[Today's headlines]

Vehicle trade-ins and end-of-life upgrades will be carried out across the country, which is expected to further explore the potential of the automotive industry

Recently, the State Council issued the “Action Plan to Promote Large-scale Equipment Renewal and Consumer Goods Trade-In”. The “Action Plan” proposes to organize and carry out a national automobile trade-in promotion campaign to eliminate old cars that meet mandatory scrapping standards according to law and regulations. By 2027, the recycling volume of end-of-life vehicles will approximately double compared to 2023, and the volume of used car transactions will increase by 45% compared to 2023. In addition, banking institutions are also encouraged to appropriately reduce the down payment ratio for passenger car loans and reasonably determine automobile loan terms and credit lines on the premise that they are in compliance with the law and that risks are manageable.

On February 6, Cui Dongshu, Secretary General of the Passenger Transport Association, published an article stating that the development of the used car industry will return to the fast track in 2023. Used car sales reached 18.41 million units in 2023, an increase of 15% over the previous year. At the same time, due to the continuous improvement of the level of used car transactions, the volume of used car transactions has gradually increased. Last year, the used car transaction volume reached 105.96 billion yuan, and this year it reached the level of 1179.5 billion yuan, an increase of 11%, reflecting the richer and diversification of used car trading products. It involves Hong Kong stock Yongda Auto (03669), Meidong Auto (01268), Yixin Group (02858), Zhongsheng Holdings (00881), Guanghui Baoxin (01293), Auto Street Development, etc.

[General outlook]

US PPI data shows that the Federal Reserve will not rush to cut interest rates

US stocks closed overnight. The Dow fell 137.66 points, or 0.35%, to 38905.66 points; the NASDAQ fell 49.24 points, or 0.30%, to 16128.53 points; the S&P 500 index fell 14.83 points, or 0.29%, to 5150.48 points. Tesla (TSLA.US) closed down 4%, hitting a new low since May last year, with a market capitalization of $510 billion. Nvidia (NVDA.US) closed down 3.2%. The Nasdaq China Golden Dragon Index closed down 2.7%, Alibaba (BABA.US) fell nearly 4%, and Xiaopeng Motors (XPEV.US) all fell more than 6%. The Hong Kong stock ADR index declined. On a proportional basis, it closed at 16024 points, down 205.08 points or 1.28% from the Hong Kong closing.

US PPI data surpassed expectations, indicating that the path of Fed policymakers seeking greater progress in fighting inflation is uneven, and the Fed will not rush to cut interest rates. US Treasury yields climbed on Thursday, and 10-year Treasury yields rose 10 basis points to 4.292%. The 2-year Treasury yield rose 6.7 basis points to 4.689%.

[Hot preview]

ECB Governing Council Note: The ECB is expected to cut interest rates for the first time in June

ECB Governing Council member Nott said that it is expected that the ECB will cut interest rates for the first time in June. Further interest rate cuts are most likely in September and December of this year.

The Hong Kong Monetary Authority launches the second phase of the “CyberHKD” pilot scheme

The Zhitong Finance App learned that on March 14, the Hong Kong Monetary Authority announced the launch of the second phase of the “CyberHKD” pilot program to further explore innovative use cases of “CyberHKD” in Hong Kong. According to reports, the Hong Kong Monetary Authority completed the first phase of the “CyberHKD” pilot program in October last year to study local retail use cases in Hong Kong in various fields such as programmable payments, tokenized asset settlement, and offline payments.

Former US Treasury Secretary Mnuchin: An investor group is being formed to try to buy TikTok

Former US Treasury Secretary Mnuchin said in an interview on March 14 that he is forming a group to try to buy TikTok. Mnuchin said he had conversations with investors interested in the deal, but declined to say which investors participated in the fair. On the 13th local time, the US House of Representatives passed a bill requiring ByteDance to divest control of TikTok; otherwise, TikTok will be banned in the US. A spokesman for China's Ministry of Commerce responded that the US side should earnestly respect the market economy and the principle of fair competition, stop unjustifiably suppressing other countries' enterprises, and provide an open, fair, just and non-discriminatory environment for enterprises from various countries to invest and operate in the US. The parties concerned should strictly abide by Chinese laws and regulations, and the Chinese side will take all necessary measures to resolutely safeguard its legitimate rights and interests.

NDRC: Support high-quality enterprises to borrow medium- to long-term foreign debt to promote high-quality development of the real economy

According to the official website of the National Development and Reform Commission, in order to continue to implement the decisions and arrangements of the Party Central Committee and the State Council, further expand high-level openness to the outside world, enhance the facilitation of cross-border investment and financing, support high-quality enterprises to better coordinate resources in both domestic and international markets, and give full play to the positive role of the high-quality development of foreign debt capital services and enhance the quality and level of international circulation, the NDRC drafted and formed the “Notice of the National Development and Reform Commission on Supporting High-Quality Enterprises to Borrow Medium- and Long-Term Foreign Debt to Promote High-Quality Development of the Real Economy (Draft for Comments)”.

The Northern Copper Industry may cut production in response to market rumors

According to some market sources, copper production will decrease. Staff of the Northern Copper Securities Department responded that although the company's production capacity has increased at present, due to the tight balance in the supply of refined copper ore, processing costs have been seriously reduced, so future production may decrease. It involves Hong Kong stock copper mining companies, including Luoyang Molybdenum (03993), Jiangxi Copper (00358), Zijin Mining (02899), Minmetals Resources (01208), etc.

