20220601-马银证券_香港_-每日港股简评_2页_161kb

Market Summary

Core Content

The Hong Kong stock markets showed positive movement on the previous trading day, driven by developments in the China consumer and renewable energy sectors. The focus of the market was on the impact of geopolitical and policy-related factors on key industries and companies.

Key Market Developments

• Oil Sector: CNOOC (883 HK) reached its 52-week high due to the EU's decision to ban most Russian oil imports, which is expected to reduce Russia's revenue from the war in Ukraine.
• Beer Sector: Tsingtao (168 HK) saw a significant surge following Fosun Int'l (656 HK)'s disposal of $66.8 million worth of shares at HKD62 per share. This move is seen as removing a long-standing overhang since 2019.
• Hang Seng Index: The index rose by 291 points to 21,415 points, with daily turnover increasing to HKD245.6 billion, attributed to the MSCI equity indexes changes taking effect on 31 May.
• Market Outlook: With only four trading days this week, the market is expected to experience directionless movement. Hong Kong will be closed on Friday, 3 June, for the Tuen Ng Festival holiday.

China Macro

• PMI Data: China's May official purchasing managers' index (PMI) was 49.6, surpassing the forecast of 48.6 but still below the 50-point growth threshold.
• Sector Impact: Midstream and downstream production declines were more pronounced than upstream, while small firms faced greater challenges than large ones.
• Market Sentiment: The data indicates a partial recovery in manufacturing activity, but the momentum is weak. The market anticipates more stimulus measures to be announced in June.

China Auto Sector

• Shanghai Stimulus Measures: On 29 May, Shanghai introduced stimulus policies for the auto sector, effective from June to December 2022, including:
  • An extra quota for purchasing 40,000 ICE vehicles in 2022E.
  • A RMB10,000 per car BEV subsidy for replacement demand.
• Expected Impact: These policies are expected to boost auto sales in the second half of 2022. The market anticipates other local governments to follow suit.

China Coal Sector

• Price Stability: Coal prices remained stable, with the CCTD QHD5,500 blended coal price, QHD5,500 spot coal price, and BSPI price unchanged from the previous week.
• Inventory Levels: The total coal inventory at uniform dispatch coal-fired IPPs was approximately 150 million tons as of mid-May, indicating a relatively high supply.
• NDRC Guidance: The NDRC emphasized the continuation of mid-to-long-term contracts and guidance pricing, despite a significant YoY increase in signing volume for 2022E. They called for further contract-signing.
• Market Outlook: With balanced supply and demand and support from hydropower starting in May, coal prices are expected to remain stable throughout 2Q22E.

China Renewable Energy

• Policy Announcement: On 30 May, the NDRC and NEA released an "Implementation plan for promoting high-quality development of renewable energy in the new era."
• Key Targets:
  • Wind and solar total installation to reach >1,200 GW by 2030E.
  • Solar rooftop coverage to reach >50% in newly built public institutions.
• Objective: The plan aims to ensure sufficient space for clean energy projects and support the healthy development of the clean energy value chain.
• Market Impact: The policy is expected to benefit upstream leaders in the renewable energy space.

Company News

• Sun Art Retail (6808 HK):
  • The company is committed to its multi-format and omni-channel strategy, focusing on:
    1. Enhancing offline consumer experience.
    2. Becoming online fulfillment centers for working individuals.
    3. Exploring new business formats.
  • It is developing fresh product supply chain capabilities to support these initiatives.
  • Despite generating higher sales than peers during the pandemic, the company faces margin pressure due to government-controlled pricing.
  • The market remains cautious about its FY22/23E operating environment, citing ongoing uncertainty from the pandemic and margin challenges.

Disclaimer

This summary is for general information and market commentary purposes only. It is not intended as investment research or a recommendation. The information is based on data from recognized sources, but no verification is performed. MIB Securities (HK) Ltd and its affiliates do not take responsibility for any loss resulting from reliance on this content. All statements are subject to change without prior notice. The company may have financial interests in the mentioned entities, and the information is not a solicitation to buy or sell any securities. The summary may not be reproduced, altered, or distributed without prior consent. International investments carry risks, including economic, political, and currency fluctuations. It is recommended to consult a financial advisor before making investment decisions.