Hang Seng Index followed the uptrend in the Asian region and leaped 344 pts at most to the peak of 24,046 today. It eventually finished at 23,998 pts, up 296 pts or 1.2%, setting a one-month high. Hang Seng China Enterprises Index rose 126 pts or 1.2% to 10,755. Market turnover rose to RMB82.936 billion. A-share markets rallied today with the Shanghai Composite Index breaching above the 2,400 level. X ISHARES A50 (02823.HK ) +0.250 (+2.729%) Short selling $887.62M; Ratio 33.405% and CSOP A50 ETF (02822.HK ) +0.240 (+2.637%) Short selling $232.65M; Ratio 10.342% bounced 2.7% and 2.6% respectively. Mainland insurance stocks also outperformed. CHINA LIFE ( 02628.HK ) +0.550 (+2.428%) Short selling $69.99M; Ratio 7.351% and PING AN ( 02318.HK ) +1.350 (+2.177%) Short selling...
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Market Indexes Index Last Day High Day Low Change %Change Time (HKT) Hang Seng Index 23,998.06 24,046.40 23,850.70 + 296.02 + 1.25% 2014-10-31 16:01 Hang Seng Finance Sub-index 32,342.29 32,455.79 32,156.29 + 340.36 + 1.06% 2014-10-31 16:01 Hang Seng Utilities Sub-index 55,348.76 55,480.87 54,977.97 + 360.43 + 0.66% 2014-10-31 16:01 Hang Seng Properties Sub-index 31,159.25 31,225.24 30,899.46 + 364.98 + 1.19% 2014-10-31 16:01 Hang Seng Commerce & Industry Sub-index 14,500.68 14,534.24 14,392.09 + 220.78 + 1.55% 2014-10-31 16:01 Hang Seng China Enterprises Index 10,755.80 10,805.29 10,694.76 + 126.92 + 1.19% 2014-10-31 16:01 Hang Seng China-Affiliated Corporations Index 4,530.58 4,...
Citigroup said in the latest research report that ZOOMLION (01157.HK ) -0.110 (-2.865%) Short selling $8.57M; Ratio 30.089% 's 3Q14 results reached the low end of the profit warning, together with worsening operating cash flow, and continuously rising leverage. The Bank doubted a recovery of construction activity in 4Q on a high base, coupled with the slower growth of infrastructure and property fixed-asset investment, the machinery demand will likely remain weak in 4Q14. The company's target price was cut to $3 from $4 and the Sell rating was maintained.
HSBC pointed out in the report that the ROE of CHINA COSCO (01919.HK ) +0.120 (+3.571%) Short selling $323.54K; Ratio 0.541% in the third quarter was 28%. Excluding scrapping subsidies, the recurring ROE was -4%, still beat the estimates of -8% of the research house. In order to narrow the loss, China COSCO downsized the scale of dry bulk vessels. HSBC considered that the ROE of the company has reached the bottom and is firmly on the path of recovery to mid-single digit levels. The target price of China COSCO was raised from $2.7 to $4. The rating was upgraded from Underweight to Overweight.
As stated in the report of Credit Suisse, the third quarterly revenue of SH PHARMA ( 02607.HK) +0.080 (+0.414%) Short selling $643.69K; Ratio 4.148% shot up 27.7% to RMB 24.703 billion. Excluding special items, the increasing rate of earnings recorded a year-on-year increase of 13.9%, an acceleration from 5.8% in the first half of the year. It is believed that the annual core earnings will record a double-digit growth. The target price of Shanghai Pharmaceuticals was lifted from $15.04 to $19, which represents 15x of P/E. The rating was maintained at Neutral.
Credit Suisse stated that CMS (00867.HK ) -0.080 (-0.556%) Short selling $1.31M; Ratio 1.993% increased approximately 18% share capital in Tibet Pharma (600211.SH) at a cash consideration of RMB 785 million. Credit Suisse lifted the target price of CMS from $12.83 to $15. However, since the stock is already trading at a premium to R&D-oriented pharma companies and the potential of the two new drugs was largely reflected in the share price, the rating of CMS was downgraded from Outperform to Neutral.
