Market Summary: Hong Kong and Global Markets (23 March 2016)
Core Content Overview
This summary provides a detailed overview of the Hong Kong stock market and global financial conditions on 23 March 2016, including market indices, sector performance, company results, and valuation metrics. It also highlights top picks for the day, short-selling activity, and economic indicators such as interest rates, exchange rates, and commodities.
Market Highlights
- Today is the last trading day of the week, with the HK market closed from tomorrow to next Monday due to the Easter holiday.
- Hang Seng Index (HSI) closed at 20,615, down 0.2% with a -5.9% YTD change.
- HSCEI closed at 8,873, down 0.3% with a -8.2% YTD change.
- Market turnover remained low, with HSI at HK$20.2bn, down -8.03%.
- PetroChina (857.HK) reported a -24.4% revenue and -66.9% profit decline YoY, while CNOOC (883.HK) is scheduled to release results.
- China Telecom (728.HK) saw a -0.8% decline in share price, while China Resources Cement (1313.HK) rose 1.7% after a profit warning.
External Market Conditions
- U.S. markets closed lower, with the Dow at 17,502, down 79 points, and the S&P 500 at 2,036, down 13 points.
- NASDAQ closed at 4,768, down 52 points.
- ADRs dropped, contributing to a -245 point decline in HSI.
- Crude oil prices fell, with NYMEX crude at $39.79/bbl, down $1.66.
- Gold prices dropped due to a stronger U.S. dollar, with NYMEX gold at $1,224.00/oz, down $24.6.
Stock in Focus: Harmonicare Medical (1509.HK)
- Last Close: HK$5.17
- Entry: Current
- Target: HK$6.10
- Stop-loss: HK$4.08
- YTD/1M/3M/12M % Change: -25.3%/-16.5%/-28.0%/N/A%
- Market Cap: HK$3.98bn
- 3M Average Daily Volume: 0.60mn shares
- FY1 Forward P/E: 19.7
Reason for Buy Signal:
- 2015 gross margin remained high at 50.7%.
- Pre-tax profit and profit attributable to shareholders increased 1.9% and 2.7% YoY, with 19.6% and 22.4% growth after excluding a one-time listing fee.
- 2016 is expected to be a better year for births compared to 2015 due to the Year of the Monkey.
- Strong fundamentals, with 88% of net cash from operating activities relative to profit before tax.
- Plans for new hospital construction and M&A to improve shareholder returns.
Today's Top Picks
-
BJ ENT WATER (371.HK):
- Price: HK$4.51
- Purchase Price: Current
- Target Price: HK$5.25
- Stop-loss Price: HK$4.42
- Reason: Supported by China's policy, with capacity growth expected to boost earnings.
-
FIH (2038.HK):
- Price: HK$3.29
- Purchase Price: Current
- Target Price: HK$4.00
- Stop-loss Price: HK$2.87
- Reason: Attractive valuations, suitable for long-term investment.
Sector Performance
Top Performing Sectors (Last Day):
- Automobile: +2.0%
- Heavy Machinery: +1.3%
- Department Store: +1.1%
- Building Materials: +0.8%
- Gaming: +0.6%
- HK Telecoms: +0.4%
