20220210-马银证券_香港_-每日港股简评_2页_133kb

Market Overview Summary

Core Content

The Hong Kong stock market showed a rebound on the back of strong performances in the technology and auto sectors. The Hang Seng Index rose by 500 points to 24,829, with a daily turnover of HKD140.7 billion. The surge in aluminium prices also contributed to market optimism, reaching a 14-year high. However, the market is still influenced by global uncertainties, such as the potential conflict between Russia and Ukraine, and fluctuating energy prices that have impacted European production.

Main Sector Developments

Aluminium Sector

• Price Surge: Aluminium prices hit a 14-year high due to stretched global supplies.
• Supply Constraints: The city of Baise in China, a major aluminium producer with an annual capacity of 1.7 million tonnes, was placed under a COVID lockdown, reducing supply.
• Global Tensions: Fears of a Russia-Ukraine conflict continue to drive market sentiment.
• Energy Impact: Rising energy costs have weighed on European aluminium output.

China Property Sector

• Supportive Policies: Continued credit and property market support since October 2021 has led to a belief that the worst of the sector is over.
• Near-Term Concerns: Developers still face liquidity issues, weaker 2021 results, conservative FY22E guidance, and a lack of nationwide recovery in property figures.
• Market Outlook: Investors anticipate a turning point of improvement in the second half of 2022.

China Railway Sector

• U.S. Unverified List Impact: On 8 February, Times Electric shares dropped following news that Zhuzhou CRRC Special Equipment Technology was placed on the U.S. unverified list.
• Clarification: Zhuzhou CRRC SET is a sub-subsidiary of CRRC Group and produces amusement trains and railway testing equipment, with no equity relationship to Times Electric or CRRC.
• No Direct Impact: The market believes the impact on Times Electric and CRRC is minimal, as they have no direct connection to Zhuzhou CRRC SET.

Key Company Updates

GAC Group (2238 HK)

• Sales Performance: GAC reported a total sales volume of 237,000 units in January 2022, a 9% increase YoY.
• Brand-Specific Sales:
  • GAC-Honda: 78,000 units (+1% YoY)
  • GAC-Toyota: 99,000 units (+11% YoY)
  • GAC Motor: 36,000 units (+6% YoY)
• Product Launches: The new-gen Trumpchi GS8 with Toyota Hybrid System (THS) and GAC's own 2.0TM Miller engine were launched in December 2021.
• Market Outlook: The market expects GAC to benefit significantly from the recovery of GAC-Toyota and GAC-Honda, as well as from GAC Motor's growth in the hybrid vehicle segment.

Key Information

• Market Sentiment: Positive due to tech and auto sector rallies, but influenced by geopolitical and energy concerns.
• Aluminium Price Drivers: Supply constraints in China and global geopolitical tensions.
• Property Sector Outlook: Policy support is ongoing, but near-term challenges remain.
• Railway Sector Clarification: The U.S. unverified list does not directly impact Times Electric or CRRC.
• GAC Group Performance: Strong sales growth and product launches indicate potential for continued improvement.

Disclaimers

• This document is for general information only and not investment research or recommendation.
• Information is based on data from reliable sources but not independently verified.
• MIBSHK does not take responsibility for any loss due to reliance on the content.
• Opinions expressed are current and may change without notice.
• MIBSHK may have financial interests in companies mentioned and may provide investment banking services.
• Reproduction or distribution of this document is prohibited without prior written consent.
• International investments carry risks such as economic, political, and currency fluctuations.

Conclusion

The Hong Kong market showed resilience with gains in key sectors like technology and auto, while aluminium prices surged due to supply issues and global tensions. The property sector remains under pressure but is expected to see improvement in the second half of 2022. The railway sector saw a temporary dip due to U.S. trade restrictions, but the impact is considered minimal. GAC Group's strong sales and product launches suggest a positive outlook for the company in the coming months. Investors are advised to consult their financial advisors before making any investment decisions.