2024-03-06-新华汇富金融-汇富快讯_香港及中国市场日报_7页_606kb

Summary of Hong Kong & China Market Report - March 7, 2024

Market Overview:

• Heng Seng Index (HSI): Closed at 16,438 points, up 1.7% for the day, with a year-to-date gain.
• China Enterprises Index: Closed up 2.0% for the day, up 7.0% YTD.
• Hang Seng China Index: Slightly lower (-0.4%) for the day, up 13.2% YTD.
• The broader market indices showed generally positive daily performance, although China-related indices displayed differing year-to-date returns.

Key Focus Businesses/Industries:

1. Macau, Gaming (MGM):
MGM China Holdings (880.HK): Q4 2023 performance lower than market expectations. Net revenue of HK$64B, up 9% QoQ (FY2019 adjusted to about 75% level). VIP revenue surged 52% QoQ (+$US 88M), but still only 15% of FY2019 level (+4Q19 industry average: 39%). Q4 total revenue reached 63B HKD (73.8% of FY2019 level), below industry average. Market share slightly dipped. Adjusted property EBITDA rose sharply (+24.7%), but casino revenues recovered at a slower pace.

2. Tesla International (1368 HK):
* Latest research analysis published on Feb 29, 2024.
* Provides stock coverage with price targets, cost estimates, and investment ratings.

Key Viewpoints:

• MGM (880.HK): Q4 performance indicated a tougher environment. Failed to return to profit. Struggled to regain market share, growth remaining below expectations. The pace of shifting to higher-margin tables slowed. New market presence ("Upper House") growth also lagged.
• Tesla International (1368 HK): New coverage initiated with initial investment target set at HK$11.91. Provided enterprise value estimate (EV: 170B HKD) and fair price target.

Disclaimer:
The report is for informational purposes only and not an investment recommendation. This is not an offer to sell or buy securities. Readers should use judgment based on their specific investment objectives and needs. The report's analysis, estimates, or projections, if any, are based on information available as of the date of this report and are subject to change without notice.