20220404-马银证券_香港_-每日港股简评_2页_156kb

Market Summary

Core Content

The Hong Kong stock markets experienced a correction last Friday following the release of lower-than-expected China manufacturing data. Despite this, the Hang Seng Index showed an intraday reversal, supported by Tencent (700 HK) and China financial players. The index closed up 42 points at 22,039 points, with a relatively thin daily turnover of HKD94.5 billion. This week, market attention will shift to the FOMC minutes. Due to the Ching Ming Festival, there will be only four trading days for the Hong Kong market and three for the China market, with expectations of continued thin trading volumes.

Sector Overview

China Macro

• China's March Caixin Manufacturing PMI was 48.1, below the consensus forecast of 49.7 and February's 50.4.
• This indicates a deterioration in recent business conditions, attributed to the latest wave of COVID-19 outbreaks in China.
• The official March Manufacturing PMI also missed expectations at 49.5 (vs. consensus of 49.9 and February's 50.2).
• Caixin economists highlighted that China is facing its most severe outbreak wave since 2020, with increased uncertainty abroad.
• Market expectations are for policy easing, including temporary measures and property sector support, in the coming months.

China Property

• Property developers' March contracted sales continued to decline, averaging a 43% YoY drop.
• There is a significant divergence between state-owned enterprises (SOEs) and private developers, with SOEs down 30% YoY and private developers down 44% YoY.
• The decline is attributed to a high base in March 2021, lockdowns due to the pandemic, and weak market sentiment.
• Market analysts anticipate an improvement in contracted sales in the second quarter of 2022, supported by policy easing.
• Preferred players include COLI (688 HK), CR Land (1109 HK), Longfor (960 HK), and CIFI (884 HK) due to their lower risk and healthier financial positions.

China Renewable Energy

• The Chinese government is addressing the issue of delayed renewable energy subsidies through various meetings and discussions.
• The Ministry of Finance (MOF) pledged to resolve the issue in its 2022 work report.
• Wind and solar farm operators are being asked to tally the subsidies owed by the government, which could lead to faster payment.
• Market sentiment suggests that improved subsidy collection, accelerated capacity growth in 2022, and lower borrowing costs will benefit related players.

Company News

COSCO Shipping (1919 HK)

• The company's share price rose after issuing a positive profit alert for 1Q22E results.
• Expected 1Q22E net profit is RMB27.6 billion (+78.6% YoY), and EBIT is RMB39.3 billion (+98% YoY).
• Management expects global containerized shipping volume to rise by about 5% YoY in 2022E.
• Supply chain disruptions are expected to continue at least until the second half of 2022.
• Spot freight rates are anticipated to remain high, while higher contract rates will provide revenue visibility.
• The company plans to accelerate digitalization and green initiatives to streamline operations and meet de-carbonization goals.

China Merchants Port (144 HK)

• The company reported 2021 adjusted earnings of HKD7.54 billion (+81% YoY).
• Its 2H21 earnings growth slowed to 8% compared to 1H21's 222% YoY growth, due to a high base.
• Management forecasts a 5.7% YoY volume growth for 2M22 and expects mid-to-high single-digit growth for 2022E.
• They believe there is potential for domestic port recovery and overseas port expansion to drive overall volume growth.
• Demand from the US and EU remains strong, according to management.

Disclaimer

This Dim Sum Daily is for general information purposes only and is not an investment recommendation. The information provided is based on data from recognized sources but has not been independently verified by MIB Securities (HK) Ltd. No representation is made regarding its accuracy or completeness. MIB (HK) does not accept liability for any loss resulting from reliance on this content. Opinions expressed are subject to change and may not align with all types of investment analysis. MIB (HK) may have positions in securities mentioned and may participate in financing transactions with these companies. It is recommended to consult a financial advisor before making any investment decisions.