Evaluation of Hong Kong stocks

Futu Information on May 27th | the three major indexes of Hong Kong stocks were mixed, with most technology stocks rising. The Hang Seng Technology Index rose 0.64% to 8123.88 points, the Hang Seng Index fell 0.18% to 29113.20 points, and the National Index fell 0.07% to 10848.35 points.

Plate aspectThe property services and management sector rose generally, of which the Olympic Garden Health rose by more than 8%, the elegant living service by more than 7%, and the time neighborhood and Kaisa Industries by more than 6%. Guoxin Securities said that in the next two to three years, the property management industry as a whole will still benefit from the injection of high-margin projects brought about by the delivery of new housing, and the charging area and profitability will continue to improve; at the same time, driven by the new rules of ten ministries and commissions, the old market is expected to usher in a reasonable price adjustment opportunity, and the industry logic will continue to improve.

The semiconductor sector continued to be strong in the afternoon, with Huahong Semiconductor up nearly 8%, SMIC up more than 5% and ASM Pacific up more than 4%. Industry insiders said that a number of domestic wafer factories will face the situation of being out of stock of KrF photoresist. At present, a number of wafer factories on the mainland are accelerating the verification of the introduction of KrF photoresist from Beijing Kehua, a subsidiary of local manufacturer Tongcheng New Materials. In addition, there has been an extreme shortage of semiconductor photoresist supply since the beginning of this year, and the price of photoresist key material thinner has increased by 50% since April, which has further contributed to the rise in photoresist prices.

The SaaS concept stock expanded its gains in the afternoon, with Mingyuanyun up more than 7%, China Youzan and Yidu Technology up more than 5%. Huaxi Securities previously issued a research report that the performance of A + Hong Kong stock mainstream SaaS listed companies in 2020 is very outstanding, and the valuation has been significantly adjusted by external environmental factors, and currently has a certain valuation advantage. From the perspective of industry prosperity, the SaaS plate will continue to grow at a high speed in 2021. The bank believes that the companies with the pricing power of the industrial chain in each sub-track are expected to consolidate their market position and achieve considerable development.

Education stocks expanded in the afternoon, with New Oriental online up more than 8% and China Education Holdings up more than 3%. The institution pointed out that the policy landing will further eliminate the policy risks previously faced by the higher education sector (including related transactions, collectivization, mergers and acquisitions and agreement control, etc.), and is expected to increase the market's attention to the private higher education sector. superimposed endogenous extension two-wheel drive to maintain rapid growth in the future, it is expected to attract more long-term investment funds, pensions, and even overseas funds for allocation in the medium to long term. It is beneficial to the rise of its valuation.

In terms of individual stocks$Special step International (01368.HK) $The gains were further expanded in the afternoon, closing up 6.93% at HK $8.18. Tianfeng Securities recently pointed out that special step international deep ploughing market segmentation, running expert brand image misplaced competition, relying on professional sports multi-brand channel sinking, to build a runner ecosystem. The bank gave Special step International a target price of HK $11.44.

$Xiaomi Group-W (01810.HK) $It closed up 3.2% at HK $29.05. Goldman Sachs reported that Xiaomi Group's target price will be raised by 10% from HK $30 to HK $33, maintaining a "buy" rating. Goldman Sachs said its first-quarter net profit rose 1.64 times year-on-year, beating the bank and market expectations of 29 per cent and 35 per cent, while revenue rose 55 per cent to 76.9 billion yuan, also growing faster than expected. Based on the improvement in smartphone gross margin, the overall gross margin rose by about 2 percentage points to 18.4%.

China Biopharmaceutical (01177.HK) $It closed up 2.74% at HK $9. According to the latest equity disclosure information of the Stock Exchange, on May 25, 2021, China Biopharmaceutical Director Xie Jie increased his position in 1 million shares at an average price of HK $8.7736 per share. After the increase, Xie Jie's latest number of long positions was 166 million shares, and the proportion of long positions increased to 0.88%.

$small Moore International (06969.HK) $It closed up 3.42% at HK $52.9. Lyon issued a research report that gave Smallsmore a "buy" rating with a target price of HK $100. The bank believes that the potential harm associated with e-cigarettes is not new news, although the news may affect short-term mood. On the other hand, the opportunities for new competitors to enter the market and poach customers will be limited, as the company's high-tech knowledge, patent protection, exclusive supply agreements and complex application process provide a moat.

$Broad Pharmaceutical (00512.HK) $It closed 10.15% higher at HK $7.92, up 16.3% over the past two days. The company announced that it will acquire a 100% stake in Shensheng Medical for 22.6 million yuan to obtain the full development and commercial rights of its development, temperature-sensitive embolic agents for the treatment of liver cancer and subsequent development of gel products. This temperature-sensitive embolic agent is a tumor product that has obtained the approval qualification of innovative medical devices from the State Drug Administration of China.

