Jinwu Financial News | The Hang Seng Index closed at 19760 on Friday (3rd), up 136 points, or 0.7%. The market traded 160.3 billion yuan a day. The national index rose 68 points, or 1%, to 7159. The index rose 45 points, or 1%, to 4403. The Development and Reform Commission says it will implement subsidies for the purchase of new digital products such as mobile phones, and mobile phone stocks are highly sought after. Xiaomi (01810) reached a record high, closing up 6.6% to 36.25 yuan. This was the biggest increase in blue chips, with a turnover of 12.05 billion yuan. Zhongsheng Holdings (00881) fell 3.8%, making it the worst performing blue chip.

The Dow closed 42,732 points, up 339 points, or 0.8% on Friday (3rd); the index rose 1.26% to 5942 points; the NASDAQ rose 1.77% to 19621 points; among blockbuster stocks, Nvidia (Nvidia), Tesla (Tesla), and Amazon (Amazon) stocks closed 4.5%, 8.2%, and 1.8%, respectively. Fida is the strongest performing Dow component. US President Joe Biden officially vetoed the takeover plan proposed by Nippon Steel, and US Steel's stock price fell 6.5% in response. Boeing fell 1.2%, making it the biggest decline in the Dow. The Asia-Pacific stock market moved individually this morning (6th). The Nikkei 225 Index now reports 39,696 points, down 208 points, or 0.52%. The South Korea Composite Index now stands at 2,462 points, up 20 points, or 0.86%. Mainland data fell short of market expectations, and the trend of Hong Kong stocks continued to weaken.

Market Focus: Hisense Home Appliances (00921)

Since this year, the consumer goods trade-in policy has continued to expand and strengthen, continuously unleashing the huge potential of the domestic demand market. Home appliances are a key area for promoting “trade-in” of consumer goods. According to data from the Bureau of Statistics, consumer retail sales of home appliances reached 120 billion yuan in November 2024, an increase of 22.20% year on year. After the central subsidy funds for trade-in were in place in August, consumer electronics consumption increased by more than 20% year on year for 3 consecutive months. At the same time, the recovery in real estate is also bringing demand for household appliances consumption. Demand in the home appliance industry has improved markedly, valuations have bottomed out and rebounded, and sector valuations have recovered significantly. They still have a high configuration cost performance ratio, and they are optimistic about Hisense home appliances. In the first three quarters of this year, Hisense Home Appliances achieved operating income of 70.579 billion yuan, up 8.75% year on year; net profit to mother was 2.793 billion yuan, up 15.13% year on year; net profit after deducting non-return to mother was 2.289 billion yuan, up 10.99% year on year. Among them, the Group's export sales increased significantly. From January to September 2024, the export sales amount of multiple online companies was 1.039 billion yuan, an increase of 23% over the previous year. It is believed that the Group will continue to strengthen its overseas market layout, and it is expected that the size and performance of the company will return to a higher growth trend in the future. Target price is $33, stop loss price is $21.4.

(The author is a licensed person from the Securities Regulatory Commission and the author does not hold the above shares)

Author: Dr. Tang Sheng-hing, Chairman of the Hong Kong Association of Equities Analysts