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Investment Daily Investment Daily 23 March 2021 Major Market Indicators Market Overview 22 Mar 19 Mar 18 Mar Mkt. Turn.(mn) 134,200 206,200 174,600 Resistance Continued at 50 Day SMA; Low Market Turnover Stock Advances 991 550 898 reflected cautious sentiment Stock Declines 778 1,168 821 Hang Seng index opened down 189 points and then rebounded sharply afterwards, rising as HSI 28,885 28,991 29,406 much as 121 points. The index then gradually consolidated and closed down 106 points at Change -106 -415 +372 28,885. H-shares index rose 23 points to 11,307, and Hang Seng Tech index fell 42 points to HSI Turn.($bn) 51.06 90.99 75.59 8,509. Market turnover amounted to HK$134.2bn, with fund inflow from the stock connect HSCEI 11,307 11,284 11,470 amounted at HK441mn. Xiaomi (1810) announced this morning that a product presentation Change +23 -187 +112 will be held next Monday, triggering share price up 1.9%. BOCOM (3328), CKH (0001) HSCEI Turn.($bn) 50.01 83.79 72.30 and China Overseas (0688) rose 3.1%, 3.6% and 2.9% respectively; and Sunny Optical (2382), Bud APAC (1876) and Meituan (3690) dropped 5.0%, 3.9% and 3.7%. HSI Technical Indicators US 10 Year Yield fell 5 basis points to 1.68% on Monday, support investor to rotate some of the funds back to major technology stocks. Of which, major tech stocks such as Apple, 10-days MA 28,998 50-days MA 29,317 Microsoft and Tesla rose more than 2%. On the other hand, fund flow away from financial 250-days MA 25,762 and energy sector. Besides, owing to the COVID 19 newly cases rebound in Europe, 14-days RSI 46.48 airlines stock fell sharply on Monday. Primary resistance 29,318 The three major US stock index rose 0.3-1.2% respectively on Monday, of which, the Primary support 28,500 Nasdaq performed the best. On the other hand, although US dollar index fell 0.2% to 91.72 HS CEI Technical Indi cators on Monday, gold price still fell 0.2% to US$1,738 per ounce. 10-days MA 11,244 Thanks to both US treasury yield and US dollar index fell on Monday, Hong Kong blue 50-days MA 11,511 chips perform well in the US ADR market last night. Hong Kong stock is expected to open 250-days MA 10,327 higher today. However, the recent low market turnover in Hong Kong stock market, 14-days RSI 47.97 reflecting investor sentiment, including mainland investors from Hong Kong Stock Primary resistance 11,500 Connect, remained cautious. Hang Seng Index resistance continued at 50 Day Primary support 11,000 SMA(29,318). HSI Futures HK Stock Connect recorded a net inflow of HK$441mn, of which, Tencent (0700) and China Telecom (0728) have relatively more net buy, while Meituan(3690) continued to 22 Mar 19 Mar 18 Mar suffer from net sell. On the other hand, Country Garden (6098) FY20 net profit slightly Mar 28,855 28,934 29,369 beat expectation and announced an aggressive target at 2025. Market has further adjusted Volume 94,780 127,090 117,671 upward on the target price of Country Garden, it will further boost its share price today. Open interests 107,005 190,433 114,115 However, its share price accumulated obvious gain recently and trading at 42x prospective Apr 28,814 28,894 29,326 P/E. Suggest to wait for better entry price. Volume 829 759 713 Open interests 4,517 4,111 3,602 HSI Chart HSCEI Futures 22 Mar 19 Mar 18 Mar Mar 11,297 11,255 11,459 Volume 66,787 95,850 72,525 Open interests 182,993 190,433 195,536 Apr 11,277 11,237 11,442 Volume 1,394 2,874 1,248 Open interests 11,737 10,976 9,518 Sources :Google Investment Daily Daily Focus Country Garden Service (6098): Result Comment Country Garden Service (6098)FY20 revenue rose 61.7% yoy to Country Garden Service (6098) Info Rmb15.6bn while net profit rose 60.6% to Rmb2,686mn, which is Closed price 69.2 slightly beat market expectation. Its gross margin improved 2.4 percentage point to 34%. Dividend per share rose 44.5% yoy to Expected P/E (X) 42 Expected Dividend Rmb0.2187. 