20220517-马银证券_香港_-每日港股简评_3页_162kb

Market Summary

Core Content

The document provides a comprehensive overview of recent market and sector developments in China and Macau, with a focus on stock market performance, economic data, auto industry trends, and changes in the gaming sector. It also includes company-specific news and important disclaimers regarding the nature of the information provided.

Main Market Movements

• Hong Kong Stocks Market: The Hang Seng Index advanced by 51 points to 19,950 points, driven by the rally in the Chinese property sector.
• Property Sector Rally: The government allowed further mortgage rate cuts to boost the real estate market and the economy. Three private developers, including Country Garden (2007 HK) and Longfor (960 HK), saw significant gains of 10.4% and 4.8%, respectively.
• Airline Sector Gains: Chinese airline companies rose on the expectation of Shanghai's gradual reopening of businesses, which is expected to stimulate economic activity.

Economic Data - China Macro

• April Economic Data: China's economic indicators missed consensus forecasts, indicating a sharper-than-expected contraction.
  • Industrial output fell by 2.9% YoY (vs. +0.4% forecast).
  • Retail sales declined by 11.1% YoY (vs. -6.1% forecast).
  • YTD fixed asset investment increased by 6.8% YoY (vs. 7% forecast).
• Reasons for Weakness: The worsening international environment and the continued impact of the pandemic contributed to the downward pressure on the economy.

Auto Industry Updates

• Passenger Vehicle Sales: China's PV wholesale volume dropped 43% YoY in April, primarily due to Shanghai lockdowns.
• Market Outlook for May: Moderate month-over-month improvement is expected, but the impact of the Labour Day Golden Week and Beijing restrictions remains.
• Brand Performance:
  • BYD Co. (1211 HK) saw a 133% sales growth.
  • Geely (175 HK) declined by 28%.
  • Great Wall Motor (2333 HK) and SAIC Motor declined by 41% and 68%, respectively.
• NEV Growth: NEV wholesale volume grew 49% YoY to 288,000 units in April.
• Yiwu Auto Subsidy: An auto consumption subsidy was introduced in Yiwu from 15 May to 15 June, offering RMB3k to RMB10k depending on the vehicle price. This is part of a broader trend of stimulus policies across China.

Macau Gaming Sector

• New Gaming Law Revisions: The Macau government proposed changes to the gaming bill, including:
  • Waiving up to 5 percentage points of GGR tax for concessionaires attracting overseas customers.
  • Dropping the requirement for satellite casino areas to be owned by concessionaires.
• Current Taxation: Concessionaires currently pay a 35% gaming tax and up to 5% in fees for infrastructure, tourism, and social security.
• Impact on Operators: Sands China (1928 HK) and Galaxy Ent. (27 HK) are expected to benefit from the new policy due to their diversified non-gaming facilities.

Company News - Tingyi (322 HK)

• Top-line Growth Guidance: The company maintains high-single-digit top-line growth, with beverage sales outperforming noodles.
• Profit Outlook: Profit decline is expected due to cost inflation.
• Cost Trends: Raw material costs are expected to remain elevated throughout the year.
• Market Share Pressure: Instant noodle sales may face pressure as competitors did not follow the price hike.
• Promotion Strategy: Extra promotions will be removed by the end of 2Q22E.
• Product Launches: Two new premium beverage series with an average selling price (ASP) of around RMB10 are planned for later this year.
• Beverage Strategy: The company will continue to expand product lines with new flavors and packaging options.

Key Information

• The Chinese property and airline sectors showed positive momentum due to policy changes and reopening plans.
• The auto sector faces challenges due to lockdowns and lower demand, but NEVs continue to grow and may benefit from new models in 2022.
• Macau's gaming sector is poised for potential tax relief and regulatory changes to attract overseas customers.
• Tingyi's guidance indicates cautious optimism with growth in beverages and plans for product diversification.

Disclaimers

• This document is for general information and not investment advice.
• No responsibility is taken for any reliance on the information provided.
• Information is based on data from recognized sources but not independently verified.
• Opinions expressed are subject to change.
• MIB (HK) may have financial interests in companies mentioned, including participation in financing transactions or holding positions in securities.