- Logistics: +0.4%
- Handset and related accessories: +0.1%
- Chinese Telecoms: +0.1%
- Local Banks: +0.1%
Major Stocks in Top Performing Sectors:
- Automobile: Geely Auto (175), Dongfeng Motor (489), BRILLIANCE CHI (1114), BYD Co. (1211), Great Wall Motor (2333)
- Heavy Machinery: Sany Int'l (631), Zoomlion (1157), Lonking (3339), Sinotruk (3808)
- Department Store: NWDS China (825), Springland (1700), Intime (1833), Golden Eagle (3308), Parkson Group (3368)
- Building Materials: Shanshui Cement (691), Anhui Conch (914), China Res Cement (1313), BBMG (2009), CNBM (3323)
- Gaming: Galaxy Ent. (27), SJM Hldg (880), Wynn Macau (1128), Sands China (1928), MGM China (2282)
- HK Telecoms: HutchTel HK (215), Smartone (315), HKT-SS (6823)
- Logistics: Kerry Log Net (636), SITC (1308)
- Handset and related accessories: Tongda Group (698), AAC Tech (2018), Sunny Optical (2382), Coolpad Group (2269), TCL Comm (2618)
- Chinese Telecoms: China Telecom (728), China Unicom (762), China Mobile (941)
- Local Banks: Hang Seng Bank (11), BEA (23), Chong Hing Bank (1111), BOCHK (2388), Dah Sing Banking (2356)
- Dairy: Biostime (1112), CH Modern (1117), YST Dairy (1431), Mengniu (2319), Huishan Dairy (6863)
- Agriculture: First Tractor (38), Sinofert (297), Ko Yo Group (827), National Agri (1236), China Bluechem (3983)
- HK Consumer Group: Sa Sa Int'l (178), Cafe De Coral (341), Luk Fook (590), Bonjour (653), I.T (999)
- Brokerages: First Shanghai (227), Central China Sec. (1375), CITIC Sec. (6030), Haitong Sec. (6837), China Galaxy Sec. (6881)
- Chinese Banks: CCB (939), ABC (1288), ICBC (1398), BankComm (3328), BOC (3988)
Forward P/E and Valuations of Major Indices
- Hang Seng Index (HSI): FY16E P/E 10.9, long-term average 11.0, deviation from average -0.3%, FY1 EPS growth -10.7%, FY2 EPS growth 11.4%
- HSCEI: FY16E P/E 7.1, long-term average 7.9, deviation from average -10.7%, FY1 EPS growth -5.3%, FY2 EPS growth 9.2%
- Shanghai Composite: FY16E P/E 12.9, long-term average 10.7, deviation from average +19.7%, FY1 EPS growth +22.3%, FY2 EPS growth +12.4%
- S&P 500: FY16E P/E 17.2, long-term average 15.3, deviation from average +12.5%, FY1 EPS growth +7.3%, FY2 EPS growth +13.6%
Market Data
Best and Worst Performers (Previous Day)
| Stock Code |
Price (HK$) |
1D % Change |
5D % Change |
1M % Change |
YTD % Change |
Turnover (HK$m) |
FY1 P/E |
FY2 P/E |
| Best |
- |
- |
- |
- |
- |
- |
- |
- |
| BLOOMAGE BIOTE |
963.HK |
16.860 |
15.0 |
10.2 |
-12.2 |
28.2 |
20.0 |
16.8 |
| MINTH GROUP LTD |
425.HK |
18.640 |
11.8 |
31.1 |
21.0 |
195.9 |
11.5 |
10.1 |
| GEELY AUTOMOBILE |
175.HK |
3.760 |
10.6 |
15.0 |
-9.0 |
796.6 |
8.9 |
7.5 |
| TENWOW INTERNATI |
1219.HK |
1.970 |
9.4 |
8.8 |
0.0 |
8.0 |
7.6 |
6.7 |
| HI SUN TECHNOLOG |
818.HK |
1.380 |
7.8 |
19.0 |
8.7 |
13.7 |
N/A |
N/A |
| Stock Code |
