20141027-新鸿基金融集团-Investment_Daily_Note_11页_1mb

Investment Daily Note Summary - 27 October 2014

Core Content Overview

This investment daily note provides an analysis of the Hong Kong and U.S. stock markets, including stock performance, economic data, and market events. It highlights key stocks, their price movements, target prices, and stop-loss levels, along with insights into the potential growth of the Chinese sports industry and upcoming earnings reports.

Main Market Trends

U.S. Indices

• Dow Jones Industrial Average (DJIA): Closed at 16,805, up 127 points (+0.8%)
• S&P 500: Closed at 1,964, up 13 points (+0.7%)
• NASDAQ: Closed at 4,483, up 30 points (+0.7%)

Hong Kong Indices

• Hang Seng Index (HSI): Closed at 23,302, down 30 points (-0.1%)
• HSCEI: Closed at 10,391, down 47 points (-0.5%)
• HSI Market Turnover: HK$50.2bn (-0.8%)

Key Stock Analysis

Wisdom Group (1661.HK)

• Last Price: HK$5.71
• Target Price: HK$6.33
• Stop Loss: HK$5.17
• Performance: The stock is trending higher.
• Reason for Growth: Expected to benefit from the Chinese government's policy promoting the sports industry, which includes tax reductions for cultural and sports companies.
• Growth Prospects: Revenue and net profit for the first half of 2014 increased by 21.6% and 43.1% respectively. Projected adjusted net profit for 2014, 2015, and 2016 is RMB307mn, RMB431mn, and RMB571mn, respectively, with an annual growth rate of nearly 35%.
• Valuation: Historical P/E is 26.5X, with current valuation seen as attractive.

Top Picks

• Pou Sheng Int (3813): Expected to increase in price.
• Goldin Financial (530): Price may test the upper peak of last month.

Upcoming Earnings Reports

• Mon 27 October:
  • Guangdong Inv (270.HK)
  • Sinopharm (1099.HK)
  • I.T* (999.HK)
  • Belle Int' l* (1880.HK)
• Tue 28 October:
  • China Telecom (728.HK)
  • Air China** (753.HK)
  • Cosco Pacific (1199.HK)
  • GAC Group (2238.HK)
  • Ping An (2318.HK)
  • China Life (2628.HK)
• Wed 29 October:
  • China East Air (670.HK)
  • Baiyunshan Ph (874.HK)
  • BYD Company (1211.HK)
  • Goldin Financial (530)
  • China Unicom (762.HK)
  • China Mobile (941.HK)
  • ZTE (763.HK)
  • Great Wall Motor (2333.HK)
• Thu 30 October:
  • Sichuan Express (107.HK)
  • China Railway (390.HK)
  • ABC (1288.HK)
  • China Rail Cons (1186.HK)
  • China Comm Cons (1800.HK)
  • BOC Hong Kong (2388.HK)
  • CHALCO** (2600.HK)
  • China Oilfield (2883.HK)
  • CITIC SEC (6030.HK)

Economic Data and Events

U.S. Events

• Markit US Composite PMI: October (P) at 59.0
• Dallas Fed Manf. Activity: October at 11.0
• Durable Goods Orders: September at 0.4%
• Consumer Confidence Index: October at 87.2
• Richmond Fed Manufact. Index: October at 10
• MBA Mortgage Applications: October 24 at 11.6%

Japan Events

• Retail Sales MoM: September at 0.8%
• Industrial Production MoM: September at 2.1%

Eurozone Events

• Consumer Confidence: October (F) at -11.1
• Unemployment Rate: September at 11.5%

U.S. Reports

• Initial Jobless Claims: October 25 at 283K
• GDP Annualized QoQ: 3QA at 3.0%
• Personal Consumption: 3QA at 2.0%
• Bloomberg Consumer Comfort: October 26 at 37.7
• FOMC Rate Decision: October 29 at 0.25%

Market Data Highlights

Best Performers

• ZTE (763.HK): Up 3.5%
• Franshion Properties (817.HK): Up 2.7%
• China Mobile (941.HK): Up 2.2%
• BYD Company (1211.HK): Up 1.5%
• China Unicom (762.HK): Up 1.3%

Worst Performers

• Zoomlion (1157.HK): Down 2.9%
• Dongfeng Group (489.HK): Down 2.6%
• Baiyunshan Ph (874.HK): Down 2.6%
• Great Wall Motor (2333.HK): Down 7.7%
• Anhui Conch (914.HK): Down 2.4%

Major Index Valuations

Exchange Rates and Treasury Yields

• USD/HKD: 7.7573
• EUR/USD: 1.2688
• GBP/USD: 1.6098
• USD/JPY: 108.07
• U.S. 2-year Treasury Yield: 0.3940%
• U.S. 10-year Treasury Yield: 2.2818%
• U.S. 30-year Treasury Yield: 3.0550%
• HK 1-month HIBOR: 0.2279%
• HK 3-month HIBOR: 0.3757%
• SH 1-month SHIBOR: 3.8460%
• SH 3-month SHIBOR: 4.4685%

Analysts and Disclosures

• Analysts: Kenny Wen, Jason Tsang
• Disclosure of Interests: The analysts have no financial interests in the listed corporations covered in this report.
• Research Analyst Certification: The views expressed in this report reflect the personal views of the research analysts.
• Research Analyst Conflicts: No conflicts of interest are reported.

Contact Information

• Address: 28/F, The Lee Gardens, 33 Hysan Avenue, Causeway Bay, Hong Kong
• Phone: (852) 3920 2888
• Fax: (852) 3920 2700
• Website: http://www.shkfg.com