20220706-马银证券_香港_-每日港股简评_2页_650kb

Market Summary

Core Content

The document provides a market overview and sector updates for the Hong Kong and China stock markets, along with company news and disclaimers.

Market Overview

• The Hong Kong and China stock markets were directionless, with investors closely watching U.S.-China trade talks.
• The Biden administration is considering lowering tariffs on Chinese goods to combat surging inflation.
• WuXi Bio (2269 HK) and WuXi Apptec (2359 HK) saw significant gains, reaching their 1-month high levels, following news that WuXi is moving off the U.S. "unverified" trade list.
• The Hang Seng Index increased by 22 points to 21,853 points, with a daily turnover of HKD122.6 billion.
• U.S. markets had mixed performance, with tech stocks outperforming and yields continuing to decline.

Sector News

Hong Kong Property - Central Office Market Pickup

• The central office market in Hong Kong showed a recovery, growing for the fourth consecutive quarter (+4.1% since 2Q21).
• Overall office rent declined by 0.2% quarter-over-quarter.
• Market sentiment remains weak, and increased supply in Kowloon and Hong Kong East may enhance tenant bargaining power.
• Rental growth is expected to remain low in the coming months due to a gradual economic recovery.
• The key catalyst for future growth is the anticipated reopening of international borders in 4Q22E.

China Coal - Weekly Updates

• The CCTD QHD5,500 blended coal, QHD5,500 spot coal, and BSPI prices remained stable week-over-week.
• China's total coal production in May 2022 increased by 10.3% year-over-year to 367 million tonnes.
• The cumulative coal production for the first five months of 2022 was 1.8 billion tonnes (+10.4% YoY).
• Coal inventory at QHD rose by 5.6% week-over-week to 5.81 million tonnes as of 3 July.
• Daily coal consumption in coastal provinces increased by 7% to 1.97 million tonnes as of 29 June, driven by high summer temperatures.
• Market expects coal prices to remain stable in 3Q22E.

Company News

Xiaomi-W (1810 HK)

• On 4 July, Xiaomi launched the Mi 12S series and announced a strategic technology upgrade with Leica Camera AG and Sony.
• Key features include the new Snapdragon 8+ Gen 1 chipset, advanced CMOS image sensor, Leica-tuned cameras, and an upgraded battery management system.
• The Mi 12S series starts at RMB3,999, with Mi 12S Pro and Ultra priced at RMB4,699 and RMB5,999, respectively.
• The release and strategic upgrades are seen as steps toward building a premium brand image.

Sunny Optical (2382 HK)

• The company remains cautious about handset shipment and margin outlook in the near term.
• Management faces pressure to meet original shipment targets due to weaker-than-expected smartphone shipments.
• Challenges include achieving a double-digit gross margin for the handset camera modules (HCM) business this year.
• Confident in the Vehicle Lens (VLS) and Virtual Reality/Augmented Reality (VRAR) segments, expecting 20-30% YoY shipment growth and 50% YoY revenue growth.
• Overall, market expects continued near-term pressure as the smartphone industry has not yet reached a bottom.

China Power (2380 HK)

• On 3 July, China Power announced plans to acquire renewable IPP assets I and II with a total capacity of 2.15GW from its parent company.
• The estimated value of the assets is RMB7.5 billion, implying a FY22E PER of 12.5x and P/B of 0.9x.
• This is lower than China Power's current FY22E PER of 16.4x and P/B of 1.2x.
• The asset injection is expected to improve the renewable energy mix by approximately 3-4%, potentially raising it to 70% by 2023E.

Disclaimers

• This document is for general circulation and informational purposes only.
• It is not an investment research or recommendation and does not constitute substantive analysis.
• Information is based on data from recognized statistical services, issuer reports, or other sources believed to be reliable.
• MIB Securities (HK) Ltd does not independently verify the information and makes no representation regarding its accuracy or completeness.
• The document does not constitute a solicitation to buy or sell any securities.
• There may be differences between fundamental, technical, and quantitative opinions.
• MIB (HK) may have positions in securities or commodities and may perform investment banking services for companies mentioned.
• The document is prepared for MIB (HK)'s clients and may not be reproduced or distributed without prior consent.
• International investments carry risks such as economic, political, currency, and information availability issues.
• Clients are advised to consult their financial advisors for personalized investment advice.