Nomad Investors

Hong Kong Economic Outlook 2015: Bumpy Road Ahead The stability of global growth in aggregate masks the fact that growth divergence between the US and much of the rest of the world has been widening. We are not convinced that the US economy is resilient enough to build the strong base needed for global trade to accelerate more meaningfully. We therefore expect Hong Kong export growth in 2015 to remain broadly in line with this year and come in at around 5%.   Domestically, our analysis suggests that the rapid growth in private consumption over the past few years can largely be explained by (1) the positive wealth effect being passed on to the consumer, and (2) easier access to credit. Neither of these two drivers is likely to sustain.   However, while we argue that consumption ha...

On the futures settlement day, Hang Seng Index saw rising sell pressure after hitting the day-high at 24,228 and eventually closed down 107 pts or 0.45% to 24,004. Hang Seng China Enterprises Index slipped 37 pts or 0.3% to 11,013. Market turnover declined to $72.888 billion. HSBC HOLDINGS (00005.HK)    -0.400 (-0.513%)     Short selling $225.20M; Ratio 26.714%    and CHINA MOBILE (00941.HK)    -0.950 (-0.991%)     Short selling $233.95M; Ratio 17.796%    faded 0.5% and 1% to $77.55 and $94.95 respectively. TENCENT (00700.HK)    -0.600 (-0.477%)     Short selling $152.72M; Ratio 10.745%    crept down 0.5% to $125.1. Mainland banking stocks traded mixed today. BANKCOMM (03328.HK)    +0.050 (+0.835%)     Short selling $15.62M; Ratio 2.853%    and CM BANK (03968.HK)   ...

Good Evening! jamegueni, Market Indexes Index Last Day High Day Low Change %Change Time (HKT) Hang Seng Index 24,004.28 24,228.11 23,962.44 - 107.70 - 0.45% 2014-11-27 16:01 Hang Seng Finance Sub-index 32,830.41 33,213.93 32,790.43 - 114.81 - 0.35% 2014-11-27 16:01 Hang Seng Utilities Sub-index 55,482.61 56,034.89 55,326.06 - 485.53 - 0.87% 2014-11-27 16:01 Hang Seng Properties Sub-index 31,302.43 31,600.24 31,220.39 - 141.16 - 0.45% 2014-11-27 16:01 Hang Seng Commerce & Industry Sub-index 14,244.85 14,370.62 14,207.93 - 72.54 - 0.51% 2014-11-27 16:01 Hang Seng China Enterprises Index 11,013.87 11,227.07 10,994.39 - 37.48 - 0.34% 2014-11-27 16:0...

UBS stated that CHOW TAI FOOK (01929.HK)    +0.040 (+0.372%)     Short selling $18.76M; Ratio 17.176%   will launch an inventory unification program to new subscribers in three years. Despite the doubt of certain investors, the broker believed that the program can help resolve the two problems of large-scale retailers in China: inability to redirect inventory across regions instantly and unwillingness for new product trial. The broker is confident about the group's PRC business but maintained the rating of Chow Tai Fook as Neutral in consideration of the weak sales in Hong Kong. The earnings forecast in 2015-17 was cut by 7.73-9.06% and the target price was trimmed from $12.8 to $11.8. 

PICC GROUP (01339.HK)    +0.030 (+0.800%)     Short selling $19.12M; Ratio 4.332%   announced that the company acquired 19% equity in PICC AMC from MEAG with RMB 227 million.

LUK FOOK HOLD (00590.HK)    +2.400 (+10.345%)     Short selling $3.55M; Ratio 2.746%   announced that the net profit of the company amounted to $805 million for the six months ended September, against 16.6% decline same period last year. EPS dropped 16.5% yearly to $1.37. The interim dividend amounted to $0.55. The yield increased 1.8 ppts to 40.3%, compared with the dividend of $0.63 same period last year.

Credit Suisse said in a report that the valuations of NCI (01336.HK)    +0.100 (+0.285%)     Short selling $81.50M; Ratio 12.674%    and CHINA LIFE (02628.HK)    +0.200 (+0.746%)     Short selling $417.54M; Ratio 11.924%    have moved towards a reasonable level; but those of PING AN (02318.HK)    +0.250 (+0.391%)     Short selling $464.67M; Ratio 16.291%    and PICC GROUP (01339.HK)    +0.030 (+0.800%)     Short selling $19.12M; Ratio 4.332%    were a little lagging behind; in the uptrend of mainland insurance stocks continues, the valuation discount will keep narrowing. In light of the better growth rate and outlook, the broker has decided to raise the target price of CHINA LIFE from $22.5 to $28, with rating kept at Neutral; NCI's target price was hiked to $35 with a Neu...

VANTAGE INT'L (00015.HK)    -0.030 (-5.172%)   announced the interim results for September ended 2014. Net profit amounted to $47.347 million, representing a year-on-year decrease of 34.36%. EPS totaled HK 2.71 cents. No interim dividend will be declared.

WAH HA REALTY (00278.HK)    0.000 (0.000%)   announced the interim results for September ended 2014. Net profit totaled $ 22.8353 million, representing a year-on-year decrease of 41.8%. EPS amounted to $0.19. An interim dividend of HK 11 cents will be declared, same to the year-ago period.

EASYKNIT INT'L (01218.HK)    +0.030 (+0.685%)   announced the interim results for September ended 2014. The company recorded a gain of $50.746 million, against the loss of $1.468 million in the year-ago period. EPS totaled $0.64. No interim dividend will be declared.