$Fleet Glass (06865.HK) $It closed down 2.25% at HK $21.75. Flyte Glass reduced its holdings of 995000 shares by Schroders Plc on May 21, involving a capital of about HK $22.0502 million, and JPMorgan Chase reduced its holdings of 3.585 million shares, with a total amount of about HK $69.8975 million, on May 14. The price of photovoltaic glass has fallen more than expected recently, but BoCom believes that it is also beneficial to Fletcher Glass and Xinyi Light Energy to increase market share more quickly.

Today's Hong Kong stock turnover TOP20

Hong Kong stock exchange fund

As for Hong Kong Stock Connect, there was a net inflow of HK $1.526 billion from Hong Kong Stock Connect (southbound) today.

Message surface

Macro aspectThe central bank today launched a seven-day reverse repurchase operation of 10 billion yuan, with a winning interest rate of 2.2%. As 10 billion yuan of reverse repurchase expires today, zero delivery and zero redemption has been achieved.

Economic and trade aspectsAccording to CCTV, at a regular press conference held by the Ministry of Commerce today, some media asked: USDA data show that China has been accelerating corn procurement from the United States since May 7. Does this mean that China is still and will continue to actively implement the first phase of the economic and trade agreement? In this regard, spokesman Gao Gao said that the first phase of the Sino-US economic and trade agreement is beneficial to China, the United States, and the world as a whole. The two sides should make joint efforts to create an atmosphere and conditions to promote the implementation of the agreement.

In terms of semiconductorsDue to Japan Shin Yue Chemical KrF photoresist production capacity is insufficient and other reasons led to Chinese mainland many wafer factories KrF photoresist supply shortage, some small and medium-sized wafer foundries even have cut off the supply of KrF photoresist, a number of wafer factories are accelerating the verification of the introduction of local KRF photoresist.

In terms of automobilesAccording to the latest data released by the National Bureau of Statistics compiled by the China Association of Automobile Manufacturers, from January to April 2021, the profits of the automobile industry continued to show rapid growth compared with the same period last year, and the growth rate was lower than that from January to March. From January to April, the cumulative profit of the automobile industry reached 179.96 billion yuan, an increase of 1.6 times over the same period last year, still higher than the growth rate of industrial enterprises above scale in the same period, accounting for 6.9% of the total profits of industrial enterprises above scale.

AviationIATA looks forward to passenger demand in the post-epidemic era, judging that global passenger traffic will return to 52 per cent of pre-epidemic levels in 2021, 88 per cent of pre-epidemic levels in 2022, and is expected to exceed pre-epidemic levels (105 per cent) in 2023. IATA believes that the recovery in passenger volume is slightly stronger than the recovery in passenger demand (in terms of income per kilometer or "RPKs"), which is expected to grow at an average annual rate of 3 per cent between 2019 and 2039, mainly due to expectations of prosperity in domestic markets such as China, large passenger volume and short voyages.

Institutional point of view

Citic Securities:The process of global demand recovery is continuing, the long-term production potential of the superimposed supply side is insufficient, and the high demeanor of commodities is expected to continue. In this context, we recommend two main lines of investment: the performance of the cyclical sector under the economic recovery is expected to continue, and the leading companies are expected to continue to grow through increased market share and new business expansion. After the recent adjustment, the valuation of leading companies in various industries has returned to the lower-middle level. at the current point, it is recommended to actively pay attention to the industry leaders with low valuation and growth attributes.

Guotai Junan:This week, the cycle is facing the double suppression of the off-season and policy crackdown, there has been a significant adjustment, but the overall market is not over. From 2016 to now, prices in the cement industry have hit record highs one after another, and under the cliff drop in demand caused by the epidemic, prices remain at all-time highs, verifying the steady state of profits. We believe that other periodic products are copying the past path of the cement industry, and under the risk of no cliff fall in demand, the environmental constraints of "carbon peak and carbon neutralization" will gradually promote the clearing of the supply side, and the pattern of supply and demand will continue to be optimized. cyclical products will spread along the path of profitability elasticity-valuation rise.

Citic Securities:The foundation of continued downward interest rates in the early period may be shaken, especially the net financing amount of inter-bank certificates of deposit has remained low since May, and the "quasi-idling" chain among banks may be affected; coupled with the gradual acceleration of local government special debt issuance, the asset shortage may be alleviated. Judging from the asset shortage in previous years, interbank certificates of deposit and MLF have always been the reference anchors of interest rates on 10-year treasury bonds. Under the background of the high probability of maintaining a neutral monetary policy, it is not obviously good for ten-year treasury bonds to continue to break down in the short term, while market sentiment to stop profits may gradually become strong, and it is expected that the bottom constraint of 3% will be difficult to break in the short term.