20180622-中国银河国际证券-China_Galaxy_A-Share_Morning_Comments晨会纪要4页_309kb

报告摘要

China Galaxy A-Share Morning Comments Summary (June 22, 2018)

Core Content

The A-share market experienced a weak session on Thursday, with the SHCOMP falling below the 2,900 level. Despite a rebound in cyclicals like iron & steel and coal, the overall sentiment remained sluggish, particularly affecting themed stocks in the electronic information and communications sectors. Blue chips, such as banks and insurers, also performed poorly, contributing to the market's downward trend.

Main Views

Market Performance:
- The SHCOMP declined by 1.37% to 2,875.8 points on June 21, 2018.
- The ChiNext index hit a new two-year low, further dragging down market sentiment.
- The SZSE Comp also saw a decline of 1.94% to 9,316.7 points.
- The CSI 300 index fell by 1.17% to 3,593.0 points, while the HSI and HSCEI indices also declined by 1.35% and 1.23%, respectively.
Sector Outlook:
- Cyclicals: Steel companies are expected to see a valuation recovery due to sharp earnings growth in Q2 2018 driven by high steel prices and inventory reduction.
- Non-bank Financials: The brokerage sector is expected to consolidate with strong players gaining more market share. The insurance sector is at a reasonable valuation, with Ping An Insurance (601318.CH) being the top recommendation.
- Military & Defence: Sector consolidation is expected in the short term, but long-term opportunities are anticipated. Companies with attractive valuations and growth potential are recommended, including Guizhou Space Appliance (002025.CH) and AVIC Jonhon OptronicTechnology (002179.CH).
- Electronics: The semiconductor industry is expected to develop faster due to government support. The sector is currently at a historical low, presenting a good buying opportunity. Recommended stocks include GigaDevice Semiconductor (603986.CH), Ninestar Corp (002180.CH), and Changjiang Electronics (600584.CH).

Key Information

Stock Repurchases: Several listed companies, including Homyear Capital (600240.CH), Inner Mongolia Xingye Mining (000426.CH), and Kuangda Technology (002516.CH), announced stock repurchase plans to support their share prices.
Investor Advice: Investors are advised to remain patient and wait for opportunities from blue chips as the market consolidates.
Futures & Money Markets:
- NYMEX Crude increased by 0.14% to 65.80.
- COMEX Gold decreased by 0.43% to 1,269.00.
- LME Copper rose by 0.39% to 6,799.50.
- LME Aluminum increased by 0.99% to 2,187.50.
- BDI fell by 1.60% to 1,373.00.
- USD/RMB rose by 0.31% to 649.17.

Recent Reports

Non-ferrous Metals: China's tax cuts and RRR reductions, along with improved macroeconomic conditions, suggest potential re-rating opportunities.
Wuhan Department Store (000501.CH): 2017 results were in line with expectations, and 2018 earnings depend on high-end consumption reforms.
Hongqi China (002697.CH): Steady growth in 2017, with fresh food and convenience stores expected to drive growth in 2018.
Property: Transaction volumes increased in Tier 1 and 3 cities, while Tier 2 cities remained weak.
Retail: The retail sector is on a recovery path, with 47 retailers reporting positive net profit growth in Q1 2018.
TMT: Trends in medical diagnosis and chip import substitution are highlighted.
Macro: New asset management rules in China are expected to reshape the industry landscape.
China Yangtze Power (600900.CH): Power generation hit a record high, with slight operational improvements.
Quantitative Analysis: Funds' equity exposure reached 89%, and market exposure increased. Growth stocks outperformed in event-driven strategies.

Disclaimer and Risk Statement

This document is issued by China Galaxy International Securities (Hong Kong) Co., Ltd. and is intended for institutional clients.
No representation or warranty is made regarding the accuracy or completeness of the information provided.
The analysis does not consider individual client circumstances and is not a personal investment recommendation.
The prices of securities may fluctuate, and past performance does not guarantee future results.

Disclosure of Interests

China Galaxy International may have financial interests in the companies mentioned, with holdings potentially equal to or exceeding 1% of their market capitalization.
Some directors, officers, and employees may be affiliated with the mentioned companies.
The company may participate in financing transactions, provide services, or have material interests in the securities of the mentioned companies.