Zhitong Hong Kong stocks have long been known | China Taibao (02601)'s net profit for the first three quarters is expected to increase 60% to 70% year-on-year. Horizon Hong Kong IPO plans to issue 1,355 billion shares

[Today's headlines]

The State Information Office will hold a press conference on the situation relating to promoting the steady and healthy development of the real estate market

The Information Office of the State Council will hold a press conference at 10 a.m. on October 17, 2024 (Thursday). Ni Hong, Minister of Housing, Urban-Rural Development, and heads of the Ministry of Finance, the Ministry of Natural Resources, the People's Bank of China, and the State Financial Supervision and Administration, will be invited to explain the situation in promoting the steady and healthy development of the real estate market and answer questions from reporters.

[General outlook]

The Philadelphia Semiconductor Index fell more than 5%

Overnight, US stocks fell 324.80 points, or 0.75%, to 42740.42 points; the NASDAQ fell 187.10 points, or 1.01%, to 18315.59 points; the S&P 500 index fell 44.59 points, or 0.76%, to 5815.26 points. The Philadelphia Semiconductor Index fell more than 5%, Nvidia (NVDA.US) fell 4.6%, AMD (AMD.US) fell 5%, and ASML.US (ASML.US) fell 16%.

The Nasdaq China Golden Dragon Index closed down 5.9%, while Alibaba (BABA.US) fell 5.5%. The Hang Seng Index ADR declined. On a proportional basis, it closed at 2008 1.29 points, down 237.50 points or 1.17% from the Hong Kong closing.

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Three departments including the Ministry of Finance: Water resources tax is levied quantitatively to determine the tax amount on groundwater from a higher level

The Zhitong Finance App learned that recently, the Ministry of Finance, the State Administration of Taxation, and the Ministry of Water Resources jointly issued the “Water Tax Reform Pilot Implementation Measures”. Among them, it was mentioned that the water tax is levied on an ad hoc basis. The amount of tax on groundwater intake is determined from a higher level. For the same type of water used, the groundwater tax amount should be higher than surface water. Higher taxes are determined for water intake in areas where water resources are severely scarce and overloaded. Tax amounts are raised appropriately in line with actual use of water without approval, where the amount of water intake exceeds the permitted amount of water or the water intake plan.

China Construction Machinery Industry Association: Sales of 10,6002 forklifts of various types increased 6.06% year-on-year in September

According to statistics from the China Construction Machinery Industry Association on major forklift manufacturers, 10,6002 forklifts of various types were sold in September 2024, an increase of 6.06% over the previous year. Its sales volume in China was 62,755 units, down 5.32% year on year; export volume was 43,247 units, up 28.5% year on year.

Pharmacist Bang (09885) plans to acquire 100% of Folding Space (Cayman) Ltd.'s issued and issued foreign share capital for 1,035 billion yuan

According to Zhitong Finance App News, Pharmacist Bang (09885) issued an announcement. On October 15, 2024 (after the stock exchange trading period), the company, seller, founder, target guarantors, Dade Hongyi and De Zhiqing entered into the agreement. Based on this, the seller agreed to sell and the company agreed to purchase shares for sale (which together account for 100% of the issued and issued foreign share capital of the target company Folding Space (Cayman) Ltd.), in accordance with the terms and conditions set out in the agreement, at a consideration of approximately RMB 1,035 million. Of this, the cash consideration was RMB 420 million, and the share consideration was RMB 615 million. The share consideration portion issued new shares to the original shareholders of Pharmaceuticals at HK$12 per share, a 63.04% premium over the closing price on the day the acquisition agreement was signed, reflecting the buyer and seller's recognition of the value of Pharmacist Help Company after the transaction.

Established in 2019 and headquartered in Changsha, Yipai Pharmaceutical focuses on providing medical and health products and services for downstream pharmacy chains, multi-body pharmacies and single pharmacies. Its own pharmaceutical brands Yuandian, Antaibang, and Xinglintai cover various categories such as proprietary Chinese medicines, chemicals, and supplements. Currently, Yipuang Pharmaceutical has established strategic partnerships with more than 1,000 pharmaceutical companies to provide about 700 private brand SKUs for 3,000 downstream pharmacy chain headquarters and tens of thousands of multi-body and monomer pharmacies.

China Jinmao (00817) plans to acquire Shanghai Zongmao Class B limited partnership shares held by Huafu Securities for 966 million yuan

Zhitong Finance App News, China Jinmao (00817) announced that on October 15, 2024, Shanghai Zongmao, Jinmao Group, an indirect wholly-owned subsidiary of the company, signed a limited partnership property share transfer agreement with Huafu Securities. According to this, Jinmao Group finally chose the two priority acquisition targets, that is, Jinmao Group will acquire the underlying assets (that is, the Shanghai Class B limited partnership share (representing the special plan) held by Huafu Securities (representing the special plan)), with a total consideration of RMB 9.66 100 million yuan.

