Hong Kong stocks review: the HSI becomes popular in the afternoon, the biomedical semiconductor sector leads the rise
News from the Associated Finance Press (Shanghai, Edited by A Rong), The major Hong Kong stock indexes turned red in the afternoon on Tuesday. By the end of the day, the Hang Seng Index rose 0.20% to close at 24813.13; the State-owned Enterprise Index rose 0.14% to close at 8806.02; the red chip index rose 0.25% to close at 3738.29; the Hang Seng Technology Index rose 0.45%. Reported to receive 6221.85.
In terms of concept sectors, the biomedicine and semiconductor sectors led the gains, with gains of 6.76% and 4.98% respectively. Catering and coal led the decline, with declines of 4.33% and 2.32% respectively.
The biomedical sector opened higher today and rose 6.76% as of the close. Among them, Kaifeng Pharmaceutical-B (09939) and MicroPort Robot-B (02252) led the gains, with increases of 22.39% and 20.12% respectively.
Although the biopharmaceutical sector has encountered a “Black Monday”, it still does not change the logic of the pharmaceutical sector’s long-term upward trend. For example, in the vaccine sector, some institutions are still optimistic about this field. According to the research report of Guotai Junan, domestic vaccination continues to advance steadily, and the vaccination rate will be close to high. If breakthroughs are made in the research and development of domestically-made new crown oral drugs, international liberalization will be expected.
According to the report of Everbright Securities, the current new crown treatment drugs are divided into two technological paths: small molecules and neutralizing antibodies. Small molecules are highly accessible, simple to store, and convenient to administer. The new crown specific drugs announced by Merck previously are this path, and the domestic pioneering pharmaceutical industry is developing small molecule anti-new crown drugs.
According to a research report issued by Guotai Junan, two new oral drugs for the new crown have entered clinical trials in China: Junshi Bio’s nucleoside anti-new crown drug VV116, which was approved to start clinical trials in Uzbekistan in October; Klulamide, a clinical trial completed in Brazil, has shown significant efficacy, and has been authorized for emergency use in Paraguay in July, and is currently conducting a phase III global multicenter clinical trial for hospitalized patients with new crown.
The catering sector suffered a drop on Tuesday, and as of the close, it fell 4.33%. Among them, the international eclipse (03666) and Haidilao (06862), their declines were 7.58% and 5.44%, respectively; Haidilao had soared 4.75% yesterday.
According to a research report issued by Nomura Securities, Haidilao recently announced that it plans to gradually close or suspend about 300 stores with relatively low passenger flow and unsatisfactory performance before the end of the 2021 fiscal year, but pointed out that related measures may not help solve the company’s current Challenges include hot pot not being popular under the epidemic and unable to attract young customers, etc. It is difficult to recover in the short term. The bank sharply lowered the company’s target price from 31.6 yuan to 17 yuan, and the rating was also changed from “neutral” Decrease to “underweight”.
The bank believes that this plan is aimed at correcting its aggressive store expansion since 2019. It also pointed out that the advantage of this approach is that the density of stores will be reduced, so it may increase the passenger flow of its remaining restaurants, and the pressure on rent will be reduced.
The bank also pointed out that the group’s operating trend may still be inferior to its peers, and lowered its net profit forecast for 2021 to 2023 because the group’s store network is smaller and turnover is more conservative, and it is expected that operating profit margins will continue to be under pressure.
This year, the Hang Seng Index rose and fell. The new energy sector, represented by wind power and photovoltaics, benefited from the good news overnight and rose sharply in early trading, and then the gains have narrowed. At the same time, the biomedical technology sector, which has undergone multi-day adjustments, maintained a trend of opening higher and higher all day, and in the afternoon led the major indexes of the Hang Seng Index to turn red.
CICC pointed out that the Internet technology sector represented by the Hang Seng Technology Index has continued to adjust since February after a short-lived spike in Hong Kong stocks in early 2021. Looking ahead to 2022, although internal and external uncertainties still exist, it is believed that overseas Chinese stocks have low valuation advantages, especially in the context of a decline in valuation, the midstream and downstream and growth sectors may become the main line.
CICC expects that the Hang Seng State-owned Enterprises and MSCI China Index will have double-digit upside in the coming year, mainly from about 9% of earnings contribution and 8% and 5% of valuation expansion. The bank also listed the preferred portfolio of overseas Chinese stocks, including Tencent, Country Garden Services, Sunny Optical Technology, Industrial and Commercial Bank of China, Li Ning, Mengniu Dairy, Master Kong, AIA, Tigermed, Yadea Holdings, and Haier Zhijia.
Southbound funds
Today, the net outflow of southbound funds is 540 million Hong Kong dollars.
Hong Kong market news and individual stock changes
[Association of Dealers held a symposium on real estate companies. Some companies plan to issue debt financing instruments in the inter-bank market in the near future]
According to a reporter from the Financial Association, the China Interbank Market Dealers Association held a symposium with representatives of real estate companies on November 9. According to participants, companies such as China Merchants Shekou, Poly Development, Country Garden, Longfor Group, Jiayuan Chuangsheng, and Midea Real Estate have plans to register and issue debt financing instruments in the inter-bank market in the near future.
[Two departments: vigorously develop characteristic APIs and innovative APIs to encourage superior enterprises to become bigger and stronger]
According to the Finance Association, the National Development and Reform Commission and the Ministry of Industry and Information Technology issued a notice on the implementation plan for promoting the high-quality development of the API industry. The plan proposes to vigorously develop characteristic APIs and innovative APIs, and increase the proportion of new products and high value-added products. Promote large-scale and intensive development of API production, encourage superior enterprises to become bigger and stronger, and increase industrial concentration. Guide the development of new business formats such as specialized contract R&D and production services in the field of APIs.
[Hengchi Auto appeared in the Ministry of Industry and Information Technology product announcement Evergrande Motor rose 4.08%]
Evergrande Motor (00708) rose sharply in the afternoon, and as of the close of trading, it rose 4.08% to close at HK$3.570. According to the “Announcement of Road Motor Vehicle Manufacturers and Products” (batch 350) issued by the Ministry of Industry and Information Technology this morning, a Hengchi brand pure electric vehicle appeared in two colors. It is worth mentioning that in September 2021, Evergrande Group announced that a number of Hengchi models have completed summer tests, claiming to have fully verified the performance and quality of vehicles in extreme high temperature environments.
[New Oriental-S rose by 5.86%, and the non-profit training institution for K9 subject training will be issued soon]
New Oriental-S opened higher today, and as of the close, it rose 5.86% to close at 16.620 Hong Kong dollars. On the news, there was news from the market yesterday night that China will issue K9 (compulsory education stage) discipline training non-profit training institutions to educational and training enterprises. However, according to industry insiders, the issue of off-campus training licenses is still in the process of “discussion”, and the number, list, standards, etc. are still inconclusive.
[Semiconductor sector soared, Shanghai Fudan rose 16.67%]
Shanghai Fudan (01385) rose 16.67% to close at HK$24.5. On the news, Tianfeng Securities released a research report saying that the foundry duo SMIC and Hua Hong Semiconductor have been stagnating for a long time, and their valuations are also relatively low in the industry. The bank believes that the current position cycle upward has been transmitted to the foundry sector, and the price increase and expansion in the second half of the year are expected to bring the fundamentals continue to rise in the next two quarters. In the long run, the mainland foundry will enter the strategic expansion period, and it will be growth. It is expected to exceed expectations.Return to Sohu to see more
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