20220505-马银证券_香港_-每日港股简评_2页_162kb

Market Overview Summary

Core Content

The Hong Kong stocks market experienced a decline yesterday, primarily due to the sell-off of tech stocks following the sale of shares by key figures. Non-executive director Neil Shen sold his stake in Meituan-W (3690 HK), while JD Health (6618 HK) chairman Richard Liu sold approximately 8.8 million shares over the past week. This led to Meituan-W dropping by 4.5% and JD Health falling by 12.9%, adding to the existing weak market sentiment.

The Hang Seng Index corrected by 232 points to 20,869 points, with a daily turnover of HKD72.4 billion. However, U.S. stock markets rose overnight after the Federal Reserve's rate decision, which included a 50 basis point increase and Powell stating that a 75 basis point hike was not actively being considered. This eased concerns about aggressive Fed policy, with the Nasdaq leading the gains. According to ig.com, the Hang Seng Index is expected to open approximately 300 points higher today, reaching 21,150 points.

Sector News

Macau Gaming - Weak 1Q22 Results

• SJM (880 HK): 1Q22 adjusted property EBITDA loss improved sequentially to HKD474 million, better than the consensus forecast of HKD499 million, driven by lower costs and the daily run rate for existing business.
• MGM China (2282 HK): 1Q22 property EBITDA loss was USD26 million.
• Visitaton: During the May Labour Day holiday, visitation was stronger than expected, with around 25,000 visitors per day on Sunday and Monday. This was due to Macau slightly relaxing travel restrictions for Guangdong arrivals, extending the negative COVID-19 nucleic test requirement to 72 hours before arrival.
• Market Outlook: The sector is believed to be bottoming as Guangdong's travel restrictions ease.

Company News

BYD Co. (1211 HK)

• April Sales: Total sales volume reached 106,042 units, a 134% increase YoY.
• DM Series: Sales volume of 48,072 units, up 438.9% YoY.
• EV Series: Sales volume of 57,403 units, up 256% YoY.
• Series Performance: Both Qin and Song series exceeded 20,000 units sold, with the latter surpassing 25,000 units.
• Market Expectation: With the impact of the epidemic weakening, market expects BYD's sales to reach a record high. Plug-in hybrid EV (PHEV) is anticipated to outperform EV growth in China in 2022E.

Yum China-S (9987 HK)

• 1Q22 Revenues: Increased by 4% YoY to USD2.67 billion.
• Net Income: Declined by 57% YoY to USD100 million, primarily due to a USD37 million loss from mark-to-market investments in Meituan Dianping.
• Share Repurchase: The company repurchased 5 million shares for USD232 million, with an average price of USD46.57 per share. USD1.4 billion remains in the share repurchase program.
• Dividend: Declared a cash dividend of USD0.12 per share.
• Performance by Division:
  • KFC: System sales declined by 4%, and same store sales (SSS) decreased by 9%.
  • Pizza Hut: System sales declined by 1%, and SSS decreased by 5%.
• Outlook: Despite a worsened situation in the second half of March, 1Q22 results were at the high end of the estimated range.

PSBC (1658 HK)

• 1Q22 Results: Outperformed peers with the following highlights:
  • Net Interest Margin (NIM): Remained at 2.32% QoQ, supported by a flat QoQ asset yield and a 2 basis point contraction in liability cost.
  • Fee Income: Gross fee income increased by 13% YoY, and net fee income rose by 40% YoY.
  • NPL Ratio: Improved to 1.65% for inclusive MSE loan business, better than the industry average of 2.07%.
  • Insurance and Precious Metal Agency Income: Rose by 56% and 34% YoY, respectively, backed by AIA's strategic investment in China Post Life.
  • Credit-Card Business Income: Increased by 30% YoY due to weakened social consumption.

Junshi (1877 HK)

• FDA Response: Junshi and partner Coherus received a Complete Response Letter (CRL) from the U.S. FDA for the BLA of their co-developed PD-1 inhibitor toripalimab (Tuoyi).
• CRL Details:
  • For toripalimab in combination with gemcitabine and cisplatin in the 1L treatment of advanced recurrent or metastatic NPC.
  • For toripalimab monotherapy in the 2L+ treatment of recurrent or metastatic NPC after platinum-containing chemotherapy.
• Next Steps: The CRL requests a quality process change, which the companies believe is manageable. They plan to meet with the FDA directly and expect to resubmit the BLA by mid-summer 2022E.

Key Information

• Market Sentiment: Weak, with tech stocks under pressure due to insider selling.
• U.S. Market Impact: Positive overnight, with the Fed's rate decision easing concerns about aggressive monetary policy.
• Macau Gaming Recovery: Expected to bottom as travel restrictions ease, leading to increased visitation.
• BYD Growth: Strong sales growth in April, with PHEVs likely to outperform EVs in 2022E.
• Yum China-S Performance: Mixed results, with sales declines in some segments but strong share repurchase and dividend activity.
• PSBC Strong Results: Improved NIM, fee income, and NPL ratio, indicating resilience in the financial sector.
• Junshi FDA Update: Received CRL for toripalimab, with plans to resubmit by mid-summer 2022E.

Disclaimer

This Dim Sum Daily is for general circulation and information purposes only. It is not an investment research or recommendation. Information is based on data from recognized sources but not independently verified. MIB (HK) does not take responsibility for any loss from reliance on the content. Opinions are subject to change, and there may be discrepancies between fundamental, technical, and quantitative views. MIB (HK) may perform investment banking services for companies mentioned and is not liable for third-party actions. International investments carry risks such as economic, political, currency exchange, and information availability. Always consult a financial advisor before making investment decisions.