Evaluation of Hong Kong stocks

Futu Information on April 29 | the three major indexes of Hong Kong stocks closed mixed. The Hang Seng Index and the National Index were relatively strong, rising 0.8% and 0.32% respectively to 29303 points and 11049 points. The Hang Seng Technology Index opened high and closed low, closing down 0.38% at 8500 points.

Plate aspectMost stocks in the Hang Seng Technology Index fell, with BYD Electronic leading the decline by more than 12%, and Kingdee International Software Group, ASM Pacific, Ming Yuan Cloud Group and Haier Smart Home by more than 2%.

Steel and metal stocks rose across the board, Chongqing Iron and Steel shares rose more than 8%, Aluminum Corporation Of China Ltd rose more than 6%, Maanshan Iron and Steel rose more than 5%. The net profit of Maanshan Iron and Steel rose 299.83% to 1.511 billion yuan in the first quarter, with BofA Securities raising its target price to HK $3.75. Aluminum Corporation Of China Ltd's net profit attributable to shareholders of listed companies increased by 3,025.68 per cent to 967 million yuan in the first quarter compared with the same period last year. In terms of policy, the tariff Commission of the State Council announced on the 28th that tariffs on some iron and steel products will be adjusted from May 1, 2021.

Copper stocks rose, China's non-ferrous mining rose more than 9 per cent, Minmetals Resources rose more than 5 per cent, and Jiangxi Copper rose more than 4 per cent. According to the analysis of Shanghai Nonferrous Network, copper prices continue to strengthen under the promotion of funds, and the macro aspect is the main driving force.

The gas supply sector rose, Xintian Green Energy and ENN Energy rose by more than 5% and China Gas by more than 3%. ENN Energy said in an after-hours announcement yesterday that in the first quarter of 2021, the group's natural gas retail sales recorded 6.407 billion cubic meters, a sharp increase of 30.1% over the same period last year. The wholesale volume of natural gas recorded 2.082 billion cubic meters, an increase of 12.3% over the same period last year.

The performance of automobile stocks was divided. Beijing Automobile rose nearly 10%, China Evergrande New Energy Vehicle and Geely Automobile rose more than 1%, Great Wall Motor micro-Zhang 0.25%, Byd Company Limited fell more than 3%, and Qingling Automobile shares fell 0.55%.

Yesterday's strong property management stocks fell back, Greentown service fell more than 6%, Kaisa fell 5%, China Resources Mixc Lifestyle Services fell more than 4%, Evergrande Property Services fell more than 3%.

Individual stocks$Standard Chartered PLC (02888.HK) $It's up more than 4%. Standard Chartered PLC released his first-quarter report at noon today, saying that the company's basic operating income was 3.929 billion US dollars, down 9 per cent from the same period last year, and the market estimated that it was 3.87 billion US dollars. The profit attributable to basic common shareholders was 1.053 billion US dollars, up 30 per cent from the same period last year. Underlying profit before tax rose 18% to $1.4 billion. Credit impairment fell by $936 million year-on-year to $20 million. Statutory profit before tax rose 59 per cent to $1.4 billion, with market estimates of $1.08 billion, including $258 million in goodwill impairment in the first quarter of 2020. Standard Chartered expects impairment expenses to fall sharply this year compared with the same period last year.

$Budweiser Brewing Company APAC Limited (01876.HK) $Up more than 4%. The company will release results for the first quarter of this year on May 6. According to the latest research report released by Daiwa, the company's revenue in the first quarter is expected to grow by 76% compared with the same period last year. Based on last year's low base, sales are expected to grow by more than 50%. Sales in China are expected to be stronger, and the southern and eastern markets will support the relevant growth. EBITDA is expected to rebound strongly in the first quarter compared with the same period last year, returning to the level of the first quarter of 2019. Reiterate the "better than the market" rating, with a target price of HK $29.2.

$Byd Company Limited (01211.HK) $It fell by more than 3%. In the first quarter, the company's operating income increased by 108.31% compared with the same period last year; the net profit belonging to shareholders of listed companies increased by 110.73% compared with the same period last year; the net profit belonging to shareholders of listed companies after deducting non-recurrent profits and losses was-82 million yuan; the net cash flow generated by operating activities was 142 million yuan, down 97.13% from the same period last year. BofA Securities downgraded BYD's earnings per share from 2021 to 22 by 24% and 11%, respectively, to reflect the short-term risk of rising costs, less-than-expected progress in product transformation, competition from Geely Automobile, extreme krypton, and R & D spending. the company was downgraded to neutral from buy, and the target price was lowered from HK $210 to HK $192.

