20171025-凯基证券亚洲-Investment_Daily_5页_290kb

Market Summary

Core Market Indicators

Hang Seng Index (HSI)

• Closing Price (24 Oct): 28,155 points
• Change (24 Oct): -150 points
• Turnover (24 Oct): $27.71 billion
• HSCEI Closing Price (24 Oct): 11,405 points
• HSCEI Change (24 Oct): -85 points
• HSCEI Turnover (24 Oct): $15.90 billion

Technical Analysis for HSI

• 10-day MA: 28,453
• 50-day MA: 27,894
• 250-day MA: 24,968
• 14-day RSI: 49.6
• Primary Resistance: 28,799
• Primary Support: 27,894 (50-DMA) and 27,360 (Bollinger Band Bottom)

Technical Analysis for HSCEI

• 10-day MA: 11,504
• 50-day MA: 11,181
• 250-day MA: 10,343
• 14-day RSI: 52.8
• Primary Resistance: 11,694
• Primary Support: 11,181

HSI Futures

• Oct Contract (24 Oct): 28,162
• Volume (24 Oct): 132,029
• Open Interests (24 Oct): 136,221
• Nov Contract (24 Oct): 28,160
• Volume (24 Oct): 25,967
• Open Interests (24 Oct): 33,358

HSCEI Futures

• Oct Contract (24 Oct): 11,402
• Volume (24 Oct): 86,035
• Open Interests (24 Oct): 234,687
• Nov Contract (24 Oct): 11,409
• Volume (24 Oct): 27,458
• Open Interests (24 Oct): 41,788

Key Market Trends

• The Hang Seng Index (HSI) decreased by 150 points on 24 October, closing at 28,155, while the HSCEI fell by 85 points, closing at 11,405.
• HSI turned lower, with a total turnover of $89.9 billion.
• The automobile sector retreated, with blue-chip stocks declining over 2%.
• The Chinese power sector saw capital inflow, with individual stocks rising over 3%.
• The US market rebounded after better-than-expected corporate results, with the Dow Jones hitting a new high.
• 10-year US Treasury yield rose 4 basis points to 2.42% due to the potential appointment of a more hawkish Fed chairman.
• HSI is expected to trade between 28,000 and 28,400.
• HSI is approaching its 50-day moving average, which is a key support level.

Company Highlights

Huaneng (0902)

• 3Q2017 Net Profit: Rmb2.07 billion, down 38.2% yoy.
• Revenue: Rmb111.1 billion, up 10.8% yoy.
• Power Generation: Increased 26.5% yoy due to coal asset acquisitions and resumed coal power growth.
• Average Tariff: Rose 3.7%.
• Fuel Costs: Sharp rise in coal prices led to lower profits.
• Valuation: P/B ratio of 0.8x, suggesting accumulation.
• 14-day RSI: 63.9
• 52 Week High/Low: 5.92 / 4.27

Shenzhen Expressway (548)

• 3Q2017 Revenue: Increased by 1.8% to 9.6% yoy for the Shenzhen region.
• Meiguan Expressway: Declined 0.2% yoy.
• Other Expressways: Mixed traffic volume increased by 10.3% to 3.7% yoy.
• Acquisition: 20% equity in Derun Environment, which holds 50.04% in Water Group and 57.12% in San Feng Environment.
• Financial Status: Net debt of 58.43% in 1H2017, with borrowing costs at 4.73%.
• Valuation: Expected P/E of 11.5x, lower than industry peers.
• 52 Week High/Low: 8.17 / 6.23
• 14-day RSI: 68.1

CITIC Bank (0998)

• 3Q2017 Net Profit: Rmb34.74 billion, up 0.56% yoy.
• Net Interest Income: Rmb74.27 billion, down 6.60% yoy.
• Net Fee and Commission Income: Rmb34.22 billion, up 10.47% yoy.
• Non-Performing Loans Rate: 1.66%, up 0.01% qoq but down 0.03% yoy.
• Net Operating Profit Before Impairment: Increased 9.77% yoy.
• Valuation: P/B ratio of 0.5x.
• 52 Week High/Low: 5.26 / 4.51
• 14-day RSI: 45.0

