20220420-马银证券_香港_-每日港股简评_2页_136kb

Market Summary

Core Content

The document provides an overview of the Hong Kong and Chinese markets, highlighting recent trends and developments across various sectors, including banking, retail, property, and specific companies. It also includes important disclaimers regarding the nature of the information provided.

Market Performance

• Hong Kong Stocks Market: The market experienced a decline due to the lower-than-expected RRR cut and the U.S. markets' correction following the 10-year treasury yield reaching intraday highs.
• Key Stock Impact: China Merchant Bank (3968 HK) dropped over 10% due to the resignation of its president, Tian Huiyu, raising concerns about the bank's strategic direction.
• Hang Seng Index: The index corrected by 490 points to 21,027, with a daily turnover of HKD115.5 billion.
• LPR Expectations: The 1- and 5-year loan prime rates (LPR) will be announced today, and the market expects no changes.
• U.S. Markets: Overnight, U.S. markets rallied sharply after Fed Governor Evan's statement that the U.S. economy is strong enough to handle higher interest rates, leading to increased bargain hunting.

Sector Analysis

China Retail - Weak Data due to Lockdowns

• Retail Sales Growth: China's retail sales growth turned negative at -3.5% YoY in March, down from +6.7% in February 2022, missing the Bloomberg consensus of a 3.0% YoY decline.
• Online Sales: Online retail sales growth moderated to 2.7% YoY in March from 12.3% in February 2022.
• Consumer Discretionary Impact: Consumer discretionary sales were hit hard by lockdowns, with gold and jewellery sales declining the most.
• Staples Demand: Staples demand remained strong, with food and beverage sales showing accelerated growth.
• Lockdowns: As of April, 23 cities are under various forms of social distancing restrictions, including semi-lockdowns in Guangzhou, Suzhou, and Taiyuan. Shanghai's reopening is expected to be gradual.
• Market Outlook: With more cities in lockdown or semi-lockdown in April, the market anticipates a negative impact on the May holiday performance.

China Property - Cities Stepped Up Relaxation

• Policy Relaxation: Since the beginning of April, 14 more cities have introduced policy relaxation measures, with Suzhou and Nanjing being notable for their home sales and purchase restrictions, respectively.
• Policy Trends: Over 60 cities have introduced policy loosening or support since 4Q21, indicating a broader effort to stimulate the property market.
• Market Sentiment: The relaxation of restrictions in Tier-1 and Tier-2 cities suggests a proactive approach to boosting property market sentiment and sales.
• Market Expectations: The market expects more cities to introduce policy loosening in the near term.
• Challenges: The ongoing Omicron outbreak and economic weakness in some regions, particularly in Eastern China, may delay the recovery of property market sentiment.
• Recovery Outlook: The market anticipates an overall property sales recovery by the second half of 2022.

Company News

Anta Sports (2020 HK)

• 1Q22 Retail Sales: Offline core ANTA and ANTA Kids sales grew by low- to mid-teens YoY; e-commerce sales increased by 35–40% YoY; FILA brand sales rose by mid-single digits YoY; other brands (Descente and Kolon) grew by 40–45% YoY.
• Performance in 2M22: Retail sales for ANTA and FILA in the first half of 2022 exceeded expectations, with growth rates of over 20% and mid- to high-teens YoY.
• Impact of Lockdowns: The worsening pandemic in mid-March led to a 30–40% decline in sales in affected cities.
• FILA Vulnerability: FILA is more vulnerable to lockdowns, as about 20% of its sales come from Shanghai and northeastern China, and over 90% of its POS are located in shopping malls and department stores.
• Future Outlook: Anta's management expects a gradual recovery in retail sales as the country adopts a softer stance on its zero-COVID-19 strategy.

BYD Co. (1211 HK)

• 1Q22 Results: BYD Co. expects a net profit of RMB650m to RMB950m (up 174% to 300% YoY) and a basic earnings per share of RMB0.22 to RMB0.33 per share.
• New Energy Vehicle Growth: The new energy vehicle industry continued its rapid growth, with BYD achieving a record high in sales volume.
• Market Share: BYD's market share increased, contributing to a significant improvement in profitability.
• Profitability Offset: The rise in upstream raw material prices was partially offset by the strong performance in the new energy vehicle sector.

Beigene (6160 HK)

• NMPA Approval: The China National Medical Products Administration (NMPA) approved BeiGene's anti-PD-1 antibody, tislelizumab, for the treatment of locally advanced or metastatic esophageal squamous cell carcinoma (ESCC) patients who have disease progression or are intolerant to first-line standard chemotherapy.
• Clinical Trial Results: The global Phase 3 clinical trial of tislelizumab showed positive safety and efficacy outcomes as a second-line treatment for ESCC, which is one of the most common malignant tumors in the digestive tract.

Disclaimers

• The document is for general circulation and information purposes only.
• It is not an investment research or recommendation and does not constitute substantive analysis.
• Information is based on data from recognized sources but not independently verified.
• MIB Securities (HK) Ltd and its affiliates may have positions in securities mentioned and may participate in financing transactions with these companies.
• The information and opinions expressed are subject to change and do not constitute a solicitation to buy or sell any securities.
• The document is prepared for MIBSHK's clients and may not be reproduced or distributed without prior consent.