Price (HK$) |
1D % Change |
5D % Change |
1M % Change |
YTD % Change |
Turnover (HK$m) |
FY1 P/E |
FY2 P/E |
| Worst |
- |
- |
- |
- |
- |
- |
- |
- |
| NEW WORLD CHINA |
917.HK |
8.040 |
-15.4 |
6.6 |
7.6 |
126.8 |
20.9 |
19.6 |
| SUMMIT ASCENT HO |
102.HK |
1.900 |
-8.2 |
-7.8 |
3.8 |
20.8 |
10.9 |
7.6 |
| YINGDE GASES GRP |
2168.HK |
3.100 |
-6.9 |
-6.6 |
7.3 |
17.5 |
6.1 |
4.8 |
| SINOPEC KANTONS |
934.HK |
3.810 |
-6.8 |
-0.5 |
2.7 |
19.9 |
7.6 |
7.1 |
| HI LONG HOLDING |
1623.HK |
0.940 |
-6.0 |
-4.1 |
-1.1 |
4.9 |
5.7 |
4.6 |
HSCI Volume Filter
| Company |
Stock Code |
Price (HK$) |
1D % Change |
Avg. Vol (m shares) |
Prev. Vol (m shares) |
% Increase |
FY1 P/E |
FY2 P/E |
| MINTH GROUP LTD |
425.HK |
18.640 |
11.8 |
1.1 |
11.3 |
924.1 |
11.5 |
10.1 |
| CHINA ZHONGWANG |
1333.HK |
4.400 |
2.1 |
7.4 |
55.3 |
647.6 |
7.9 |
7.1 |
| OZNER WATER |
2014.HK |
1.270 |
-3.1 |
5.7 |
36.6 |
536.2 |
13.3 |
9.7 |
| CHINA LESSO |
2128.HK |
4.270 |
-5.5 |
5.3 |
32.4 |
505.6 |
5.6 |
5.0 |
| HI LONG HOLDING |
1623.HK |
0.940 |
-6.0 |
1.1 |
5.2 |
374.4 |
5.7 |
4.6 |
| TENWOW INTERNATI |
1219.HK |
1.970 |
9.4 |
0.9 |
4.2 |
363.9 |
7.6 |
6.7 |
| TRAD CHI MED |
818.HK |
1.380 |
-4.2 |
7.6 |
30.3 |
13.7 |
N/A |
N/A |
Most Short Sold Stocks
| Company |
Stock Code |
Price (HK$) |
1D % Change |
Shortsell Turnover (HK$m) |
% of Total Shortsell Turnover |
% of Own Turnover |
FY1 P/E |
FY2 P/E |
| TIAN LUN GAS |
1600.HK |
5.690 |
-1.0 |
0.2 |
0.0 |
182.2 |
11.1 |
6.9 |
| MMG |
1208.HK |
1.780 |
-1.7 |
3.3 |
0.0 |
67.3 |
N/A |
7.4 |
| MINSHENG BANK-H |
1988.HK |
7.240 |
-0.5 |
62.7 |
0.8 |
65.3 |
4.8 |
4.8 |
| BANK EAST ASIA |
23.HK |
28.100 |
-1.1 |
28.6 |
0.4 |
63.5 |
14.8 |
13.8 |
| CITIC |
267.HK |
11.960 |
1.0 |
68.1 |
0.9 |
60.9 |
6.5 |
6.8 |
| SINOPEC ENGINE-H |
2386.HK |
6.200 |
-1.1 |
7.8 |
0.1 |
58.1 |
7.4 |
7.1 |
| CHINA MODERN DAI |
1117.HK |
1.590 |
-2.5 |
8.1 |
0.1 |
57.8 |
9.2 |
8.5 |
| CHINA RES GAS |
1193.HK |
22.150 |
0.2 |
24.8 |
0.3 |
54.3 |
16.6 |
14.3 |
| SWIRE PACIFIC-A |
874.HK |
17.10 |
-15.4 |
6.6 |
0.0 |
53.0 |
13.2 |
12.0 |
| FIRST TRACTOR-H |
38.HK |
4.57 |
-8.2 |
6.6 |
3.8 |
300.4 |
N/A |
N/A |
Interest Rates, Exchange Rates, and Commodities
Interest Rates
| Index |
Latest (%) |
5D % Change |
1M % Change |
YTD % Change |
y-y % Change |
| U.S. 2-year Treasury yield |
0.8519 |
-1.14 |
9.80 |
-19.58 |
29.49 |
| U.S. 10-year Treasury yield |
1.8734 |
-2.24 |
12.50 |
-39.60 |
0.03 |
| U.S. 30-year Treasury yield |
2.6504 |
-3.50 |
4.48 |
-36.54 |
18.61 |
| HK 1-month HIBOR |
0.2279 |
0.07 |
-8.80 |
0.68 |
-0.86 |
| HK 3-month HIBOR |
0.5597 |
-0.54 |
-6.18 |
16.62 |
17.19 |
| SH 1-month HIBOR |
2.7025 |
4.05 |
-7.25 |
-29.95 |
-232.65 |
| SH 3-month HIBOR |
2.7980 |
0.50 |
-12.90 |
-28.72 |
-210.10 |
Exchange Rates
| Pair |
Latest |
5D % Change |
1M % Change |
YTD % Change |
