20220421-马银证券_香港_-每日港股简评_2页_137kb

Market Summary

Core Content

The Hong Kong stock market experienced a decline on the back of the central bank's decision to keep its benchmark lending rates unchanged, with the 1-year and 5-year loan prime rates (LPR) remaining at 3.7% and 4.6%, respectively. This decision, despite government assurances to support the slowing economy, has led to market concerns over the cautious approach of Beijing towards further monetary easing. In contrast, the Macau gaming sector showed positive movement due to the easing of the Guangdong outbound test requirements, which are expected to boost visitor arrivals during the upcoming Labour Day Holiday.

Main Sector Highlights

Macau Gaming

• Policy Change: Starting from midnight on 20 April, the required test certificate validity for travelers from Guangdong to Macau was extended from 24 to 48 hours.
• Market Response: Related gaming companies saw share price increases of 2-3% on average.
• Positive Outlook: The Tourism Office of Macau expressed optimism about receiving over 20,000 daily visitor arrivals during the Labour Day period.
• Key Players: Sands China (1928 HK) is expected to benefit from the increased market exposure.

China Auto

• Wholesale Volume: China's passenger vehicle wholesale volume in March remained flat at 1.9 million units compared to the previous year.
• Supply Constraints: Some domestic automakers, including Great Wall Motor (2333 HK) and SAIC Motor, faced declines due to the Bosch ESP supply shortage.
• NEV Growth: Passenger NEV (New Energy Vehicle) wholesale volume surged by 115% to 455,000 units, with a 24% penetration rate in March.
• Drivers: The growth in NEVs was fueled by the launch of new PHEV (Plug-in Hybrid Electric Vehicle) and HEV (Hybrid Electric Vehicle) models with high fuel efficiency by companies like Great Wall Motor, Geely Auto (175 HK), and BYD Co. (1211 HK).

China Property

• Share Price Correction: Property sector stocks declined due to the central bank's decision to maintain LPR rates and concerns over the lack of further easing measures.
• Legal Issues: Sunac Real Estate (1918 HK) added judgment debtor information with enforcement matters exceeding RMB38 million, leading to its trading suspension since 1 April.
• Market Sentiment: Investors are wary of the central bank's cautious stance and the company's delayed financial reporting.

Tencent (700 HK)

• Analyst Adjustments: Analysts have reduced target prices for Tencent due to limited upside in domestic games revenue, slower short video ad monetization, and lower PER multiples due to regulatory and macroeconomic uncertainties.
• 1Q22 Outlook: Market expects Tencent to report flat revenue and a 20-25% YoY decline in non-IFRS net income.
• Growth Concerns: There is concern over slowing payment growth due to high online penetration and competition, as well as reduced cloud growth due to a shift away from low-margin IaaS (Infrastructure as a Service) projects.
• Comparative Note: Similar concerns have been raised about Alibaba's (9988 HK) cloud growth, which has decelerated due to intense competition.

JD Logistics (2618 HK)

• Positive Outlook: The market is optimistic about JD Logistics' future due to the following factors:
  • Manageable Outbreak: The recent COVID-19 outbreak affected only about 700 out of its total 7,000+ warehousing and transportation stations, which is less than 10%.
  • Integrated Solutions: The company is expected to benefit from the growing demand for integrated logistics solutions.
  • Global Expansion: JD Logistics continues to expand its overseas warehouse network, enhancing its cross-border logistics capabilities.

Key Information

• Hong Kong Market: Declined by 83 points to 20,944 points with a daily turnover of HKD98 billion.
• Shanghai Lockdown: Preparing to ease lockdowns for its 25 million population, with a focus on limiting transmission to quarantine facilities.
• Factories: Returning to production in closed-loop systems, with Tesla staff reportedly staying on-site.
• Positive Trends: Expected to benefit China's airline and consumer sectors, particularly in auto, F&B, and sportswear.

Disclaimers

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• The information is based on data from recognized sources, but accuracy and completeness are not guaranteed.
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