20211129-马银证券_香港_-每日港股简评_2页_140kb

Market Summary

Core Content

The document provides an overview of the recent market movements in Hong Kong and highlights key sector news and company updates. It emphasizes the impact of economic and regulatory factors on stock performance, particularly in the Chinese technology and gaming sectors.

Main Market Trends

• Hong Kong Stocks Decline: The Hang Seng Index fell by 2.6% (-659 points) to 24,080 points on the previous Friday, marking the largest drop in nearly eight weeks. This decline was driven by concerns over the Chinese technology sector and the emergence of a new coronavirus strain.
• Daily Turnover: The market saw a daily turnover of HKD129.7 billion.
• Focus Shift: The market's attention is now shifting from company earnings reports to upcoming China economic data, including the National Bureau of Statistics (NBS) and Caixin manufacturing and services PMIs, as well as developments related to the Chinese tech sector and new coronavirus variants.
• Macau Gaming Sector Impact: The detention of Alvin Chau Cheok Wa, the head of Suncity Group, has raised concerns about the regulation of junket activities in Macau, potentially leading to a reduction in VIP business volume by 30-50% in the short term.

Key Sector News

Macau Gaming

• Detention of Alvin Chau Cheok Wa: The Macau government confirmed the detention of the head of Suncity Group, following an arrest warrant issued by the People's Procuratorate of Wenzhou, China.
• Regulatory Implications: This may indicate that junket activities in Macau are now under the same cross-border gambling regulations as mainland China, which could negatively impact the VIP segment.
• Market Expectations: Some market participants anticipate a significant decline in VIP business volume due to increased regulatory scrutiny.

China Property

• Kaisa Resumes Trading: Kaisa (1638 HK) resumed trading on 25 November after implementing repayment measures, including a 30-day grace period for overdue interest and offering bond exchanges.
• Fantasia Extends Bonds: Fantasia (1777 HK) reported that 80% of its bond interests due on 25 November will be extended for one more year.
• Policy Relaxation in Chengdu: Chengdu has eased restrictions for property developers by accelerating approvals for home sales and property loans, and relaxing limits on using pre-sale proceeds.

Company Updates

Tencent (700 HK)

• Regulatory Inspection: Tencent's share price weakened due to new regulatory requirements from the MIIT, which mandates that new apps and updates must be submitted for inspection before launch.
• Reason for Inspection: This follows the discovery of nine Tencent apps that violated user data security regulations earlier in the year.
• Compliance Efforts: Tencent has stated it is upgrading its apps and systems in line with the new Personal Information Protection Law and is actively cooperating with regulatory bodies.
• Market Impact: The market expects limited impact on Tencent's existing apps and new launches, as the company is working to comply with the regulations.

Pacific Textile

• 1HFY22 Results: The company reported a net profit decline of 7% YoY to HKD348 million.
• Gross Profit Margin: The GPM dropped by 2.9 percentage points YoY to 14.6%, due to rising yarn and energy costs.
• 2HFY22 Outlook: Management expects a similar GPM for the second half of FY22 and anticipates a potential capacity shortfall of two weeks due to Chinese New Year.
• Full-Year Revenue Targets: Management maintains full-year FY22 revenue targets of HKD6 billion and net profit of HKD660 million to HKD680 million.
• Growth from Clients: Sportswear brands like Nike, Adidas, and Anta contribute 12% of revenue. Management anticipates significant order growth once the new factory in Vietnam starts operations by the end of FY2023E, with a monthly capacity of 600 pounds.

CR Pharma (3320 HK)

• Acquisition of Boya Biopharm: The company completed its RMB5 billion acquisition of Boya Biopharm, gaining an effective 40% control.
• Earnings Consolidation: The company will begin consolidating Boya's earnings in December 2021, with full-year consolidation expected in 2022E.
• Revenue and Profit Boost: Market expects the acquisition to boost CR Pharma's revenue and net profit by 10% YoY.
• Integration Goals: CR Pharma has set ambitious goals for post-acquisition integration, aiming to double Boya's capacity within five years.

Disclaimer

• General Information Only: This document is for general information and does not constitute investment research or recommendations.
• No Independent Verification: The information is based on data from recognized sources, but not independently verified by Kim Eng (HK).
• No Liability: Kim Eng (HK) does not take responsibility for any loss resulting from reliance on the content.
• Opinions Subject to Change: Any non-factual statements are current opinions and may change without notice.
• Conflicts of Interest: Employees, analysts, or directors of Kim Eng (HK) may have interests in companies mentioned, including participation in financing transactions or holding positions in related securities.
• Investment Risks: International investments carry risks such as economic, political, and currency fluctuations, and limited information availability.
• Professional Advice Recommended: Investors are advised to consult their financial advisors to assess suitability based on their resources and risk preferences.