The Zhitong Finance App learned that Hong Kong stocks experienced a strong rebound in early trading, and Hengke Index rose more than 4% during the session. The increase narrowed in the afternoon. By the close, the Hang Seng Index was up 0.91% or 148.58 points to 16541.42 points, up 0.25% this week, with a full-day turnover of HK$117.257 billion; the Hang Seng State-owned Enterprises Index rose 1.44% to 5810.79 points; and the Hang Seng Technology Index rose 2.48% to 3477.55 points. Looking at the whole month, the general market closed higher. The Hang Seng Index rose slightly by 0.18%; the National Index rose 2.34%; and the Hengke Index rose 1.35%.
CCB International believes that due to recent improvements in market expectations and the return of transactional capital, the Hang Seng Index has continued to rebound for the past two months, fluctuating around 16,500 points, and then falling back after hitting a resistance level of 17,000 points. As we are entering the end of the earnings season, there don't seem to be many surprises at the moment. Additionally, since we have seen most industries lower their earnings forecasts for the current year in the past month, this means that profit prospects are still not very visible, so in the absence of further catalysts, market momentum may soon return to weakness in the coming month.
Blue chip stock performance
Zhongsheng Holdings (00881) led the blue chip increase. At the close, it rose 10.24% to HK$13.56, with a turnover of HK$90.65,800, contributing 1.68 points to the Hang Seng Index. Bank of America Securities pointed out that the company's performance in the second half of last year was slightly better than expected, and revenue for the second half of the year increased 4% year-on-year to reach 97 billion yuan. In addition, the company recorded significant growth in used car transactions and after-sales services during the period, exceeding market expectations. The bank reaffirmed the “buy” rating of Zhongsheng Holdings and is optimistic that the used car trading and after-sales service business will become the company's new growth engine.
In terms of other blue chips, Haier Smart Home (06690) rose 8.22% to HK$24.35, contributing 7.01 points to the Hang Seng Index; Meituan-W (03690) rose 6.26% to HK$96.8, contributing 53.02 points to the Hang Seng Index; Country Garden Services (06098) fell 4.93% to HK$5.01, dragging down the Hang Seng Index by 0.89 points; Hong Kong China Gas (00003) fell 3.42% to HK$5.93, dragging down the Hang Seng Index by 3.7 points.
In terms of popular sectors
On the market, large technology stocks rebounded strongly, with Bilibili surging more than 8% and Meituan closing by more than 6%; subsidies are expected to drive consumers' willingness to trade in, and home appliance stocks rose throughout the day; “three barrels of oil” made a net profit of 345.5 billion dollars last year, and oil stocks expanded in the afternoon; US bond yields fell back to a record high in the gold market, and gold stocks rose collectively; in addition, domestic housing stocks, catering stocks, Apple concepts, biomedicine, etc. all rose. On the other side, gas stocks, heavy machinery stocks, domestic bank stocks, etc. are turning green.
1. Home appliance stocks had the highest gains. At the close, Haier Smart Home (06690) rose 8.22% to HK$24.35; Hisense Home Appliances (00921) rose 5.64% to HK$24.35; and JS Global Life (01691) rose 2.86% to HK$1.44.
On March 25, the Ministry of Finance announced the 24-year central government transfer budget. The 24-year special fund budget for the disposal of waste electrical and electronic products was 7.5 billion yuan. Compared with the 2.77 billion disposal fund levy scale in '22, the special fund budget for the disposal of waste electrical and electronic products increased by about 171% in '24. Cinda Securities believes that the suspension of levy disposal funds can actually reduce the burden on home appliance companies, and that financial disbursements of special budgets are conducive to activating the vitality of the recycling industry chain, thereby accelerating the increase in the scrapping rate of home appliances. In terms of subsidy rules, the bank believes that it is possible to continue or increase subsidies for various categories, which will help C-end recycling manufacturers to raise the recycling price of home appliances and drive consumers' willingness to trade in for new ones.
2. Oil stocks rose collectively. At the close, CNPC (00857) rose 3.4% to HK$6.69; CNOOC (02883) rose 3.33% to HK$9; CNOOC (00883) rose 2.95% to HK$18.12; and Sinopec (00386) rose 0.91% to HK$4.44.