Credit Suisse stated in its report that the third quarterly results of CHINA RAILWAY ( 00390.HK) -0.090 (-1.860%) Short selling $11.55M; Ratio 17.996% was in concordance with estimates. The revenue was increased steadily during the period, with a year-on-year growth of 13%. As benefited by improving profit margin on railway and metro business, the overall profit margin hedged up 1 percentage point to 8.3%. The broker considered that the supportive governmental policies of the PRC government and improving financial management will enhance the stable earnings growth of China Railway. The target price was lifted from $5.05 to $6.2 correspondingly, maintaining the rating of Outperform.
As pointed out by Morgan Stanley, the third quarterly property EBITDA of MGM CHINA (02282.HK ) +0.900 (+3.727%) Short selling $1.52M; Ratio 2.124% recorded an increased of 1% seasonally to HK$1.774 billion, which was significantly higher than the market estimates. The EBITDA margin expanded by 140 bps quarter-on-quarter to 28.8%. Morgan Stanley lifted the projected EBITDA in 2014-15 by 5%. The target price of MGM was increased from HK$26.5 to HK$28, reiterating the rating of Overweight. This was mainly due to the strong execution, solid long-term prospect and attractive valuation of MGM. The stock is trading at 14.8x of 2015 projected P/E which was the second lowest among Macau gaming shares.
Citigroup said in the latest research report that following its visits to five key provinces in the mainland to study 4G trends, it switched its top pick to CHINA MOBILE ( 00941.HK ) +1.750 (+1.861%) Short selling $159.53M; Ratio 19.243% from CHINA UNICOM (00762.HK ) +0.120 (+1.045%) Short selling $12.43M; Ratio 20.072% . The research house said the market underestimated the China Mobile's 4G strengths over CHINA TELECOM (00728.HK ) +0.070 (+1.443%) Short selling $25.06M; Ratio 17.322% and China Unicom. China Mobile's target price was raised from $100 to $115; China Unicom's target price was cut from $15 to $14; and China Telecom's target price was kept at $4.3, with a Sell rating downgraded from Neutral, to factor in its share-price rally post results
Morgan Stanley raised CSR (01766.HK ) 0.000 (0.000%) 's 2014-2015 earnings forecasts by 11% and 6%, and lifted its target price from $8.4 to $9.3 to reflect the robust results in the third quarter. Rating was maintained at Overweight as the broker expected that the company might benefit from the potential integration of the industry.
Good Evening! jamegueni, Market Indexes Index Last Day High Day Low Change %Change Time (HKT) Hang Seng Index 23,702.04 23,841.74 23,615.10 - 117.83 - 0.49% 2014-10-30 16:01 Hang Seng Finance Sub-index 32,001.93 32,248.48 31,862.43 - 234.53 - 0.73% 2014-10-30 16:01 Hang Seng Utilities Sub-index 54,988.33 55,084.50 54,781.57 + 294.76 + 0.54% 2014-10-30 16:01 Hang Seng Properties Sub-index 30,794.27 30,883.98 30,670.24 - 9.29 - 0.03% 2014-10-30 16:01 Hang Seng Commerce & Industry Sub-index 14,279.90 14,360.72 14,232.81 - 67.23 - 0.47% 2014-10-30 16:01 Hang Seng China Enterprises Index 10,628.88 10,723.59 10,573.48 - 95.27 - 0.89% 2014-10-30 16:01 ...
Morgan Stanley said in a report that BYD COMPANY (01211.HK) -4.550 (-8.434%) Short selling $243.09M; Ratio 34.900% 's net profit for the third quarter slid 26% yearly, or 92% quarterly, to RMB28.22 million, missing its and market estimates by 89% and 93%. Rating was downgraded from Equalweight to Underweight. Moreover, the company's earnings forecasts for 2014 and 2015 were cut by 54% and 7% respectively. Target price was slashed by 7% to $40 from $43 accordingly.
