20220725-马银证券_香港_-每日港股简评_2页_141kb

Market Overview Summary

Core Content

The Hong Kong stock markets were directionless last Friday, with mixed performance across sectors. Key market movements and company updates were observed, particularly in the context of upcoming global monetary policy decisions.

Main Points

• Hong Kong Market Performance:

  • The Hang Seng Index rose by 34 points to 20,609 points.
  • Daily turnover reached HKD85.1 billion.
  • The cement sector continued to outperform due to falling cement prices.

• FOMC Meeting Outlook:

  • The market will focus on the upcoming FOMC meeting on 26-27 July (US time).
  • There is an expectation that the Federal Reserve will hike interest rates by 75 basis points (bps).

Key Company Updates

NetEase-S (9999 HK)

• Game Launch:
  • NetEase plans to launch Diablo Immortal Mobile in China on 25 July, originally scheduled for 23 June.
  • The game has performed well in overseas markets, with gross revenue exceeding USD54 million in June.
• Market Impact:
  • The relaunch is expected to support revenue growth in 4Q22-2023E.
  • Chinese authorities are optimizing the online game approval process, which is viewed as positive for the company.

Baidu-SW (9888 HK)

• Apollo Go Development:
  • Baidu hosted Baidu AI World 2022 and highlighted the progress of Apollo Go.
  • Apollo Go has expanded to 10 cities, including Tier-1 cities, and has completed over 1 million rides.
  • It achieved a 10% market share in ride-hailing and has higher vehicle utilization and user stickiness than traditional players.
• AI Cloud Focus:
  • Although specific financial figures for AI Cloud were not disclosed, investor attention was on its development and progress.

Xtep Int'l (1368 HK)

• Share Price Movement:
  • The share price dropped after a major shareholder, Group Success Investments (held by chairman Mr. Ding and his family), announced a plan to sell 80 million shares at HKD12.7 each, implying an 18.5% discount to the closing price on 21 July.
  • The sale is expected to cause short-term weakness in the share price.
• Valuation:
  • The company is currently trading at a forward PER of 25x.

BYD Co. (1211 HK)

• Japanese Market Expansion:
  • BYD announced its plan to start selling electric vehicles (EVs) in Japan from 2023E.
  • Three EV models are set to be launched in Japan:
    1. ATTO-3 (named "Yuan Plus" in China), expected to launch in January 2023E.
    2. BYD Dolphin, a compact model, expected to launch in mid-2023E.
    3. BYD Seal, expected to launch in 2H23E.

Vinda Int'l (3331 HK)

• 1H22 Financial Results:
  • Revenue reached HKD9.68 billion (+6.6% YoY), while net profit was HKD638 million (-34.1% YoY).
  • Gross profit margin was 23%, down 5.4 percentage points YoY, due to rising pulp costs despite product mix improvements.
• 2Q22 Performance:
  • Sales growth accelerated to 13.5% YoY, driven by demand recovery, industry consolidation, and a low base comparison.
• 2H22E Outlook:
  • Pulp costs remain a key factor affecting profitability.
  • Market expects double-digit revenue growth for 2022E, supported by ongoing premiumisation and volume growth.

Key Information

• Market Sentiment: Positive for NetEase and Baidu due to game and AI developments.
• Negative Impact: Xtep's share price is likely to weaken due to the large share sale.
• Global Factors: The upcoming FOMC meeting is a key event for global investors, with expectations of a 75bps rate hike.
• Industry Trends: The cement sector is performing well due to falling prices, while EV companies like BYD are expanding into new markets.

Disclaimers

• This document is for general information and not investment research or recommendation.
• No verification of the information is performed by MIB Securities (HK) Ltd.
• The information may be based on third-party sources and is not guaranteed for accuracy or completeness.
• MIB (HK) does not take responsibility for any loss resulting from reliance on this content.
• Investment in international markets carries risks, including economic, political, and currency-related factors.
• Readers are advised to consult their financial advisors before making any investment decisions.