Evaluation of Hong Kong stocks

Futu Information March 31 | the Hang Seng Index staged a V-word reversal throughout the day, the trading heat picked up, and individual stocks rose more and fell less. As of the close, the Hang Seng index closed up 1.85% at 23603.48, while the state-owned enterprises index rose 2.05% to 9594.77. The main board had a turnover of HK $113.341 billion throughout the day, an increase over the previous trading day.

On the market side, Asia-Pacific stock markets closed mixed, with the Korean Composite Index falling 0.04% at 1717.12, the Nikkei 225 Index closing down 1.57% at 19084.97, Australia's ASX200 Index closing up 7% at 5181.4, the biggest one-day gain on record, and the New Zealand NZX50 Index up 0.99% at 9661.19.

On the plate side, US President Trump and Russian President Vladimir Putin discussed the current oil situation yesterday, and Putin and Trump agreed to continue negotiations on the oil market. Driven by this, the main crude oil futures rebounded by more than 7%, and the "three barrels of oil" of Hong Kong stocks strengthened collectively.$Petrochina (00857.HK) $、$CNOOC Limited (00883.HK) $Lead the blue chip rise. According to the website of the Ministry of Finance, the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation issued a document a few days ago to abolish the management of duty-free import quotas for oil (natural gas) exploitation projects in specific areas on land; abolish the management of duty-free import quotas for offshore oil (natural gas) exploitation projects.

5G, according to$China Mobile Limited (00941.HK) $It was revealed that the closely watched procurement of main equipment for China Mobile Limited's 2020 5G phase II wireless network was concluded a few days ago. Huawei, ZTE Corporation, Ericsson and China Xinke were shortlisted and became the winning candidates. According to preliminary statistics, a total of four manufacturers were shortlisted in this collection. Among them, Huawei won the highest share of all the bids and packages, winning more than 132787 bids, involving an investment of 21.41 billion yuan.$ZTE Corporation (00763.HK) $Immediately after that, it won the bid for 66653 stops, involving an investment of 10.73 billion yuan. Ericsson and China Information Science also had a good performance. ZTE Corporation pulled up in a straight line in intraday trading, and as of the close, the stock was up more than 3%.

In terms of individual stocks, Bank of America Securities issued a research report.$CRRC Corporation (01766.HK) $Net profit rose 4.3 per cent last year, in line with expectations, while core profits rose 14 per cent, lower than the bank's expectations, mainly due to higher maintenance, staff costs and R & D spending. Revenue rose 6 per cent year-on-year, mainly driven by strong growth in urban rail products (RTV) shipments. Gross margin on railway equipment fell 0.2%, mainly due to changes in product mix, slight improvement in RTV gross margin and year-on-year increase in new business gross margin. Overall gross margin rose 1 percentage point, while EBIT rose only 0.4 percentage points, as costs such as research and development rose faster than revenue. As of the close, CRRC Corporation closed down 3.43% at HK $3.94, with a market capitalization of HK $113 billion.

UBS reported thatChina Construction International (03311.HK) $Last year, sustainable net income growth was weaker than expected, the net debt ratio also reached an all-time high, and interest expenses increased during the period, offsetting EBIT growth. The bank said it had cut its earnings forecast for 2020-2022 by 10 per cent, pointing out that the current price of the shares was 5 times forecast 2020 earnings, significantly lower than its historical average, believing that the share price reasonably reflected slower earnings growth and weaker cash flow than its peers, maintaining its "neutral" rating and lowering the target price from HK $7.50 to HK $5.90. Last year, revenue contributions from the mainland, Hong Kong and Macao were 52 per cent and 42 per cent respectively, while EBIT contributions were 74 per cent and 21 per cent, respectively, the bank said. On the mainland, the bank expects the government to provide more support measures to boost infrastructure investment this year. The stock closed up 3.80% at HK $5.74, with a total market capitalization of HK $28.9 billion.

$Hengan Internationgal Group (01044.HK) $It closed up 4.95% at HK $58.35, with a total market capitalization of HK $69.4 billion. According to the equity information of the Hong Kong Stock Exchange, Xu Lianjie, vice chairman, chief executive and executive director of Hengan Internationgal Group, increased his holdings of 1 million shares at an average price of HK $55.288 per share on March 27, involving a capital of HK $55.288 million. After the increase, Xu Lianjie's latest shareholding is 256140733 shares, with the shareholding ratio rising from 21.45% to 21.53%. Hengan Internationgal Group announced its annual results for 2019 last week. The company's revenue was 22.493 billion yuan, up 9.6% from the same period last year; operating profit was 5.68 billion yuan, up 4.6% from the same period last year; gross profit margin was 38.6%, up 0.4% from the same period last year; earnings per share was 3.285 yuan, with a final dividend of 1.25 yuan per share.

Among the constituent stocks of the Hang Seng Index, individual stocks rose more and fell less, Petrochina Company Limited and Sino Land Co. Ltd. led the market; among the constituent stocks of the national index, Petrochina Company Limited and CNOOC led the market.

Market sentiment

As for the Hong Kong Stock Connect, today, the Hong Kong Stock Connect (southbound) has a net inflow of nearly HK $3.1 billion, and the net inflow has decreased recently.

