On February 27th, the three major indices of Hong Kong stocks rebounded after falling, and the upward trend further expanded in the late trading session. The Hang Seng Index rose 0.94% to close at 16790.8 points; The Hang Seng Technology Index rose 3.24% to 3503.17 points; The Hang Seng State Owned Enterprises Index rose 1.46% to close at 5806.9 points. The market transaction was HKD 102.601 billion, with a net purchase of HKD 1.329 billion by southbound funds.
New energy vehicles and semiconductors are on the rise. Ideal Automobile rose 25.45%, SMIC rose 10.21%, and BYD shares rose 5.32%, leading blue chip gains. Huahong Semiconductor rose 7.69%, while Xiaopeng Automobile rose 5.60%.
Pharmaceutical stocks strengthened, with Yunding Xinyao up 14.71%, Zaiding Pharmaceutical up 13.27%, and Minimally Invasive Medical up 9.20%.
ZTE saw a surge of over 10%.
Consumer stocks are weak, with Mengniu Dairy falling 3.57%, Shenzhou International falling 2.64%, and Ctrip Group falling 2.43%, leading the decline in blue chips. Qingdao Beer fell 3.68%, while Dongfang Zhenxuan fell 3.89%.
In terms of individual stocks, Dingyifeng Holdings fell nearly 24%, and former chairman Sui Guangyi was accused of manipulating shares six years ago.
From the perspective of industry performance, the Hang Seng Industry Index mostly rose during the day, with the Non essential Consumption Index rising by 3.48%, the Healthcare Industry Index rising by 2.68%, and the Public Utilities Index rising by 0.92%. In terms of decline, the essential consumption index fell by 0.82%, the comprehensive enterprise index fell by 0.64%, and the real estate and construction industry index fell by 0.04%.
From the market perspective, the Wind concept sector mostly rose, with the chip substitution index rising 9.91%, the integrated circuit industry fund index rising 9.74%, and the new energy vehicle index rising 8.98%. In terms of decline, the online education index led a decline of 2.89%, the lottery index fell by 2.58%, and the dairy industry index fell by 1.85%.
Ideal Automobile earns 12 billion yuan
Stock price skyrocketed by over 25%
On February 27th, Ideal Auto opened high and its stock price surged by 26.88%, closing at HKD 175.50 for the day, up 25.45%.
After the market closed on February 26th, the 2023 annual report disclosed by Ideal Automobile showed that the company's non US GAAP net profit in 2023 reached 12.198 billion yuan, marking its first annual profit!
According to the annual report, Ideal Automobile's revenue in the fourth quarter of 2023 was 41.7 billion yuan, a year-on-year increase of 136%, and the annual revenue was 123.9 billion yuan, a year-on-year increase of 174%. The net profit for the fourth quarter of 2023 was 5.8 billion yuan, exceeding Bloomberg's consensus expectation of 2.8 billion yuan. The company's net profit for the whole year of 2023 was 11.8 billion yuan (a net loss of 2 billion yuan in 2022), marking the first turnaround in losses. Huatai Securities predicts that the company's sales from 2024 to 2026 will be 700000 vehicles, 1.04 million vehicles, and 1.14 million vehicles, respectively. The company's revenue from 2024 to 2026 will be 210.4 billion yuan, 288.3 billion yuan, and 305.3 billion yuan, respectively. The net profit attributable to shareholders will be 15.3 billion yuan, 18.3 billion yuan, and 21.2 billion yuan, respectively.
Goldman Sachs has released a research report reaffirming its "buy" rating for Ideal Auto, reflecting expectations that the company will launch 5 new cars this year and expand its sales network to 400 stores, with a target price increase of 4% to HKD 215. Based on a higher profit margin assumption, Goldman Sachs has raised its earnings per share forecast for Ideal 2024-2026 by 4% to 10%. Meanwhile, it is expected that Ideal Automobile will have the fastest profit growth and the most abundant free cash flow among the Chinese automobile manufacturers it covers.
The research report indicates that Ideal Automobile had strong performance in the fourth quarter of last year, with continuous improvement in profit margins. The management reiterated that this year's sales target is 800000 units, which means a year-on-year growth of over 100%, and the gross profit margin will remain above 20% every quarter. Goldman Sachs believes that the resilience of Ideal Automobile's gross profit margin is mainly due to strong cost control (over 100% capacity utilization), supply chain price deflation (increased component yield), and a slowdown in NEV demand in other regions of the world, as investors focus on the profit pressure brought about by sustained price competition in the market.
Dong Yuhui clears Weibo
Dongfang Zhenxuan fell more than 6% in response to the call
On February 27th, it was discovered by the media that Dong Yuhui cleared his Weibo account. After the news spread, the stock price of Dongfang Zhenxuan plummeted by 6.34% and closed at HKD 23.5 for the whole day, a decrease of 3.89%.
According to media reports, some people close to Dongfang Selection stated that the reason for clearing Weibo was personal behavior. Dongfang Zhenxuan did not respond. In the previous day's live broadcast, Dong Yuhui once said, "I naturally dislike hot searches and will cancel Weibo tomorrow.".
Tianfeng Securities stated that the "Together with Hui" team and accounts have started operating, and the positioning of each account is initially clear. Currently, on the one hand, the establishment of "Together with Hui" has effectively maintained Dong Yuhui's unique characteristics and freedom in promoting products; On the other hand, there are certain differences in product specifications and styles between the account selection and Dongfang Zhenxuan, which do not involve self operated product sales and contribute to GMV increment rather than diversion; Since the launch of "Walking with Hui", the total GMV has been about 80 million yuan, with a daily average of 46.92 million yuan; The daily MTD GMV of the Dongfang Zhenxuan series accounts in January was about 30 million yuan. Despite the lack of contributions from the two accounts of "Drinking/Watching the World" and the intensive activities during the same period last year, it was close to unchanged year-on-year.
