20220527-马银证券_香港_-每日港股简评_2页_163kb

Market Summary

Core Content

The Hong Kong stock market showed a directionless trend yesterday, with the Hang Seng Index declining by 55 points to 20,116 points. The daily turnover was relatively low at HKD95.5 billion. Despite the mixed performance of China smartphone-related companies due to weak sales volumes in April, some firms like Alibaba-SW (9988 HK) reported results that exceeded market expectations, leading to a surge in its ADRs. The market is expected to open higher today, with the Hang Seng Index potentially rising by around 500 points to 20,550, driven by the strong performance of U.S. markets and the rally in Chinese ADRs.

Sector Analysis

China NEV - Sales Volume Sequentially Improved in May

• Expected Sales Growth: China's new energy vehicle (NEV) retail sales volume is expected to increase by 80-100% in May, reaching 310,000-340,000 units compared to 250,000 units in April.
• Drivers: The growth is attributed to the resumption of car manufacturing operations and the recovery of supply chains.
• Industry Alignment: This trend aligns with the guidance provided by NEV manufacturers such as Xpeng-w (9868 HK) and Li Auto-W (2015 HK) for the second quarter of 2022.

China Smartphone - Downtrend Sales in April

• Shipment Data: China's smartphone shipments were weak in April, totaling 18 million units (-34% YoY).
• 5G Shipment: 5G phone shipments reached 15 million units (-32% YoY).
• Subscriber Growth: Despite a 21 million increase in 5G subscribers, only 29% of new subscribers purchased a new 5G phone, indicating a potential saturation in the 5G phone market.
• Market Concerns: The 5G penetration rate of 81% raises concerns about the upcoming decline in the 5G phone cycle in China.
• Investor Advice: Investors are advised to be selective in choosing smartphone components, focusing on those with potential for market share gains, product mix upgrades, or line expansions.

Company Highlights

CSPC Pharma (1093 HK)

• 1Q22 Results: Revenue increased by 16.9% YoY to RMB7.87 billion; net profit declined by 4.6% YoY to RMB1.4 billion.
• Reasons for Decline: Higher R&D expenses (+30.2% YoY) and an investment loss of RMB139 million.
• Clinical Progress: The company received clinical trial approval for its COVID-19 mRNA vaccine SYS6006 in April 2022 and is still conducting Phase III trials for its 3rd generation thrombolytic drug Mingfule (rhTNKtPA).
• Share Price Impact: The share price fell to a 52-week low following the results announcement, as analysts revised down earnings forecasts for 2Q22.

Kingsoft (3888 HK)

• 1Q22 Results: Total revenue rose 18.8% YoY to RMB1.85 billion.
• Segment Performance: Online games revenue increased 24.5% YoY to RMB982 million, driven by the successful launch of mobile games; office software and services revenue increased 13% YoY to RMB871 million.
• Future Outlook: Management expects online games revenue to grow by over 20% YoY in 2022, with the potential to reach 30% YoY if new games gain license approvals and perform well.
• New Game Launch: The company received license approval for JX Online III Origin in April and launched its open beta in May.

ASM Pacific (522 HK)

• Growth Drivers: The company expects strong demand from automotive customers and the Advanced Packaging sector to be key growth drivers in 2022.
• Segment Performance:
  • Automotive Solutions: Bookings grew by 49% QoQ in 1Q22, driven by the automotive electrification trend and partnerships with OEMs and Tier-1 suppliers.
  • Advanced Packaging: Strong momentum in TCB, SiP printing and placement, Advanced Displays (Mini LED), and Laser dicing.
• Challenges: The smartphone market weakness, attributed to component shortages and the lingering effects of the pandemic, impacted camera module customers and led to a decline in CIS/AA equipment revenue YoY in 1Q22.

Disclaimer

• This report is for general information only and is not intended as investment research or recommendation.
• MIB Securities (HK) Ltd does not independently verify the information and makes no representation regarding its accuracy or completeness.
• The information is based on data from recognized statistical services, issuer reports, or other sources believed to be reliable.
• No liability is accepted for any loss resulting from reliance on the contents of this report.
• The opinions expressed are current and may change without notice.
• MIB (HK) may have positions in the securities mentioned and may participate in financing transactions with these companies.
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