JP Morgan released a research report today to update the latest ratings and target prices for Mainland property stocks. Stock / Rating / Target Price (HK$) CHINA VANKE ( 02202.HK ) +0.140 (+0.968%) Short selling $40.33M; Ratio 44.827% / Overweight / $20->17.5 CHINA OVERSEAS ( 00688.HK) -0.150 (-0.676%) Short selling $90.31M; Ratio 28.413% / Overweight->$29->24.5 CHINA RES LAND (01109.HK) +0.160 (+0.892%) Short selling $5.95M; Ratio 3.158% / Neutral / $17->18 SHIMAO PROPERTY ( 00813.HK ) +0.040 (+0.244%) Short selling $4.39M; Ratio 6.356% / Overweight / $21->20.5 R&F PROPERTIES ( 02777.HK ) +0.010 (+0.120%) Short selling $8.60M; Ratio 14.746% / Overweight / $12.3->11.5 CO...
JINGKELONG (00814.HK ) +0.040 (+1.887%) announced the results for the first three quarters ended 30 September 2014. Turnover amounted to RMB8.198 billion, up 6.05% as compared with a year-ago period. Net profit fell 29.99% year-on-year to RMB38.114 million. During the period, gross margin of retail business lost 0.13 percentage points yearly to 15.95%
Credit Suisse initiated an Outperform rating on Alibaba with target price set at US$114. The research house predicted that Alibaba's revenue CAGR for the next three years would be around 37%, mainly driven by factors including new products and service, profitability of business and companies' synergy in its investment portfolio. The broker also believed that Alibaba might enter various aspects of life of the general public, and the investment of new business and Ant Financial would also provide further upside potential for the group.
JP Morgan mentioned in a report that the risks of Hong Kong property market lie in the further slowdown of China's economy and the possible increase of Hong Kong unemployment rate. The research house was bearish towards retail rent-collecting stocks but continued to be positive towards developers and office rent-collecting stocks. KERRY PPT (00683.HK) +0.250 (+0.962%) Short selling $6.08M; Ratio 24.829% , WHEELOCK (00020.HK ) +0.050 (+0.135%) Short selling $222.75K; Ratio 1.301% , Hongkong Land and HANG LUNG PPT (00101.HK) +0.050 (+0.213%) Short selling $4.90M; Ratio 3.257% were selected as Top Picks among local developers
Morgan Stanley said PETROCHINA (00857.HK) -0.190 (-1.931%) Short selling $227.82M; Ratio 22.681% 's 6% year-on-year drop in its third-quarter profit is in line with the expectation. The research house still believed it is a perfect time to collect the company's shares as its share price has bottomed, which reflected the pressure of declining oil price. In addition, the price increase in fuel gas in Mainland and the company's capex reduction will bring long-term positive impact on the stock price. The Overweight rating was maintained for the stock.
On the futures settlement day, Hang Seng Index finished at 23,702 pts, down 117 pts or 0.5%. China Enterprises Index slid 95 pts or 0.9% to 10,628. Market turnover decreased to $67.582 billion. CNOOC (00883.HK ) -0.560 (-4.459%) Short selling $411.80M; Ratio 20.075% faded 4.5% and became the worst blue chip as its third-quarter oil and gas sales revenue tumbled. PETROCHINA (00857.HK) -0.190 (-1.931%) Short selling $227.82M; Ratio 22.681% fell 1.9% after the release of quarterly results. SHANGHAI PECHEM (00338.HK ) -0.040 (-1.681%) Short selling $49.08M; Ratio 36.299% , SINOPEC CORP ( 00386.HK ) -0.080 (-1.178%) Short selling $83.95M; Ratio 10.578% and KUNLUN ENERGY (00135.HK) -0.080 (-0.778%) Short selling $...
H SBC pointed out that the third quarterly recurring profit of COSCO PACIFIC (01199.HK ) +0.040 (+0.395%) Short selling $591.80K; Ratio 1.458% increased 8% to US$87 million year-on-year, which was 4% lower than estimates. The strong terminal business performance was offset by a weak leasing business. HSBC lowered the projected earnings of Cosco Pacific in 2014 to 2016 by 4%. It also expected the CAGR of the company in 2014 to 2016 will be 11%. The target price of Cosco Pacific was dropped from $13.1 to $12.5, maintaining the rating of Overweight.