JD Logistics (02618): Plans to increase global overseas warehouse space by more than 100% by the end of 2025

JD Logistics announced that it plans to increase the global overseas warehouse area by more than 100% by the end of 2025, while further laying out and constructing bonded warehouses and direct mail warehouses.

China Taibao (02601): Net profit for the first three quarters is expected to increase 60% to 70% year-on-year

China Taibao (601601) announced on the evening of October 15 that the company's net profit for the first three quarters of 2024 is estimated to be 37 billion yuan to 39.4 billion yuan. Compared with the same period in 2023, it is expected to increase 13.9 billion yuan to 16.3 billion yuan, an increase of 60% to 70% over the previous year. According to the strategic asset allocation plan, the company maintains a certain percentage of equity assets in its portfolio. Along with the recent rise in the capital market, the company's investment income in the first three quarters of 2024 increased significantly year-on-year.

China People's Insurance (01339): Net profit is expected to increase 65% to 85% in the first three quarters

China People's Insurance announced that the company's net profit attributable to shareholders of the parent company in the first three quarters of 2024 is estimated to be 33.830 billion yuan to 37.931 billion yuan, an increase of 13.327 billion yuan to 17.428 billion yuan compared with the same period last year, an increase of 65% to 85% over the previous year. After deducting non-recurring profit and loss, net profit is expected to be 33.579 billion yuan to 37.649 billion yuan, an increase of 65% to 85% over the previous year. The main reason for the advance increase in performance is the continuous optimization of the business structure, strong and effective risk prevention and control, and remarkable results in cost reduction and efficiency. At the same time, the recovery in the capital market affected the sharp increase in total investment income over the same period last year.

China Free Insurance (01880): Net profit for the first three quarters fell 24.7% year on year

On the evening of October 15, China Finance disclosed a quick performance report. The first three quarters of 2024 achieved operating revenue of 43,021 billion yuan, a year-on-year decrease of 15.38%; net profit of 3.92 billion yuan, a year-on-year decrease of 24.7%. In the first three quarters of 2024, the gross margin of the company's main business was 32.57%, an increase of 1.09 percentage points over the previous year.

China Building Materials (03323)'s profit warning expects equity holders to account for losses of about 700 million yuan in the first three quarters, a year-on-year profit to loss

Zhitong Finance App News, China Building Materials (03323) announced that the Group's losses due to unaudited equity holders in the first three quarters of 2024 are expected to be approximately RMB 700 million, while the profit attributable to equity holders for the same period in 2023 is approximately RMB 2.353 billion. This decline in expectations is mainly due to a drop in sales prices of the Group's main products cement, commercial concrete and glass fiber, a decline in cement sales, and a decline in the performance of affiliated companies, but it is partly offset by a decrease in sales costs of cement and commercial concrete, as well as a decrease in net losses due to changes in the fair value of the Group's financial assets confirmed by fair value in profit and loss accounts.

Horizon: Hong Kong IPO plans to issue 1,355 billion shares with a maximum price of HK$3.99

Horizon Hong Kong Stock Exchange announced that it plans to issue 1,355 billion shares listed in Hong Kong. The expected issue price is between HK$3.73-3.99 per share. It is expected to be priced on October 22 and trading will commence on October 24.

[Individual stock prices are clear]

Gaoxin Retail (06808): Profit after tax is expected to improve significantly in the medium term

Gaoxin retail shares will resume trading in Hong Kong on Wednesday. Gaoxin Retail (06808) announced that it is expected that profit after tax for the first six months ending September 30, 2024 will be greatly improved and converted from loss to profit over the same period of the previous fiscal year. The profit after tax obtained for the first six months ended September 30, 2024 was approximately RMB 150 million to RMB 200 million (unaudited) according to Hong Kong Financial Reporting Standards. The Group achieved after-tax losses of RMB 378 million in the first six months ending September 30, 2023. It is expected that the improvement in profit after tax will mainly benefit from stabilizing the number of visitors to the same store, achieving positive growth in same-store sales; and rapid progress in cost reduction and efficiency, with remarkable results.

Gaoxin Retail (06808) issued an announcement. The board of directors received a letter of contact from an interested offeror on September 27, 2024, indicating its intention to make a voluntary conditional offer with preconditions for all of the company's issued shares. Alibaba Group indirectly holds approximately 73.66% of Gaoxin Retail's issued share capital through its wholly-owned subsidiary, while New Retail Strategic Opportunities Investments 1 Limited holds approximately 5.04%. Currently, Alibaba Group is in discussions with other relevant parties, but no agreement or deal has been reached.

As of the announcement date, Gaoxin Retail has issued a total of 9.54 billion common shares and 45 million unexercised share options. Of these, the exercise price for 20 million shares was HK$2.18, and the exercise price for 25 million shares was HK$1.54. Gaoxin Retail reminds shareholders and potential investors that the implementation of any share offer must meet certain prerequisites, and investors should exercise caution when trading shares.

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