The Hang Seng Index closed up 0.48%, and domestic real estate stocks performed strongly, and New Oriental-S fell more than 12% after the results

Zhitong Financial APP learned that the three major indexes of Hong Kong stocks were mixed, the Hang Seng Index rebounded for four consecutive trading days, and quickly rose and turned red after opening slightly lower in early trading, and saw a new high of 17,434 points in the intraday to refresh the new high of the year, and then the gains narrowed, showing a shock adjustment trend. At the close, the Hang Seng Index rose 0.48% or 83.27 points to 17,284.54 points, with a full-day turnover of HK$119.912 billion, the Hang Seng China Enterprises Index rose 0.33% to 6,120.37 points, and the Hang Seng Tech Index fell 0.54% to 3,554.3 points.

CCB International previously pointed out that with the rebound of the Hang Seng Index after holding the previous low (October 2022 low) in late January, the consensus of the end of the bear market in Hong Kong stocks is forming. Taking into account the internal and external environment, it is expected that Hong Kong stocks will roughly show a range-bound W-shaped trend in the second quarter, with the Hang Seng Index fluctuating between 16,000 and 18,000 points.

Blue chip performance

China Overseas Land & Investment (00688) led the blue-chip gains. As of the close, it rose 6.26% to HK$12.9, with a turnover of HK$506 million, contributing 4.52 points to the Hang Seng Index. In the first quarter, the company achieved revenue of 36.5 billion yuan, a year-on-year increase of 14.4%, and an operating profit of 6.65 billion yuan, a year-on-year increase of 22.2% after excluding net foreign exchange gains and losses. Guojin Securities pointed out that the company's sales resilience is strong, the land acquisition focuses on the core areas of core cities, the margin of safety is high, and as the high gross profit projects gradually enter the carryover cycle, it is expected that the future performance is expected to continue to grow.

In terms of other blue chips, CSPC Pharmaceutical Group (01093) rose 4.82% to HK$6.52, contributing 4.23 points to the Hang Seng Index, China Hongqiao (01378) rose 3.85% to HK$10.78, contributing 1.79 points to the Hang Seng Index, Li Auto-W (02015) fell 3.16% to HK$93.5, dragging the Hang Seng Index by 6.57 points, and Sands China (01928) fell 1.41% to HK$18.2, dragging the Hang Seng Index by 1.16 points.

In terms of popular sectors

On the disk, the technology stocks that had risen for 3 consecutive days have pulled back today, of which Tencent fell by more than 1%; Bilibili, Alibaba, and JD.com continued to rise; many cities pushed the housing "old for new", and the "white list" project was smoothly promoted, and the domestic real estate stocks performed strongly; aluminum prices fluctuated at a high level, and aluminum stocks rose first; pharmaceutical stocks, coal stocks, oil stocks, and domestic insurance stocks were all in the red. On the other hand, education stocks fell significantly, and profit margins may be under pressure in the short term, with New Oriental falling more than 12% after its results, and Oriental Selection falling more than 9%. In addition, auto stocks were mixed, with Li Auto falling more than 3%, Great Wall Motor, BYD shares, and Geely Automobile all rising.

1. Domestic property stocks are strong. At the close, Seazen Development (01030) rose 9.8% to HK$1.12, Agile Group (03383) rose 9.3% to HK$0.47, R&F Properties (02777) rose 6.41% to HK$0.83, and Longfor Group (00960) rose 3.7% to HK$9.8.

Shenzhen has taken the lead in launching the "old for new" housing "trade-in", and so far 21 intermediaries and 13 real estate projects have participated in the "new home". According to the statistics of the China Index Research Institute, more than 30 cities have expressed their support for "trade-in". More than 10 cities, including Xuzhou, Zibo and Nanjing, have implemented this policy. Soochow Securities said that the policies of real estate enterprises and residents are steadily advancing, and it is expected that the real estate policies of more core cities will be gradually opened in April and May to boost market demand and confidence.

In addition, as of the end of March, commercial banks had completed the review of all the first batch of "white list" projects pushed by the Coordination Mechanism, of which more than 2,100 projects were approved and approved, with a total amount of more than 520 billion yuan. China Post Securities believes that part of the reason for the continued weakness of new home sales is that residents are worried that new housing off-plan houses cannot be delivered on time, and under the promotion of the coordination mechanism, the "white list" project funds have been put in place to help restore residents' confidence in buying houses.

