20220714-马银证券_香港_-每日港股简评_2页_163kb

Market Summary

Core Content

The Hong Kong stock markets showed no clear direction on the previous day as investors remained cautious, adopting a "wait and see" approach in response to U.S. inflation and employment data. The Hang Seng Index declined by 46 points to 20,797, with a daily turnover of HKD108.3 billion. U.S. markets also closed lower due to concerns over rising inflation, which may lead to more aggressive Federal Reserve policies.

Main Sector Developments

China NEV - EV Battery Growth

• NEV Sales: China's NEV sales in June surged by 129% YoY to 596,000 units, driven by BEV (476,000 units, +120% YoY) and PHEV (120,000 units, +170% YoY) growth.
• EV Battery Production: EV battery production in June increased by 172% YoY to 41.3 GWh, while battery installations rose by 143% YoY to 27.0 GWh, with NCM battery installations up 95% YoY to 11.6 GWh.
• Outlook: The market anticipates continued strong growth in EV battery installations for the rest of 2022, supported by the robust NEV sales volume outlook.

China Shipping - Weekly Updates

• Freight Rate Indices: Both the CCFI and SCFI declined by 1.2% and 1.4% WoW, respectively, to 3,232 and 4,143.
• Key Routes: US West Coast, US East Coast, Europe, and South East Asia routes reported declines of 3%, 0.8%, 0.6%, and 1.8% WoW.
• BDI Index: The Baltic Dry Index continued its downward trend, with a WoW decline of 6%, slightly narrower than previous weeks. Capesize and Panamax showed reduced declines of 7.4% and 5.9% WoW, while Supramax and Handysize declined by 4.8% and 5.6% WoW.

Company Highlights

CTF (China Times Financial)

• Same-Store Sales Growth (SSSG): China SSSG rebounded to low-single-digit % YoY growth in June, after a sharp decline of nearly 30% YoY in April-May.
• HK & Macau SSS Decline: HK & Macau SSS declined by 6% YoY, continuing the trend from earlier months.
• Net Openings: China net openings totaled 312 in the quarter.
• Guidance: Management maintains its SSS guidance for China (low-single digit decline) and HK & Macau (mid-teens growth), as well as over 1,000 POS openings for FY23E.

CLP (2 HK)

• Disposal of Aprava Energy: On 12 July, CLP announced the sale of 10% of its Indian operation, Aprava Energy, to CDPQ Infrastructure for HK$653 million.
• Ownership Split: Post-disposal, CLP and CDPQ will each own 50% of Aprava Energy, and it will no longer be a subsidiary of CLP.
• Financial Impact: The disposal is expected to result in a one-off loss of HKD980 million in 1H22 results and a non-cash loss of HKD2.2 billion. However, the financial impact is limited, as the 10% disposal is estimated to trim less than 0.5% of CLP's FY22E earnings. The non-cash nature of the losses is expected to have minimal impact on dividend payments.

Ganfeng Lithium (1772 HK)

• Acquisition of Lithea Inc.: On 11 July, Ganfeng Lithium announced its intention to acquire up to 100% of Lithea Inc., which owns the Pozuelos & Pastos Grandes (PPG) brine project in Argentina with total resources of 11.06mtLCE.
• Production Capacity: The PPG project is expected to support 30ktpa of lithium carbonate capacity (Phase I) by 2024E, with potential for expansion to 50ktpa.
• Collaboration Potential: The acquisition may lead to potential collaboration with Lithium Americas in the Pastos Grandes region, which could reduce capital expenditures and production costs.

Key Information

• The market sentiment in Hong Kong remains cautious due to U.S. inflation concerns.
• China's NEV sector continues to grow strongly, with significant increases in both sales and battery production.
• The shipping sector faces ongoing pressure, with freight rate indices declining across key routes.
• CTF's sales growth in China is recovering, but HK & Macau still faces a decline.
• CLP's disposal of Aprava Energy is expected to have limited financial impact.
• Ganfeng Lithium's acquisition of Lithea Inc. highlights strategic moves in the lithium supply chain.