y-y % Change |
| USD Dollar Index |
96.0560 |
1.4 |
-1.4 |
-2.6 |
-1.2 |
| USD/HKD |
7.7588 |
0.0 |
0.1 |
-0.1 |
0.0 |
| EUR/USD |
1.1182 |
-1.2 |
1.5 |
3.0 |
2.4 |
| USD/JPY |
112.4 |
-0.9 |
-0.2 |
6.8 |
6.5 |
| GBP/USD |
1.4110 |
-2.6 |
1.3 |
-4.2 |
-5.0 |
| USD/CHF |
0.9753 |
-0.8 |
1.4 |
2.7 |
-1.8 |
| AUD/USD |
0.7510 |
-1.8 |
4.4 |
3.1 |
-4.7 |
| NZD/USD |
0.6704 |
-2.2 |
0.7 |
-1.9 |
-12.4 |
| USD/CAD |
1.3221 |
-1.9 |
3.6 |
4.6 |
-5.5 |
| USD/CNY |
6.5068 |
-0.5 |
0.3 |
-0.2 |
-4.6 |
| USD/CNH |
6.5108 |
-0.8 |
0.4 |
0.9 |
-4.6 |
Precious Metals and Commodities
| Commodity |
Latest |
5D % Change |
1M % Change |
YTD % Change |
y-y % Change |
| CRB Index |
173.2 |
-0.3 |
7.3 |
-1.6 |
-19.6 |
| Comex Gold |
1,221.9 |
-3.4 |
-1.4 |
15.3 |
2.6 |
| Comex Silver |
15.270 |
-4.8 |
-0.2 |
10.6 |
-10.1 |
| Nymex WTI Crude |
39.51 |
-1.7 |
22.9 |
6.7 |
-16.8 |
| ICE Brent Crude |
40.29 |
-3.0 |
17.1 |
8.1 |
-26.9 |
| LME Copper |
4,949.50 |
0.3 |
6.6 |
5.2 |
-19.1 |
| LME Aluminum |
1,479.50 |
-2.0 |
-4.4 |
-1.8 |
-17.7 |
| CBT Wheat |
463.00 |
0.1 |
4.6 |
-1.5 |
-11.6 |
| CBT Corn |
368.75 |
0.1 |
2.5 |
2.8 |
-6.2 |
| CBT Soybean |
905.25 |
0.8 |
4.4 |
3.9 |
-7.8 |
A-Share Premium to H-Share
| Company |
H-Share Code |
H-Price (HK$) |
A-Share Code |
A-Price (RMB) |
A-Share Premium to H-Share (%) |
| LUOYANG GLASS-H |
1108 |
4.58 |
600876 |
31.46 |
719.1 |
| SHENJI GROUP-H |
300 |
2.96 |
600806 |
10.46 |
321.4 |
| SHANDONG MOLON-H |
568 |
2.65 |
000756 |
10.64 |
294.2 |
| ANHUI EXPRESS-H |
995 |
6.31 |
600012 |
14.60 |
175.9 |
| CHINA OILFIELD-H |
2883 |
6.26 |
601808 |
13.30 |
153.3 |
| CHINA COSCO HO-H |
1919 |
3.03 |
601919 |
6.29 |
147.5 |
| BEIJING NORTH-H |
588 |
2.45 |
601588 |
4.25 |
106.8 |
| ZTE-H |
763 |
14.16 |
000063 |
15.06 |
26.8 |
| BANK OF CHINA-H |
3988 |
3.18 |
601988 |
3.39 |
27.1 |
| CITIC SEC-H |
6030 |
13.20 |
600837 |
14.74 |
33.2 |
| CHINA SHENHUA-H |
1088 |
12.58 |
601088 |
14.26 |
35.2 |
| HANG SENG CHINA AH PREMI |
N/A |
N/A |
135.04 |
N/A |
35.04 |
Summary
- The HK market is set to close for the Easter holiday.
- PetroChina and CNOOC are expected to report results, with PetroChina showing significant YoY declines.
- Harmonicare Medical is highlighted with a "Buy" signal, supported by policy and future growth.
- Geely Auto and MINTH GROUP LTD are top picks due to capacity growth and attractive valuations.
- Automobile, Heavy Machinery, and Department Store sectors showed the best performance.
- Interest rates fell globally, with U.S. yields declining and HK HIBOR rising slightly.
- Exchange rates saw mixed movements, with the USD/HKD and USD/CNY stable.
- Commodities like crude oil and gold fell, while copper rose slightly.
- A-share premium to H-share was significant for most listed companies, indicating valuation differences between markets.
