20220719-马银证券_香港_-每日港股简评_2页_162kb

Hong Kong Stock Market Summary

Core Content

The Hong Kong stock market showed positive momentum yesterday, driven by the recovery in the China property and bank sectors. The Hang Seng Index rose by 548 points to 20,846, with a daily turnover of HKD116 billion. The tech sector also experienced gains, with Meituan-W (3690 HK) surging by 5.8%.

Sector Analysis

China Property and Bank Sector

• The property and bank sectors rebounded following news that several buildings at risk of shutdown have resumed operations.
• Real estate financing is showing signs of recovery, and the real estate market is expected to accelerate its recovery process.

China Airlines

• Three H-listed airline companies issued a profit alert for the first half of 2022 (1H22), anticipating net losses.
  • Air China (753 HK): Expected net loss of RMB18.5b–21b (vs. RMB6.7b net loss in 1H21).
  • China East Air (670 HK): Expected net loss of RMB17b–19.5b (vs. RMB5.2b net loss in 1H21).
  • China South Air (1055 HK): Expected net loss of RMB10.2b–12.1b (vs. RMB4.6b net loss in 1H21).
• The losses are attributed to the repeated impact of the pandemic, high oil prices, and the depreciation of the Renminbi.

China Port

• Two Chinese port companies reported improved performance in June, showing a month-over-month (MoM) increase.
• COSCO Shipping Port (CSP) (1199 HK):
  • Total throughput increased by 4.5% YoY in June (vs. -5.1% YoY in May).
  • China ports throughput rose by 2.6% YoY (vs. -11% YoY in May).
  • International ports throughput increased by 9.2% YoY (vs. 10.8% YoY in May).
  • Strong growth was observed in the Pearl River Delta (32.7% YoY) and Southwest Coast (10.3% YoY).
  • APM Terminals Zeebrugge and CSP Abu Dhabi Terminal showed robust growth of 41% and 53% YoY, respectively.
• China Merchants Port (CMP) (144 HK):
  • June throughput declined by 2.7% YoY (vs. 2.9% YoY in May).
  • The decline in China ports narrowed to 3.8% YoY, while MoM growth reached 4.0%.
  • Improvement was noted in the Yangtze River Delta (decline of 6.6% YoY, vs. -9.2% YoY in May) and Western Shenzhen (9.4% YoY growth, vs. 15.6% YoY in May).

Company News

CR Power (2898 HK)

• Consolidated power generation in June 2022 increased by 0.3% YoY to 15,281 GWh.
• Cumulative power generation for 1H22 rose by 0.4% YoY to 86,414 GWh.
• Wind and hydro power generation saw strong growth in June: 23.7% and 218% YoY, respectively.
• Coal-fired business net generation declined by 4.4% YoY to 12,165 GWh.
• In 1H22, cumulative wind power generation increased by 12.8% YoY to 18,168 GWh, while thermal power generation declined by 3.1% YoY to 66,502 GWh.

Luk Fook (590 HK)

• Reported 1QFY23 operational data, showing a -28% YoY same-store-sales growth (SSSG) in China.
• In Hong Kong and Macau, SSSG grew by 2% YoY, reaching approximately 46% of pre-COVID-19 levels.
• The company added 36 net stores in China during the quarter due to pandemic-related delays.
• Management expects to catch up with store expansion in upcoming quarters and reiterated a full-year target of 550 net additions.

SITC (1308 HK)

• Released a positive profit alert for 1H22, expecting a net profit surge of 140% YoY to USD1.17 billion.
• The increase in earnings is attributed to:
  1. A significant rise in freight rates due to improved supply and demand dynamics in Asian regions.
  2. Continuous expansion in the Asian market.
  3. Enhanced operating efficiency and effective cost control.

Disclaimer

This report is for general information and circulation only. It is not investment research or a recommendation. MIB Securities (HK) Ltd does not independently verify the information and makes no representation regarding its accuracy or completeness. Reliance on the contents of this report may result in loss, and MIB (HK) is not liable for such losses. The information and opinions expressed are current and may change without notice. MIB (HK) may have positions in the securities mentioned and may perform investment banking services for these companies. This report is intended for MIB (HK)'s clients and may not be reproduced, altered, or distributed without prior written consent.