Evaluation of Hong Kong stocks

Futu Information on April 9 | the decline of the three major indices of Hong Kong stocks widened in the afternoon. By the close, the Hang Seng Index was down more than 1%, the State-owned Enterprises Index was down 1.19%, and the Hang Seng Technology Index was down 1.8%.

Plate aspectAmong large technology stocks, Tencent rose 0.08%, Alibaba fell 2.24%, JD.com fell 1.5%, Meituan fell 2.12%, and Xiaomi fell 1.91%.

Iron and steel stocks rose sharply, Chongqing Iron and Steel shares rose more than 24%, Xiwang Special Steel rose more than 5%, and Angang shares rose more than 4%.

Property management stocks fell further in the afternoon, with country Garden Services, World Trade Services and China Shipping Properties down about 7%, Greentown Services and Evergrande Properties down nearly 6%. According to the latest Mortong research report, the mainland property management service plate has risen 49% so far this year, while the national index has risen only 3% in the same period. Considering that there is no major catalyst in the second quarter, the industry is expected to be tired in the short term and take a cautious view on the plate.

Pharmaceutical stocks weakened, Zaiding Medicine fell 5.26%, Yao Ming Bio fell 4.85%, Baiji Shenzhou fell 3.95%, and Kang Fang Bio fell 2.11%.

Apple's concept stock continued to fall in the afternoon, with BYD Electronics down 6.45%, Qiu Ti Technology down 4.13%, Fuzhikang Group down 2.61%, and Shunyu Optical Technology down 2.78%.

Gambling stocks are down, Galaxy Entertainment is down nearly 4%, Sands China is down more than 3%, and Melco International is down nearly 2%.

In terms of individual stocks$Lianyong Technology-W (09959.HK) $The shares rose nearly 10 per cent on the first day of listing to HK $19.32, with a latest market capitalization of HK $43.7 billion.

$Heart Company (02400.HK) $It rose nearly 9% after Chairman and CEO Huang Yimeng increased his stake in 2.1 million shares; in addition, bilibili announced a strategic investment of about HK $960 million in Xinxin Company. Western Securities also issued a research report, covering heartbeat companies for the first time to give a buy rating, with a target price of HK $76.2.

$Alibaba-SW (09988.HK) $The share price fell 2.24% to HK $218. Prior to this, Credit Suisse lowered the target price of Ali to HK $304, outperforming the market.

China Telecom (00728.HK) $Down 1.09%, China Telecom announced on the Hong Kong Stock Exchange that the special shareholders' meeting examined and passed a motion on the initial public offering of RMB common shares (A shares) and the listing plan.

$bilibili-SW (09626.HK) $Down 0.58%, according to the CSI company, according to the rapid inclusion of new shares in the CSI Internet Index, CSI Index Co., Ltd. decided to include bilibili-SW in the CSI Internet Index from April 15, 2021. In addition, Credit Suisse gave bilibili an outperform rating for the first time, with a target price of HK $1088.

Hong Kong stock exchange fund

As for Hong Kong Stock Connect, there was a net inflow of HK $2.767 billion from Hong Kong Stock Connect (southbound) today.

Message surface

Macro aspectAccording to People's Daily, the US Department of Commerce said it would add seven Chinese supercomputer entities to the "entity list". Zhao Lijian said that the United States has imposed a technological blockade on China in the field of supercomputers for a long time, but Chinese supercomputers still occupy a leading position in the world by virtue of independent innovation. The containment and suppression of the United States will not stop the pace of China's scientific and technological progress, but will only strengthen China's determination and will to innovate independently. China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises.

In terms of economic dataChina's industrial producer price (PPI) rose 4.4 per cent in March from a year earlier, with an expected increase of 3.6 per cent and a previous increase of 1.7 per cent. China's consumer price (CPI) rose 0.4 per cent in March from a year earlier, with an expected increase of 0.3 per cent, with the previous value falling 0.2 per cent.

In terms of transactionAccording to the HKEx, with reference to the notice of the Hong Kong Futures Exchange Limited on March 12, 2021, the HKFE will launch the market adjustment mechanism and optimization measures for the pre-market bargaining period on Monday, April 12, 2021 (implementation date). Exchange participants should note that after the implementation date, the market adjustment mechanism can be triggered multiple times in each trading session. In addition, a random stop mechanism will be set up for the pre-opening period and the pre-opening period during the pre-opening period.

In terms of automobilesAccording to the China Automobile Association, car sales in China rose 74.9% in March from a year earlier, and sales of new energy vehicles were 226000, up 238.9% from a year earlier. Ciwa, according to the Federation of passengers, wholesale sales of new energy passenger vehicles reached 202000 in March, an increase of 101.1% over February and 261.3% over the same period last year, showing a good trend of independent growth.

Chip aspectThe Federation looks forward to the car market in April: there are 22 working days in April, which is the same as the same period last year. The price promotion of the car market in the first quarter was basically stable, basically not affected by the shortage of chips, and there was no shortage of individual models. Although the production of 8-inch wafers for cars has begun to increase, the equipment has been seriously damaged due to factors such as the Renesa fire in Japan in March, and a series of accidental events have led to increased uncertainty in chip supply, leading to certain risks in April production increment. It is difficult for dealers to build inventory, which is not conducive to the increase of production and sales in April.

In terms of meat priceAccording to the National Bureau of Statistics, food prices fell 0.7 percent in March from a year earlier, an increase of 0.5 percent over the previous month, and the impact on CPI fell by about 0.12 percent. The price of pork fell 18.4%, an increase of 3.5%; the price of chicken and duck continued to fall by 8.6% and 2.6% respectively, and the prices of beef, mutton, eggs and fresh fruit all continued to rise, with an increase of 3.3% and 8.2%.

Institutional point of view

CICC:It is believed that the trend of Tencent's share price after it was reduced by Prosus in 2018 is of limited significance for this reference. The bank is still optimistic about the development of Tencent's business and believes that Tencent's net profit is expected to maintain a growth of more than 20% after adjustment in 2021. The bank maintains a "neutral" rating on Tencent and a target price of HK $682, corresponding to a price-to-earnings ratio of 31.7 times the 2022 non-GAAP forecast.

Citic Securities:Reiterate the buy rating and target price of HK $113 for Heart Company. On Tuesday (6th), the company announced the completion of the acquisition of Lean Cloud, a back-end cloud service provider. The bank believes that the acquisition is expected to promote the development of ToB business developer services on TapTap platform, empower more game developers, and the position of TapTap platform in the game industry is expected to continue to improve.

Credit Suisse:Bilibili's recent stock price has been retracted 27% from its high, thinking that the timing of buying may give bilibili's Hong Kong stock an outperform rating and target price of HK $1088 for the first time, as its valuation extends to 2023. The bank pointed out that in the face of fierce competition, bilibili's user growth is still the fastest in the industry. The current penetration rate of Z-generation users is less than 50%, and there is room for improvement in the future. At the same time, the company has plans to launch more different types of content, which is expected to enhance user loyalty, coupled with the growth of advertising business and the potential opportunity to be included in the index, so it is optimistic about the long-term development prospects.

Citic Securities:Driven by the policy of "carbon neutralization", hydrogen energy may gradually step onto the energy stage, and the demand for hydrogen energy is expected to exceed 180 million tons by 2050, and the demand expansion is expected to be close to eight times.