Stock Connect Statistics

SH-HK Connect Southbound

• Balance (RMB bn): SH Connect 15.21, SZ Connect 13.94, Combined Southbound 19.29
• Top 10 Most Actively Traded Stocks: SUNAC, TENCENT, MAN WAH HLDGS, COUNTRY GARDEN, PING AN, GEELY AUTO, EVERGRANDE, CNBM, ICBC, SMIC

SZ-HK Connect Southbound

• Top 10 Most Actively Traded Stocks: ZTE, UNI MEDICAL, SUNAC, Q TECH, COUNTRY GARDEN, SMIC, BYD COMPANY, EVERGRANDE, PING AN, KINGDEE INT'L

Top 10 Most Actively Traded Stocks

• TENCENT (00700.HK): -0.34%, $347.40, $5,354.6M
• PING AN (02318.HK): -1.34%, $66.15, $2,360.0M
• CHINA LIFE (02628.HK): -1.38%, $25.10, $1,530.5M
• CCB (00939.HK): -0.58%, $6.81, $1,492.1M
• AIA (01299.HK): -0.76%, $58.75, $1,460.7M
• BYD COMPANY (01211.HK): -3.63%, $70.35, $1,345.5M
• COUNTRY GARDEN (02007.HK): +6.70%, $13.38, $1,280.3M
• ICBC (01398.HK): -0.16%, $6.15, $1,257.6M
• BANK OF CHINA (03988.HK): -0.50%, $3.97, $1,159.2M
• SUNAC (01918.HK): +3.97%, $41.90, $1,103.1M

Top 10 Short Sell Stocks

• TENCENT (00700.HK): Short Sell 829M, Turnover 5.35B, Short Sell Ratio 15.48%
• TRACKER FUND (02800.HK): Short Sell 728M, Turnover 1.31B, Short Sell Ratio 55.53%
• PING AN (02318.HK): Short Sell 552M, Turnover 2.36B, Short Sell Ratio 23.38%
• HS H ETF (02828.HK): Short Sell 408M, Turnover 681.25M, Short Sell Ratio 32.43%
• CCB (00939.HK): Short Sell 398M, Turnover 1.49B, Short Sell Ratio 58.43%
• ICBC (01398.HK): Short Sell 397M, Turnover 1.26B, Short Sell Ratio 26.63%
• CHINA LIFE (02628.HK): Short Sell 279M, Turnover 1.53B, Short Sell Ratio 24.03%
• BANK OF CHINA (03988.HK): Short Sell 276M, Turnover 1.16B, Short Sell Ratio 18.06%
• AIA (01299.HK): Short Sell 245M, Turnover 1.46B, Short Sell Ratio 18.20%
• CNBM (03323.HK): Short Sell 165M, Turnover 700.30M, Short Sell Ratio 42.75%

Economic Calendars

• Mon: China - Sep. Property Prices
• Tue: H.K. - Huaneng Power (0902) and CITIC Bank (0998) release 3Q earnings
• Eurozone: Oct. Markit Manufacturing PMI (57.7)
• Germany: Oct. Markit Manufacturing PMI (60.0)
• U.S.: Oct. Markit Manufacturing PMI (53.0)
• Wed: U.K. - 3Q GDP (YoY) (1.5%)
• U.S.: Sep. Durable Goods Orders (1.3%)
• Thu: H.K. - Multiple companies release 3Q earnings
• Eurozone: ECB Main Refinancing Rate Decision (0.00%)
• ECB Asset Purchase Target: EU$60 billion
• U.S.: Initial Jobless Claims (Oct. 21) (222K)
• Continuing Claims (Oct. 14): 1,888K
• Fri: H.K. - Multiple companies release 3Q earnings
• Japan: Sep. CPI Ex-Fresh Food (YoY) (0.8%)
• U.S.: 3Q GDP (YoY) (2.5%)

Disclaimer

• KGI Asia Ltd. provides the information for informational purposes only.
• No liability is accepted for any use of this report.
• The report is not an invitation or offer to buy or sell securities.
• Some equity research and earnings estimates are available on KGIEWORLD.COM.
• KGI analysts are SFC licensed and do not have financial interests in the covered stocks.