Today's Headlines

The offshore renminbi against the US dollar rose above 7.10.

On August 29, the offshore renminbi against the US dollar once broke through 7.09, rising more than 400 points intraday. The onshore renminbi exchange rate broke through the 7.1 threshold, rising nearly 300 basis points intraday. On the news front, on August 29, 2024, the People's Bank of China conducted open market operations repo transactions through quantity bidding, buying 400 billion yuan of special government bonds from primary dealers in the open market. Previously, Stephen Jen, the well-known proponent of the "dollar smile theory", analyzed that the US interest rate cut may trigger 1 trillion US dollars of Chinese capital inflow, pushing the renminbi to appreciate by 10%.

Outlook for the Future

Nvidia fell more than 6%, with a market cap evaporating nearly 200 billion US dollars in a single day.

After the closing of the overnight US stock market, the Dow Jones Industrial Average rose 243.63 points compared to the previous trading day, closing at 41,335.05 points, with a gain of 0.59%; the S&P 500 index fell 0.22 points to close at 5,591.96 points, with a small decrease; the Nasdaq Composite Index fell 39.60 points to close at 17,516.43 points, with a decrease of 0.23%.

Tech stocks are mixed, with Nvidia falling more than 6%, losing nearly $200 billion in market value in a single day, while Intel is up more than 2% and Apple is up more than 1%. China concept stocks are generally rising, with the NASDAQ Golden Dragon China Index up 2.63%. Li Auto is up more than 10%, Xpeng is up more than 8%, Nio is up more than 6%, and PDD Holdings and Bilibili are up more than 4%. HSI ADR is falling, closing at 17,766.54 points, down 19.78 points or 0.11% from the Hong Kong market close.

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Huawei: Achieved sales revenue of 417.5 billion in the first half of the year, a year-on-year increase of 34.3%.

On August 29th, Huawei released its financial results for the first half of the year. In the first half of 2024, the company achieved sales revenue of 417.5 billion RMB, a year-on-year increase of 34.3%, with a net profit margin of 13.2%. Xu Zhijun, rotating Chairman of Huawei, said, 'The overall operation of the group is in line with expectations. We will implement a 'high-quality' company strategy throughout the entire process, continuously optimize our industrial portfolio, enhance development resilience, build a prosperous industrial ecosystem, and contribute more competitive products and solutions to our customers.'

Trad Chi Med (00570): Traditional Chinese medicine, category 3.1, ancient classic prescription compound formulation Danggui Buxue Tang granules approved for listing.

According to the announcement by Trad Chi Med (00570), the first traditional Chinese medicine compound formulation (i.e., a new drug in the category of traditional Chinese medicine 3.1) managed according to the catalog of ancient classic prescriptions, Danggui Buxue Tang granules, has been approved for listing by the National Medical Products Administration. The holder of the marketing authorization is the group's subsidiary, Guangdong Huanqiu Pharmaceutical Co., Ltd.

In the first seven months of this year, the number of tour groups entering Macau reached 1.173 million, an increase of 1.5 times compared to the same period last year.

According to data released by the Statistics and Census Service of Macau on August 29th, the number of tour groups entering Macau in the first seven months of this year reached 1.173 million, an increase of 1.5 times compared to the same period last year. The number of mainland Chinese tour groups increased by 1.3 times to 1.036 million, and the number of international tour groups increased by 4.6 times to 0.118 million, among which the number of tour groups from South Korea (0.047 million) and India (0.015 million) increased by 9.2 times and 16.6 times respectively.

COSCO SHIPPING Holdings (01919) has ordered 12 14,000 TEU methanol dual-fuel container ships.

COSCO SHIPPING Holdings (01919) announced that on August 29, 2024, the buyer COSCO MERCURY and the builder Yangzhou Heavy Industry entered into 12 COSCO MERCURY shipbuilding contracts with approximately the same terms. The price of each ship is 0.1795 billion US dollars (equivalent to approximately 1.4 billion Hong Kong dollars), and the total price of the 12 ships is 2.154 billion US dollars (equivalent to approximately 16.8 billion Hong Kong dollars).