GET NICE (00064.HK)    +0.005 (+1.429%)   announced the results for six months ended September 2014. Net profit slumped 67.6% yearly to $128 million. Basic earnings per share was HK 2.86 cents, which was reduced by 67.7%. The interim dividend totaled HK 1 cent. 

IDT INT'L (00167.HK)    +0.070 (+10.769%)   announced that for the interim period as of the end of September, the loss narrowed to $6.8 million, against a loss of $8.8 million in the year-ago period. The loss per share equaled 0.27 cents. No interim dividend was declared. During the period, the turnover fell 16.8% yearly to $603 million; gross profit fell 15.6% yearly to $157 million

Market Indexes Index Last Day High Day Low Change %Change Time (HKT) Hang Seng Index 24,111.98 24,176.64 23,799.42 + 268.07 + 1.12% 2014-11-26 16:01 Hang Seng Finance Sub-index 32,945.22 33,033.66 32,299.64 + 616.49 + 1.91% 2014-11-26 16:01 Hang Seng Utilities Sub-index 55,968.14 56,020.73 55,318.76 + 788.30 + 1.43% 2014-11-26 16:01 Hang Seng Properties Sub-index 31,443.59 31,541.28 31,120.85 + 176.26 + 0.56% 2014-11-26 16:01 Hang Seng Commerce & Industry Sub-index 14,317.39 14,364.90 14,181.14 + 47.30 + 0.33% 2014-11-26 16:01 Hang Seng China Enterprises Index 11,051.35 11,075.22 10,758.88 + 268.44 + 2.49% 2014-11-26 16:01 Hang Seng China-Affiliated Corporations Index 4,552.18 4,563.03 4,507.29 + 36.85 + 0.82% 2014-11-26 16:01 Hang Seng China H-Financials Index 16,094.22 16,118.24 15,513.99 + 560.59 + 3.61% 2014-11-26 16:01 Top 10 Stocks by Turnover Code Name Nominal Change % Change Time (HKT) 02823 X ISHA...

Deutsche Bank stated that HUISHAN DAIRY (06863.HK)    -0.010 (-0.592%)      Short selling $2.00M; Ratio 5.036%     expected the raw milk price will be pressurized in 2015 due to cheap imported milk powder, high inventory level of whole milk powder (4 months) and soft demand. The broker stated that the distribution cost of Huishan Dairy was higher than expected in 1H and lowered its after-tax net profit forecast in 2015-2017 by 5%. The target price was trimmed from $2.2 to $2.1 and the rating was maintained at Buy.

Standard Chartered, in its latest research report, said the Mainland's financial system is under enormous pressure, and more stimulus measures may be introduced over the next 3-6 months. The Bank expects that the interest rate will be cut by 25 bps in the first quarter next year, and the PBOC may adopt liquidity management tools more frequently. Positive sentiment is expected in the banking sector in the next three months. The Bank is more bullish on CM BANK (03968.HK)    +0.400 (+2.688%)      Short selling $46.03M; Ratio 10.295%     , which is rated Outperform with target set at $18.5

Morgan Stanley stated that CHOW TAI FOOK (01929.HK)    +0.340 (+3.263%)      Short selling $34.53M; Ratio 22.994%     's interim results was in line with estimates. The business was affected by the Central Occupy Movement in October but was improved in November despite the soft demand. Due to the slow down in business growth from the second half of 2014, the company adjusted the flat annual revenue target to single-digit decrease. The target price of Chow Tai Fook was cut from $13.4 to $12.4 and the rating was maintained at Overweight. 

CH INV FIN GP (01226.HK)    0.000 (0.000%)     announced that its loss for the six months ended September 2014 widened to $5.954 million as compare to the loss of $4.071 million in the same period of last year. Loss per share was 0.01 cent. No dividend was declared.  During the period, the total proceeds from the sale of securities amounted to $196 million, up 146% from a year ago. Revenue grew 50.17% to $5.394 million. 

DAIWA ASSOCIATE (01037.HK)    +0.460 (+62.162%)     announced that Lau Tak Wan, the president, executive director and substantial shareholder of the company has recently approached by several intermediaries in relation to the possible sale of his shareholding interest in the company. The trading of share was suspended from 11:23 a.m on 26 November and the company has applied for resumption of trade. Daiwa Associate soared 62% to $1.2, on volume of 53.632 million shares before suspension of trading.

MAGNUM ENT (02080.HK)    +0.010 (+1.042%)     announced the interim results for September ended 2014. Net profit amounted to $11.25 million, representing a year-on-year increase of 49.52%. EPS was HK 3.6 cents. No interim dividend will be declared.

On the eve of the futures settlement date, Hang Seng Index surged 332 pts at most and eventually gained 268 pts or 1.1% to 24,111 at close; Hang Seng China Enterprises Index closed higher by 268 pts or 2.5% to 11,051. Market turnover was $87.6 billion.  Hang Seng China H-Financials Index (HFI) surged 3.6% and Mainland insurance stocks led gainers. CHINA LIFE (02628.HK)    +1.800 (+7.200%)       Short selling $355.12M; Ratio 10.240%      and NCI (01336.HK)    +2.750 (+8.501%)       Short selling $196.67M; Ratio 24.372%      shot up 7.2% and 8.5% respectively, becoming the outperformer among blue chips and HSCEI constituents.  PICC GROUP (01339.HK)    +0.280 (+8.069%)       Short selling $9.49M; Ratio 1.506%      surged 8.1%. CPIC (02601.HK)    +1.900 (+6.240%)       Shor...