20220516-马银证券_香港_-每日港股简评_2页_160kb

Market Overview Summary

Core Content

The Hong Kong stock market experienced a positive movement last Friday, driven by the Chinese government's denial of a potential city-wide lockdown despite a slight increase in COVID-19 cases. This reassurance boosted investor sentiment, leading to a gain of 518 points in the Hang Seng Index, which closed at 19,898 points. The daily turnover reached HKD116.6 billion, indicating increased trading activity.

Economic Data and Sector Outlook

Several key China economic indicators were released this week, including industrial production, retail sales, fixed asset investment, and the unemployment rate. These data points are expected to provide further insights into the economic recovery and performance.

In the auto sector, there was a surge due to rumors suggesting that a new round of "cars going countryside" events might be launched soon. This event is aimed at promoting the adoption of new energy vehicles (NEVs) in rural areas and is seen as a positive catalyst for the sector.

Key Sector Insights

China EV Sector

In April, the installation of EV batteries decreased to 13.3 GWh, reflecting a 58% YoY increase but a 38% MoM decline. This drop was attributed to production disruptions caused by lockdown measures in key auto manufacturing regions. However, the retail sales of NEVs reached 282,000 units, a 78% YoY increase and a 36% MoM decrease. The domestic penetration rate rose to 27.1%, an increase of 17.3 percentage points YoY. Analysts believe that the impact of lockdowns is temporary, and recent favorable policies from the National Development and Reform Commission (NDRC) and other authorities are expected to support the growth of the EV market.

Uni-President China (220 HK)

Uni-President China reported a high-single-digit YoY revenue growth in 1Q22, driven by higher average selling prices and volume. Beverage revenue saw double-digit growth, particularly from the tea and juices segment. However, the company warned of potential demand pressure in 2Q22E due to ongoing lockdown measures. It also noted increased costs from rising palm oil and PET prices. Despite these challenges, the company maintains its full-year guidance and anticipates easing pressure in the second half of 2022.

Hua Hong Semi (1347 HK)

Hua Hong Semi reported strong 1Q22 results, with revenue of USD595 million (+95% YoY) and net profit of USD103 million (+210% YoY). The growth was fueled by demand in MCU, IGBT, Super Junction, NOR flash, PMIC, and CIS segments. The gross profit margin for 1Q22 was 26.9%, slightly below the previous guidance of 28-29%. For 2Q22E, the company guided revenue at USD615 million (+78% YoY) and expects the gross profit margin to return to the 28-29% range. The company is currently trading at a forward P/B ratio of 1.3x.

Tsingtao (168 HK)

Tsingtao has adopted a "core products + two engines" strategy to enhance its product mix. "Core products" such as Tsingtao Classic and Tsingtao Draft are key to volume growth, while the "two engines" focus on product mix upgrades. The company anticipates a rapid resumption of growth once the pandemic is under control. Profitability improvements are expected to come from product mix optimization, with mid-high-end products achieving over 10% sales volume growth in 1Q22.

Samsonite (1910 HK)

Samsonite reported a significant turnaround in 1Q22, with sales of USD574 million (+62% YoY) and a net profit of USD16.4 million, compared to a net loss of USD72.7 million in 1Q21. Sales in the North America market declined by 22%, while the Asia market showed only marginal improvement due to the "zero-COVID" policy. Europe continued to see growth, albeit with a 22% decline, and Latin America exceeded 1Q19 sales levels by 29%. The company plans to launch new products in the second half of 2022 and maintains its gross profit margin guidance at mid-50%.

Disclaimer

This document is intended for general information and market commentary purposes only. It is not an investment research or recommendation. MIB Securities (HK) Ltd does not independently verify the information and makes no representation regarding its accuracy or completeness. Readers are advised to consult their financial advisors for investment decisions. The company may have positions in the securities mentioned and may engage in related transactions. No liability is accepted for reliance on the contents of this document.