A number of central enterprises jointly released the “Research on the Path of State-owned Enterprises to Implement Strategies to Expand Domestic Demand”

China Mobile and a number of other central enterprises jointly released the report “Research on the Path of State-owned Enterprises to Implement Strategies to Expand Domestic Demand” in Beijing on the 14th. The report systematizes the practices of central enterprises in six major industries to implement strategies to expand domestic demand, and provides new ideas for state-owned enterprises to implement strategies to expand domestic demand under the new development pattern. In terms of implementing specific methods to expand domestic demand, the report summarizes multiple paths: focusing on the main business of state-owned enterprises; driving the expansion of traditional markets through “expanding consumption space, spawning consumption formats, increasing investment volume, and optimizing investment structures”; promoting the penetration of quality consumption through scale advantages; maintaining reasonable growth in investment scale; giving full play to the radiation-driven role of state-owned enterprises; driving the collaborative development of various upstream and downstream related enterprises through “integrated industrial chain development and cross-industry linkage”; driving the continuous growth of domestic demand through effective cross-industry supply and demand docking and supply innovation.

China Airlines (03931): Full circulation of H shares was granted listing approval by the Hong Kong Stock Exchange

China Innovation Airlines announced on the Hong Kong Stock Exchange that it has received approval from the Hong Kong Stock Exchange for the listing and trading of approximately 345.82 million domestic shares converted from the Hong Kong Stock Exchange.

Weibo-SW (09898) announced 2023 annual results: net profit of US$342.6 million, up 300.4% year on year

Zhitong Finance App News, Weibo-SW (09898) announced that in the fourth quarter of 2023, net revenue was US$463.7 million, up 3% year on year or 5% year on year based on fixed exchange rates. Net profit attributable to Weibo shareholders was US$83.2 million, a year-on-year decrease of 41.4%. This is a diluted net income of $0.34 per share. Weibo's performance is greatly influenced by the advertising industry. In 2023, Weibo's revenue from advertising and marketing business was US$1.53 billion, down 4% year on year, accounting for about 87% of total revenue. Among them, in the fourth quarter, Weibo's revenue from advertising and marketing business was US$404 million, an increase of 3% over the previous year.

Seashell-W (02423) announced annual results: net profit of 5.89 billion yuan, turning a year-on-year loss, contributing profit margins to the stock market and the new housing business all reached new annual highs

Shell's net revenue in 2023 was RMB 77.8 billion, up 28.2% year on year. Net revenue for the fourth quarter of 2023 was RMB 20.2 billion, up 20.6% year over year. Net profit for 2023 was RMB 5,890 million, while net loss for 2022 was RMB 1,397 million. Adjusted net profit for 2023 was RMB 9,798 million, up 244.7% year on year. Net profit for the fourth quarter of 2023 was RMB 670 million, up 80.2% year on year. Adjusted net profit was RMB 1714 million, up 10.8% year on year.

Tourover-W (09690) achieved full year profit for the first time in 2023. Profit attributable to parent company owners was about 6.703 billion yuan, and the number of Tourover factory stores reached 5,909

According to the Zhitong Finance App, Tourover-W (09690) announced its 2023 results, with revenue of about RMB 13.601 billion (same unit), up 17.8% year on year; gross profit of about RMB 3.359 billion, up 48% year on year; adjusted net profit of about RMB 481 million, adjusted net loss of about 552 million yuan for the same period in 2022; profit attributable to the owner of the parent company was approximately RMB 6.703 billion, and losses due in 2022 were approximately RMB 2,136 million; basic profit per share.

Ginkgo Education (01851) Fa Yingxi: Net profit attributable to company owners is expected to increase by no less than 50% in 2023

Zhitong Finance App News, Ginkgo Education (01851) announced that compared with the net profit due to company owners of about RMB 85 million in 2022, the group expects net profit attributable to company owners to increase by no less than 50% in 2023.

[Individual stocks are a bit clear]

Bank of China Aviation Leasing (02588) announced annual results: net profit after tax of US$764 million, a sharp increase of 37.2 times year-on-year, and proposed final interest of $0.2721 per share

According to the Zhitong Finance App, Bank of China Aviation Leasing (02588) announced annual results for the year ended December 31, 2023. The group obtained operating income and other revenue of US$2,461 million during the period, an increase of 6.7%; net profit after tax of US$764 million, a sharp increase of 3720%; core net profit after tax was US$547 million; earnings per share were US$1.1; and a final dividend of US$0.2721 per share was proposed.

By the end of 2023, the weighted average age of the company's fleet was 4.6 years, and the weighted average remaining lease period was 8.1 years, which is the best level in the aircraft operating leasing industry. By the end of the year, 77% of the company's fleet was the latest technology aircraft, up from 71% in 2022. The order book was all the latest technology models. Thanks to improvements in various areas, the company's capital expenditure rebounded to US$3.6 billion, close to 2020 levels. This contributed to a 10% increase in total assets to US$24.2 billion, and the combined net book value of financial leasing accounts receivable and fleet net book value increased. The company is actively active in the capital market to obtain funds for investment activities.