July's heavy economic data has been released, and the Hong Kong stock market opened low and rose in early trading, with the Hang Seng Index rising by more than 1% at one point, and the gains narrowing gradually in the afternoon until the Hang Seng and Hengke indexes turned green in turn.
According to the Wise News APP, major economic data for July was released, and the Hong Kong stock market opened lower but recovered during trading. The Hang Seng Tech index rose by more than 1% at one point in the morning but narrowed its gains in the afternoon, with both the Hang Seng Index and the Hang Seng Tech index turning negative. As of the close, the Hang Seng Index fell 0.02% or 4.22 points to 17,109.14 points, with a total daily turnover of HKD87.935 billion. The Hang Seng China Enterprises index rose 0.17%, to 6035.27 points, and the Hang Seng Tech index fell 0.33%, to 3384.38 points.
Zhongtai international believes that the stabilization of overseas markets and Hong Kong stock's low valuation history are conducive to the gradual stabilization of the overall market, while the extremely low level of Hong Kong stock transaction may also indicate the imminent reversal of Hong Kong stock. In addition, the market is concerned about the retail data released tonight. Anxin international reiterated its bullish view on the short-term performance of Hong Kong stocks due to the heating up of expectations for US interest rate cuts and the bullish information brought by the expected performance and prospects of Hong Kong internet leaders.
Blue chip performance
Sino Biopharmaceutical led the blue chips, rising 5.63% to HK$3.19 at the close, with a turnover of HK$0.342 billion, contributing 3.08 points to the Hang Seng Index. Daiwa pointed out that the company's first-half performance is on track, with revenue up 11% year-on-year to 15.9 billion yuan, 3% higher than expected; net profit increased 1.4 times to 3 billion yuan, also better than expected; adjusted net profit under non-Hong Kong accounting standards increased by 14%. Due to the rapid listing of innovative products and the minimal VBP risk, the group expects revenue to sustain double-digit growth from this year.
In other blue-chip stocks, NetEase-S rose 3.89% to HK$138.9, contributing 5.79 points to the Hang Seng Index; China Shenhua rose 3.38% to HK$33.6, contributing 5.96 points to the Hang Seng Index; Zhongsheng Holdings fell 4.46% to HK$9.86, dragging down the Hang Seng Index by 0.61 points; Ali Health fell 3.67% to HK$2.89, dragging down the Hang Seng Index by 1.13 points.
Hot sectors
On the disk, most of the large technology stocks are weak, Alibaba fell more than 2%, Tencent fell more than 1% after the results, and Netease rose more than 5% at one point today. The declines in various indicators in July continue to narrow, most of the mainland real estate stocks are active; the industry may maintain a tight balance, coal stocks continue to rebound; mainland banking stocks, telecommunication stocks, wind power stocks, apple-concept stocks, China-affiliated brokerage stocks, automobile stocks, and some innovative drugs rise. On the other hand, car dealers, sporting goods stocks, and heavy equipment stocks lead the decline.
1. Coal stocks continue to rebound. As of the close, China Shenhua rose 3.38% to HK$33.6; China Coal Energy rose 2.59% to HK$8.71; Mongolian Mining rose 1.6% to HK$7.6; Yankuang Energy rose 1.11% to HK$10.04.
According to Sealand Securities' research report, due to the downward revision of some coal stock performance and some institutions' wait-and-see attitude toward coal prices, the coal sector has adjusted to a low position. From the big picture perspective, the investment logic of the industry remains unchanged. The company expects that in the coming years, the coal industry will continue to maintain a tight balance, with high asset quality, ample cash flow, and five high characteristics of "high profitability, high cash flow, high barriers to entry, high dividends, and high safety margin" for listed coal companies. It is recommended to seize the value attribute of the coal industry.
2. Most mainland banking stocks rise. As of the close, CM Bank rose 2.16% to HK$33.05; Postal Savings Bank of China rose 2.16% to HK$4.25; ICBC rose 2% to HK$4.58; China Construction Bank rose 1.27% to HK$5.58.
According to Wanlian Securities, the downward trend of long-term interest rates is an important factor driving the price performance of high dividend assets. The high dividend yield and low valuation of bank stocks have become the preferred choice of funds. In addition, from the perspective of dividends, the increase in dividend payout ratio is conducive to the valuation of bank stocks. Looking forward, in the high dividend strategy, the support factor on the denominator side may have been already reflected, while the stability on the numerator side becomes the key logic of selecting high dividend stocks. Furthermore, the rising demand for defense in the market has helped boost the overall performance of the banking sector.
3. Some mainland real estate stocks rebounded. As of the close, Logan Group rose 4.22% to HK$0.74; Zhongliang Holdings rose 2.35% to HK$0.087; Sunac rose 2% to HK$1.02; Shimao Group rose 1.47% to HK$0.69.
