20220608-马银证券_香港_-每日港股简评_2页_158kb

Market Summary: 7 June 2023

Core Content Overview

The Hang Seng Index showed a mixed performance on 7 June 2023, closing down 122 points to 21,531 points. The market remained directionless overall, but focus was on the tech and shipping sectors. The daily turnover reached HKD140 billion, indicating continued investor activity.

Key Sector Developments

Tech Sector

• Performance: The tech sector was stimulated by the strong performance of U.S. Chinese ADRs and better-than-expected quarterly results.
• Market Focus: Investors were paying close attention to the performance of tech stocks, especially those with exposure to the Chinese market.
• Notable Companies: Tech stocks such as Tencent (700 HK) and NetEase-S (9999 HK) were under scrutiny due to their influence on the sector.

Shipping Sector

• Performance: The shipping sector gained traction due to the recovery of Shanghai's port operations.
• Recovery Metrics: Cargo volume at Shanghai's sea and air ports has continued to rise and is expected to return to over 90% of normal levels.
• Market Implication: The improved production and logistics capabilities in Shanghai are seen as positive signs for the broader shipping industry.

Sector-Specific News

China Online Game - New Video Game Licenses

• Event: The National Press and Public Administration released the June list of new video game licenses, granting 60 games.
• Impact: The move is considered a positive signal for the sector, which has been affected by regulatory crackdowns and a suspension of approvals.
• Notable Exclusions: No licenses were issued to major industry players like Tencent or NetEase-S, nor to any foreign titles.
• Related Stocks: Maoyan Ent. (1896 HK), IMAX China (1970 HK)

Macau Gaming - Positive Sentiment Expected

• GGR Performance: Macau's gross gaming revenue (GGR) for the first five days of June reached MOP0.6b, indicating an average daily run rate (ADR) of MOP120m.
• Improvement Factors: The improved ADR is attributed to the easing of the COVID-19 situation in China and the extended validity period of the test to seven days.
• Future Outlook: Market expects continued improvement in visitation and GGR throughout June.
• Legislative Update: The revised gaming law is expected to be finalized by the Legislative Assembly committee on 10 June.
• Related Stocks: Sands China (1928 HK), Galaxy Ent. (27 HK)

China Movie - Cinema Reopening

• Reopening Rate: The cinema reopening rate reached around 80% during the Tuen Ng Festival, up from 70% during the Labor Day weekend.
• Reopening Timeline: Cinemas in Beijing reopened on 6 June with a 75% traffic limit, and those in Shanghai are expected to follow in the coming weeks.
• Summer Pipeline: A strong film pipeline is anticipated, with several blockbuster releases planned for the summer season.
• Catalyst: Jurassic World 3 is expected to be a key driver for market recovery.
• Related Stocks: Maoyan Ent. (1896 HK), IMAX China (1970 HK)

NetEase-S (9999 HK) - Diablo Immortal

• Release: Diablo Immortal was released in most regions except China on 3 June, with a planned release in China on 23 June.
• Performance: The game received strong market interest and was the top downloaded game in several major markets over the weekend.
• Revenue Potential: The initial grossing performance in the U.S., South Korea, Japan, and Germany is expected to be robust.

Xtep Int'l (1368 HK)

• Performance: The company has been less affected by lockdowns in Beijing and Shanghai due to its lower exposure to Tier-2 cities.
• Growth Trends: Xtep's core brand has shown encouraging recovery, with high single-digit YoY growth in May and accelerating growth in June.
• Outlook: Management maintains its confidence in a 25-30% YoY sales growth for 2022E and a 30% YoY sales growth for 1H22E.
• Profit Margin: The guidance for net profit margin remains unchanged at 12%.

Disclaimer

• This report is for general information only and not an investment recommendation.
• No verification is conducted on the data used, and no responsibility is accepted for any reliance on the information.
• Opinions expressed are subject to change and may not align with technical or fundamental analyses.
• MIB (HK) may have financial interests in the mentioned companies and may provide investment banking services.
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