Jinwu Financial News | The three major indices of Hong Kong stocks collectively closed higher. By the close, the Hang Seng Index had risen 0.82%, the State-owned Enterprises Index had risen 0.94%, and the Hang Seng Technology Index had risen 0.50%.

Among blue chips, Shenzhou International (02313) rose 5.09%, Haier Smart Home (06690), Zhongsheng Holdings (00881), Oriental Overseas International (00316), China Ping An (02318), and Anta Sports (02020) rose more than 4%; in terms of decline, Xinyi Glass (00868) fell 4.37%, CNOOC (00883) fell 2.23%, China Hongqiao (01378), Changjiang Infrastructure Group (01038), and Jiulongcang Real Estate (01997) Oil (00857) fell more than 1%.

In terms of sectors, aviation stocks rose collectively, with Meilan Airport (00357) up 8.35%, Air China (00753) up 5.22%, China Southern Airlines (01055) up 3.88%, China Eastern Airlines (00670) up 3.26%, and Cathay Pacific (00293) up 1.74%. According to the news, according to the Civil Aviation Administration of China, in March, the entire industry completed a total of 54.73 million passenger traffic, an increase of 25.7% over the previous year, and an increase of 7.3% over the same period in 2019. The completed cargo and mail transportation volume was 708,000 tons, an increase of 28.2% over the same period in 2019, and an increase of 12.3% over the same period in 2019. Dongxing Securities said that the industry is at a critical stage of recovery from the bottom. Strong performance during the Spring Festival travel season indicates that there has been a substantial recovery in demand for civil aviation, but there is still an oversupply situation during the off-season for domestic routes, and it is necessary to take away the excess capacity accumulated in the country through the resumption of international routes. After the aviation season changes, international long-haul routes are expected to resume at an accelerated pace, and we look forward to improvements in industry fundamentals. The profit performance of the civil aviation industry this year is expected to be significantly better than last year. After experiencing a sharp decline in the stock prices of several major airlines over the past year, the margin of safety is highlighted, and it is worth focusing on.

Insurance stocks generally rose. China Taibao (02601) rose 5.78%, China Ping An (02318) rose 4.15%, China Taiping (00966) and Xinhua Insurance (01336) rose more than 3%, and China Financial Insurance (02328) and China Life Insurance (02628) rose more than 2%. The Huaxi Securities Research Report pointed out that the insurance sector has continued to decline recently, and the overall valuation is at a historically low level. The margin of safety is sufficient, maintaining the industry's “gain” rating. Guojin Securities said that as April enters the earnings season, the overall market allocation style is pro-cyclical. Insurance stocks are at the bottom of the valuation, compounded by weak first-quarter statements (NBV is expected to grow rapidly and profit is expected to be relatively stable), which is expected to bring about a phased rebound in valuation.

In terms of individual stocks, Anta Sports (02020) closed up 4.11%. According to a research report published by CCB International, Anta's performance in the first quarter of this year showed strong execution and a positive start. It is expected that the company's revenue revenue for Anta, FILA and other brands will increase by 10%, 15% and 28%, respectively, in the 2024 fiscal year. The bank remains unchanged in its main profit forecast for the 2024 fiscal year, and believes overall sales will gradually pick up for the rest of the year. The bank maintains Anta's target price of HK$103 and “outperforms the market” rating, making it the industry's first choice.

Shenzhou International (02313) closed up 5.09%. According to the Citigroup Research Report, since Adidas's performance in the first quarter of 2024 was better than expected and the 2024 revenue guidelines were raised, it was raised from the previous middle single digit to medium to high single digits, which is expected to have a slight positive impact on Shenzhou. As for Shenzhou's biggest customer, Nike, is the weakest growing customer this year, but it is still predicted that Nike orders will grow in single digits, which is higher than Nike's 1% sales growth guide for the 2024 fiscal year. The bank gave Shenzhou a target price of HK$108 and a “buy” rating.

Cinda International said that the mainland economy is recovering weakly. Despite frequent policies to stabilize domestic housing, sales and investment have not improved; the content of the Central Economic Work Conference shows that key tasks in 2024 are to promote reforms and prevent risks, leading to weak investor confidence. America's last mile of fighting inflation is repeated, and the game between the market and the Federal Reserve over interest rate cuts and downsizing will increase market volatility. Hong Kong stocks are awaiting the introduction of strong stimulus policies in the Mainland to enhance economic momentum and speed up the return of capital to the Chinese and Hong Kong stock markets. The Hang Seng Index resistance is 17,500 points.