Evaluation of Hong Kong stocks

Futu Information Sept. 30 | the main indexes of Hong Kong stocks closed higher. At one point, the Hang Seng Index rose more than 2% in intraday trading to close at 23459 points, the National Index rose 1.2% to 9397 points, and the Hang Seng Technology Index rose 1.58%. On the market, battery stocks, automobile stocks, inner housing stocks rose better.

Plate aspectLarge technology stocks rose, with Tencent up 1.19 per cent, BABA 3.84 per cent and XIAOMI 2 per cent. In terms of news, the Shanghai municipal government and Meituan have signed a strategic cooperation framework agreement. Wu Wei, chief financial officer of BABA, said Aliyun is expected to make a profit in fiscal year 2021, and Cainiao's cash flow from business activities will become regular in fiscal year 2021. Tencent decided to privatize Sogou at US $9 per share.

The concept of fuel cell has risen widely, and Byd Company Limited has risen by more than 12%. BYD released a new blade battery this year, which is now the safest solution for pure electric vehicles in the world, which has caused a sensation in the industry, and the company's share price has continued to rise this year.

5G concept stocks were up in late trading, with ZTE Corporation up more than 3% and China Tower Corporation up 2.29%. Photovoltaic solar stocks rose. Evergrande continues to rise, with China Evergrande Group soaring by more than 19%.

Individual stocks$Ping An Healthcare And Technology (01833.HK) $Fell 7.5%, announced on September 30, 2020, entered into a placing agreement with the placing agent, placing a total of 80 million new shares at the placing price of HK $98.20 per share. The placing price of HK $98.20 per placing share was discounted by approximately 8.5% of the closing price of HK $107.30 per share as quoted on the Stock Exchange on 29 September 2020.

$NetEase, Inc-S (09999.HK) $It fell nearly 4%, and the share price hit a two-month low. The State Administration of Press, publication, Radio, Film and Television yesterday approved the third batch of domestic game version numbers in September, with a total of 66 games approved for commercialization, the largest number of games of the year. NetEase, Inc's Roar of War was selected. In addition, BABA Group recently announced in a high profile that the Interactive Entertainment Division (Interactive Entertainment) to which its game business belongs will be upgraded as a whole into an independent business group, which may challenge the main market of head players represented by Tencent and NetEase, Inc.

$XIAOMI Group-W (01810.HK) $) rose 2% to HK $20.45, an intraday high of HK $21.15 up more than 5%, and the latest total market capitalization returned to HK $500 billion. CITIC pointed out that he continues to be optimistic about the strategy and operation of XIAOMI Group's "Mobile phone × AIoT". Although the company's performance in 2020 is affected by the epidemic, its income and profit growth space after 2021 has been opened, and its growth has a strong certainty. Credit Suisse recently released a research report saying that it maintained its "outperform" rating, with a target price of HK $31.

$BYD Electronic (00285.HK) $Keep going higher in the afternoon. BYD Electronics closed up 9.72%, the highest share price in nearly four trading days. Earlier, it was reported that NVIDIA Corp's new graphics card for the GeForce RTX3080 series of games had triggered a global scramble among gamers because of its strong performance. The GeForce RTX3080 series of game graphics cards have been fully put into production and have been delivered to the company's partners since August, and the supply is increasing every week. The contract manufacturer of this series of graphics cards is BYD Electronic.

$medium mobile games (00302.HK) $Up 5.41%, the latest total market capitalization is 8.622 billion Hong Kong dollars. Soochow Securities refers to the release of a number of products with the potential of popular styles in the second half of the year, and the growth of performance is guaranteed. In the long run, the company has rich IP reserves and strong issuing capacity, with the development of the moat. Maintain the 2020 target price of HK $4.3, buy rating.

$CGN New Energy (01811.HK) $The afternoon dive fell 26.32%, wiping out nearly 1.5 billion of the market capitalization after the company announced that the board had been informed by potential offerers that it had decided not to carry out further possible privatisation. As far as the Takeovers Code is concerned, the contract period ends on the date of this announcement.

$Tianren Group (01429.HK) $After rising 185% yesterday, it strengthened again today, with a maximum increase of more than 13% to close up 1%. It is reported that the Group is a reputable formwork subcontractor in Hong Kong with a business history of more than 20 years. The Group occupies a strong position in the formwork industry in Hong Kong and positions itself as one of the major subcontractors.

$Hopson Development (00754.HK) $It rose 6.03% to a 12-and-a-half-year high. Hopson Development repurchased 1.154 million shares on Sept. 28, with a total of 13 repurchases during the month. So far this year (since the adoption of the ordinary resolution), the cumulative number of securities repurchased has been 16.758 million.

