20220328-马银证券_香港_-每日港股简评_2页_144kb

Hong Kong Market Summary

Core Content

The Hong Kong stock markets experienced a decline last Friday, primarily driven by the underperformance of tech stocks, including Alibaba-SW (9988 HK), Tencent (700 HK), and Meituan-W (3690 HK). The Hang Seng Index dropped by 541 points to 21,404, with a daily turnover of HKD147.5 billion. This week, the market is expected to focus on companies' FY21 results announcements, particularly for most Chinese banks.

Key Company Updates

Meituan-W (3690 HK)

• 4Q21 Results: Revenue reached RMB49.5 billion (+30.6% YoY), exceeding expectations, while adjusted net loss was RMB3.9 billion, lower than the consensus forecast of RMB5.7 billion.
• Segment Performance:
  • Food delivery revenue: RMB26.1 billion (+21.3% YoY)
  • In-store, hotel & travel revenue: RMB8.7 billion (+22.2% YoY)
  • New initiatives and others: RMB14.6 billion (+58.7% YoY)
• Challenges: Continued pressure from strict COVID-19 control measures and a weakening consumption environment.
• Strategic Focus: Emphasis on high-quality growth, enhancing user experience, and improving operating efficiency.
• ADR Performance: ADR advanced by 6%.

Trip.com-S (9961 HK)

• 4Q21 Results: Revenue of RMB4.7 billion (-6% YoY), with non-GAAP operating loss narrowing to -RMB197 million due to cost control.
• Recent Impact: Domestic hotel room night growth in 2M22 reached 20% YoY, but recent resurgence of COVID-19 is expected to negatively impact 2Q22E performance.
• Key Issues:
  1. Domestic hotels/air ticketing volumes dropped to 50% / 10-20% of 2019 levels.
  2. Lockdowns and outbreak control measures are likely to dampen performance.
  3. Ongoing strict cost controls.
  4. Strong cash position of USD10 billion as of end-2021.

JD Logistics (2618 HK)

• Placing: Placed c.150.5 million shares at HKD20.71 per share, representing a 9.96% discount to the last closing price.
• Purpose: To improve logistics network, increase cash reserves, and enhance competitiveness in the integrated supply chain industry.
• Long-Term Outlook: Market remains positive about its acquisition of Deppon, which is expected to strengthen infrastructure in transportation and distribution.

China Life (2628 HK)

• FY21 Results: New business value (NBV) declined by 23% YoY to RMB44.8 billion, with a 31% decline in the second half of 2021.
• Agent Performance: Individual agent NBV dropped 26% YoY, with first-year premium down 14% and FYP margin down 6.3pp to 41.6%.
• Headcount Decline: Sales agents' headcount fell by 40% YoY.
• Outlook: Market expects continued agent headcount decline, which will pressure NBV growth in 1H22E.

CR Beer (291 HK)

• FY21 Results: Revenue increased by 6.1% YoY to RMB33.3 billion, and net profit surged by 119% YoY to RMB4.58 billion.
• Earnings Outlook: Net profit is expected to range between RMB4.4 billion and RMB4.7 billion.
• Final DPS: Declared at RMB0.302.
• Strategic Goals:
  • Maintain 20-25% volume CAGR for the sub-high-end and -above segment until 2025E.
  • Achieve c.20% market share in China's supreme beer market by 2025E for Heineken.
• Future Outlook: Management expects beer sales to resume healthy growth once social restrictions are lifted in the summer peak consumption season.
• Cost Increase: Budgeted for a RMB1.5 billion-1.6 billion increase in 2022E due to higher raw material and packaging costs.

Disclaimer

This document is for general information purposes only and is not intended as investment research or a recommendation. The information provided is based on data from recognized sources and is not independently verified. MIB Securities (HK) Ltd does not take responsibility for any loss resulting from reliance on this content. Opinions expressed are subject to change and may not be in concert with technical or quantitative analyses. MIB (HK) may have financial interests in companies mentioned, and no solicitation to buy or sell securities is intended. The document may not be reproduced or distributed without prior written consent.