20171207-凯基证券亚洲-Investment_Daily_5页_456kb

Market Summary

Core Market Indicators

Hang Seng Index (HSI)

• 6 Dec: 28,224 points, down 618 points
• 5 Dec: 28,842 points, down 295 points
• 4 Dec: 29,138 points, up 64 points
• Turnover: $73.60 billion (6 Dec), down from $43.02 billion (5 Dec) and $48.35 billion (4 Dec)
• Technical Indicators:
  • 10-day MA: 29,302
  • 50-day MA: 28,720
  • 250-day MA: 25,740
  • 14-day RSI: 34.86
  • Primary resistance: 28,720
  • Primary support: 28,000

Hang Seng China Enterprises Index (HSCEI)

• 6 Dec: 11,162 points, down 322 points
• 5 Dec: 11,484 points, down 33 points
• 4 Dec: 11,518 points, up 68 points
• Turnover: $32.51 billion (6 Dec), down from $14.77 billion (5 Dec) and $18.09 billion (4 Dec)
• Technical Indicators:
  • 10-day MA: 11,586
  • 50-day MA: 11,512
  • 250-day MA: 10,592
  • 14-day RSI: 36.89
  • Primary resistance: 11,512
  • Primary support: 11,000

Market Outlook

• The Hang Seng Index is expected to trade within the range of 28,100-28,500 today.
• The index fell below the 50-day moving average (DMA) and the lower Bollinger Band, indicating a weak technical trend.
• The first support level is at 28,000, with the next support at 27,271 (150-day DMA).
• The first resistance is at 28,720, with the next at 29,288.
• Market sentiment remains unfavorable due to the weakness of A shares, expectations of faster US rate hikes, and profit-taking in technology stocks.
• However, the rebound in US tech stocks might help stabilize the local market today.

Key Sector Performances

• Technology, mainland insurance, and automobile sectors declined substantially.
• Sunny Optical (2382) was the worst-performing blue-chip stock, tumbling 12%.
• Metal resource sector also experienced a drop.

IPO Brief: AK Medical Holdings Limited [1789.HK]

• Industry: Medical
• Issue price (HK$): 1.66–2.00
• Total share offer size (HK$ mn): 415–500
• Historical P/E (x): 17.2–20.8
• Valuation: Not attractive compared to peers (e.g., Vincent Med: 14x, PW Medtech: 10x)
• Market growth: Expected CAGR of 10.2% for orthopedic implants in China between 2016 and 2021
• Recommendation: Neutral due to mild industry growth and high valuation

Vehicle Inventory Index

• November Index: 49.8%, down 0.1 ppt from October
• Alert level: Stayed below for 4 consecutive months
• Dealers' sentiment: Optimistic for December due to new model launches
• Yongda (3669):
  • Consolidated revenue: RMB36.4 billion (up 19.4% YoY)
  • Net profit: RMB1.1 billion (up 80.5% YoY)
  • Expected P/E (FY18): 6.2x, the lowest among peers
  • Recommendation: Accumulate when price is below HK$8

Most Actively Traded Stocks (SH-HK Connect Southbound)

Most Actively Traded Stocks (SZ-HK Connect Southbound)

Top 10 Short Sell Stocks

Economic Calendar Highlights

• Monday:
  • US: Factory Orders (Mom) (Oct) at 0.6% (Prior: 1.4%)
  • Eur Zone: Product Price Index (Yoy) (Oct) at 2.9% (Prior: 2.9%)
• Tuesday:
  • China: Caixi PMI Composite (Nov) at 51.0 (Prior: 51.0)
  • US: Markit PMI Composite (Nov) at 54.6 (Prior: 54.6)
• Wednesday:
  • US: EIA crude oil stocks change (Dec 1) at -3,429M (Prior: -3,429M)
• Thursday:
  • Eur Zone: GDP (Yoy) (Q3) at 2.5% (Prior: 2.5%)
  • China: Nov Foreign Exchange Reserves at 2.5% (Prior: 2.5%)
• Friday:
  • US: Unemployment rate (Nov) at 4.2% (Prior: 4.1%)
  • US: Nonfarm Payrolls (Nov) at 185K (Prior: 261K)
  • China: Exports (Nov) at 5.1% (Prior: 6.9%)
  • China: Imports (Nov) at 12.0% (Prior: 17.2%)
• Saturday:
  • China: CPI (Nov) at 1.8% (Prior: 1.9%)
  • China: CPI (Nov) at 5.8% (Prior: 6.9%)

Disclaimer

• The information and opinions in this report are for informational purposes only.
• No liability is accepted for any use of this report or its contents.
• This report is not an invitation or offer to buy or sell securities.
• Some equity research and earnings estimates are available at KGIEWORLD.COM.
• The KGI analysts are SFC licensed and have no financial interest in the covered stocks.