The Zhitong Finance App learned that Hong Kong stocks retreated after rising today. The three major indices turned green one after another in the afternoon. In the end, only the Hengke Index achieved a slight increase. At one point, it rose more than 1% in early trading. At the close, the Hang Seng Index fell 0.2% or 38.95 points to 19240.89 points, with a full-day turnover of HK$129.069 billion; the Hang Seng State-owned Enterprises Index fell 0.17% to 6978.97 points; and the Hang Seng Technology Index rose 0.1% to 4311.54 points.

Sino-Thai International pointed out that recent US economic data is better than expected, giving upward momentum to the US dollar index and US 10-year bond interest rates. The upward space for the Hong Kong stock market is still limited by weak profit expectations. There is still uncertainty about the scale of future incremental fiscal policy, and the expectation that a higher risk-free interest rate in the US dollar will continue to suppress the liquidity of Hong Kong stocks for a longer period of time. As a result, the Hong Kong stock market is still dominated by structural fluctuations in the short term.

Blue-chip stock performance

Master Kong Holdings (00322) leads the blue chip. At the close, it rose 12.22% to HK$11.2, with a turnover of HK$0.316 billion, contributing 3.77 points to the Hang Seng Index. Goldman Sachs quoted Master Kong's management as saying that last year's sales volume may be affected by price increases (instant noodle prices increased from October last year), but estimates that last year's net profit growth target (10% to 15%) has upward potential. Looking ahead to 2025, Master Kong hopes that revenue will grow steadily and net profit margins will continue to improve in 2025.

In terms of other blue chips, China Hongqiao (01378) rose 5.29% to HK$11.54, contributing 2.65 points to the Hang Seng Index; Anta Sports (02020) rose 4.45% to HK$78.6, contributing 7.47 points to the Hang Seng Index; Ideal Automobile-W (02015) fell 4.42% to HK$87.5, dragging down the Hang Seng Index by 8.78 points; and Zhongsheng Holdings (00881) fell 3.44% to HK$12.34, dragging down the Hang Seng Index by 0.46 points.

Popular sector aspects

On the market, large technology stocks had mixed ups and downs. The “16 Voices of Yan Yun” mobile app went live today, and NetEase closed up more than 2%; WeChat moved out of the US notorious market list, and Tencent rebounded 1%; and Alibaba fell 0.37%. Domestic substitution welcomed benefits, and the semiconductor sector showed active performance; the PCB industry continued to rise, with Jiantao laminated boards rising by more than 6%; alumina inflection point or reached, aluminum stocks rose today; aviation stocks, pharmaceutical stocks, and building materials and cement stocks generally rose. On the other side, shipping stocks declined, and COSCO Offshore Holdings fell nearly 5%; coal stocks, automobile stocks, paper stocks, etc. fell one after another.

1. Semiconductor stocks were active. At the close, SMIC (00981) rose 2.95% to HK$31.45; Huahong Semiconductor (01347) rose 2.24% to HK$20.55; and Shanghai Fudan (01385) rose 0.43% to HK$14.04.

According to reports, the US Biden administration plans to implement a new round of restrictions on the export of artificial intelligence chips from Nvidia and other companies before leaving office. People familiar with the matter said that the new rules will set a three-tier limit on chip transactions and will probably be released as soon as Friday. CDB Securities believes that semiconductors continue to strengthen and accelerate the localization process in important fields of technology competition. The game surrounding the field of science and technology may intensify in the future, and the need to achieve self-reliance on a high level of technology is particularly urgent. Ping An Securities said that the semiconductor industry is currently in the recovery phase, and the recovery in consumer electronics will drive a new upward cycle of semiconductors.

2. Aluminum stocks were higher today. At the close, China Hongqiao (01378) rose 5.29% to HK$11.54; China Aluminum (02600) rose 4.84% to HK$4.55.

The CITIC Securities Research Report pointed out that the easing of the supply and demand pattern and the catalysis of superimposed events contributed to a significant weakening of alumina prices. Looking ahead to 2025, the bank believes that the center of alumina prices is expected to decline; supply constraints are compounded by improved demand expectations, and aluminum price elasticity can still be expected. The bank is optimistic about the broadening profits of tons of aluminum and the investment value of the aluminum sector driven by dividends and valuation logic. In addition, Goldman Sachs upgraded China Aluminum's A share rating to neutral, with a target price of RMB 7.2, and raised Aluminum's H share rating to buy, with a target price of HK$6.8.

3. The PCB-related industry chain is strong. At the close, Jiantao Laminate (01888) rose 6.59% to HK$7.12; Jiantao Group (00148) rose 5.38% to HK$18.82.

Amazon Web Services (AWS), the Amazon cloud computing division, plans to invest at least $11 billion in Georgia to expand its infrastructure and support various cloud computing and artificial intelligence technologies. Earlier, Microsoft stated that AI data center expenses in FY2025 were 80 billion US dollars, and the trend of high capital expenditure growth for North American cloud vendors in FY2025 was determined. China Merchants Securities pointed out that, driven by AI technology and applications, servers will be the fastest growing application area for PCBs, and the compound growth rate is expected to reach 11.6% to 14.2 billion US dollars from 2023 to 2028.