COSCO SHIPPING Holdings (01919) released its interim results for the six months ended June 30, 2024. The Group achieved revenue of RMB 101.201 billion, an increase of 10.19% compared to the previous year. The net income attributable to equity holders of the company was RMB 16.871 billion, an increase of 0.19% compared to the previous year. The basic earnings per share were RMB 1.05, and an interim dividend of RMB 0.52 per share is planned to be distributed.

BOC Hong Kong (02388) recorded a profit attributable to shareholders of HKD 20 billion in the first half of the year, a year-on-year increase of 17.9%.

BOC Hong Kong announced its interim results for 2024 on August 29. The operating profit for the first half of the year was HKD 25.1 billion, a year-on-year increase of 15.2%. The profit attributable to shareholders for the first half of the year was HKD 20 billion, a year-on-year increase of 17.9%. The net interest income for the first half of the year was HKD 28.817 billion, a year-on-year increase of 15.3%.

china life insurance (02628) released its interim performance, with a shareholder's share of profit of 38.278 billion yuan, an increase of 5.88% year-on-year. The total premium reached its best historical level for the same period.

Zhongtong Finance and Economics APP News, China Life Insurance (02628) released its unaudited interim performance as of June 30, 2024, with insurance service income reaching 106.622 billion yuan (RMB, the same below), a 15.97% year-on-year increase; total income reached 234.235 billion yuan, a 25.71% year-on-year increase; shareholders' net profit reached 38.278 billion yuan, a 5.88% year-on-year increase; and basic earnings per share were 1.35 yuan.

Air China Limited (00753) released its interim results. The loss attributable to shareholders was RMB 2.779 billion, a decrease of 19.38% compared to the previous year.

China Airlines (00753) announced its interim results for the six months ended June 30, 2024. The group achieved revenue of RMB 79.52 billion, a year-on-year increase of 33.39%. The company's shareholders' loss was RMB 2.779 billion, a decrease of 19.38% year-on-year. The loss per share was 17.67 cents.

shandong molong petroleum machinery (00568) announced its interim results, with a net profit attributable to the parent of approximately 0.17 billion yuan, turning losses into profits year-on-year.

According to the Zhitong Financial APP, Shandong Molong Petroleum Machinery (00568) announced its mid-year performance in 2024, with revenue reaching RMB 0.605 billion, a decrease of approximately 24.27% compared to the same period last year. The owner's equity should account for a net profit of RMB 0.17 billion, turning losses into profits year-on-year. Earnings per share is approximately RMB 0.2132.

Great Wall Motor (02333) releases interim performance. Net income attributable to owners of the company is 7.079 billion yuan, a year-on-year increase of 419.99%.

According to the announcement, the group's total operating revenue for the period was 91.429 billion yuan (RMB), a year-on-year increase of 30.67%; the net income attributable to the parent company was 7.079 billion yuan, a year-on-year increase of 419.99%; and the basic earnings per share were 0.83 yuan.

Lonking (03339) announced its interim results. The shareholders' attributable profit was RMB 0.458 billion, an increase of 49.11% year-on-year.

Lonking (03339) announced its interim results for the six months ended June 30, 2024. The group achieved revenue of RMB 5.36 billion, a decrease of 6.4% year-on-year. The profit attributable to the owners of the parent company was RMB 0.458 billion, an increase of 49.11% year-on-year. Earnings per share were 0.11 yuan.

CSSC Offshore & Marine Engineering (00317) announced its interim results with a net profit attributable to shareholders of approximately 0.147 billion yuan, a year-on-year increase of 10.59 times.

According to the announcement, the net profit growth benefited from the increase in the quantity and price of completed and delivered ship products, the improvement in production efficiency and cost control level, and the increase in gross profit of products compared to the same period last year; During the reporting period, 16 ships were completed and delivered, totaling 0.5369 million deadweight tons.

