20211201-马银证券_香港_-每日港股简评_2页_135kb

Market Overview Summary

Core Content

The Hang Seng Index (HSI) experienced a decline to its year-low level, driven by concerns over the Chinese technology sector and the spread of the Omicron variant of the coronavirus. Hong Kong expanded its travel restrictions, adding 13 more countries, including Canada and Australia, to its high-risk list, which may affect the timeline for border reopening with China. The index fell 376 points to 23,475, with daily turnover reaching HKD223.8 billion due to changes in MSCI equity indexes. The release of the Nov Caixin manufacturing PMI is anticipated, with a consensus estimate of 50.5. U.S. markets also saw a decline overnight after Jerome Powell warned about inflation and hinted at a faster tapering of asset purchases. The HSI is expected to open around 23,450 today.

Main Points

• Market Performance:

  • HSI slumped to year-low due to concerns about the Chinese tech sector and the Omicron variant.
  • Daily turnover was HKD223.8 billion due to MSCI equity index changes.
  • HSI is expected to open flattish at 23,450.

• Travel Restrictions:

  • Hong Kong added 13 countries to its high-risk list, including Canada and Australia.
  • The move may raise concerns about the schedule of border reopening with China.

• Sector Impact:

  • Macau gaming, Chinese airline, Hong Kong retail, and Hong Kong landlord sectors were affected.

• U.S. Market:

  • Overnight decline due to Powell's comments on inflation and faster tapering.

Key Information

• China Renewable Energy:

  • The Chinese government has invited applications for the second batch of national electricity power bases.
  • The first batch of 100GW wind/solar power bases started construction on 13 Oct.
  • The second batch applications are due by 15 Dec, with approvals likely by end-2021.
  • The renewable sector is expected to benefit from the accelerated pace of applications.
  • Related stocks: China Longyuan (916 HK), Goldwind (2208 HK).

• China Online Ads:

  • SAMR issued draft rules for improved online ads supervision.
  • Key provisions include holding advertisers and platforms accountable, banning ads for K12 after-school tutoring and certain ads targeting minors, prohibiting live streaming e-commerce ads for drugs and healthcare products, and reiterating pop-up ad guidelines.
  • The draft reiterates existing regulations for education, gaming, and pop-up ads.

• China Coal:

  • BSPI and CCI5,500 spot coal prices were flat as of 24 Nov and the past week, respectively.
  • Coal supply to IPPs increased to 8.6m tons daily in mid-to-late Nov, up 30% YoY.
  • Coal inventory at QHD rose 14.1% YoY to 5.59m tons as of 28 Nov.
  • NDRC expects coal inventory to reach an historical high by end-Nov, ensuring supply for the winter heating season from 4Q21 to 1Q22.
  • Supply and demand are currently balanced, leading to stable coal prices.

• Company News:

  • China Has:
    • Share price hit 52-week low due to missed 1HFY22 results.
    • Revenue increased by 43% YoY to RMB38.9b, but net profit fell by 19.3% YoY to RMB4.1b.
    • Missed EBITDA guidance due to weak government support for smart micro-grids and a property market meltdown.
    • Lowered FY22 installation target to 3m.
    • Market is adjusting FY22/23E earnings forecasts accordingly.
  • HKTV (1137 HK):
    • Released a profit warning for FY21, indicating significant profit and adjusted EBITDA decline.
    • Decline attributed to the absence of one-off government subsidies and a one-off summer promotion.
    • Management expects no repetition of the promotion in 2022E.
    • Near-term share price is expected to face pressure due to missing EBITDA guidance and low GMV visibility for 2022E.

Disclaimer

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