2. Pharmaceutical stocks are mostly higher. At the close, CARsgen-B (02171) was up 5.54% at HK$5.33, WuXi XDC (02268) was up 5.37% at HK$20, Jacobio-B (01167) was up 5.26% at HK$1.6 and Junshi Biosciences (01877) was up 5.24% at HK$10.24.

The 2024 American Society of Clinical Oncology Annual Meeting (ASCO 2024) will be held at the end of May this year. ICBC Credit Suisse Fund pointed out that the recent pharmaceutical investment has been disturbed by various reasons such as overseas events and the Fed's interest rate cut expectations being postponed again, but considering that the American Society of Clinical Oncology Annual Meeting (ASCO) to be held in the second quarter will have a large number of ADC data readouts, which will catalyze innovative drugs at that time, and superimpose the favorable policies of the industry itself, the innovative drug sector is still worth paying attention to in the long run.

Yongxing Securities pointed out that the operation of the medical insurance fund will be generally stable in 2023, and the bank believes that with the establishment of an innovative drug support mechanism covering the whole process of declaration, review, calculation, negotiation and other processes by the National Health Insurance Administration, more new drugs and good drugs are expected to be included in the medical insurance, and innovative drug research and development-related enterprises are expected to benefit. Donghai Securities said that since the beginning of this year, including the clear support for innovative drugs and the continuous optimization of the renewal terms of centralized procurement, the industry policy has been improving significantly, and the overall sector is expected to continue to warm up after the second quarter.

3. Aluminum stocks were among the top gainers. At the close, Aluminum Corporation of China (02600) rose 5.87% to HK$5.23, while China Hongqiao (01378) rose 3.85% to HK$10.78.

On April 24, the latest price of spot aluminum was 20,110 yuan/ton, an increase of 7.71% from the low point in February. CITIC Securities believes that the decline in explicit inventories under short-term supply shocks verifies the resilience of demand. It is expected that although the supply of electrolytic aluminum will still increase during the year, the growth rate will decline. It is expected that the domestic electrolytic aluminum industry will be in a tight balance during the year, and aluminum prices and profits per ton of aluminum will remain high. Goldman Sachs pointed out that similar to copper, the global aluminum market will also turn into a continuous supply shortage phase from the second quarter, and the global aluminum market is expected to have a supply and demand gap of 7.24 million tons this year, a trend that will support the London Stock Exchange aluminum price to reach $2,600 / ton by the end of this year.

4. Some coal stocks are bright. At the close, SouthGobi (01878) rose 12.79% to HK$6.26, Mongolian coking coal (00975) rose 6.67% to HK$9.92, Yankuang Energy (01171) rose 2.87% to HK$17.2, and China Coal Energy (01898) rose 2.36% to HK$7.81.

On April 25, the main coking coal futures contract fluctuated upward, reaching a maximum of 1836.0 yuan. Dayue Futures pointed out that mainstream coal companies maintain normal shipments, and are still mainly reducing inventories. At present, the downstream demand for raw coal is acceptable, the procurement is still relatively active, the coal mine has signed good orders, the inventory is at a low level in many places, and the second round of coke has been fully implemented, and the profits of coke enterprises have improved, which has boosted the sentiment of the coking coal market and supported some coal prices to continue to rise. Great Wall Securities also believes that market sentiment will remain positive, and coking coal prices may continue to rise.

Popular abnormal stocks

1. Great Wall Motor (02333) rose after the results, up 5.35% to HK$11.82 as of the close.

In the first quarter, Great Wall Motor achieved a total operating income of about 42.86 billion yuan, a year-on-year increase of 47.6%, and a net profit attributable to shareholders of the listed company of about 3.228 billion yuan, a year-on-year increase of 1752.55%.

2. SenseTime-W (00020) resumed trading and continued to rise, up 3.75% to HK$0.83 as of the close.

On April 23, SenseTime held a technical exchange day at Shanghai Lingang AIDC, in which the company launched the 600 billion parameter large model "Ririxin 5.0", which has greatly improved its knowledge, mathematics, reasoning and code capabilities, and comprehensively benchmarked its comprehensive performance against GPT-4Turbo.

3. New Oriental-S (09901) shares fell sharply, down 12.27% to HK$62.2 as of the close.

Bank of Communications International pointed out that in the third quarter of fiscal 2024, New Oriental's adjusted net profit attributable to the parent company was US$105 million, lower than the bank's expectation of US$120 million, and the net profit margin was 8.7%, compared with 13% in the same period last year, mainly due to the expansion of Oriental selection, supply chain construction and discounting of self-operated products.