Hong Kong stocks closed (03.26) | Hang Seng Index closed up 0.6%, strong performance stocks, and Evergrande Auto (00708) soared 230% in the afternoon

The Zhitong Finance App learned that Hong Kong stocks stopped falling and rebounding today. The three major indices all rose more than 1% in early trading. Since then, they have fluctuated in a narrow range throughout the day. By the close, the Hang Seng Index rose 0.6% or 139.07 points to 23,483.32 points. Market trading declined, with full-day turnover of HK$199,765 billion; the Hang Seng State-owned Enterprises Index rose 0.44% to 8654.26 points; and the Hang Seng Technology Index rose 1.01% to 5573.04 points.

BOC International said that in the past stage, the market was driven by optimism, and overseas risk pricing was inadequate. With the implementation of recent benefits, the market's attention to overseas risks is expected to gradually increase. On April 2, the results of the US equal tariff survey will be released soon. There is still uncertainty about whether there will be a new wave of tariffs. If short-term overseas influence is further catalyzed, Hong Kong stocks may be expected to stabilize in a phased manner.

Blue-chip stock performance

Shenzhou International (02313) strengthened after the results. At the close, it rose 12.66% to HK$62.3, with a turnover of HK$2.3 billion, contributing 9.75 points to the Hang Seng Index. Shenzhou International achieved revenue of 28.663 billion yuan (RMB, same below), up 14.8% year on year; net profit of 6.240.6 billion yuan, up 36.9% year on year; proposed final dividend of HK$1.28 per share, or HK$1.08 for the same period last year. The annual dividend payout was HK$2.53, up about 24.6% year on year, and the payout ratio was about 55.8%.

In terms of other blue-chip stocks, China Resources Vientiane Life (01209) rose 10.75% to HK$34.5, contributing 3.77 points to the Hang Seng Index; Haidilao (06862) rose 6.14% to HK$17.62, contributing 3.3 points to the Hang Seng Index; China Merchants Bank (03968) fell 5.48% to HK$45.7, dragging down the Hang Seng Index by 17.14 points; and Budweiser Asia Pacific (01876) fell 3.97% to HK$9.2, dragging down the Hang Seng Index by 1.3 points.

Popular sector aspects

On the market, most large technology stocks flourished. Ali, Baidu, and Xiaomi all rose more than 1%, while Tencent rose 0.9%. Domestic housing and property management stocks generally rose today. China Resources Vientiane Life surged more than 10% after its performance; most food and beverage stocks rose higher. Haidilao's performance rose by more than 6%; auto stocks, which had clearly declined yesterday, generally picked up. Zero Sports closed up 4.85%. Evergrande Auto's increase narrowed after a sharp rise in the afternoon. GAC refuted rumors that it would buy Evergrande Auto's assets; rare earth concepts, building materials, cement stocks, and chip stocks rose. On the other side, after China Merchants Bank's performance fell more than 5%, leading the decline in domestic bank stocks; beer stocks, mobile phone industry chains, wind power stocks, etc. declined.

1. Domestic housing and property management stocks generally rose. At the close, Country Garden (02007) rose 3.26% to HK$0.475; Metro Development (01030) rose 2.44% to HK$2.1; China Resources Vientiane Life (01209) rose 10.75% to HK$34.5; and Financial Services (09666) rose 5.24% to HK$8.23.

The China Real Estate Association is scheduled to hold the 2025 Real Estate Market Situation Report Conference and the National First-Class Qualified Real Estate Development Enterprise Symposium in Beijing from March 27 to 28 to explore new models of real estate development and push the real estate market to stop falling and stabilize. Guolian Minsheng Securities believes that since 2025, the real estate market has continued to be popular, and high-energy cities have performed well. With the gradual implementation of existing land and housing storage and urban village renovation, both supply and demand sides are expected to continue to improve. Continue to be optimistic about leading quality real estate companies that acquire land in core areas of core cities, or take the lead in achieving profit margins and valuation repairs.