All of the 2023 results of “Three Barrels of Oil” have now been released. Financial data shows that although the annual revenue of “three barrels of oil” all declined slightly, profits remained high. CNPC and CNOOC had net profits above the 100 billion level, reaching 161.15 billion yuan and 123.8 billion yuan respectively. Among them, CNPC's net profit rose 8.3% year on year to a record high. In 2023, the total net profit of “three barrels of oil” reached 345.45 billion yuan.
Furthermore, against the backdrop of falling international oil prices, “three barrels of oil” insisted on a high percentage of dividends. CNPC plans to pay a final dividend of 0.23 yuan per share for the year of 2023, 0.44 yuan per share, with a dividend of 50%; CNOOC plans to pay a final dividend of 0.21 yuan per common share; and Sinopec plans to pay a final dividend of 0.2 yuan per share. Everbright Securities pointed out that at this point, the bank believes that the performance of “three barrels of oil” is expected to achieve steady growth amid fluctuations in oil prices, while adhering to a high dividend policy, thus bringing long-term stable benefits through oil price fluctuations.
3. The non-ferrous metals sector is bright, with gold stocks leading the way. By the close, Lingbao Gold (03330) surged 23.65% to HK$2.98; Zhaojin Mining (01818) rose 8.26% to HK$10.62; and Shandong Gold (01787) rose 3.2% to HK$15.88.
S&P said that due to commercial real estate risks, the outlook for the five US regional banks was adjusted from stable to negative. At the same time, the Chicago Federal Reserve Chairman expressed support for three interest rate cuts this year. The market continues to be optimistic about the Fed's interest rate cut in June. The key US bond yield fell on Wednesday, driving the upward trend in gold prices. Furthermore, geopolitical turmoil also fueled risk aversion. International gold prices rose on the same day, reaching a record high for closing. By the close, April gold futures on the New York Mercantile Exchange closed at $2191.7 an ounce, up 0.67%. Tianfeng Securities pointed out earlier that recent macroeconomic expectations at home and abroad continue to catalyze basic metal prices, and it is still a low season for the industry. Prices may be more flexible if the peak season approaches.
4. Food and beverage stocks are generally picking up. At the close, Jiumaojiu (09922) rose 7.02% to HK$5.64; Haidilao (06862) rose 4.74% to HK$17.66; and Xiabuxiabu (00520) rose 3.92% to HK$1.59.
On March 28, 9 departments including the Ministry of Commerce issued guidance on promoting the high-quality development of the catering industry. The opinion mentioned optimizing the business environment in the restaurant industry. Guide financial institutions to improve risk pricing capabilities and issue credit loans to catering operators. Give full play to the role of trademark pledge and encourage financial institutions to expand the benefits of intellectual property pledge financing. A previous research report by Huafu Securities pointed out that the restaurant industry has fully recovered, and the overall momentum is strong; the restaurant industry is showing potential for growth in the sinking market, or becoming a new growth point for performance; high-quality and cost-effective products and categories that are just needed are still the mainstream in food and beverage consumption; expanding the size of stores is still the main theme, and the degree of restaurant chains has further increased.
Popular volatile stocks
1. China strengthened after China's free (01880) performance. By the close, it had risen 7.29% to HK$78.
China's revenue in 2023 was 67.54 billion yuan, up 24.1% year on year; it recorded a net profit of 6.79 billion yuan, an increase of 32.8%. Among them, in the fourth quarter of 2023, net profit returned to mother in a single quarter was 1,507 billion yuan, up 274.72% year on year.
2. China Everbright Bank (06818) declined in volume. At the close, it was down 12.79% to HK$2.25.
According to the 2023 annual report disclosed by Everbright Bank, the bank achieved operating income of 145.685 billion yuan in 2023, a year-on-year decrease of 3.92%; realized net profit attributable to the bank's shareholders of 40.792 billion yuan, a year-on-year decrease of 8.96%. Everbright Bank explained this mainly to consolidate the foundation of asset quality control and increase provision planning efforts.
Initial listing of IPOs
Fullview China Holdings (02497) showed strong performance. At the close, it was up 37.04% to HK$1.48.
Fujing China Holdings issued approximately 100 million shares, priced at HK$1.08 per share, with a net proceeds of approximately HK$48.21 million. According to reports, Fujing China is the largest producer of potted vegetables and agricultural products in Shandong Province. As of the latest effective date, Fujing China has three large-scale planting bases in Laixi, Xi'an, and Dalian, with a total area of about 431,605 square meters, including 140 high-standard greenhouses, with a total construction area of 155,401 square meters.