Futu News reported on June 18 that the three major Hong Kong stock indices all fell, $Hang Seng Index (800000.HK)$ Down 1.12%, $Hang Seng TECH Index (800700.HK)$ Down 1.46%, $Hang Seng China Enterprises Index (800100.HK)$ Down 1.16%.
By the close, 819 stocks in the Hong Kong stock market rose, 1197 fell, and 1122 remained flat.
The performance of specific industries is shown in the following figure:
In the Sector, Network Technology stocks fell broadly, with MEITUAN-W down 3.48%, Bilibili-W down 2.79%, Alibaba-W down 2.26%, KUAISHOU-W down 2.02%, JD-SW down 1.60%, TENCENT down 1.07%, XIAOMI-W down 0.37%, and NTES-S down 0.29%.
The Oil & Gas Equipment and Services sector strengthened, with Shandong Molong Petroleum Machinery rising over 8%, SINOPEC SSC rising over 7%, and DALIPAL HLDG rising over 8%.
Most Securities and Brokerage stocks fell, with GF SEC down 3.61%, China Merchants down 3.29%, China Galaxy down 3.20%, HTSC down 2.85%, China International Capital Corporation down 2.71%, Guotai Junan down 2.65%, BRIGHT SMART up 1.15%, and HOLLY FUTURES down 0.75%.
Real estate developer stocks weakened, with CHINA RES LAND down 3.55%, LONGFOR GROUP down 3.03%, CHINA VANKE down 2.38%, SHK PPT down 2.18%, CHINA OVERSEAS down 2.16%, SUNAC down 2.04%, HENDERSON LAND down 0.75%, and CK ASSET up 0.30%.
Digital Health stocks fell, with Dingdang Health down 3.33%, ALI HEALTH down 3.18%, PA GOODDOCTOR down 2.22%, Meidi Weikang down 1.75%, ZA ONLINE down 1.45%, and JD HEALTH down 1.19%.
Most Hong Kong retail stocks rose, with MILAN STATION up 7.83%, LUK FOOK HOLD down 3.20%, CHOW TAI FOOK up 3.14%, SA SA INT'L up 1.61%, PRADA up 1.26%, and CHOW SANG SANG down 1.14%.
Gold stocks rose, with CHI SILVER GP up 12.50%, TONGGUAN GOLD up 7.47%, LINGBAO GOLD up 6.02%, SD GOLD up 4.67%, ZHAOJIN MINING up 1.94%, Chifeng Jilong Gold Mining up 1.66%, CHINAGOLDINTL up 0.84%, and Zijin Mining Group up 0.30%.
As for individual stocks,$CHOW TAI FOOK (01929.HK)$In the close, the stock surged over 3%, as the company issued convertible bonds worth 8.8 billion HKD, which helps reduce financing costs.
$YH ENT (02306.HK)$ Surging over 16%, the popularity of the WAKUKU series trendy toys increases, and the company is an important marketing partner for WAKUKU.
$TONGGUAN GOLD (00340.HK)$Rising over 7%, the company's gold mining business has entered a new development stage, likely to see a simultaneous rise in both volume and price.
$KINGSOFT (03888.HK)$A rise of over 5% indicates that Institutions are bullish on "Limit Release Machine" becoming a significant breakthrough in new categories for the company.
$ASCENTAGE-B (06855.HK)$A rise of over 12% has led to a temporary peak; the new generation Bcl-2 inhibitor is expected to succeed in HR-MDS.
Today's TOP 10 transaction amount.
Funds from Hong Kong Stock Connect.
Regarding the Hong Kong Stock Connect, today the net inflow of southbound stock connects amounts to 1.242 billion Hong Kong dollars.
Institution Ratings
UBS has raised the target price for Jiangsu Expressway to 11.6 Hong Kong dollars, maintaining a 'Neutral' rating.
UBS Group issued a Research Report stating, $JIANGSU EXPRESS (00177.HK)$ In April, the highway toll revenue declined by 4% year-on-year. Considering the impact of the China-U.S. tariff war on truck traffic on mainland expressways was milder than expected, it is forecasted that the toll revenue may recover growth in May. Therefore, the toll revenue growth forecasts for this year and next have been revised up to 1.9% and 2.1%, respectively, and the Target Price has been raised from HKD 9.8 to HKD 11.6.
However, due to the company's expected average annual capital expenditure remaining high at 10 billion yuan between 2025 and 2028, UBS estimates that this will constrain dividend growth, maintaining a "Neutral" rating, believing that the current price has basically reflected the expectations of its business recovery and suggesting that investors wait for a better entry opportunity.
China International Capital Corporation: Upgrading CHICMAX's Target Price to HKD 85, with positive fundamentals and an increase in sector valuation.
China International Capital Corporation issued a report stating, $CHICMAX (02145.HK)$ The main brand Han Shu's Douyin channel live broadcasting structure has been optimized, with rapid growth in Douyin's external channels. The second tier single products and categories have shown a good growth trend, while the small brand Newpage maintains a high growth momentum and a high level of profitability. The optimization of channel and brand structure is expected to enhance overall profitability; at the same time, new brands such as NAN Beauty and Anpanman are expected to be launched in the second half of the year, bringing incremental growth.
The bank reiterates its bullish outlook on the company's medium to long-term growth potential as a multi-brand, multi-category cosmetics group, maintaining profit forecasts for the next two years, and keeps a "outperform the industry" rating. Based on the positive fundamentals and sector valuation improvement, the target price has been raised by 55% to HKD 85, targeting a forecast PE of 31 times for 2025.
Citi: CHOW TAI FOOK's issuance of convertible bonds may suppress the stock price in the short term, but still optimistic about same-store sales recovery.
Citi published a Research Report stating that $CHOW TAI FOOK (01929.HK)$Recently issued a five-year convertible bond (CB) with a coupon rate of 0.375%, the initial conversion price is HKD 17.32 per share, with a premium of approximately 26.2%. While issuing the CB, the company is also conducting a share buyback to hedge against dilution, expecting to repurchase up to 0.122 billion shares at a price of HKD 12.83 per share. It is believed that the issuance of the CB is surprising and may put short-term pressure on the stock price, but the low financing cost and reasonable premium expectations can alleviate market concerns.
Citi continues to be optimistic about the recovery of same-store sales performance for CHOW TAI FOOK, as well as its valuation recovery prospects. The funds raised this time will be primarily used for inventory financing of gold products pricing, which is believed to optimize the financing structure, giving a "Buy" rating with a target price of HKD 14.
Editor/danial