Message surface

In terms of cloud services, Tencent disclosed that the application scale of Tencent's first self-developed Star Xinghai server in the cloud has increased by more than 30 times, and the number of customers has increased by more than 50 times. At present, large customers in Tencent's cloud e-commerce, education, games and other industries are widely using Xinghai SA2 cloud servers to provide computing power support for their business. Internally, Xinghai SA2 CVM has also widely supported a large number of Tencent's own businesses, such as Tencent Conference, Tencent Education, Tencent Advertising, Wechat, QQ, Weishi and so on.

As for electric cars, according to foreign media reports, Walmart Inc Canada announced that it would more than triple the order for Tesla, Inc. 's Semi electric semitrailer truck. Currently, a total of 130 Semi electric semitrailers have been ordered, which is currently one of the largest orders for electric long-distance trucks in Canada. Prior to this, Walmart Inc Canada announced that it would invest US $3.5 billion over the next five years to promote substantial growth in its business.

In terms of space satellites, Galaxy Aerospace, a commercial aerospace and satellite Internet enterprise, will invest in the construction of satellite Internet industry demonstration projects in the development zone to create a new generation of satellite research and development and intelligent manufacturing base. The satellite intelligent super factory jointly built by the two sides has started construction in Nantong and will devote itself to the low-cost, high-volume intelligent manufacturing of a new generation of satellites and individual machines. It is reported that after the completion of the first phase of the plant project, it will achieve an annual production of more than 300 satellites, with an estimated annual income of more than 5 billion yuan.

In terms of futures, us stock index futures dived after the first debate in the presidential election. S & P 500 index futures fell 0.6%, Dow futures fell 0.78%, and Nasdaq futures fell 0.68%. Online betting service Ladbrokes said that after the debate, the gambling market has slightly tended to bet on Biden's victory.

In terms of block chain, Shrek announced that the agreement stipulates that Ant Block chain, as the contractor of the cooperation project for the operation of Shrek Ant chain Fidelity chain system, will provide Shrek with SaaS services for the whole industry chain and cooperation, including ant business chain service platform and traceability management services, Alipay code scanning services, block chain node services, business configuration services and other support services. The two sides carried out in-depth cooperation on blockchain in commodity anti-counterfeiting traceability.

Institutional viewpoint

Citic:The PB of the Hang Seng Index is back to about 1x in 2015 / 16, while the PE is about 12x, both at relatively low levels in history. In addition, the premium index of AH shares reached an all-time high of 146 and in the structural downward trend of the US dollar, we believe that the long-term allocation value of Hong Kong stocks is apparent. In recent years, with the increasing voice of southward funds to Hong Kong stocks, the trend of A-share transformation of Hong Kong stocks is obvious. Superimposed by the transformation of the domestic economy to technology and services and the reform of the Hang Seng Index, a large number of companies have been listed in Hong Kong. The style of the Hong Kong stock market is shifting from the traditional undervalued financial real estate to the big consumer and new economy sectors. We believe that this trend will continue for a long time.

Fu RuiThe target price for BABA's buy rating is HK $307. Fu Rui believes that BABA digitized key components of the logistics chain, including parcels, express deliveries, warehouses and vehicles, to make logistics more efficient. In addition, in Aliyun, Aliyun had more than 3 million paying customers in the first half of the year, and the contribution of revenue from value-added services increased from 43% in 2017 to 55%. In the future, Aliyun will bring solutions to public services, financial technology, new retail, manufacturing, transportation and logistics, automotive, media services and other industries, while health care, education and rural areas are new opportunities in the future.

CitigroupReiterate the HKEx "buy" rating target price of $425 Citigroup released a research report saying that HKEx management is expected to have a smooth transition and take a positive view of HKEx. Due to the continued listing reform and the return listing of American depositary securities, its IPO business is expected to be strong, reiterating its "buy" rating and giving it a target price of 425 yuan. CEO Li Xiaojia announced that he would retire early at the end of this year, and Dai Zhijian, Co-President and Chief operating Officer, was appointed as acting Chief Executive Officer of the Group. Citigroup believes that due to Dai Zhijian's extensive experience within the HKEx, management is expected to have a smooth transition and can continue to implement the goals set in the 2019-2021 strategic plan.

XiaomoThe Bank of China fell China Merchants Bank now has a low suction opportunity, with a target price of 50 yuan. JPMorgan Chase & Co issued a report that the Bank of China adjusted 2.4% on September 29, a drop greater than the Hang Seng Index, in which China Merchants Bank outperformed his peers and thought it was a good opportunity to continuously absorb China Merchants Bank's H shares. Mainland banks have denied having received regulatory targets and rumors of direct restrictions on property lending emerged in August 2019 and are no longer new, the report said. To say the least, if the above restrictions are really implemented, the impact on China Merchants Bank's profit will only be less than 1% without an increase in new loans, but the stock price has already adjusted back 6%, so there is a good opportunity for low absorption.