20171206-凯基证券-Investment_Daily_5页_262kb

Market Summary

Core Market Indicators

Hang Seng Index (HSI)

• Closing Price (5 Dec): 28,842 points
• Change (5 Dec): -295 points
• HSI Turnover (5 Dec): $43.02 billion
• HSI 50-day SMA: 28,706 points
• HSI 250-day SMA: 25,718 points
• HSI Primary Resistance: 29,322 points
• HSI Primary Support: 28,706 points

Hang Seng China Enterprises Index (HSCEI)

• Closing Price (5 Dec): 11,484 points
• Change (5 Dec): -33 points
• HSCEI Turnover (5 Dec): $14.77 billion
• HSCEI 50-day SMA: 11,507 points
• HSCEI 250-day SMA: 10,587 points
• HSCEI Primary Resistance: 11,666 points
• HSCEI Primary Support: 11,253 points

HSI Futures

• Dec Futures (5 Dec): 28,896 points
• Dec Futures Volume (5 Dec): 138,844
• Dec Futures Open Interests (5 Dec): 159,611
• Jan Futures (5 Dec): 28,935 points
• Jan Futures Volume (5 Dec): 438
• Jan Futures Open Interests (5 Dec): 4,358

HSCEI Futures

• Dec Futures (5 Dec): 11,521 points
• Dec Futures Volume (5 Dec): 70,140
• Dec Futures Open Interests (5 Dec): 262,390
• Jan Futures (5 Dec): 11,537 points
• Jan Futures Volume (5 Dec): 3,133
• Jan Futures Open Interests (5 Dec): 6,742

Market Outlook

• The Hang Seng Index is expected to trade between 28,600-29,000 today.
• Tencent (700) fell over 3% on Tuesday due to selling pressure in the US tech sector.
• HSCEI closed at 11,484 points, down 33 points.
• US corporate tax reform is expected to benefit WH Group (0288), which could see an 8-9% earnings increase.
• New China Life Insurance (1336) is exploring health insurance business, which now accounts for 36.4% of total premiums and is expected to reach 48% by next year.
• Shimao Property (813) reported RMB10.1bn in November contract sales, a 82% yoy increase, and RMB88.7bn in accumulative sales for the first 11 months, 43% yoy increase.

Key Stock Analysis

WH Group (0288)

• Closed Price: 8.28 HKD
• Expected P/E: 13.6
• Dividend Yield: 3.7%
• 52-Week High: 8.65 HKD
• 52-Week Low: 5.40 HKD
• 14-day RSI: 63.7
• Short-term Share Price Range: 7.50-8.80 HKD
• US tax cut impact: Earnings could rise 8-9%, but short-term upside is limited due to hog price increase affecting its US business.

New China Life Insurance (1336)

• Closed Price: 52.20 HKD
• Expected P/B: 1.9
• Dividend Yield: 1.6%
• 52-Week High: 57.85 HKD
• 52-Week Low: 33.80 HKD
• 14-day RSI: 51.5
• Premium Growth: 4.48% yoy in October 2017
• Target: RMB$180 billion in total premiums by 2020
• Renewal Premiums Ratio: 69% in 9M2017
• Valuation: Price-to-embedded-value ratio is about 1x, with potential for long-term accumulation.

SH-HK and SZ-HK Stock Connect Statistics

• SH Connect Balance (RMB bn): 15.72
• SZ Connect Balance (RMB bn): 13.42
• Combined Southbound Balance (RMB bn): 18.49
• Combined Southbound as % of Quota: 88.0%

Top 10 Most Actively Traded Stocks (SH-HK Connect Southbound)

Top 10 Most Actively Traded Stocks (SZ-HK Connect Southbound)

Top 10 Short Sell Stocks

Economic Calendars

Disclaimer

• KGI Asia Ltd. equity research and earnings estimates are available on KGIEWORLD.COM.
• The information and opinions are those of internal research and are subject to change.
• No liability is accepted for any loss arising from the use of this report.
• This report is for informational purposes only and may not be reproduced or published without prior written consent.