2024-02-09 04:33:00
© Reuters. Hong Kong stocks closed (02.09) | The Hang Seng Index rebounded from the bottom and closed down 0.83%. The positive stimulus stimulated the general rise of education stocks, shipping stocks, and mainland real estate stocks were among the top losers.
Zhitong Finance APP learned that the Hang Seng Index opened 1.06% lower in early trading and fell unilaterally following the opening. It once fell by more than 2% during the session. Since then, the Hang Seng Index has continued to rebound. As of the close, the Hang Seng Index fell 0.83% or 131.49 points to 15746.58 points, with a turnover of HK$31.282 billion; the Hang Seng State-owned Enterprises Index fell 0.99% to 5306.79 points; the Hang Seng Technology Index fell 1.3% to 3127.22 points.
CICC pointed out that the current fundamentals of the United States do not support cutting interest rates too quickly and prematurely, but it does not mean that the road to cutting interest rates in advance is completely blocked. For assets, whether the rate cut is in March or May, it may not make much difference. For China, even if the interest rate cut is implemented, domestic policies are still a prerequisite for the market to continue to rebound. Looking forward, the central bank’s reserve requirement ratio cut on February 5, whether the LPR will be lowered at the end of the month, and the national two sessions in early March are all important policy windows that need attention.
Blue Chip Stock Performance
Country Garden Services (06098) fell today. As of the close, it fell 6.69% to HK$5.3, with a turnover of HK$32.8659 million, dragging down the Hang Seng Index by 1 point. On the news, Country Garden Services and Hopeful Brilliance jointly announced that on February 7, the parties to the strategic cooperation agreement were considering (including) current market conditions, recent capital market fluctuations, and the contracting parties’ expected occurrences of the implementation schedule of the underlying transaction. After changes as well as underlying strategic and cooperative objectives and other factors, the Agreement is entered into to terminate the Strategic Cooperation Agreement and therefore the Subscription will not proceed.
In terms of other blue-chip stocks, Anta Sports (02020) rose 1.58% to HK$70.65, contributing 2 points to the Hang Seng Index; Hansoh Pharmaceuticals (03692) fell 4.09% to HK$12.2, dragging down 1 point to the Hang Seng Index; Xinyi Glass (00868) fell 3.45 points. %, reported at HK$6.43, dragging down the Hang Seng Index by 1 point; Alibaba-SW (09988) fell by 1.42%, at HK$69.3, dragging down the Hang Seng Index by 19 points.
Popular sectors
On the market, boosted by the good news, education stocks bucked the trend and generally rose; gaming stocks and other stocks bottomed out and rebounded during the session. On the other hand, shipping stocks, mainland real estate stocks, and Chinese brokerage stocks all fell collectively, and the automobile industry chain performed weakly.
1. Education stocks bucked the market trend and rose.As of the close, Excellence Education Group (03978) rose 6.49% to HK$1.64; New Oriental-S (09901) rose 5.85% to HK$67.85; Yuhua Education (06169) rose 2.5% to HK$0.41; Tianli International Holdings ( 01773) rose 1.67% to HK$3.05.
On February 8, the Ministry of Education studied and formed the “Off-campus Training Management Regulations (Draft for Comments)”, which is now open to the public for comments. Essence International pointed out that in the past two years, the private promotion law and the double reduction policy have had a huge impact on the development of K12 and the education and training industry; entering the fourth quarter of 2022, investors’ views on vocational education have changed, and doubts and panic have gradually been eliminated. Daiwa recently pointed out that investors seem to prefer recovery following industry regulations and improved industry growth prospects. This year’s earnings surprise, driven by rapid capacity expansion and operating leverage, will be the main catalyst for the sector’s share price.
2. Gambling stocks bottomed out and rebounded.As of the close, MGM China (02282) rose 2.74% to HK$11.24; Sands China (01928) rose 1.56% to HK$22.85; Wynn Macau (01128) rose 1.33% to HK$6.85; Melco International Development (00200) ) rose 1.25% to HK$5.68.
On February 6, the Macau SAR government decided to exempt six gambling licensing companies from the supplementary tax on their gaming profits for a period of five years from January 1, 2023 to December 31, 2027. During the above period, profits generated from the gaming operations of these companies will be exempt from supplementary income tax. In addition, JPMorgan Chase issued a research report stating that gambling revenue in the first four days of February is forecast to be 2.5 billion patacas, which means the average daily gambling revenue will reach 625 million yuan, which is better than the average daily gambling revenue in January of 624 million yuan. The bank considers this figure impressive given the seasonal factors ahead of the Lunar New Year.
3. Shipping stocks were among the top losers today.As of the close, SITC International (01308) fell 8.96% to HK$12.4; Orient Overseas International (00316) fell 8.5% to HK$105.5; COSCO Shipping Holdings (01919) fell 6.66% to HK$7.71; Pacific Shipping (02343) It fell 5% to HK$2.09.
