Futu News, May 28, reports that the three major indexes of the Hong Kong stock market all fell, $Hang Seng Index (800000.HK)$Down by 0.53%, $Hang Seng TECH Index (800700.HK)$Down by 0.15%, $Hang Seng China Enterprises Index (800100.HK)$Down by 0.31%.
As of the close, 922 Hong Kong stocks rose, 1,035 fell, and 1,171 were flat.
The performance of specific industries is shown in the following figure:
In terms of Sector, Network Technology stocks had mixed results, with KUAISHOU-W up 5.95%, NTES-S up 2.81%, Bilibili-W up 2.29%, Alibaba-W down 1.95%, JD-SW down 1.40%, TENCENT down 1.17%, MEITUAN-W down 0.53%, and XIAOMI-W up 0.39%.
Lithium Battery stocks mostly fell, with HONBRIDGE up 8.77%, BYD Company down 2.68%, LEOCH INT'L up 2.52%, GANFENGLITHIUM down 1.25%, BYD Electronics down 1.23%, Tianqi Lithium Corporation down 1.03%, TIANNENG POWER up 0.66%, and CHINA RES BEER down 0.49%.
Semiconductor stocks weakened, with BEKE down 5.78%, Semiconductor Manufacturing International Corporation down 2.51%, HG SEMI down 2.15%, SHANGHAI FUDAN down 1.46%, HUA HONG SEMI down 1.13%, and CE HUADA TECH down 0.71%.
Automobile stocks declined, with Great Wall Motor up 5.21%, BYD Company down 2.68%, LI AUTO-W down 2.51%, Geely Automobile down 2.33%, YADEA down 1.92%, XPENG-W up 1.19%, NIO-SW down 0.70%, and LEAPMOTOR down 0.62%.
Alcoholic beverage stocks rose collectively, with PALINDA GROUP up 12.00%, BUD APAC up 4.14%, SAN MIGUEL HK up 3.66%, DYNASTY WINES up 3.08%, TSINGTAO BREW up 1.81%, TIBET WATER up 1.72%, CHINA RES BEER up 0.97%, and ZJLD up 0.78%.
Restaurant stocks rose collectively, with JIUMAOJIU up 5.53%, SUPER HI up 2.59%, HAIDILAO up 2.30%, YUM CHINA up 1.97%, DPC DASH down 1.15%, and the small garden up 0.59%.
Film and television stocks had mixed performance, with ALI PICTURES up over 11%, EMPEROR CULTURE and HUANXI MEDIA both up over 7%.
In terms of individual stocks,$NEW ORIENTAL-S (09901.HK)$During the session, it dropped nearly 3%, and the company's overseas students business along with next period's revenue outlook is cautious.
$GWMOTOR (02333.HK)$In the afternoon, it rose nearly 5%, with the increase in high-end models and export layout expected to support profit growth.
$CUTIA-B (02487.HK)$At the close, it rose over 18%, with strong growth in hair and cosmetics driving revenue increase, and this year will see the launch of three major product lines.
$YH ENT (02306.HK)$A further increase of nearly 14%, with the stock price rising nearly three times within the month, the company is actively engaged in the IP field.
$BATELAB (02149.HK)$A drop of over 8%, the company recently completed a placement, and Institutions are paying attention to the execution.
$ALI PICTURES (01060.HK)$Closing up more than 11%, Institutions stated that the DAMAI and IP derivative businesses will become new growth points.
$HENGRUI PHARMA (01276.HK)$An increase of nearly 5%, the self-developed Class I therapeutic biological product SHR-4712 injection has been approved to conduct clinical trials.
$KUAISHOU-W (01024.HK)$Increased by nearly 6%, with adjusted Net income reaching 4.58 billion yuan in the first quarter, accelerating the commercialization of Ling AI.
Top 10 transaction amounts today.
Hong Kong Stock Connect funds.
Regarding the Stock Connect, today's net Inflow of Hong Kong stocks (southbound) is 3.578 billion Hong Kong dollars.
Institutional views
Daiwa: Raises the Target Price for XIAOMI-W to 70 Hong Kong dollars, and raises the EPS forecast for 2025 to 2027.
Daiwa published a research report indicating that Xiaomi's first-quarter performance was strong, with adjusted Net income exceeding market expectations by 13%. The gross margin for IoT and EV Business was 4 and 2 percentage points higher than predicted, respectively. The firm believes that the upcoming Investor Day and the YU7 launch in June will be catalysts for the stock in the near term. The firm has raised the Group's earnings per share forecast for 2025-2027 by 8% to 19%, reiterating the 'Buy' rating, and increasing the Target Price from 65 Hong Kong dollars to 70 Hong Kong dollars.
Citi: Reaffirms the KUAISHOU-W "outperform market" rating, with healthy e-commerce GMV maintained in the first quarter.
Lyon published a report stating that Kuaishou's Q1 performance met expectations, with total revenue and adjusted net profit of 32.6 billion and 4.6 billion yuan respectively, growing 10.9% and 4.4% year-on-year. Kuaishou's E-Commerce GMV remained healthy, growing 15% year-on-year to 332 billion yuan, while online marketing service revenue only grew 8% year-on-year. The firm expects Kuaishou’s revenue and adjusted net profit in Q2 to grow 11.6% and 10% year-on-year to 34.6 billion and 5.1 billion yuan respectively, with the uncertainty of E-Commerce competition potentially offset by boosts from Asia Vets. The firm reaffirmed a "outperform" rating on Kuaishou and a target price of 67 Hong Kong dollars.
Goldman Sachs: There has been a significant improvement in shareholder returns for domestic insurance stocks, raising the Target Price for China Life and Ping An Insurance.
Goldman Sachs published a report indicating that in recent months, domestic insurance stocks have shown significant improvement in shareholder returns, with several insurance companies announcing stable or gradually increasing dividend targets and considering or proposing stock repurchase plans. This aligns with the government's goal of enhancing the valuation of state-owned enterprises, and more insurance companies are expected to announce measures to improve or stabilize shareholder returns. Among the domestic insurance companies covered by them, they believe that China Life's strong balance sheet presents the largest mismatch with its currently low dividend payout ratio; property insurance, with an estimated excess capital of 47 billion yuan for the 2024 fiscal year, is most capable of increasing shareholder returns.
Goldman Sachs raised its EPS forecast for the 2025 fiscal year for the domestic insurance companies it covers by 3% to 46%, upgraded China P&C Insurance's rating from "Neutral" to "Buy," and increased its Target Price from HK$12.9 to HK$16.1, while maintaining "Buy" ratings for China Life and Ping An Insurance, raising China Life's Target Price from HK$16.5 to HK$17.5, and Ping An Insurance's Target Price from HK$49 to HK$51.
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