According to national statistics, the sales area of newly-built commercial housing from January to July was 0.54 billion square meters, a year-on-year decrease of 18.6%, and the sales amount was 5.3 trillion yuan, a year-on-year decrease of 24.3%, and the decline in decline narrowed. Zhongzhong Research Institute pointed out that the implementation of city-specific policies will be further implemented, and local governments will gain more autonomy in regulation. There is still room for optimization of policies at both ends of supply and demand in core cities in the future. In the second half of the year, under the influence of a high base number, the year-on-year decline in national new home sales is expected to continue to narrow, and the implementation of state-owned enterprise collection and storage policies is also an important factor determining the pace of market recovery.
4. Apple-related stocks continued to be active. As of the close, AAC Technologies (02018) rose 3.86% to HKD 28.25; FIH Mobile (02038) rose 2.47% to HKD 0.83; Q Technology (01478) rose 1.73% to HKD 4.71; Sunny Optical (02382) rose 1.213% to HKD 44.8.
According to reports, Apple is advancing the development of its desktop robot project to seek more sources of revenue. This desktop robot will combine an iPad-like display with a mechanical arm. It is reported that the company currently has a team of hundreds of people developing this device. Insiders said that Apple has now decided to prioritize the development of this device and plans to launch it as early as 2026 or 2027. In addition, there are reports that the iPhone 16 is expected to be officially released on September 10, and the market is highly concerned about the launch of the new iPhone 16 series in September.
5. Auto dealers were among the top decliners. As of the close, Zhongsheng Holdings (00881) fell 4.46% to HKD 9.86; Yongda Auto (03669) fell 3.01% to HKD 1.29; Zhengtong Auto (01728) fell 1.63% to HKD 0.121;
Morgan Stanley's research report pointed out that due to factors such as the decline in new car business profit margins, the reduction in the market share of international automobile brands in China affecting sales performance, and the slowing growth of car repair businesses, the profit forecast for auto dealers from 2024 to 2026 has been lowered by 21% to 62%. The bank expects that luxury car brand new car sales in the first half of this year may fall by 6% to 23% year-on-year, while the profit space for new cars will be weakened, and the slowdown in after-sales business will result in record declines compared to the second half of last year.
Popular fluctuating stocks
1. Nexteer (01316) hit a new 10-year low and closed at HKD 2.37, down 17.99%.
Nexteer announced its midterm performance for 2024, with revenue of approximately USD 2.099 billion, a year-on-year decrease of 0.1%; the profit attributable to equity holders of the company was USD 15.695 million, a year-on-year decrease of 53.83%; no mid-term dividends were paid. The management has lowered this year's income target to an annual increase of 1% (originally guided for an increase of 3-5%).
2. Samsonite (01910) plummeted after its results, closing at HKD 19.26, down 8.94%.
Citi pointed out that Samsonite's second-quarter performance was below expectations. Calculated at a fixed exchange rate, revenue increased by 1.5% year-on-year, which was lower than the management's previous guidance of 6 to 8%. Net profit increased by 3.4% year-on-year to USD 81 million, and adjusted EBITDA decreased by 3% year-on-year. The main reason for the lower profit was the weak market in China and intensified price competition in India.
3. SSY Group (02005) resumed trading today, closing at HKD 3.61, down 5.99%.
SSY Group announced that its wholly-owned subsidiary, Shijiazhuang Four Medicines, has received three notices. Hainan Center, Hebei Center and Ningxia Center have found defects in the credit rating of Shijiazhuang Four Medicines for the injection of bromo-benzyl chloride. It has been listed as a serious breach of trust. The company believes that similar notices may also be issued in six other provinces and cities, so the salt hydrochloride bromide injection of Shijiazhuang Four Medicines will be affected by national collection and sales in these nine provinces and cities. .
4. China Aoyuan (03883) surged on heavy volume, closing at HKD 0.158, up 26.4%.
China Aoyuan announced that it expects to achieve a net profit of approximately RMB 21 billion to RMB 23 billion for the six months ended June 30, 2024, turning losses into profits year-on-year. The current period's net profit is mainly due to the restructuring income obtained from the company's completion of overseas debt restructuring.
5. Asiainfo Tech (01675) rose all day, closing at HKD 5.22, up 12.02%.
Asiainfo Tech released its midterm performance for 2024, with revenue of RMB 2.994 billion, gross profit of RMB 0.738 billion, and R&D expenses of RMB 0.436 billion. Among them, the three new businesses (digital operation, vertical industry digitalization, and OSS business) maintained double-digit growth, with revenue reaching RMB 1.2 billion, a year-on-year increase of 10.0%, accounting for 40.1% of the total revenue.
