20220513-马银证券_香港_-每日港股简评_2页_159kb

Market Summary

Core Content

The Hong Kong stock market experienced a decline, reaching its lowest level in two months, following the weakening of the Hong Kong dollar to HKD7.85 per U.S. dollar. This is the lowest end of the range between HKD7.75 and HKD7.85. The Hong Kong Monetary Authority (HKMA) intervened to defend the local currency for the first time since 2019, raising concerns about further liquidity outflows. In addition, the Chinese property sector faced a sharp drop after Sunac (1918 HK) announced it would default on a dollar-bond coupon before its deadline and may not be able to pay on other notes. Tech stocks also saw significant selling pressure, with Alibaba-SW (9988 HK) and JD-SW (9618 HK) falling by 6.5% and 7.7%, respectively. The Hang Seng Index dropped by 444 points to 19,380 points, with a daily turnover of HKD115.6 billion.

Key Companies and Their Performance

Galaxy Ent. (27 HK)

• 1Q22 Results: Revenue of HKD4.1 billion (-20% YoY), adjusted EBITDA of HKD575 million (-33% YoY).
• EBITDA Level: Exceeded market expectations of HKD482 million.
• Normalized EBITDA: HKD572 million after adjusting for a HKD3 million good luck effect.
• Property Performance: Galaxy Macau had strong performance with adjusted EBITDA of HKD724 million (-5% YoY), while StarWorld Macau and Broadway Macau recorded adjusted LBITDA of HKD58 million and HKD17 million, respectively.
• Financial Status: As of end-March, the company had HKD35 billion in cash and liquid investments, and net cash of HKD24.5 billion, indicating strong and stable financial health.
• Market Outlook: Expected to perform better than peers in the VIP segment due to its premium direct VIP rooms and Phase 3 development.

AAC Tech (2018 HK)

• 1Q22 Results: Revenue of RMB4.89 billion (+14.1% YoY), gross profit of RMB957 million (-28% YoY), and gross profit margin of 19.5% (-11.6ppts YoY).
• Net Profit: RMB205 million (-61.4% YoY), missing market consensus by approximately 19%.
• Performance Drivers: Revenue growth was driven by strong demand from overseas key customers in the acoustics and haptics segment, and increased contributions from the optics business.
• Market Outlook: Expected to maintain similar gross profit margins in 2Q22E due to weak smartphone market demand and the impact of the COVID-19 pandemic in China.

BYD Co. (1211 HK)

• Investigation: The municipal government of Changsha announced an investigation into the environmental impact of BYD's vehicle assembly factory due to public complaints about air quality and health issues.
• Production Capacity: The Changsha factory has a production capacity of 300,000 units, accounting for approximately 20% of BYD's total car-making capacity.
• Market Concerns: There is speculation that BYD may need to invest in a filtering system or face permanent closure of the factory.

Wynn Macau (1128 HK)

• 1Q22 Results: LBITDA of USD2 million, in line with market expectations, compared to USD nil in 4Q21.
• Segment Performance: Rolling volume declined by 10% QoQ to USD1.85 billion due to the closure of junket VIP rooms; mass market gross gaming revenue dropped by 14% QoQ.
• Property Performance: Wynn Macau had resilient performance with LBITDA of USD7 million (vs. USD16 million in 4Q21); Wynn Palace recorded EBITDA of USD5 million (vs. USD16 million in 4Q21).
• Market Share: Lost 0.4ppts QoQ to 12.2%.
• Management Comments: Stated they are waiting for the official gaming license tender documentation to be released in the next 2-3 months before making decisions.

Shineway Pharm (2877 HK)

• 1Q22 Results: Revenue of RMB878 million (+18% YoY).
• Product Performance: Injections, soft capsules, granules, and concentrated formula granules saw sales growth of 15%, 22%, -9%, and 41% YoY, respectively.
• Formula Granules: Outperformed peers with 41% YoY growth, likely due to market share gains.
• Capacity Expansion: Aimed to expand capacity to support RMB4 billion in annual sales for 2022E.

Disclaimers

This document is for general circulation and information purposes only. It is not an investment research or recommendation. The information provided is based on data from recognized statistical services, issuer reports, or other reliable sources, but it has not been independently verified by MIB Securities (HK) Ltd or its affiliates. No representation is made regarding the accuracy or completeness of the information. MIB (HK) does not take responsibility for any loss incurred from reliance on this content. Any non-factual statements are current opinions and may change without notice. MIB (HK) may participate in financing transactions or have positions in securities mentioned, and may buy or sell such securities as principal or agent. Employees, analysts, officers, or directors of MIB (HK) may serve as directors of companies mentioned. This document is intended for use by MIB (HK)'s clients and may not be reproduced, altered, transmitted, or distributed without prior written consent. There are risks associated with international investments, including economic, political, currency exchange rate fluctuations, and limited availability of information. MIB (HK) recommends consulting a financial advisor to confirm suitability based on individual financial resources and risk preferences.