Let’s take a look at today’s Hong Kong Stock Market:
Due to Hong Kong’s public holiday, Hong Kong stocks opened today with a round of make-up decline:
Affected by the decision of the delisting, the shares of Kwai Kong and Hong Kong and the United States dropped: Tencent holdings fell 2.78%, NetEase fell 2.99%, fast hand fell 2.98%, and beep dropped 10.92%. Hang Seng technology index fell 3.79% to close at 4156 points.
Affected by the decline of sectors such as medicine, consumption, finance and real estate, the Hang Seng Index and the Hang Seng state-owned enterprise index fell 2.28% and 2.95% respectively today, both reaching new lows since the “3.16” rebound of Hong Kong stocks.
Following yesterday’s A-share trend, today China Merchants Bank Co.Ltd(600036) Hong Kong stocks made up for the decline, down 11.46%. A number of foreign securities companies pointed out that China Merchants Bank Co.Ltd(600036) ‘s success depends on its excellent management team, and personnel changes will increase its development uncertainty and be associated with its stock price performance.
JPMorgan Chase said that sudden changes in senior management are not common for China Merchants Bank, and China Merchants Bank has not made clear Tian Yuhui’s future work, which is easy to worry the market. At present, China Merchants Bank has a significant premium over the price to book ratio of its peers, but said that its fundamentals have not changed greatly and the target price has basically remained unchanged. Several investment banks also pointed out the positive factors of China Merchants Bank Co.Ltd(600036) : for example, the provision rate for non-performing loans is nearly 5 times, the change of president has little impact on the core operating performance, and the retail business and fundamentals are good. Institutions including Morgan Stanley and UBS still maintain the overweight rating of China Merchants Bank Co.Ltd(600036) .
In addition, affected by the low trading volume of A-Shares and the frequent breaking of new shares in recent days, the securities companies in mainland Hong Kong came out of the market to make up for the decline, including CICC securities, Citic Securities Company Limited(600030) and China Merchants Securities Co.Ltd(600999) and others, which generally fell by more than 4% today, and Gf Securities Co.Ltd(000776) fell by 6.27%.
Fortunately, some stocks listed in both places have made up for the rise: Fuyao Glass Industry Group Co.Ltd(600660) 415 released better than expected results for the first quarter, A-Shares took the lead in rising sharply, and Hong Kong stocks made up 7.51% today. Due to the progress in the development of covid-19 oral medicine, Shanghai Junshi Biosciences Co.Ltd(688180) A-Shares rose nearly 15% in the two trading days when Hong Kong stocks were closed. Today, Shanghai Junshi Biosciences Co.Ltd(688180) Hong Kong stocks rose 7.33%, in sharp contrast to other falling pharmaceutical leaders.
Another soaring pharmaceutical stock is cutting-edge medicine, which has been suspended for more than four years and resumed trading only in March this year. When the trading resumed in March, the share price of cutting-edge medicine once fell by 60%, but the share price has rebounded significantly recently, and once doubled in the afternoon today!
Cutting edge medicine released its annual results at the end of March. In 2021, the revenue increased by 1.52 times year-on-year to about HK $335 million, and the loss narrowed to 2.82 million yuan from 69.73 million yuan in the previous year, about 96% year-on-year. The company said that the growth of sales volume of second-generation cephalosporin products was the main reason for the large increase in revenue, and the significant reduction of impairment loss also contributedP align = “center” Gaoxin retail pre loss exceeds 700 million p align = “center” share price falls to a new low
Shopping malls are still sluggish. As a Chinese retailer under Alibaba group, Gaoxin retail is famous for its “RT Mart” hypermarket business in China. The company issued a loss advance announcement:
As of the end of March this year, the company’s latest fiscal year is expected to have a net loss of about RMB 750 million to RMB 950 million, a decrease of about RMB 3.044 billion to RMB 3.244 billion compared with the net profit of RMB 2.294 billion (Unaudited) for the 12 months ended March 31, 2021.
Affected, Gaoxin retail opened low and went low, with a sharp drop of 9.27% today. Its share price hit a new low since listing, and has fallen 80% since its peak in 2020P align = “center” Gaoxin retail has maintained a net profit of more than 2 billion yuan in recent years
The decline of Gaoxin retail performance is not without omen. The interim financial report by the end of September 2021 showed that the net profit attributable to the parent company for the current period was 117 million yuan, down 86% from 833 million yuan in the same period in 2020.
At present, the performance of Gaoxin retail has been consolidated with Alibaba. According to Alibaba’s latest quarterly report, the performance of Gaoxin retail is included under the “direct sales and others” of China’s business income, including tmall supermarket and HEMA. In the fourth quarter of last year, Alibaba’s direct and other business revenue was 67.9 billion yuan, an increase of 21% over the same period in 2020. Alibaba pointed out that the growth of direct business mainly came from the revenue contribution of direct business of Gaoxin retail, HEMA and tmall supermarket.
Alibaba Hong Kong shares fell 4.19% today.