According to reports, Jiantao Group is a global leader in copper-clad plates, and lays out the entire upstream raw materials and downstream PCB industry chain. In addition, Open Source Securities previously pointed out that Jiantao Laminate is the leader in the copper-clad plate industry. Along with the rise in copper prices in 2024, downstream demand is gradually picking up. Copper-clad sheets have room for flexible price adjustments. Combined with the cost advantage of vertical integration and scale effects in the supply chain, it is expected to drive the company's revenue and profit back to a growth trajectory in 2024.

4. Coal stocks continued to decline. At the close, China Shenhua (01088) fell 3.18% to HK$30.45; China Coal Energy (01898) fell 1.69% to HK$8.75; and Mongolian coking coal (00975) fell 0.87% to HK$6.83.

Goldman Sachs downgraded China Shenhua's A-share rating to “sell”, with a target price of RMB 33. Furthermore, Bank of America Securities released a research report saying that the coal industry and China's Shenhua are being underestimated this year because coal demand growth is expected to be limited, inventories are at historically high levels, and there is a need to face continued import threats. The bank expects that this year's fuel coal price will be 720 yuan per ton (down 16% year on year), the spot price will be lower than the contract price from the second quarter to the third quarter, while the price of coking coal will be 1,400 yuan per ton.

Popular exotic stocks

1. Old-fashioned Gold (06181) broke its peak again. At the close, it was up 11.07% to HK$299.

According to reports, during New Year's Day in 2025, the long-established Gold Shanghai Yuyuan store launched a “10,000 minus 100” campaign, and the queues were unprecedented. According to the report, some consumers lined up for 8 hours to buy more than 0.1 million yuan; although the old Gold Store in Guangzhou did not have a “full 1,000 minus 100” discount, brand staff said, “They line up every day, and it continues until the afternoon after eating.

2. Polar Rabbit Express-W (01519) rose throughout the day. At the close, it was up 10.31% to HK$6.42.

Goku Express recently released major operating data for the fourth quarter and full year of 2024. In the fourth quarter of 2024, the company achieved an overall package volume of 7.39 billion pieces, an increase of 32.5% over the previous year, with an average daily package volume of 80.3 million pieces. Throughout 2024, the company achieved an overall package volume of 24.65 billion pieces, an increase of 31% over the previous year, and an average daily package volume of 67.3 million pieces, an increase of 30.7% over the previous year.

3. ZTE (00763) AH shares rose sharply. At the close, it was up 9.98% to HK$23.7.

Shen Wan Hongyuan pointed out that according to ZTE's annual report, ZTE Microelectronics's revenue scale reached 9.73 billion yuan and net profit of 0.846 billion yuan in 2021, and its products have covered all fields of “computing power, networks, and terminals” in the ICT industry. The value contribution of the company's chip capabilities cannot be ignored. Currently, it has the ability to develop a full range of digital chips such as switching network chips, search chips, and NP chips. The company's digital communication products have also enabled all core chips to be self-developed and switched, which is one of the core driving forces for steady improvement in profitability, and is also scarce in the industry.

4. Cathay Pacific (00293) hit a new high. At the close, it was up 7.83% to HK$10.6.

Cathay Pacific announced that it will restart direct service between Hong Kong and Rome, Italy on June 5. The new route will operate three times a week during the season. This is Cathay Pacific's second route connecting Hong Kong to Italy. In addition to Rome, Cathay Pacific will also launch direct flights between Hong Kong and Hyderabad, India, Munich, Germany, and Brussels, Belgium this year. Meanwhile, Hong Kong Express, a low-cost airline under the Group, will launch a route between Hong Kong and Sendai, Japan in January. The total number of passenger destinations for the two airlines worldwide is expected to exceed 100 within this year.

5. Anta Sports (02020) saw a significant increase. At the close, it was up 4.45% to HK$78.6.

Anta Sports announced that in the fourth quarter of 2024, the retail value of Anta brand products (based on retail value) increased by a high number of units compared to the same period in 2023. In the fourth quarter of 2024, the retail value of FILA brand products (in terms of retail value) achieved a positive increase in the number of units compared to the same period in 2023.

Initial listing of IPOs

1. Conch Material Technology (02560) broke down drastically. At the close, it was down 47.67% to HK$1.57.

At a price of HK$3 per share, Conch Material Technology issued a total of 0.145 billion shares, 1,000 shares per lot, with a net proceeds of approximately HK$0.396 billion. According to reports, Conch Material Technology is a fine chemical materials supplier that produces and sells cement admixtures, concrete admixtures and related upstream raw materials. The main products include cement admixtures, concrete admixtures, and related upstream raw materials. In terms of cement admixture sales in 2023, China's top five market participants account for about 41.2%. The company ranked first in China, with a market share of about 28.3%.

2. Huige Environmental Protection (02613) performed well. At the close, it was up 6.29% to HK$33.8.

Huige Environmental was priced at HK$31.8 per share. A total of 10 million shares were issued, with 100 shares per lot. The net proceeds were approximately HK$0.2734 billion. According to reports, Huige Environmental Protection is a Chinese marine environmental protection equipment and system provider. According to Frost & Sullivan data, on December 31, 2023, the company ranked third among ship exhaust gas purification system providers in China and fourth among all ship exhaust gas purification system providers in the world based on the total number of completed orders in 2023 and the cumulative number of orders on hand for ship exhaust gas purification systems in 2023.