20220617-马银证券_香港_-每日港股简评_2页_163kb

Market Summary

Core Content

The Hong Kong stock markets experienced a decline during the afternoon session, following a more than 1% drop in U.S. futures. The tech sector was particularly affected, with significant losses reported. However, the China education sector showed resilience, with Koolearn (1797 HK) surging 72%. The Hang Seng Index corrected 462 points to 20,845 points, with a daily turnover of HKD158.4 billion. Analysts expect the index to remain relatively flat this morning, hovering around 20,800 points. Investors are advised to monitor if the index can trade above the daily Bollinger Band mid-level (21,000 points) to determine the strength of the technical trend.

Sector News

China Auto - Passenger Vehicle Wholesale Volume Rose in May

• Passenger Vehicle Wholesale Volume: Increased by 67% MoM to 1.63 million units in May.
• OEM Sales Recovery: Most original equipment manufacturers (OEMs) saw a MoM sales volume recovery.
  • Geely (175 HK): +23% MoM
  • Great Wall Motor (2333 HK): +49% MoM
  • Changan Motor: +34% MoM
  • BYD Co. (1211 HK): +8% MoM
• Luxury Brands: Demonstrated stronger sales performance.
  • Beijing-Benz: +49% MoM
  • FAW Audi: +257% MoM
  • BWM Brilliance: +97% MoM
• NEV (New Energy Vehicles): Wholesale volume grew by 106% YoY to 421,000 units in May.
  • BYD sold 114,000 units, driven by the Han and DM-series models, as well as the ramp-up of the Destroyer 05, Dolphin, and Yuan Plus.

China Railway - Recovery in Railway Equipment Investment

• Locomotive Tender: China State Railway Group announced the third tender of locomotives, purchasing 220 sets with an investment of approximately RMB4.8 billion.
• Cumulative Orders: YTD cumulative locomotive orders reached 410 sets, surpassing the 2021 full-year total of 242 sets.
• Railway Freight Volume: The increase in railway freight volume contributed to the solid locomotive tender.
• Railway Equipment Investment: YTD investment in railway equipment reached approximately RMB14 billion, a 70% increase YoY.
• Future Outlook: With the central government approving a RMB300 billion railway construction bond and various infrastructure stimulus policies, market expectations are for accelerated railway investment in the second half of 2022.
• Positive Impact: The deal is positive for CRRC (1766 HK) and Zhuzhou CRRC (3898 HK).

Company News

Cathay Pacific (293 HK)

• May Operating Data: RPK increased by 164% YoY from a low base, and by 94% MoM due to relaxed pandemic regulations.
• Cargo Business: RFTK dropped by 33% YoY in May, but rose by 10% MoM with Shanghai's gradual recovery.
• Outlook: Management is optimistic about the passenger side, anticipating increased flights to meet recovering travel demand. Cargo demand is expected to remain strong in the short term and during peak seasons.

Nio-SW (9866 HK)

• New Models Launch: On 15 June, Nio launched the ES7 and the 2022 versions of ES6/ES8/EC6.
• Technology Upgrade: The 2022 versions are powered by the new "Alder" smart car system, offering enhanced computing power and sensor capabilities.
• Pricing: The MSRP for the 2022 ES6/EC6 is CNY18k, and for the ES8, it's RMB10-30k, both higher than existing models.
• Delivery Timeline: The 2022 versions will be delivered in August, which is expected to improve Nio's vehicle gross profit margin.
• Future Sales: With the delivery of the ET5 in September 2022 and the volume ramp-up of the ET7, market expectations are for strong sales growth in the third quarter of 2022.
• Product Cycle Outlook: The market is positive about Nio's strong product cycle from H2 2022 to 2023 and a potential rebound in its gross margin.

Lenovo (992 HK)

• Strategic Partnership: Lenovo is entering a strategic partnership with PCCW (8 HK) to enhance its Solutions & Services Group (SSG) business.
• Acquisition Details: Lenovo will acquire an 80% stake in PCCW Lenovo Technology Solutions (PLTS) and a 20% stake in PCCW Network Services for USD613.6 million.
• Completion Date: The deal is expected to be completed in September.
• Market View: The acquisition is viewed as neutral, as the price implies a 27x FY21 PER, which is considered a bit expensive.
• Benefits: The partnership is expected to provide long-term benefits, including:
  • Enhanced geographic reach of PCCW's solutions business in other Asia-Pacific countries.
  • Synergies from PCCW's IT services and Lenovo's infrastructure hardware expertise.

Disclaimer

• This report is for general circulation and informational purposes only.
• It is not an investment research or recommendation.
• Information is based on data from recognized sources and is not independently verified.
• MIB Securities (HK) Ltd does not take responsibility for any loss resulting from reliance on the content.
• Opinions expressed are current and subject to change.
• There may be conflicts between fundamental, technical, and quantitative views.
• MIB (HK) may participate in financing transactions or have positions in securities mentioned.
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