 was 4.109 billion yuan, up 141.9% from 1.699 billion yuan in 2018. After the performance, it was sung by a number of organizations. Dongxing Securities commented that the company's luxury cars, after-sales and value-added services are growing steadily. The target price is HK $8.6, and the rating is upgraded to "highly recommended".

$CGN Power Co.,Ltd. (01816.HK) $It rose 1.75% to HK $1.74, with a total market capitalization of HK $87.8 billion. CGN Power Co.,Ltd. yesterday announced after-market results for the year ended December 31, 2019, the company's operating income was about 60.875 billion yuan, up 19.8% from the same period last year. Net profit attributable to shareholders of the parent company was about 9.466 billion yuan, up 8.8% from the same period last year. Basic earnings per share were 0.201 yuan, and the final cash dividend per share was 0.076 yuan (including tax), an increase of 5.6 percent over the previous year. By the end of 2019, the company managed 24 nuclear power units in operation and 5 nuclear power units under construction (including 1 unit under construction entrusted by the company's controlling shareholder).

$Yihai International (01579.HK) $It lost 3.2% to HK $51.80 this morning, and then rebounded by 6.07% to HK $56.75, with a total market capitalization of HK $59.4 billion. Yihai International announced yesterday that its income for the year ended December 31, 2019, was 4.282 billion yuan, up 59.7 percent from the same period last year; gross profit was 1.641 billion yuan, up 58.0 percent from the same period last year; net profit was 795 million yuan, up 45.1 percent from the same period last year; the net profit attributable to the company's owners was 719 million yuan, up 38.8 percent from the same period last year; basic earnings per share was 0.741 yuan, and the proposed final dividend per share was 20.593 cents, 38.8 percent more than the same period last year.

$Wanjia Union (01762.HK) $Last year, he made a profit, but it fell more and more sharply in the afternoon and hit a listing low. He saw HK $1.29, which closed down 9.68% to HK $1.40, with a turnover of HK $6.54 million, with a total market capitalization of HK $1.8 billion. Wankayi announced yesterday that for the year ended December 31, 2019, the company's income was 2.396 billion yuan, up 55% from the same period last year; gross profit was 338 million yuan, up 55.8% from the same period last year; the profit attributable to the company's owners was 106 million yuan, compared with a loss of 422 million yuan in the same period last year; adjusted EBITDA 246 million yuan, up 47.9% from the same period last year; profit per share was 0.09 yuan, without dividend.

Among the constituent stocks of the Hang Seng Index, individual stocks fell more and rose less, AAC Technologies Holdings Inc. led the market; among the constituent stocks of the national index, CSPC Pharmaceutical led the market.

Market sentiment

In terms of Hong Kong Stock Connect, the net inflow of Hong Kong Stock Connect (southbound) exceeded HK $3.6 billion today, and the net inflow has increased recently.

Message surface

At the macro level, the central bank announced that the total liquidity of the banking system is at a reasonable and adequate level and does not carry out reverse repurchase operations. No funds are due today. This is the 28th day in a row that the central bank has suspended reverse repurchase.

The US Senate has approved a $2 trillion epidemic relief plan, a huge bill passed by a vote of 96 to 0. The stimulus package is unprecedented, surpassing the Obama stimulus package of about $800 billion passed five months after the 2008 financial crisis. White House economic adviser Kudlow said the bill, together with the Fed's actions, is equivalent to providing $6 trillion in stimulus, or about 30% of annual GDP.

With regard to the epidemic, according to real-time statistics released by Johns Hopkins University in the United States, as of 12:43 Beijing time on the 26th, COVID-19 in the United States had a total of 69194 confirmed cases and 1050 deaths. A total of 472076 cases were confirmed and 21308 died worldwide.

In the US economy, in the first 20 days of March, Alphabet Inc-CL C search trends showed that in addition to the "coronavirus" (Coronavirus), the number of searches for "unemployment" and "recession" soared, far exceeding the number of searches for the whole month of July 2010 (during the financial crisis), when the unemployment rate was as high as 9.5% and 14.6 million people were unemployed.

For Huawei, the Commerce Department's Bureau of Industry and Security announced on March 25 that it would extend the period for public consultation on the extension of Huawei's temporary General purpose license (TGL) until April 22. The consultation period announced by the Ministry of Commerce was from March 10 to 25. Earlier this month, the U.S. Department of Commerce extended Huawei's temporary general license until May 15, 2020.

In terms of vaccines, Xu Nanping, vice minister of science and technology, said at a press conference held by the State Information Office on the 26th that vaccine research and development is the key to fighting the epidemic, but it is very difficult and uncertain, and it needs to gather global strength and wisdom to promote it. China has been persisting in vaccine research and development through international cooperation. At present, relevant enterprises in China have carried out substantive cooperation with companies in the United States, Germany and the United Kingdom around the research and development of DNA vaccine, mRNA vaccine and recombinant protein vaccine, and more cooperation is under further negotiation.

As for crude oil, Goldman Sachs Group said in a report that oil demand is expected to fall by 10.5 million b / d in March and 18.7 million b / d in April. Goldman Sachs Group now expects demand to fall by 4.25 million barrels a day in 2020. Goldman Sachs Group said the collapse in demand would have an "unprecedented impact" on the global oil refining industry. Brent crude prices will remain around $20 a barrel in the second quarter.

In terms of live broadcast economy, Luo Yonghao announced that he had signed an exclusive contract with Douyin in his personal Weibo Corp, and will start the live broadcast debut with goods on April 1.

With regard to automobiles, the Ministry of Commerce said that it would encourage all localities to introduce measures to promote the consumption of new energy vehicles and trade in old cars in the light of local conditions, so as to further stabilize and expand automobile consumption.

Institutional viewpoint

CITIC: the G20 summit in the critical period does not rule out the possibility of launching policies that exceed expectations in the near future, such as interest rate cuts, including lower benchmark deposit rates and lower policy rates, and so on.

Jim Rogers, a famous American investor: all investors, especially retail investors, must invest on the premise of their own understanding. If you don't have an area you want to invest in for the time being, there's nothing wrong with holding money in your hand and holding cash. The annual return on holding cash may be less, but it is better than a loss of 5% Murray 6%. So holding cash is not a bad thing, especially when the stock market is not making money.

UBS Wealth Management: the outlook for emerging markets will be "out of sync", but remain bullish on the Chinese market; it is believed that China's economic growth will recover from the second quarter, coupled with the expected rebound in economic growth in the second half of the year. China is expected to lead Asian emerging markets to outperform global emerging markets.

Dario, founder of the Bridge Water Fund: after the virus disappears, the economy will be devastated, and it will be impossible for the central bank to print money; those most affected by the epidemic, both financially and in the way they are hurt, are far beyond the scope of monetary and fiscal policy; there will be a severe global recession, and this recession will follow the movement of the virus and roll wave after wave.