0.5 yield (%) Country Garden Service contracted GFA rose 135.8 million sq.m. to 52 week high 71.4 820.5 million sq.m. in 2020 while revenue bearing GFA rose 36.7% yoy 52 week low 27.2 to 377.3 million sq.m. Property management service revenue rose 49.7% 14RSI 65 yoy to Rmb8,607mn. Besides, the Group offer comprehensive community life services to meet property owners requirement, community value-added services rose 100.1% yoy to Rmb1,731mn. Country Garden Services provided an aggressive revenue target of not less than Rmb100bn at 2025, compared with Rmb15.6bn in FY20. Of which, Country Garden Services target at a Rmb50bn and Rmb30bn revenue from property management services community value added service respectively. Besides, Country Garden also plans to reach a Rmb20bn revenue target for city services and Rmb15bn target for commercial property management. Country Garden services plans to achieve no less than 50% revenue growth in 2021. In fact, Country Garden Services just announced to acquire 71.2% stake of Langaung Justbon (2606) at Rmb5,432mn. Total general offer cost on Langaung Justbon is likely at Rmb7.6bn (including the Rmb5,432mn). Country Garden services revealed that it still has Rmb5-6bn cash after the deal. Country Garden FY20 net profit slightly beat expectation and announced an aggressive target at 2025. Market has further adjusted upward on the target price of Country Garden, it will further boost its share price today. However, its share price accumulated obvious gain recently and trading at 42x prospective P/E. Suggest to wait for better entry price. Analyst: Samuel Chua, CFA http://www.kgieworld.com 23 March 2021 2 Investment Daily Shanghai /Shenzhen -Hong Kong Stock Connect Statistics SH Connect SZ Connect Combined Southbound Balance (RMB bn) 48.39 46.03 81.89 Balance as % of Quota Amount 93.1 88.51 97.5 Top 10 Most Actively Traded Stocks(SH-HK Connect Southbound) Stock Name Stock code Buy Trades (HKD) Sell Trades (HKD) Turnover (HKD) CHINA TELECOM 728 869,570,460 180,335,071 1,049,905,531 XIAOMI-W 1810 541,246,630 401,950,790 943,197,420 CHINA MOBILE 941 282,956,925 639,781,135 922,738,060 TENCENT 700 569,667,550 217,125,550 786,793,100 MEITUAN-W 3690 311,575,000 406,044,140 717,619,140 CNOOC 883 131,546,880 346,778,462 478,325,342 SUNNY OPTICAL 2382 198,488,510 244,231,930 442,720,440 SMIC 981 156,264,775 207,863,225 364,128,000 HKEX 388 87,537,700 251,295,100 338,832,800 PING AN 2318 25,413,700 291,789,225 317,202,925 Sources: HKEx Top 10 Most Actively Traded Stocks(SZ-HK Connect Southbound) Stock Name Stock code Buy Trades (HKD) Sell Trades (HKD) Turnover (HKD) MEITUAN-W 3690 180,344,620 1,217,143,340 1,397,487,960 TENCENT 700 872,392,050 489,396,800 1,361,788,850 XIAOMI-W 1810 730,653,630 389,957,590 1,120,611,220 CNOOC 883 270,193,560 382,689,056 652,882,616 GCL-POLY ENERGY 3800 219,383,760 210,687,280 430,071,040 WEIMOB INC 2013 118,432,560 288,201,240 406,633,800 HKEX 388 30,501,280 342,497,105 372,998,385 CCB 939 265,551,940 81,138,322 346,690,262 SUNNY OPTICAL 2382 179,983,250 142,160,250 322,143,500 CHINA OVERSEAS 688 288,696,300 13,174,200 301,870,500 Sources: HKEx Other Statistics Ten Most Actively Traded Stocks Stock Name Code Change Closed Price Turnover(Million) TENCENT 700 0.88% 633.50 88.77 MEITUAN-W 3690 -3.72% 320.60 61.03 XIAOMI-W 1810 1.91% 26.75 48.92 BABA-SW 9988 -1.45% 231.20 33.71 HKEX 388 -2.31% 456.20 22.99 PING AN 2318 -0.90% 94.00 19.40 SUNNY OPTICAL 2382 -5.02% 181.80 16.95 CHINA MOBILE 941 -0.66% 52.60 15.97 CCB 939 2.01% 6.59 15.08 CNOOC 883 -0.24% 8.34 14.53 http://www.kgieworld.com 23 March 2021 3 Investment Daily Ten Short Sell Stocks Stock Name Code Short Selling Turnover Short Selling Ratio Turnover TRACKER FUND 02800.HK 714.24M 1.53B 46.81% TENCENT 00700.HK 661.50M 8.88B 7.45% PING AN 02318.HK 530.85M 1.94B 27.36% BABA-SW 09988.HK 396.22M 3.37B 11.75% HKEX 00388.HK 392.24M 2.30B 17.07% CCB 00939.HK 386.21M 1.51B 25.62% SUNNY OPTICAL 02382.HK 330.81M 1.69B 19.52% BANK OF CHINA 03988.HK 308.48M 1.17B 26.31% CAM CSI300 03188.HK 296.62M 569.44M 52.09% KUAISHOU-W 01024.HK 275.68M 792.04M 34.81% Source: AA Stocks Economic Calendars Date Country Event Survey Prior Mon China 1-Year Loan Prime Rate 3.85% 3.85% China Resources Beer (291), TINGYI (322), ENN Energy Hong Kong (2688), CG Services (6098) Results Geely Auto (175), Kuaishou (1024), Sino Biopharm (1177), Tue Hong Kong WuXi Bio (2269), Haidilao (6862) Results Wed US Feb.
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