Message surface

Macroscopically, the open market of the central bank will conduct a reverse repurchase operation of 20 billion yuan for seven days today, and there is no reverse repurchase due today.

The PMI index increased sharply in March, indicating that the return to work and production has achieved remarkable results. Zhang Liqun, a special analyst at the China Federation of Logistics and Purchasing, believes that the sharp rebound in PMI in March is in line with expectations, but it should be paid special attention to that the PMI index in March is on the rise and fall line, which does not indicate that economic activity has fully recovered; it must be distinguished from the economic meaning expressed by the change in the normal level of the PMI index.

The Macao SAR government announced today (31) that in response to the impact of the epidemic on Macao's economy and people's livelihood, the SAR government has gradually implemented a number of measures to alleviate the hardship of the people, including special arrangements for the 2020 Cash sharing Plan. From April 1 to June 19, patacas 10000 patacas and 6000 patacas were distributed to permanent and non-permanent residents of the Macao SAR in batches. Residents are exempt from paying water and electricity charges for three months.

In terms of the epidemic, according to Johns Hopkins University data, as of 14:00 Beijing time on the 31st, there were a total of 786228 confirmed cases and 37820 deaths worldwide. Of these, a total of 164620 cases have been confirmed and 2509 deaths have been confirmed in the United States, and the epidemic in the United States has not yet seen any sign of abating.

In terms of crude oil, Standard Chartered Bank believes that the unprecedented global blockade will reduce global crude oil demand by 18.5 million b / d in April compared with the same period last year; the crude oil surplus is expected to be 21.8 million b / d in April, 19.5 million b / d in May and 13.7 million b / d in June. UBS expects crude oil demand to fall by 10 million b / d or more in the second quarter of 2020 compared with the same period a year earlier.

As for the amusement park, due to the impact of the COVID-19 epidemic, Walt Disney Executive Chairman Bob Iger announced that he would give up all remuneration receivable, and CEO Bob Chapek would also cut his salary by half. In addition, all six parks under Walt Disney Company were closed at the same time.

In terms of 5G, according to China Mobile Limited, the closely watched procurement of the main equipment of China Mobile Limited's 2020 5G wireless network has been completed a few days ago, with Huawei, ZTE Corporation, Ericsson and China Xinke shortlisted as the winning candidates. According to preliminary statistics, a total of four manufacturers were shortlisted in this collection. Among them, Huawei won the highest share of all the bids, winning more than 132787 bids, involving an investment of 21.41 billion yuan, followed by ZTE, which won 66653 bids, involving 10.73 billion yuan. Ericsson and China Xinke also performed well.

In terms of logistics, BABA plans to buy at least a 10% stake in Yunda Holdings, the e-commerce giant's fifth investment in a large express company, Reuters said, citing two people familiar with the matter.

In terms of stimulating consumption, Hangzhou will once again issue the first phase of Hangzhou electronic consumption coupons: this time, a total of 1 million Hangzhou electronic consumption coupons will be issued, each with a total value of 50 yuan, including five general consumption coupons worth 10 yuan each. consumption over 40 yuan, government subsidy of 10 yuan.

In terms of medicine, the first batch of pilot procurement with volume has completed nearly 2 times the agreed purchase volume in the past year. At present, the first batch of pilot areas that have completed the first anniversary of the "4-7" plan are facing the problem of contract renewal, and the second batch of pilot procurement with volume will be implemented one after another from April.

As for mobile phones, Luo Yonghao will start live Douyin to bring goods on April 1. The reporter learned from XIAOMI's mobile phone that the first mobile phone Luo Yonghao brought with goods was XIAOMI 10.

Institutional viewpoint

Everbright Securities: PMI is mainly a month-on-month indicator, while the February base is very low, although the March data is more than 50%, but the economic repair strength is not strong. Compared with the manufacturing PMI sub-index average for the same period in the past decade, the March sub-index of new orders, production and raw material inventory is weaker than the historical average, while the improvement in supplier delivery time is also due to logistics disruption rather than economic activity. At a time when it will take time for external demand to recover, there is an urgent need for "bail-out" macro policies to support companies and residents.

CICC: affected by the epidemic, the industry's prosperity is declining, and the net profit growth rate of listed banks this year is expected to decline to 3.7% compared with the same period last year, but the recent valuation adjustment far exceeds the fundamentals. Some high-quality stocks, such as China Merchants Bank and Ping an Bank, have opportunities for medium-and long-term capital allocation.

Goldman Sachs Group: nearly 50 American companies have suspended their existing licenses in the past two weeks. Goldman Sachs Group's buyback department estimates that S & P 500 companies as a whole suspended $190 billion in repurchase transactions, accounting for about 25 per cent of total buybacks last year.

Guotai Junan: during the epidemic, the kitchen became the "main battlefield". While many people began to socialize with food in their moments, they also easily pushed flour and all kinds of wall-breaking machines, electric cake bells and air fryers to the top-selling throne of e-commerce alongside masks and alcohol. With the economic recovery in the second quarter, it is expected that on the basis of the online data of small household appliances continue to be built, offline will also usher in restorative growth. Small household appliances outshine others, most likely will upgrade to industry resonance in the second quarter, especially kitchen electricity. In the second quarter, we mainly recommend the strategy of "offline + domestic sales", and focus on the kitchen electricity plate.