Kuaishou-W (01024): Adjusted net profit for the first half of the year was 9.067 billion yuan, a year-on-year increase of 231.4%.

The adjusted net profit for the first half of the year was 9.067 billion yuan, an increase of 231.4% year-on-year.

Faraday (09638) announced its interim performance. The shareholder's attributable surplus was 43.859 million euros, a year-on-year increase of 8.43%

According to the Zhitong Finance APP, Faraday (09638) announced its mid-year performance in 2024, with a net income of approximately 0.646 billion euros, an increase of about 11.3%. Shareholders' attributable profit was 43.859 million euros, an 8.43% increase year-on-year; earnings per share were 0.13 euros.

Beijing Control (00392) announces interim performance: Shareholders' attributable net profit was 3.15 billion yuan, stable and progressive operation and development.

According to the Zhitong Financial APP, Beijing Control (00392) released its interim performance for the six months ended June 30, 2024. The group achieved a comprehensive operating income of 432.2 yuan (same unit). The company's shareholders' attributable net profit was 3.15 billion yuan, with earnings per share of 2.5 yuan. The company plans to distribute an interim dividend of 85 Hong Kong cents per share.

Hua Hong Semiconductor (01347) announces interim performance: Shareholders' attributable net profit was 38.491 million USD, a year-on-year decrease of 83.3%.

Smart Finance APP News, Hua Hong Semi (01347) released its six-month performance ending on June 30, 2024, with sales revenue reaching 0.9385 billion dollars, a decrease of 25.6% compared to the same period last year; gross profit was 79.7 million dollars, a decrease of 78.9% compared to the same period last year; net profit attributable to the owners of the parent company was 38.491 million dollars, a decrease of 83.3% compared to the same period last year. Basic earnings per share were 0.022 dollars.

SMIC International (00981) announced its interim results, with a net profit attributable to shareholders of approximately 0.236 billion US dollars, a decrease of 62.7% year-on-year.

Zhongxin International (00981) announced its mid-year performance in 2024, with revenue of approximately 3.6515 billion US dollars, an increase of 20.8% year-on-year; among them, the wafer foundry business revenue was 3.3946 billion US dollars, an increase of 23.0% year-on-year. The net profit attributable to the company's shareholders is approximately 0.236 billion US dollars, a decrease of 62.7% year-on-year; the non-GAAP net profit is approximately 0.181 billion US dollars, a decrease of 29%; basic earnings per share is 0.03 US dollars.

Stocks are clearing up.

Chinahongqiao (01378): Shandong Hongqiao's net income for the first half of the year was 9.793 billion yuan, an increase of 343.92% year-on-year.

China Hongqiao (01378) released the performance of its subsidiary Shandong Hongqiao for the first half of 2024, with operating revenue of 72.045 billion yuan (RMB), an increase of 11.75% year-on-year; net income of 9.793 billion yuan, an increase of 343.92% year-on-year.

Minsheng Securities released a research report, pointing out that the rise in aluminum prices and cost reductions have significantly improved China Hongqiao's performance elasticity, while the transition to green energy will help long-term development. It is expected that the company will achieve a net profit attributable to shareholders of 17.796 billion yuan, 20.065 billion yuan, and 21.985 billion yuan in 2024-2026, corresponding to PEs of 5, 4, and 4 times the current price.

Minsheng Securities has listed the future development highlights of China Hongqiao. First, the integration layout of China Hongqiao's bauxite, alumina, and aluminum electrolysis is well-established, with strong material guarantee capabilities. Second, there is a significant reduction in the cost of raw materials, and the company has great performance flexibility. Third, some of the aluminum electrolysis capacity of the company has been transferred to Yunnan, which is conducive to the company's long-term development. Fourth, the company has invested in the Guinea iron ore project, expanding its horizontal iron ore resources.