$Pop Mart International (09992.HK) $It closed down 5.7%. A number of new products launched by Pop Mart International in April have increased their prices to 69 yuan from 59 yuan before. Some people in the industry said that behind the sudden price increase of new products is the weak performance of Pop Mart International's performance growth rate, and it cannot be ruled out that it is through price increases to boost performance.

$Mega Ophthalmology-B (06622.HK) $The first day of trading closed down 14.76%. The company was spun off and listed by Lee's Pharmaceutical Co., Ltd., offering about 123.6 million shares worldwide. The Hong Kong Public offering was 56 times subscribed, with a net raise of HK $1.9416 billion. According to the prospectus, 32 per cent of all net IPO funds will be used for the clinical development and commercialization of Mega Ophthalmology core products (Cyclosporine An and ZKY001), 46 per cent will be used for the continuous development and commercialization of other drugs under study, 7 per cent will be used for production line expansion and 15 per cent will be used for business operations and other general corporate purposes.

Hong Kong stock exchange fund

Hong Kong stocks are closed today.

Message surface

In terms of smartphones, the latest Canalys report shows that China's smartphone market has grown for the first time in four years, with shipments of 92.4 million units in the first quarter of 2021, up 27% from a year earlier. Among them, vivo ranks first in the Chinese market, accounting for 23% of the entire Chinese market, with shipments of 21.6 million units, followed by OPPO, Huawei, XIAOMI and Apple Inc, with a market share of 22%, 16%, 15% and 13% respectively, and shipments of 20.6 million, 14.9 million, 13.5 million and 12 million respectively.

In terms of transportation, Sun Wenjian, spokesman for the Ministry of Transport, said that the passenger flow during the May Day holiday is expected to reach 265 million, and the highway traffic flow on the first day of International Labour Day's holiday is expected to exceed 60 million, a record high. From the third-party platform "May Day" holiday tourism product bookings, about 70% of users choose to travel across provinces, and car rental orders have increased significantly compared with 2019, an increase of 126%.

In terms of environmental protection, the National Development and Reform Commission, together with the Ministry of Science and Technology and other nine departments, issued the guidance on the Comprehensive Utilization of bulk solid wastes during the 14th five-year Plan. By 2025, the comprehensive utilization capacity of bulk solid wastes such as coal gangue, fly ash, tailings (co-associated ore), smelting slag, industrial by-product gypsum, construction waste and crop straw has been significantly improved, and the utilization scale has been continuously expanded. The comprehensive utilization rate of bulk solid waste has reached 60%. The stock of solid and waste decreased in an orderly manner.

In terms of online retail, according to the National Bureau of Statistics, the country's online retail sales reached 2.81 trillion yuan in the first quarter, an increase of 29.9 percent over the same period last year, with an average growth rate of 13.5 percent in two years, higher than the two-year average growth rate of 9.3 percent of total retail sales of consumer goods. Online retail sales of physical goods accounted for 21.9 percent of the total retail sales of consumer goods. Business big data monitoring shows that the growth rate of building and decoration materials, furniture, tobacco and alcohol, hardware and electrical materials, Chinese and Western medicine and other categories is relatively fast, with an increase of more than 50% over the same period last year.

Institutional viewpoint

Song Xuetao, a macro analyst at Tianfeng Securities, said the market may have overestimated the impact of the Indian epidemic on the global economy. In terms of chemicals, the Indian government has a strong support for the pharmaceutical industry, and it remains to be seen whether the production of Indian APIs will be affected and whether exports will be restricted. In terms of textile clothing, the downstream demand of the industry has a certain elasticity and some textile orders have flowed to China in 2020, and there is no strong room for price increase in the lower reaches of clothing. In terms of minerals, the epidemic in India has had little impact on the supply side, but India has a relatively high share of oil and precious metals imports, reduced demand, and oil and gold prices may be under pressure.

Guoxin Securities pointed out that affected by the relevant target performance disclosure and holiday effect, the Shanghai and Shenzhen stock markets had a certain shock yesterday morning, and with the digestion of interference factors, the market continued to rise in late trading, indicating that the support of the short-term market is strong below, and the willingness of funds to choose bargain-seeking layout is also more obvious. Before the festival, subject to volume constraints, the stock indexes of the two cities may fluctuate, but the space for pullback is relatively limited, so it is still appropriate to combine the underlying performance disclosure and valuation level and take advantage of market shocks to continue to optimize positions or hold patiently.

Zhang Yidong, chief global strategist at Societe Generale Securities, said that the second quarter is a golden pit, and what we need to consider now is not what to cut, but where the future opportunities and better performance-to-price ratio lie. This year's important bottom was basically formed at the end of April. The future direction of Hong Kong stocks is private enterprises, the new economy, the Internet, new consumption and biomedicine, which is its charm.