Jinwu Financial News | The Hang Seng Index closed at 16,721 on Friday (12th), down 373 points or 2.2%. Full-day transactions amounted to $106.218 billion. The national index fell 124 points, or 2.1%, to 5879. The index fell 63 points, or 1.8%, to 3474. Of the 82 blue chips, 75 are down. Longhu Group (00960) fell 8.6%, making it the worst performing blue chip. AIA (01299) fell 5.8%; Pingbao (02318) fell 5.7%.
The Dow closed at 37,983 points on Friday (12th), down 475 points, or 1.24%; the index fell 1.46% to 5123 points; the NASDAQ fell 1.62% to 16,175 points; and the Golden Dragon Index, which reflects the performance of Chinese concept stocks, fell 4.58%. European stocks developed individually. With oil and mining stocks leading the way, British stocks rose 0.91%, while French stocks and German stocks both fell by more than 0.1%. Among the major stocks, Apple is about to produce a new generation of Mac computers, spurring the stock price to rise more than 4% on Thursday, the biggest increase in 11 months. It was 1.9% higher on Friday and still rose 0.9% at the end of the market, making it the strongest performing Dow component; Alphabet's stock price once rebounded 0.5%, hitting 2 trillion US dollars, but the market closed down 1.1%; Amazon rebounded 1.5% on Friday after rising above the July 2021 record high on Thursday. The Asia-Pacific stock market moved individually this morning (15th). The Nikkei 225 Index now reports 38,924 points, down 599 points, or 1.52%. The South Korea Composite Index is currently at 2,641 points, down 40 points, or 1.51%. The situation in the Middle East has taken a sharp turn. Focus on gold and oil stocks.
Market Focus: Chuangke Industrial (00669)
The increase in US data last month was better than expected, but the number of people receiving unemployment benefits dropped by more than 10,000 at the beginning of last week. Employment data shows that the US economy continues to be strong, and expectations are gradually improving in the US real estate market. Chuangke Industrial (669), one of the leading companies in the North American market for power tools, also benefited from this. The Group's 2023 performance grew strongly. Revenue as of December 31, 2023 was 13.731 billion yuan, up 3.6% year-on-year; gross margin increased by 14 basis points to 39.5%. Sales in the power tools business reached $12.8 billion during the period, up 3.8% and 4.1% respectively in the listed currency and local currency. Among them, HomeDepot, the Group's largest customer, accounted for about 48% of its total sales in the first half of 2023. HomeDepot (HD.US) announced results for the fourth fiscal quarter of last year. Earnings per share for the fourth quarter of the fourth quarter were $2.82, slightly higher than market expectations of $2.75. The Group expects double-digit sales growth this year, and is also confident that gross margin will have room to rise, driven by high-end products and a global production network.
Target price is $120, stop loss price is $96.
(The author is a licensed person of the Securities Regulatory Commission and the author does not hold the above shares)
Author: Dr. Deng Shengxing, Managing Partner, Yibo Capital Asia Limited