20211209-马银证券_香港_-每日港股简评_2页_137kb

Market Summary: Hong Kong and China Stocks

Core Content Overview

The Hong Kong stock market showed a directionless trend yesterday, with mixed performance across sectors. The Hang Seng Index closed at 23,996 points, a marginal gain of +13 points, and the daily turnover reached HKD116.1 billion. Analysts from ig.com predict a positive opening this morning, with the index expected to rise by approximately 150 points to around 24,100 points.

Sector Analysis

China Bank Sector

• RRR Cut Impact: Market estimates that a general RRR cut of 50 basis points could release RMB1.2 trillion in liquidity, which is about 0.5 percentage points increase in banks' lending capacity.
• Earnings Impact: This is expected to positively impact banks' earnings by approximately 0.6%.
• Monetary Policy Role: The RRR cut serves as a stable and long-term monetary tool, providing unconditional liquidity and avoiding short-term withdrawal.
• Future Expectations: The market anticipates one or two more RRR cuts in the next two months to address economic issues and seasonal demand before the Lunar New Year.

China Battery Sector

• Weak Performance: Battery-related stocks showed weak performance, primarily due to market preference for traditional basic materials and potential profit-taking.
• Positive Outlook: Despite this, the market remains optimistic about battery and battery materials demand, driven by the positive outlook for EV penetration.
• Sales Growth Projections: China NEV sales are expected to grow at a CAGR of 28%–30% from 2021 to 2025.
• Earnings Catalyst: Upcoming earnings reports, especially for lithium-related companies, are anticipated to be key catalysts for the sector.
• Key Stock: Ganfeng Lithium (1772 HK) is highlighted as a stock to watch, given potential significant earnings growth due to rising lithium prices.

Company News

Geely Auto (175 HK)

• November Sales: Total car sales were 135.9k units, down 10% YoY but up 22% MoM, attributed to easing chip supply pressure.
• Strong Models: Xingyue L and Xingrui models performed well, with strong orders on hand.
• Future Outlook: Market expects a 20% MoM improvement in December sales due to eased chip supply.
• Chip Development: Siengine, under the parent company, is developing a 7nm automotive SoC chip for mass production in 2023. Plans for a 5nm chip with 256 TOPS computing power are in place for 2024–2025.

Great Wall Motor (2333 HK)

• November Sales: Total wholesale sales were 122,510 units, down 16% YoY but up 9% MoM.
• Sub-brand Performance:
  • Haval: 69,170 units, down 32% YoY but up 11% MoM.
  • Pick-ups: 20,810 units, down 8% YoY but up 2% MoM.
  • ORA: 16,136 units, up 39% YoY and 22% MoM, driven by strong demand for Ora Haomao.
  • WEY: 6,286 units, down 31% YoY but up 7% MoM.
• Tank Model: Sales reached 10,108 units in November, up 2% MoM, showing success in off-road vehicle segments.
• Pre-sale Orders: Tank 500 had over 27k effective presale orders, indicating strong consumer interest.
• December Outlook: Sales are expected to improve MoM due to eased chip supply pressure.

GAC Group (2238 HK)

• November Sales: Total sales were 224k units, up 3% YoY and 16% MoM.
• Sub-brand Performance:
  • GAC Toyota: Sold 85k units, up 10% YoY and 39% MoM, suggesting easing chip supply pressure.
  • GAC Honda: Sold 77.7k units, down 10% YoY but up 3% MoM.
  • NEV Growth: NEV sales reached 17.8k units, up 95% YoY, with Aion brand leading at 15k BEVs sold, up 109% YoY.
  • GAC Motor: Sales increased by 7% YoY and 1% MoM, attributed to the strong demand for the new EMPOW55 model.

Disclaimer

This document is for general information and market commentary purposes only. It is not investment research or a recommendation. No representation is made regarding the accuracy or completeness of the information provided. Kim Eng (HK) does not take responsibility for any loss resulting from reliance on this content. Opinions expressed are subject to change. The information may not be reproduced or distributed without prior written consent. Investment in international markets carries risks, including economic, political, and currency fluctuations.