20220218-马银证券_香港_-每日港股简评_2页_137kb

Market Overview Summary

Core Content

The Hong Kong stock market showed a slight increase yesterday, driven by the rally in the technology and auto sectors. Ganfeng Lithium (1772 HK) experienced a significant surge due to the rise in lithium carbonate prices, which increased by 40% to RMB430,000 per ton. The Hang Seng Index rose by 73 points to 24,792 points, with a thin daily turnover of HKD104.6 billion. However, the U.S. stock markets saw a sharp selloff overnight, influenced by ongoing geopolitical tensions and interest rate risks. According to ig.com, the Hang Seng Index is expected to open approximately 150 points lower this morning, at 24,600 points.

Sector News Highlights

China Insurance

The life insurance sector in China recorded flat year-over-year (YoY) gross premiums in January. The weak performance was attributed to several factors:

• Delayed jumpstart pre-sales due to challenges in meeting 2021 targets in the fourth quarter.
• Reduced sales incentives for jumpstart programs.
• A significant decline in agency performance by double-digits quarter-over-quarter (QoQ) for most life insurers.
• Guidance from the China Banking and Insurance Regulatory Commission (CBIRC) to distribute new business seasonality evenly throughout the year.
• A high base effect from the change in critical illness product definitions in February 2021.

CR Power (836 HK)

CR Power reported a 2.4% YoY increase in total consolidated power generation for January 2022, reaching 16,830 GWh. The growth was sector-specific:

• Thermal power output increased by 3.4% to 14,184 GWh.
• Hydropower generation rose by 26.8% to 202 GWh.
• Solar power generation surged by 64.6% to 101 GWh.
• Wind power generation declined by 6.4% to 2,343 GWh, attributed to weaker wind resources compared to the previous year.

Wynn Macau (1128 HK)

Wynn Macau reported a USD26 million property EBITDA loss in the fourth quarter of 2021, primarily due to a one-time bad debt provision of USD24 million related to junket activities. Adjusted for this provision, the EBITDA loss was close to break-even at USD2 million, below the consensus estimate of a positive USD15 million and lower than the USD10 million loss in the third quarter of 2021.

• Mass GGR increased by 13% QoQ.
• VIP volume declined by 20% with a win rate of 2.7%, in line with industry trends.
• During the Chinese New Year holiday, the company reported a 175% increase in daily turnover compared to CNY 2021, but a 12% decline from CNY 2019. Management expressed optimism about strong customer spending and new sign-ups in the direct business.

LK Tech (558 HK)

LK Tech announced plans to invest HKD300 million this year for capacity expansion, aiming to increase its monthly production capacity from 2-3 to 3-4 6,000-tonne die-casting machines. The company also launched the world's first 12,000-tonne die-casting machine in January 2022, which will be used by Hongtu, a tier-1 die-casting component supplier, to produce car bodies, chassis components, and battery housing. The R&D for this machine had been ongoing for several years, and the company believes the first-mover advantage and the machine's proven practical use will provide a competitive edge.

Livzon Pharma (1513 HK)

Livzon Pharma reported that its protein-based COVID-19 vaccine booster, V-01, showed 61.4% protection in an interim analysis. The global Phase III study, conducted in collaboration with the Chinese Academy of Sciences' Institute of Biophysics, involved 10,241 volunteers. The vaccine demonstrated effectiveness against the Omicron variant, with 60 samples of the variant tested. No significant safety issues were reported.

Key Information

• Market Performance: Hong Kong stocks slightly rose, while U.S. stocks faced selloff due to geopolitical and interest rate risks.
• Lithium Sector: Ganfeng Lithium and lithium carbonate prices saw significant growth, reflecting strong demand.
• Insurance Sector: Weak jumpstart sales and agency performance contributed to flat YoY gross premiums.
• Power Generation: CR Power showed growth in thermal, hydro, and solar power, but a decline in wind power.
• Casino Sector: Wynn Macau experienced EBITDA losses, but showed improvement in mass GGR and strong performance during the CNY holiday.
• LK Tech: Capacity expansion and the introduction of a new die-casting machine are key initiatives for growth.
• Livzon Pharma: Its booster vaccine met WHO standards and showed protection against the Omicron variant.

Disclaimer

This document is for general information purposes only and is not intended as investment research or recommendation. It does not constitute substantive research or analysis. The information is based on data from recognized sources and is not independently verified. MIB Securities (HK) Ltd and its affiliates do not take responsibility for any loss resulting from reliance on the content. Any opinions expressed are subject to change without notice. The company may have positions in securities or commodities mentioned and may participate in financing transactions. This document is prepared for MIBSHK's clients and may not be reproduced or distributed without prior consent. International investments carry risks, including economic, political, and currency fluctuations. It is recommended to consult a financial advisor before making investment decisions.