20220413-马银证券_香港_-每日港股简评_2页_161kb

Summary of Market and Sector Updates

Core Content

This summary outlines the key developments in the Hong Kong stock market, major sector news, and company-specific updates from the provided document. The focus areas include the tech sector, real estate, internet gaming, and Macau gaming, with insights into market performance, regulatory changes, and future expectations.

Market Performance

• Hong Kong Stocks Market: The market advanced due to the rally in tech stocks, supported by the approval of new game licenses.
• Key Gainers:
  • Tencent (700 HK) and NetEase-S (9999 HK) rose by approximately 4%.
  • China Coal (1898 HK) surged by 14% following a positive profit alert for its 1Q22 results.
• Hang Seng Index: Gained 110 points to 21,319 points with a daily turnover of HKD128.3 billion.
• Technical Indicators: The index showed technical improvement, with the expectation that it will climb and trade above its 20-day Moving Average (21,500 points) in the near term.

Sector News

China Property - Weekly Updates

• Sales Decline: Weekly sales in the top 25 cities dropped by 52% YoY or 36% WoW last week, due to the outbreak of COVID-19 and lockdowns.
• Tier-2 Cities: Sales in Tier-2 cities fell by 42% WoW, with Hangzhou, Ningbo, Changsu, and Qingdao experiencing a 60–75% WoW decline.
• Recovery Outlook: Despite the decline, the market remains confident in a rebound when cities resume normal operations, as seen in Shenzhen (up 6x WoW post-lockdown).
• Expectations: A mild sales volume rebound is anticipated in 2Q/3Q22E, driven by pent-up demand and policy relaxation expected in April/May.
• Investor Advice: Investors are advised to accumulate on weakness.
• Related Stocks:
  • COLI (688 HK)
  • CR Land (1109 HK)
  • Longfor (960 HK)
  • CIFI (884 HK)

China Internet - New Game Licenses Approval

• Regulatory Update: On 11 April, the NPPA approved 45 new game licenses, the first time since July 2021, signaling a regulatory inflection point.
• Market Reaction: The resumption of game licenses is viewed as a positive development for the online gaming sector, reducing regulatory concerns.
• Future Expectations:
  • Game approvals are expected to normalize to a monthly schedule.
  • The total number per batch may be lower than the pre-suspension average of 102 per batch.
• Beneficiaries:
  • Tencent (700 HK)
  • Baidu-SW (9988 HK)
  • BiliBilibii-SW (9626 HK)
  • NetEase-S (9999 HK)

Macau Gaming - Weekly GGR Updates

• GGR Performance: For the first 10 days of April, Macau's average daily GGR was at MOP100 million.
• Trend Analysis: The average daily revenue has remained at a low level since 14 March, due to strict travel restrictions from the COVID-19 resurgence.
• Segment Performance:
  • VIP segment declined by 25% MoM.
  • Mass segment declined by 15% MoM.
  • VIP win rate was at 3%.
• April Outlook: Market expects April to record lower GGR than March, which was the lowest monthly level since September 2020.
• Recovery Delay: The market is watching for a delay in recovery beyond the Labour holiday in May.

Company News

Tencent (700 HK)

• Pipeline Status: Tencent's games in the pipeline have already received licenses, reducing policy/regulatory risks.
• Impact of Licensing Resumption:
  • Expected to accelerate new game launches in the domestic market.
  • Domestic market contributes 75% of online game revenue.
• Recent Performance:
  • Higher user time spent and grossing seen in March/April due to lockdowns.
  • Licensing resumption is expected to further fuel domestic game growth in 2023E and beyond.

Wuxi Apptec (2359 HK)

• 1Q22 Results:
  • Revenue increased by 71% YoY to RMB8.47 billion.
  • Net profit rose by 10% YoY to RMB1.64 billion.
  • Basic EPS was RMB0.56 (+8% YoY).
• Performance Drivers:
  • The increase in net profit and EPS was mainly due to fair value changes and investment gains.
  • 1Q22 net loss was RMB178.9 million, compared to a net gain of RMB1.06 billion in 1Q21.
• Adjusted Net Profit:
  • RMB1.71 billion (+107% YoY).
  • Adjusted non-IFRS net profit: RMB2.05 billion (+86% YoY).

Disclaimers

• This document is for general circulation and information purposes only.
• It is not an investment recommendation and does not constitute substantive research or analysis.
• Information is based on reliable sources but not independently verified by MIB Securities (HK) Ltd.
• MIB (HK) does not take responsibility for any loss arising from reliance on this content.
• Opinions may change without prior notice.
• Conflicts of Interest: MIB (HK) may have investment banking relationships or participate in financing transactions with companies mentioned.
• Reproduction Restrictions: The document may not be reproduced, altered, or distributed without prior written consent from MIB (HK).