ENN ENERGY (02688.HK ) -5.050 (-9.300%) Short selling $40.42M; Ratio 9.077% acquired the gas station in the U.S. and Canada from its substantial shareholder with US$200 million. The stock dropped for a third day and once reached the trough at $46.7, hitting a 11-month low. It last traded at $48.5, down 11%, on volume of 12.9 million shares.
As revealed in the report of Deutsche Bank, the third quarterly revenue of SINOPHARM ( 01099.HK) -0.300 (-0.998%) Short selling $14.19M; Ratio 17.638% increased 22.4% to RMB 52 billion. EPS increased 19.2% to RMB 0.26. Deutsche Bank lifted the target price of Sinopharm from $23.5 to $26, which is equivalent to 20 times of projected P/E ratio. The rating of Sinopharm was maintained as Hold since the current share price has already reflected the positive impacts of SOE reform and operating leverage
Goldman Sachs pointed out that the third quarterly pre-exceptional net profit of AIR CHINA (00753.HK) +0.130 (+2.731%) Short selling $4.04M; Ratio 11.631% amounted to RMB 2.4 billion, lower than the estimates of Goldman Sachs and market of RMB 3 billion and RMB 2.5 billion respectively. Goldman Sachs believed that the positive growth in unit revenue was driven by the recovery within the industry. In other words, CHINA EAST AIR (00670.HK) +0.150 (+5.660%) Short selling $2.56M; Ratio 6.335% and CHINA SOUTH AIR (01055.HK) +0.120 (+4.669%) Short selling $570.28K; Ratio 1.231% will also benefit from the growth. Goldman Sachs expected that the profitability of Air China will be improved together with normalization in blended domestics airfares and reducing fuel price. Goldman Sachs mainta...
As revealed in the report of Standard Chartered, the third quarterly results of PING AN (02318.HK ) +1.750 (+2.871%) Short selling $105.04M; Ratio 9.881% beat market estimates due to vigorous growth in banking industry, improvement in investment returns and impressive financial and insurance business. The premium revenue recorded a year-on-year increase of 25.8%. However, the NPL increased by nearly 30%, together with almost 60% increase in YTD. Particularly, the retail entrepreneur loans and accounts receivables from credit cards were deteriorated significantly. Standard Chartered lifted the earnings forecast of Ping An in 2014 to 2016 by 0.9%-5.7%. The target price was increased from $87 to $90.5, with Outperform rating
Hang Seng Index eventually closed at 23,520, up 377 pts or 1.6%; Hang Seng China Enterprises Index gained 237 pts or 2.3% to 10,548. Market turnover increased to $67.712 billion, the highest in over a week. Chinese financial stocks all headed north. BANKCOMM (03328.HK) +0.150 (+2.693%) Short selling $15.00M; Ratio 6.556% and ICBC (01398.HK) +0.100 (+2.020%) Short selling $114.09M; Ratio 7.583% , set to release their quarterly results tomorrow, advanced 2.7% and 2% respectively. CCB (00939.HK) +0.140 (+2.523%) Short selling $74.39M; Ratio 4.776% and CITIC BANK (00998.HK) +0.100 (+2.053%) Short selling $39.00M; Ratio 17.082% also bounced 2.5% and 2.8%. PING AN (02318.HK) +1.900 (+3.218%) Short selling $10...
Market Indexes Index Last Day High Day Low Change %Change Time (HKT) Hang Seng Index 23,520.36 23,570.92 23,189.83 + 377.13 + 1.63% 2014-10-28 16:01 Hang Seng Finance Sub-index 31,961.78 32,044.64 31,461.73 + 531.06 + 1.69% 2014-10-28 16:01 Hang Seng Utilities Sub-index 54,678.88 54,702.30 54,008.58 + 773.25 + 1.43% 2014-10-28 16:01 Hang Seng Properties Sub-index 30,510.90 30,563.86 30,111.25 + 394.59 + 1.31% 2014-10-28 16:01 Hang Seng Commerce & Industry Sub-index 14,069.05 14,104.44 13,872.63 + 230.01 + 1.66% 2014-10-28 16:01 Hang Seng China Enterprises Index 10,548.83 10,593.60 10,341.45 + 237.25 + 2.30% 2014-10-28 16:01 Hang Seng China-Affiliated Corporations Index 4,443.20 4,...