Phoenix New Media Hong Kong stocks | the Hang Seng Index rose 285 points on Friday (31st) to 23397 points. With the half-day market and lack of support from Beishui, the market turnover was 57.62 billion yuan. The overall market rose more and fell less, with the proportion of shares rising by 68% and falling shares by only 32%. With the individual development of blue chips, the Hong Kong Stock Exchange (00388) rose 0.3% and rose 7.2% for the whole year. Wuxi Biologics (02269) rose 2.8% today, but nearly 10% for the whole year. BYD (01211) rose 1.4% today and 31.2% for the whole year. Currency control (00005) did not rise or fall today, up 15% for the whole year, and AIA (01299) fell 0.7% today and 17.3% for the whole year.
U. S. stocks fell on Friday. The Dow fell 59 points to 36338, while the Nasdaq gave up 0.61% to close at 15644. The three major indexes rose 18.7%, 26.9% and 21.4% respectively in 2021. Tesla, Inc. (Tesla) shares repeatedly fell 1.3% on Friday, and analysts estimate that its electric car shipments in the fourth quarter rose further to about 265000 from a record-breaking 241300 in the third quarter. Microsoft Corp fell 0.9%, making it the Dow component with the biggest decline, while The Home Depot Inc (HomeDepot) climbed 1.2%, making it the Dow's strongest performer. The Jinlong China index, which reflects the performance of Chinese stocks, closed 1.1 per cent lower at 8893 points on the last day of 2021, down 43 per cent for the year. Asia-Pacific stock markets developed individually this morning (3). The Japanese market is closed for the holiday. Seoul's KOSPI index is now at 2995 points, up 18:00. The direction of the first trading day is unclear, and the Hang Seng Index maintains a range of ups and downs.
Market focus: Zhonghui Group (382)
The group announced a few days ago that it would buy 100% of Guangdong Taiyang City Industrial Co., Ltd. for 150 million yuan, while the company wholly owns Guangdong Chinese Business Technical School. By the end of August 2021, Guangdong Taiyang City Industry recorded an annual net profit of about 9.85 million yuan, an annual increase of about 114 percent, and a net asset value of about 129 million yuan. According to the 2022 earnings forecast, the acquisition is valued at about 6-7 times PE, and revenue is expected to grow at a compound rate of no less than 20 per cent in the 2023-2025 fiscal year. The number of students in its wholly-owned Chinese business technical school 21xue 22 was about 5400, an increase of about 69% over the same period last year. So far, the three-year compound growth rate from fiscal year 1920 to fiscal year 21x22 has reached 56.7%. In addition, the average tuition fee of the school has maintained a steady increase, reaching 7700, 8300 and 9600 yuan respectively in the past three years. At the same time, the school is expected to form a synergistic effect with Chinese Business College and Chinese Business Vocational School in the future, and there is still some room for tuition fees to increase. After the completion of the merger and acquisition, the group still has plenty of funds on hand, and will further stick to the national policy to help the country achieve the goal of "the overall level of vocational education will be among the forefront of the world and a skills-based society will be basically built by 2035". The target price is $5.1 and the stop price is $4.
(the author is a SFC licensee and the author does not hold the above shares)
Author: Dr. Deng Shengxing, Managing partner of Yibo Capital Asia Co., Ltd.