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“妖股”出没!两日暴涨1600%,这家港股公司什么来头?

“Demon Stock” appears! It soared 1,600% in two days. What is the origin of this Hong Kong stock company?

券商中國 ·  May 16 15:22

Source:Brokers in China Original title “Just now, it skyrocketed by 1600%!”

Watch out for “demon stocks”!

Today, Hong Kong stocks continued to be strong. As of press release,$Hang Seng Index (800000.HK)$The increase was more than 1.7%, and the real estate, technology and financial sectors rose sharply.$TENCENT (00700.HK)$The increase was over 4%.

As the atmosphere in the Hong Kong stock market improved, some “demon stocks” also took the opportunity to rage. Today's intraday,$GD-HKGBA HLDGS (01396.HK)$At one point, it soared 310%. The stock surged 315% on the previous trading day. In just two days, the stock price rose from HK$0.088 to HK$1.5, an increase of 1,600%. As of press release, the increase was over 110%. So, what is the origin of the Guangdong-Hong Kong Bay Holdings company? Why are stock prices so booming?

Furthermore, the high-dividend sector of Hong Kong stocks continued to soar, and financial and real estate stocks collectively soared. What about the sustainability of these sectors?

“Demon Stock” is coming

Recently, the Hong Kong stock market has continued to rise, and some “monster stocks” have also appeared frequently. When the trading volume of such stocks is extremely low, the stock price suddenly skyrocketed. In the last two trading days, the most prominent individual stock was Guangdong Harbour Holdings (1396.HK).

In early trading on May 14, Guangdong Harbour Holdings suspended trading for a short time, pending the issuance and subscription of new shares under a general mandate. Afterwards, in the afternoon of the same day, Guangdong Harbour Holdings announced that it plans to issue a total of 89 million new shares to eight independent third parties. After further discussions between the company and various subscribers, the two parties agreed to adjust the subscription price from $0.085 to HK$0.1 per share, which is a premium of about 13.6% from the closing price of $0.088 on May 13. The net amount raised was increased from HK$7.07 million to HK$8.4 million, to be used as general working capital.

Following the disclosure of the above announcement, trading of the company's shares resumed at 1 p.m. on May 14, and the stock price was bombarded. It hit a high of HK$0.5 on the same day, with a maximum increase of 468%. At the close, the increase still reached 315%, and the full-day turnover was only HK$800,000. In other words, the capital of 800,000 Hong Kong dollars more than tripled the company's stock price in a single day, and the market value soared from HK$39.93 million to HK$166 million.

After the Hong Kong stock market was closed for one day on May 15, the frenzy of Guangdong Harbour Holdings continued on May 16. On the same day, the company's stock price continued to rise high, hitting a high of HK$1.5 in early trading, reaching 310% at its peak, and reaching HK$680 million at its highest market value. At noon, Guangdong Harbour Holdings reported HK$1.18, up 223.29%, with a market capitalization of HK$540 million and a turnover of HK$6.93 million.

According to public information, Guangdong Harbour Holdings, formerly known as “Yide International Holdings”, is a company listed on the main board of the Hong Kong Stock Exchange. The company is positioned as a “new ecological city service provider”. The business model covers urban renewal, industrial parks, characteristic towns, quality communities, commercial services, infrastructure, finance, etc. The company's main business is to develop, sell and operate commercial logistics centers and residential properties in China, as well as trade business. Among them, the main revenue comes from property sales and trading business.

According to financial reports, from 2021 to 2023, the company's revenue was 5.577 billion yuan, 3.168 billion yuan, and 3,537 billion yuan respectively, with net profit losses of 498 million yuan, 1,572 billion yuan, and 1,215 billion yuan respectively.

Some analysts pointed out that with no improvement in fundamentals and huge net profit losses for many years, stocks were suddenly bombarded, and the risk was extremely high.

Hong Kong stocks continue to be strong

On May 16, the Hong Kong stock market continued to rise. As of press release, Hong Kong's Hang Seng Index had risen 1.75%.$Hang Seng TECH Index (800700.HK)$Up 1.16%. Southbound Capital made net purchases of HK$3.7 billion in half a day.

The high-dividend sector continues to soar. Financial and real estate stocks soared,$FANTASIA (01777.HK)$Up more than 78%,$KAISA GROUP (01638.HK)$,$CHINASOUTHCITY (01668.HK)$Up more than 20%,$CHINA VANKE (02202.HK)$,$SUNAC (01918.HK)$It rose more than 13%.$CHINA TAIPING (00966.HK)$An increase of more than 5%,$PING AN (02318.HK)$A 3% increase,$CM BANK (03968.HK)$,$CCB (00939.HK)$,$CHINA LIFE (02628.HK)$,$CPIC (02601.HK)$Both increased by more than 5%,$ICBC (01398.HK)$Up 4.92%.

Technology stocks are also still active; Tencent Holdings rose more than 4%.$HUA HONG SEMI (01347.HK)$, Meituan rose more than 3%$SMIC (00981.HK)$, JD Group,$Bilibili (BILI.US)$Waiting for an increase of more than 2%.

Wang Hua, an analyst at Huabao Securities, said that Hong Kong stock dividend ratios have an advantage on a global scale. Recent discussions on reducing the Hong Kong Stock Connect investment dividend tax are driving the high-dividend sector of Hong Kong stocks to rise rapidly. Positive changes in the internal and external macroeconomic environment in the future, and the willingness of enterprises to pay dividends is expected to increase, which jointly points to Hong Kong stock dividend assets or continue to show allocation value.

In addition to tax cuts, what other opportunities can we focus on when it comes to Hong Kong stock dividends? Wang Hua pointed out that in order to find dividends from Hong Kong stocks, you can also use the perspective of an increase in expected returns, focus on individual stocks where dividend rates are likely to continue to rise (dividend rates have continued to rise in the past three years), or focus on individual stocks whose performance exceeds expectations by 30% from the perspective of earnings per share growth. Dividend returns from previously highly valued pan-consumer assets have slowly begun to move closer to utility assets. These pan-consumer assets, whose valuations have been reduced, are likely to take over low-wave dividend assets in the utility sector in the future and become a stabilizer for the stability of the Hong Kong stock market.

Huachuang Securities believes that if the Hong Kong Stock Connect dividend tax policy is optimized, those with high dividend scores are expected to benefit and boost market liquidity in the long term. From 2021 to 2023, although the total dividend of Hong Kong Stock Connect declined somewhat in 2023, the overall dividend tax amount showed an upward trend year by year due to the increase in the share of Hong Kong Stock Connect holdings. Assuming that the dividend tax rate for mainland investors is reduced to the same level as Hong Kong account investors in 2024, the Hong Kong Stock Connect dividend tax in 2024 is expected to be close to HK$30 billion, down about HK$25 billion from 2023; investors going south are expected to benefit from this. If the dividend tax is optimized, it may boost trading sentiment with high dividend targets in the short term, and it is expected to further open up the liquidity of the Hong Kong stock market in the long run.

Huachuang Securities pointed out that the Hong Kong stock media internet sector is entering a stage of “high-quality development”. Relevant high-dividend companies also have differences in dividend rates after tax between mainland investors and Hong Kong account investors. If dividend taxes are lowered, mainland Hong Kong Stock Connect investors can enjoy an increase in dividend rates.

edit/emily

The translation is provided by third-party software.


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