Jinwu Financial News | The three major indices of Hong Kong stocks rose sharply. By the close, the Hang Seng Index was up 0.10%, the State-owned Enterprises Index was up 0.48%, and the Hang Seng Technology Index was up 1.25%.

Among blue chips, JD Health (06618) rose 6.62%, China Resources Brewery (00291) rose 4.55%, Ali Health (00241) rose 4.46%, Pharmaceutical Kangde (02359) rose 4.27%, and Shunyu Optical Technology (02382) rose 3.59%; in terms of decline, Ideal Auto (02015) fell 5.63%, Longhu Group (00960) fell 4.55%, Hengji (00012) 3.88%, Li Ning (02331) and AIA (01299) fell (01299), China Resources Vientiane Life ( 01209) fell more than 3%.

Auto stocks generally rose. Xiaopeng Motor (09868) rose 7.14%, NIO (09866) rose 4.76%, GAC Group (02238) rose 3.9%, BYD shares (01211) rose 3.14%, and Zero Sports (09863) rose 2.69%. At the China Electric Vehicle 100 People's Conference Forum (2024) with the theme of “Consolidating and Expanding the Development Advantages of New Energy Vehicles”, relevant officials from the National Development and Reform Commission, the Ministry of Industry and Information Technology and other departments spoke out one after another to reveal the next policy trends in the field of NEVs. According to statistical analysis by the China Association of Automobile Manufacturers, in February 2024, passenger car production and sales completed 1.273,000 units and 1.33,000 units, respectively, down 38.9% and 37% from the previous month, and 25.8% and 19.4%, respectively. From January to February 2024, passenger car production and sales reached 3.36 million units and 3.451 million units, respectively, up 7.9% and 10.6% year-on-year, respectively.

Domestic housing stocks generally fell, with Longhu Group (00960) and Sunac China (01918) falling more than 4%, R&F Real Estate (02777) falling 3.88%, Country Garden (02007) falling 3.45%, and China Overseas Hongyang Group (00081) and Shimao Group (00813) falling nearly 3%. According to data from the National Bureau of Statistics, in January-February, the country invested 1184.2 billion yuan in real estate development, a year-on-year decrease of 9.0%; of these, residential investment was 882.3 billion yuan, a decrease of 9.7%. Recently, the National Bureau of Statistics announced changes in commercial residential sales prices in 70 large and medium-sized cities in February. Among the 70 large and medium-sized cities, the overall decline in commercial residential sales prices in all tier cities continued to narrow month-on-month and continued to decline year-on-year.

In terms of individual stocks, China Resources Brewery (00291) closed up 4.55%. The company announced that in 2023, profit attributable to shareholders was recorded at 5.153 billion yuan (RMB, same below), an increase of 18.62% over the previous year. Basic earnings per share were $1.59. It is proposed to pay a final dividend of $0.349 per share and a special dividend of $0.300 per share. During the period, turnover recorded a year-on-year increase of 10.4% of 38.932 billion yuan, and gross profit of 16.103 billion yuan, an increase of 18.74% year-on-year. The gross margin of the beer business increased 1.7 percentage points from last year to 40.2%. During the period, the turnover of the beer business was 36.865 billion yuan, an increase of 4.5% over the previous year. Overall beer sales increased by 0.5% to about 11.151 billion litres. Sales of sub-premium and above beer were around 2.5 billion litres, an increase of 18.9% over the previous year.

Country Garden (02007) closed down 3.45%. According to the Tianyancha App, recently, Country Garden Real Estate Group Co., Ltd. added 5 pieces of stock freeze information. The companies whose shares were executed were Guangzhou Bichuang Real Estate Development Co., Ltd., Guangzhou Bilong Real Estate Development Co., Ltd., Guangzhou Country Garden Real Estate Co., Ltd., and Guangzhou Country Garden Real Estate Development Co., Ltd. The amount of frozen shares was approximately 187 million yuan, 100 million yuan, 104 million yuan, and 50 million yuan respectively. The freeze period is from March 2024 to March 2027.

Sino-Thai International said that in the context of maintaining strength in the current policy, it is also necessary to patiently watch for a steady recovery in fundamental data, focusing on whether M1, PPI and CPI have bottomed out and rebounded, and real estate sales are stabilizing. Strategically: 1) Continue to focus on copper, gold and non-ferrous metals stocks. The expansion of the global economic cycle has boosted; large domestic copper smelters have recently met to discuss production cuts that have led to an upward breakthrough in LME copper prices; 2) The “Consultation Draft on the Full Chain Implementation Plan to Support the Development of Innovative Drugs” was distributed online. The main purpose is to insist that drug prices are determined by the market, improve the efficiency of connecting new drugs to the Internet, and support “returns consistent with high investment and high risk.” Focus on high-quality targets related to innovative drugs; 3) Currently, the predicted dividend rate of central state-owned enterprises such as petroleum, coal, telecommunications, and utilities still ranges from 6.6% to 8.8%. Even after deducting 20% dividend tax, it is still more attractive than the 2.4% yield on Chinese 10-year treasury bonds. Until economic fundamentals data are continuously strengthened or stronger policies are introduced, the high dividend strategy is still effective.