20160727-新鸿基金融集团-INVESTMENT_DAILY_NOTE_15页_2mb

Investment Daily Note Summary

Core Content Overview

This document provides a comprehensive overview of the Hong Kong and global financial markets on 28 July 2016, including index performance, stock trends, economic data, and sector analysis. It also includes specific stock recommendations and insights into market valuations and external conditions.

Key Market Trends

• Hang Seng Index (HSI):

  • Closed at 22,129, up 136 points from the previous day.
  • Daily change: +0.6%, Year-to-Date (YTD): +1.0%.
  • Market sentiment is positive with a wait-and-see attitude ahead of the Federal Reserve and Bank of Japan policy meetings.

• HSCEI (Hang Seng China Enterprises Index):

  • Closed at 9,062, up 27 points.
  • Daily change: +0.3%, YTD: -6.2%.

• Market Sentiment:

  • The market is showing a positive trend, with the HSI recovering from early losses and closing in positive territory.
  • ADRs (American Depositary Receipts) rose in the U.S. market, contributing to the HSI's upward movement.

• Oil and Commodities:

  • Oil prices dropped as investors were concerned about increased drilling activities.
  • New York crude oil futures closed at $42.92/bbl, down $0.21.
  • Gold futures settled at $1,320.80/oz, up $1.30.

Stock in Focus

Angang Steel-H (347.HK)

• Last Close: HK$3.81
• Entry: HK$3.75 or below
• Target: HK$4.40
• Stop-loss: HK$3.43
• Performance:
  • YTD: +21.3%
  • 1M: +10.4%
  • 3M: +0.8%
  • 12M: -4.8%
• Market Cap: HK$34.80bn
• 3M Average Daily Volume: 14.74mn shares
• FY1 Forward P/E: 205.3
• Reason for Buy: Expected to benefit from the Chinese government's excess capacity removal policy in the steel industry, which aims to reduce crude steel production by 45 million tons over five years and 10% over two years. The company's Q2 net profit rose 93.6% YoY to RMB300m, driven by improved marketing, product mix, and lower procurement costs.

Today's Top Picks

1. Clear Lift (771.HK)

• Last Close: HK$1.10
• Purchase Price: Current
• Target Price: HK$1.21
• Stop-loss Price: HK$1.03
• Reason: Share price showed support on the 50-day moving average and may test the 100-day moving average.

2. CNOC Int'l (8105.HK)

• Last Close: HK$1.72
• Purchase Price: Current
• Target Price: HK$1.89
• Stop-loss Price: HK$1.64
• Reason: Expected to report a significant profit increase, with share price gapping higher and increasing turnover.

Sector Performance

• Top Performing Sectors (Daily change):

  • Gaming: +5.6%
  • Automobile: +3.8%
  • Airline: +2.2%
  • IPP: +1.6%
  • Local Banks: +1.1%
  • HK Consumer Group: +1.1%
  • Local Property: +0.9%
  • Marine: +0.9%
  • Oil-related: +0.9%
  • Chinese Insurers: +0.9%
  • Steel: +0.8%

• Major Stocks in Top Performing Sectors:

  • Gaming: Galaxy Ent. (27), SJM Hldg (880), Wynn Macau (1128), Sands China (1928), MGM China (2282)
  • Automobile: Geely Auto (175), Dongfeng Motor (489), BRILLIANCE CHI (1114), BYD Co. (1211), Great Wall Motor (2333)
  • Airline: Cathay Pacific (293), China East Air (670), Air China (753), China South Air (1055)
  • IPP: China Res Power (836), Huaneng Power Int'l (902), Datang Int'l Power (991), Huadian Power Int'l (1071), China Power Int'l (2380)
  • Local Banks: Hang Seng Bank (11), BEA (23), Chong Hing Bank (1111), BOCHK (2388), Dah Sing Banking (2356)
  • HK Consumer Group: Sa Sa Int'l (178), Cafe De Coral (341), Luk Fook (590), Bonjour (653), I.T (999)
  • Local Property: CK Hutchison (1), Henderson Land (12), SHK Prop (16), New World Dev (17), Sino Land (83)
  • Marine: OOIL (316), Sinotrans Ship (368), Cosco Pacific (1199), Pacific Basin (2343), CSCL (2866)
  • Oil-related: Sinopec (386), PetroChina (857), CNOOC (883), Hilong Hldg. (1623), China Oilfield Services (2883)
  • Chinese Insurers: China Taiping Ins. (966), NCI (1336), CPIC (2601), Ping An (2318), China Life (2628)
  • Steel: Angang Steel (347), Maanshan Iron (323), Shougang Res (639)
  • Consumer Staples: Want Want (151), Uni-President (220), Tingyi (322), Hengan Int'l (1044), Sun Art Retail (6808)
  • Brokerages: First Shanghai (227), Central China Sec. (1375), CITIC Sec. (6030), Haitong Sec. (6837), China Galaxy Sec. (6881)
  • Environmental and New Energy: China EB Int'l (257), BJ Ent Water (371), China Longyuan (916), Xinyi Solar (968), CGN Power (1816)
  • Telecoms Equipment: China Com Service (552), ZTE (763), Trigiant (1300), Comba (2342)

Market Data

Best Performers

Worst Performers

Valuation and Forward P/E

A-share Premium to H-share

Summary

The Hong Kong market showed a positive trend, with the HSI closing at 22,129 and the HSCEI at 9,062. The market remains cautious ahead of the FOMC meeting. Phoenix (1515.HK) reported a strong earnings alert, while Angang Steel (347.HK) is expected to benefit from the steel industry's capacity reduction policy. The top-performing sectors include Gaming, Automobile, and Local Property, with notable stocks such as Sands China (1928.HK), Geely Auto (175.HK), and Henderson Land (12.HK). The document also highlights key stocks for investment, including Clear Lift (771.HK) and CNOC Int'l (8105.HK), based on positive price movements and technical indicators. Valuation data and the A-share premium to H-share are provided for several companies, offering insights into relative value. Overall, the market is showing resilience, with some stocks benefiting from policy changes and others reacting to commodity price fluctuations.