20220428-马银证券_香港_-每日港股简评_2页_160kb.pdf

Market Overview Yesterday, the Hong Kong stocks market slightly advanced on the rise of tech names, offseted by the fall of HSBC (5 HK) and Hang Seng Bank (11 HK). BYD Co. (1211 HK) fell on the concern of shutdown in auto factories amid COVID-19 lockdowns in May. China basic material and infrastructure surged after President Xi Jinpings pledge to step up construction to bolster an economy hammered by a widening series of COVID-19 lockdowns. The Hang Seng Index was up 11pts to 19,946pts with a daily turnover of HKD125.1b. According to , the Hang Seng Index is expected to open c.100pts higher this morning to c.20,000pts level. Sector News - China Infrastructure - President Xi Calls to Step Up On 26 April, Chinese President Xi Jinping calls to boost infrastructure construction to boost domestic demand and economic growth on the 11th meeting of the Central Committee for Financial and Economic Affairs (CCFEA). According to the meeting, investments would be brought forward for infrastructure projects that are beneficial to industrial growth and to safeguarding national security, and transportation, energy and water resources would be among the focus. It also added that the Chinese government will speed up construction of green and low carbon energy bases, improve the oil and gas pipeline networks, and build a batch of regional and cargo airports. This call is likely to stimulate the investment sentiment towards the China stocks market, China bank, infrastructure and basic material sectors. China Property - Impact of COVID-19 Spreading The National Health Commission reports that the daily new local confirmed COVID-19 cases in China have remained at 20k cases in the past few days, with wider spread in Beijing, Zhejiang and Jiangxi provinces, meanwhile, Shanghai and Guangdong provinces started to stabilize. While the majority are asymptomatic, market raises concern that the dynamic zero-COVID policy may lead to more lockdown/precautionary measures if there are sporadic cases spread into other regions of the country. Among Chinese property developers, Powerlong (1238 HK), CR Land (1109 HK), CIFI (884 HK), Sunac (1918 HK) and COLI (688 HK) have relatively large exposure (with estimated 20-37%) to those regions in terms of 2022E property sales, meanwhile, Powerlong, Seazen (1030 HK) and Longfor (960 HK) are with relatively high exposure on retail/ mall rental income (with estimated 50-70%) to those regions in 2022E. Company News - HKEx (388 HK) HKEx released its 1Q22 results as follow: (1) revenue and other income of HKD4.69b (-21% YoY); (2) core business revenue was down 16% YoY; (3) net investment loss of corporate fund was HKD104m (vs. 1Q21 net income of HKD219m); (4) EBITDA margin was 75% (-6% YoY); (5) net profit amounted to HKD2.66b (-31% YoY). The fall in earnings was due to lower trading and clearing fees caused by lower headline average daily turnover and lower depository fees due to lower e-IPO service fees and net fair value loss. Valuation-wise, HKEx is trading at 29x forward PER. LK Tech (558 HK) Its management guided a strong growth trajectory for its die-casting machine business, expecting it will have at least 30% YoY growth in the coming 2-3 years. Currently, LK Tech has a customer base of 8-9 customers and there are 10-20 customers that are in talks with LK Tech, of which some are auto OEMs with strong willingness to adopt LK Techs single-piece die-casting machine. In terms of order backlog, its management disclosed that they currently have a total of HKD2.4b worth of orders-in-hand that are to be delivered in the coming 3-6 months. CGN Power (1816 HK) CGN Power released 1Q22 net profit of RMB2.85b (+20% YoY), accounting for c.28% of full-year consensus 2022E estimates. The earnings growth was driven by higher tariffs from market trading despite an increase in tax expenses. Market is positive on its nuclear business outlook from the governments recent liberalization of power pricing. DISCLAIMERS This Dim Sum Daily is prepared for general circulation and for information purposes only. It is not an investment research or a research recommendation, as it does not constitute substantive research or analysis. The material contained herein is intended as a general market commentary. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources believed to be reliable. However, MIB Securities (HK) Ltd, its subsidiary and affiliates (collectively, “MIB (HK)”) do not independently verify such information and consequently no representation is made as to the accuracy or completeness of such information. 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