[Anatomy Board]

Sure enough, the “fish tail is prickly” market. Both markets have adjusted today, and the net sales of Northbound Capital today were 4,044 billion yuan. The Hang Seng Index closed down 0.90%, falling below the 5-day EMA.

On Wednesday, the Riksbank lowered the benchmark interest rate from 4.00% to 3.750% and said it is expected to cut interest rates twice more in the second half of the year if the inflation outlook remains unchanged. Sweden's inflation is approaching the 2% target, and economic activity is weak, so the Riksbank can relax monetary policy. According to this trend, many European countries will start cutting interest rates in the second half of the year, but the Federal Reserve continues to maintain hawkish rhetoric.

However, this kind of hard support is very costly. America's high interest rates are reversing many industries. The used car market is a typical example. The data shows that the average interest rate for used car loans tracked by Bankrate has now exceeded 8.5%. The sharp rise in interest rates on car loans is also increasing the chill in the used car market. The Mannheim used car price index, which is well-known in the industry, fell to 198.4 in April, down 14% from the previous year. Compared with the high of three years ago, the Mannheim used car price index has dropped 23% cumulatively. This is the worst bear market experienced by the US used car market since statistics were available. The slump in used cars in the US has also put tremendous pressure on the primary market, and Tesla's weakening is also related to this general environment. On the Chinese side, the Passenger Transport Federation announced yesterday its April NEV market forecast. Based on preliminary monthly data, it is estimated that the wholesale sales volume of NEV manufacturers nationwide in April was 800,000 vehicles, up 33% from the previous year, with a slight decrease of 2% over the previous year. Auto stocks generally showed a correction.

Real estate stocks are dragging down the index quite a bit today. Despite continuous favorable catalysis recently, the capital market is not moved. As soon as the market is adjusted, the market refocused on fundamentals. In order to relieve pressure, giant Vanke (02202) began implementing a “slimming down” plan. According to information published by the Shenzhen Public Resources Exchange Center on May 8, the T208-0053 parcel use rights located at the Shenzhen Bay Super Headquarters base was listed and transferred. The starting price was 2,235 billion yuan. Vanke (02202) fell 6.88%, and the negative demonstration effect had a big impact. Real estate fell flat on the decline list.

Pharmaceutical news has continued in the past two days, and synthetic biology has been popular for several days. According to the “White Paper on China's Synthetic Biology Industry 2024,” it is expected that the global synthetic biology market will maintain a relatively rapid development trend in the foreseeable future, and will grow into a global market with a volume of nearly 50 billion US dollars in 2028. Today again: Yin Hao's team from Shanghai Changzheng Hospital and Cheng Xin's team from the Chinese Academy of Sciences used stem cell-derived autologous islet transplantation therapy for the first time in the world to successfully cure a type 2 diabetic with severe islet function impairment. Currently, the patient has been completely free from insulin for 33 months. These new things are constantly emerging, but at the end of the day, they are all innovative pharmaceutical companies. Junshi Biotech (01877), which has core competitiveness, rose more than 4 points today. Others include Kangfang Biology (09926), Rongchang Biotech (09995), and Federal Pharmaceuticals (03933).

There really isn't much to speculate about in the market. Steady capital has begun to return to the high-dividend category. According to institutional estimates, the net profit of listed coal companies in 2024 is calculated using the annualized net profit of the first quarter of 2024. The current average dividend rate of the coal sector is 5.4%, of which the average dividend rate for the thermal coal sector is 5.5%, and the average dividend rate for the coking coal sector is 4.6%. China Coal Energy (01898) and Yankuang Energy (01171) both increased by more than 4 points, while Shougang Resources (00639) and China Shenhua (01088) exceeded 1 point.

It is worth mentioning Tourover-W (09690). The catalyst for this stock was incorporated into the Hong Kong Stock Exchange at the end of April, and then began to be favored by southbound capital. As a leader in post-vehicle maintenance and maintenance, it was standardized and replicable. Performance expectations continued to improve after achieving annual profits for the first time, and today it has risen more than 5 points again.