International shipping giant Maersk released a financial report showing that it achieved revenue of US$51.065 billion in 2023, a year-on-year decrease of 37.4%; net profit before interest and tax fell by 87.25% year-on-year to US$3.934 billion. Maersk predicts that the maritime industry will face severe overcapacity in 2024, saying that the duration and extent of disruptions in the Red Sea remain uncertain, which may have an impact on full-year performance. In addition, in view of the increasing uncertainty, Maersk’s board of directors decided to immediately suspend the stock buyback plan and restart it following the shipping market conditions stabilize. After the financial report was released, Maersk’s share price fell nearly 16% on the Copenhagen Exchange in Denmark.
4. Mainland property stocks collectively fell.As of the close, Sunac China (01918) fell 7.2% to HK$1.16; Vanke Enterprise (02022) fell 6.98% to HK$5.86; Xincheng Development (01030) fell 6.48% to HK$1.01; R&F Properties (02777) fell 5.66 %, quoted at 1 Hong Kong dollar.
Guolian Securities pointed out that the sales of real estate companies will continue to be under pressure in 2023, the cash flow of real estate companies will still face certain pressure, and financing will still require continued policy efforts. The bank pointed out that the real estate industry is still a pillar industry in my country, and regulatory authorities attach great importance to improving the financing environment for real estate companies and preventing industry risks. It is expected to continue to loosen financing policies for real estate companies in the future. It is recommended to focus on state-owned enterprises with stronger financial strength and more high-quality and abundant land reserves, as well as high-quality private enterprises that are the first to complete credit repair in this round of industry clearing.
Popular move stocks
1. OSL Group (00863) continued its recent gains. As of the close, it rose 15.08% to HK$7.86.
UBS will launch Hong Kong’s first tokenized warrants for the Ethereum network. OSL Group announced that the company participated in UBS Group’s pilot issuance of investment-grade warrant tokens in Hong Kong, China, and covered the entire product issuance cycle. In addition, there are reports that the Hong Kong Securities Regulatory Commission is accelerating the review of the first Hong Kong Bitcoin spot ETF and plans to list it on the Hong Kong Stock Exchange following the Spring Festival. It is worth noting that BC Technology Group announced that starting from 9:00 am on February 5, 2024, the Chinese stock abbreviation of the company’s shares traded on the Stock Exchange will be officially changed to “OSL Group”.
2. Innovent Biologics (01801) continues to rise. As of the close, it rose 3.75% to HK$36.
Innovent Biologics recently announced that the company’s first new drug marketing application for glucagon-like peptide-1 receptor (GLP-1R)/glucagon receptor (GCGR) dual agonist Masdutide has been approved by the National Food and Drug Administration. It is accepted by the Drug Evaluation Center of the State Council and used for long-term weight control in adult obese or overweight patients. CITIC Construction Investment Research reported that Innovent Biologics achieved product revenue of more than 1.6 billion yuan in the fourth quarter of 2023, a year-on-year increase of more than 65%, maintaining a strong growth trend. In the company’s follow-up pipeline, the blockbuster drug Masdutide is regarding to be NDA, and the products under development IBI343 and IBI363 are expected to have POC data read out within this year.
3. China Literature Group (00772) was sold off once more, falling nearly 30% during the year. As of the close, it fell 4.82% to HK$20.75.
Everbright Securities released a research report stating that China Literature Group’s revenue in 2023 is expected to be 7.05 billion yuan, a year-on-year decrease of 7.6%. The decline is mainly due to the increase in the proportion of Xinli’s customized dramas, the delay in the launch of film and television drama projects, and the optimization and contraction of distribution channels, resulting in the shrinkage of online reading business. Due to pressure; the company is expected to achieve adjusted net profit attributable to parent companies of 1.12 billion yuan, a year-on-year decrease of 16.9%, which is due to declining revenue and increased investment in AI R&D and new businesses. Nomura stated that it expects the company’s non-IFRS net profit to decrease by 25% year-on-year to 514 million yuan, while the market consensus is expected to increase by 40% year-on-year, of which NCM will contribute approximately 269 million yuan.
4. United Energy Group (00467) plunged more than 35% on heavy intraday trading volume. As of the close, it fell 22.5% to HK$0.62.
CCB International previously pointed out that United Energy Group’s average mining costs in the first half of 2023 were the same as the same period last year, at US$4.1 per barrel, higher than the bank’s expectations. Increase its average mining cost assumptions by 5%/9% in 2023/2024 due to inflationary pressures. The bank still expects it to maintain solid net profit growth from 2023 to 2025, assuming no mergers and acquisitions, with a compound annual growth rate of 31% during the period. CITIC Construction Investment said that the company is the target of overseas oil and gas assets + new energy that are scarce in Hong Kong stocks. The current main oil and gas business focuses on three strategic areas: Pakistan, Iraq and Egypt. Among them, the production growth rate of Iraq’s B9 block is relatively high and still has strong growth potential.
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