20220107-马银证券_香港_-每日港股简评_2页_140kb

Market Summary: Hong Kong Stocks and Sector Insights

Core Content Overview

The Hong Kong stock market showed a positive trend yesterday, driven by the strong performance of Chinese technology firms and traditional infrastructure and raw material sectors. The Hang Seng Index rose by 165 points to 23,072, with a daily turnover of HKD134.5 billion. However, some sectors and companies underperformed, particularly in the retail and biotechnology sectors.

Main Market Trends

• Technology Sector Rally: Chinese technology firms, including Alibaba-SW (9988 HK) and JD-SW (9618 HK), saw significant gains, with Alibaba-SW up 5.6% and JD-SW up 4.1% in the afternoon session.
• Infrastructure and Raw Materials: Traditional infrastructure and raw material sectors, such as cement and steel, also advanced.
• Retail and Biotechnology Weakness: Wuxi Bio (2269 HK) continued its decline despite announcing share repurchases. Hong Kong retailers were negatively impacted by the government's new social distancing measures.
• Property Sector Outlook: The Chinese property sector is under close watch. Local news indicated that debt used for acquisitions will not count towards the "three red lines," which could provide some relief to developers.

Key Sector News

China Property Sector

• Contracted Sales Drop: Top 50/100 Chinese developers' contracted sales in December 2021 fell by 36%/32% YoY.
• Full-Year Sales Decline: Top 100 developers' full-year sales dropped by 3% YoY to RMB12,631.8 billion, marking the first decline in a decade.
• Market Share Reduction: The market share of top 10/20 developers further shrank to 36.0%/54.1% of total sales.
• Sales Target Miss: Most developers missed their 2021 sales targets, achieving approximately 90% of their goals.
• Land Acquisition Decline: Land acquisition by top 100 developers in the second half of 2021 fell by 42% YoY.
• FY22E Sales Forecast: Market estimates suggest a decline of over 10% in FY22E sales due to weak home prices and poor purchase sentiment.

Nissin Foods (1475 HK)

• Price Hike Announcement: Nissin Foods plans to increase prices for its noodle products in China, effective from 1 March 2022, with a mid-single-digit increase.
• Product Coverage: The price hike applies to bag-type and cup-type products, including flagship items like Cup noodles and Demailc.
• Impact of Social Measures: The HK government's social distancing measures (suspension of evening dine-in, bars, and sports facilities) could temporarily boost Nissin's Hong Kong noodles revenue from stay-at-home consumption. If extended, this could further increase revenue.

CR Power (836 HK)

• Spin-off Plan: CR Power announced plans to spin off its renewable energy business for a Hong Kong listing, aiming to raise USD1b to USD2b.
• Negative Cash Flow: The move is expected to improve CR Power's financial position, as the renewable energy business is currently associated with negative cash flow.
• Investor Reaction: The share price dropped, reflecting investor concerns about the potential A-share listing and the shift of investment focus to the spin-off business.

Wharf REIC (1997 HK)

• Earnings Recovery Concerns: The market is becoming more cautious about Wharf REIC's earnings recovery, especially with the new social distancing measures.
• Quarantine-Free Travel Delay: The measures may delay the resumption of quarantine-free cross-border travel, previously expected to start in February.
• Sector Dependency: Wharf REIC's business is heavily reliant on tourism spending, with approximately 69% of its exposure in retail and hospitality.

Tencent (700 HK)

• Game Credit System: Tencent introduced a game credit system for "Honor of Kings," restricting users with scores below 100 from using certain social features, such as leaving comments, adding friends, and joining teams.

Disclaimers

• This Dim Sum Daily is for general information only and is not investment research or a recommendation.
• The information is based on data from reliable sources but is not independently verified.
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