Futu News reported on June 5 that the three major Hong Kong Indexes all rose, $Hang Seng Index (800000.HK)$ Increased by 1.07%, $Hang Seng TECH Index (800700.HK)$ Increased by 1.93%, $Hang Seng China Enterprises Index (800100.HK)$Increased by 1.26%.
As of the close, 1,171 stocks rose in the Hong Kong market, 885 stocks fell, and 1,075 stocks closed flat.
The performance of specific industries is shown in the following figure:
In terms of sectors, Network Technology stocks rose together, with KUAISHOU-W up 5.01%, Alibaba-W up 3.23%, MEITUAN-W up 2.63%, Bilibili-W up 2.46%, XIAOMI-W up 1.50%, JD-SW up 1.48%, NTES-S up 0.95%, and TENCENT up 0.59%.
Apple-related stocks performed well, with COWELL up 7.87%, SUNNY OPTICAL up 5.56%, AAC TECH up 5.49%, BYD ELECTRONICS up 3.02%, Q TECH up 2.73%, TK GROUP HLDG up 2.45%, VSTECS up 1.61%, and FIH up 1.22%.
Semiconductor stocks rose, with HG SEMI up 10.87%, SOLOMON SYSTECH up 8.86%, HUA HONG SEMI up 4.23%, Semiconductor Manufacturing International Corporation up 4.19%, SHANGHAI FUDAN up 3.65%, BEIGENE down 1.17%, and WUXI BIO up 1.00%.
Most biotechnology stocks weakened, with JUZHIBIO down 8.70%, SKB BIO-B down 7.58%, ZAI LAB up 5.35%, JINGTAI HOLDING up 3.46%, GENSCRIPT BIO up 2.75%, WUXI BIO down 1.19%, AKESO up 0.99%, and BEIGENE down 0.64%.
Many pharmaceutical stocks declined, with GRANDPHARMA down 3.71%, INNOVENT BIO down 2.63%, CSPC PHARMA down 2.36%, SINO BIOPHARM down 1.95%, FOSUN PHARMA down 1.33%, LUYE PHARMA down 1.06%, Hutchmed (China) up 1.05%, and 3SBIO down 1.02%.
Shipping and port stocks mostly fell, with OOIL down 5.94%, PACIFIC BASIN down 3.06%, DEXING SHIPPING down 1.96%, COSCO Shipping Holdings down 1.94%, COSCO SHIP PORT down 1.48%, CHINA MER PORT down 1.39%, COSCO SHIP ENGY down 0.99%, and SITC up 0.40%.
In terms of individual stocks,$MEITUAN-W (03690.HK)$ Increased by over 2%, Institutions: MEITUAN is unafraid of food delivery competition and is committed to ecological investment.
$KUAISHOU-W (01024.HK)$Rising over 5%, Keling AI recently launched the new 2.1 series model, and institutions are bullish on its profitability accelerating improvement.
$KINGDEE INT'L (00268.HK)$Rising over 5%, recently released KINGDEE INT'L Agent platform 2.0 and five major intelligent agents.
$LAOPU GOLD (06181.HK)$Falling over 9%, recently completed a net fundraising of 2.7 billion HKD from a share placement, with a large-scale unlock expected at the end of this month.
$GDS-SW (09698.HK)$Up nearly 8%, with the development of AI driving growth in data center demand, Institutions believe the company is expected to benefit fully.
$KINGSOFT CLOUD (03896.HK)$Up nearly 10%, the public cloud AI business continues to grow rapidly, with the proportion of ecological revenue continuously increasing.
$YOFC (06869.HK)$Up over 7%, the industrialization of hollow-core optical fibers accelerates, with the company's related indicators leading globally.
Top 10 transaction amounts today.
Hong Kong Stock Connect funds.
Regarding the Hong Kong Stock Connect, today the net inflow for the southbound Stock Connect is 0.741 billion Hong Kong dollars.
Institutional views
Citigroup: Maintains $KUAISHOU-W (01024.HK)$ "Buy" rating, remains bullish on the stable performance of core business.
Citigroup published a research report stating that they recently communicated with KUAISHOU-W Chief Financial Officer Jin Bing and other management, discussing various topics including the rapid development of AI, integration of AI technology with business operations, the latest dynamics and outlook of e-commerce business, the competitive landscape in the domestic market, and shareholder returns. Citigroup remains bullish on KUAISHOU-W's stable core business performance, its industry-leading position in video generation models, and its attractive valuation, maintaining a "Buy" rating.
Management revealed that the daily consumption for AI-related features has reached 30 million yuan, the e-commerce business performed as expected during the 618 promotional period, and the competitive situation has improved since the beginning of the year. The primary task ahead will be to strengthen live e-commerce, optimize shelf e-commerce, and enhance commission rates. Citigroup sets a Target Price of 66 Hong Kong dollars for KUAISHOU-W, corresponding to about 13 times the adjusted earnings per share forecast for 2025.
CICC: Upgrades $LAOPU GOLD (06181.HK)$ The Target Price has been raised to HKD 1,079.06, and the net income forecast for this year and next has been adjusted upward.
CICC published a research report indicating that Laopu Gold has launched new products, the Gourd Baby and the Seven Sons Gourd series, effectively combining elements of traditional Chinese culture with exquisite craftsmanship. Meanwhile, the company is actively opening new stores in high-end business districts, with larger areas compared to traditional outlets, which is expected to enhance the shopping experience for consumers.
Considering the company's strong sales performance and the contribution of new stores, the forecast for net income in the next two years has been raised by 42% and 48%, to 4 billion and 5.7 billion yuan respectively. Since some bullish factors have already been reflected in the stock price, the target price is raised by 22% to HKD 1,079.06, maintaining an "outperform industry" rating.
Goldman Sachs: downgraded $ZTE (00763.HK)$ The target price is lowered to HKD 29.3, and revenue and profit forecasts are adjusted downward.
Goldman Sachs published a research report predicting that ZTE's revenue in the second quarter will grow by 12% year-on-year to 35.6 billion yuan, benefiting from the increasing demand from enterprise and consumer customers for AI infrastructure, AI devices, and AI software. It is believed that the enterprise and consumer electronics business will continue to be the main growth drivers for ZTE; net income is expected to grow by 12% quarter-on-quarter to 2.7 billion yuan, and the company is optimistic about achieving business expansion through AI innovation; the gross margin is expected to further increase to 37.8%, compared to 34.3% in the first quarter.
However, considering that the increased contribution of non-telecom business to revenue may lead to a decline in gross margin, Goldman Sachs has lowered its profit forecasts for 2025, 2026, and 2027 by 4%, 4%, and 2%, respectively. The revenue forecast has been adjusted down by about 1% to reflect the slowdown in telecom operators' network capital expenditure cycle, maintaining a "Neutral" rating, with the Target Price for H shares reduced from HKD 33 to HKD 29.3.
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