The British government said on Wednesday that the UK will invest nearly 200 million pounds (250 million US dollars) to build Europe's first facility to produce high-purity low-enriched uranium (HALEU), and this kind of fuel is needed for next-generation nuclear energy projects. As part of efforts to achieve climate goals and strengthen energy security, the UK is seeking to increase its nuclear power installed capacity to 240 gigawatts by 2050, which is expected to meet about a quarter of the local electricity demand, which currently accounts for only 14%. Getting rid of energy dependence and vigorously developing nuclear power is an important option. CGN Power (01816) ushered in catalysis: On May 6, local time, CGN Chairman Yang Changli and EDF Chairman and CEO Luc Raymond signed the “Letter of Intent on Deepening Cooperation in the Field of Nuclear Energy”. The two sides will further expand and strengthen cooperation in nuclear power project construction, talent development, EPR operation, and leadership development in the field of nuclear power operation to achieve common development. Today's increase is 2.68%.

The topic of price increases was mentioned yesterday. It has indeed spread from chemicals to other industries. Today, the pork sector is fermenting. Since this year, pig prices have been rising for 4 consecutive months. On the one hand, because January and February are being prepared for the Spring Festival, prices have gradually strengthened, supported by improved demand. On the other hand, in March and April, pig prices rose due to farmers' bullish market demand for secondary fattening of pigs. COFCO Jiajiakang (01610) is up nearly 4 points today.

China Telecom International, a subsidiary of China Telecom (00728), recently obtained a license for direct mobile phone satellite service from the Hong Kong Telecommunication Authority. China Telecom Group announced that it will officially launch the international operation of the Tiantong satellite mobile system with Hong Kong as its first stop. In the future, Hong Kong will be used as a starting point to promote Tiantong's overseas operations in Hong Kong and Macau, Southeast Asia, South Asia and other “Belt and Road” countries.

Hong Kong stock listed company Tehai International Holdings (09658) issued an announcement stating that the board of directors decided to publicly sell American Depositary Shares for the first time on the US NASDAQ stock market to promote the dual main listing of TEHAI International. The stock code is HDL.

[Sector Focus]

The European Union's climate monitoring agency, the Copernicus Climate Change Service, said in a communiqué issued on the 8th that the world has just experienced the “hottest April” since records began, and the average global average temperature in a single month has set the agency's record for 11 consecutive months to the highest value in the same period. The media quoted Carlo Buontembo, director of the Copernicus Climate Change Service, as reporting that greenhouse gas concentrations are getting higher and higher, “will continue to push global temperatures to set new records.”

According to statistics, the electricity consumption of the entire society reached 2.34 trillion kilowatt-hours in the first quarter of this year, showing the vigorous vitality of economic activity and continued strong energy demand. As the peak summer electricity consumption period approaches, the Energy Administration expects that the country's electricity consumption load will continue to grow rapidly during the summer this year, and the maximum load will increase by more than 100 million kilowatts over the same period last year, which places higher demands on the ability to guarantee electricity supply.

Main varieties: China Resources Electric Power (00836), Huaneng International (00902), China Electric Power (02380), Huadian International (01071).

[Individual Stock Nuggets]

Hengan International (01044): The core sector maintains strong growth and vigorously develops e-commerce business

The company obtained revenue of 23.768 billion yuan in 2023, an increase of 5.1% over the previous year; profit attributable to equity holders was 2,801 billion yuan, an increase of 45.5% over the previous year; basic income per share was 2.415 yuan; and a final dividend of 0.7 yuan per share was planned.

Comment: Hengan International's 2023 performance was in line with expectations, and profit margins improved significantly in the second half of the year. Revenue from the three core business segments (tissue, sanitary napkins and diapers business) has maintained strong growth over the past two years, increasing by about 8.0% year on year. In 2023, the company will further step up efforts to develop e-commerce business and new retail markets. In addition to promoting brands on large traditional e-commerce platforms, it is also strengthening penetration into other emerging channels (such as Douyin). During the year, the share of the company's e-commerce and new retail sales (including retail channels and new channels) further rose to about 30.1% (26.9% in 2022), increasing by about 17.7% year-on-year. Among them, other new retail channels (including RetailConnect, community group buying, etc.) progressed well, increasing by about 21.4% year-on-year, and their sales ratio reached about 7.4% of overall sales. The company upgraded the tissue series “Cloud Feeling Soft”, the high-end diaper “Q·MO”, and the sanitary napkin series “Cute Pajamas”, etc., and continued to be loved by consumers during the year, maintaining strong sales momentum. Various key upgrades and sales of high-end products also achieved a year-on-year increase of more than 10.0%, and continued to increase its share of sales. Looking ahead to 2024, the sanitary napkin business is expected to perform better than the full year of 2023. The company will increase marketing expenses in the first half of this year. It is expected that the tissue business will achieve low single-digit year-on-year growth in the first half of the year.