Furthermore, CITIC Securities said that the historical problems plaguing private property service companies have been resolved, corporate dividends are generally very attractive, and cash assets have a margin of safety. Moreover, the vast majority of private property service companies continue to have net operating cash inflows, and high dividends are completely sustainable. Unlike the fall of 2024, the likely catalyst for the current property services sector is not an improvement in credit in the real estate sector (of course, real estate credit is also stable), but rather that the upcoming 2024 annual report is expected to fulfill the vision of sustainable high dividends and long-term steady development.

2. Food and beverage stocks mostly rose. At the close, Little Vegetable Garden (00999) rose 8.14% to HK$11.16; Haidilao (06862) rose 6.14% to HK$17.62; Yum Sheng China (09987) rose 3.32% to HK$405; and Jiumaojiu (09922) rose 2.02% to HK$3.03.

Haidilao announced its 2024 annual results. The group obtained revenue of RMB 42,755 billion (same unit), an increase of 3.14% over the previous year; profit attributable to the company's owners of 4.708 billion yuan, an increase of 4.65% over the previous year; and core operating profit of 6.23 billion yuan, an increase of 18.74% over the previous year. The average turnover rate of Haidilao restaurants in 2024 was 4.1 times per day, and in 2023 it was 3.8 times per day. It received a total of 415 million customers throughout the year, an increase of 4.5% over the previous year.

Dongxing Securities stated earlier that it is optimistic about the promotion of future national policy reforms in the consumption environment, trading environment, and policy environment, and is optimistic about the overall improvement in the performance of the food and beverage industry. In particular, food and beverage consumption. With the implementation of the plan, consumption such as travel, shopping in the business district, and offline experiences will be boosted, and there will be a clear impact on food and beverage consumption. At the same time, it is expected that consumption subsidies in various regions will also increase the level of food and beverage subsidies, which will positively help the catering industry.

3. Auto stocks are generally picking up. At the close, Zero Sports Auto (09863) rose 4.85% to HK$50.8; Geely Auto (00175) rose 3% to HK$17.18; Ideal Automobile-W (02015) rose 2.7% to HK$102.7; and BYD shares (01211) rose 2.36% to HK$398.4.

At the Ministry of Commerce's special press conference on consumer promotion on Tuesday, Li Gang, director of the Department of Consumer Promotion of the Ministry of Commerce, said that local commercial departments are currently being guided to work with relevant departments to carry out pilot reporting work on automobile distribution and consumption reform in an orderly manner and step up the preparation of pilot work plans. In the future, the list of pilot cities will be determined in accordance with the “mature batch, start one batch” principle. BOC International previously stated that the auto market had a good start in February. After the Spring Festival holiday, all walks of life quickly entered normal operation. A number of car companies increased their promotional efforts and combined the release of new models. The bank expects the passenger car market in China to continue to pick up, and passenger car production and sales are expected to achieve a significant month-on-month growth rate in March.

Furthermore, the performance period of Hong Kong stocks entered the sprint stage, and the performance of many blue chips was divided after the results. At the close, Shenzhou International (02313) rose 12.66% to HK$62.3; China Resources Vientiane Life (01209) rose 10.75% to HK$34.5; Haidilao (06862) rose 6.14% to HK$17.62; Wanzhou International (00288) rose 3.9% to HK$6.92; and China Merchants Bank (03968) fell 5.48% to HK$45.7.

China Merchants Bank's AH stock price dropped sharply today. On March 25, China Merchants Bank announced its 2024 annual report. The fourth quarter revenue was 84.779 billion yuan; net profit was 35.207 billion yuan, down about 8.42% from the previous month; and the net interest spread fell 3 basis points to 1.94% month-on-month. Revenue for the full year of 2024 was 337.488 billion yuan, a slight decrease of 0.48% year on year; net profit attributable to shareholders for the year was 148.391 billion yuan, up 1.22% year on year; net interest spread was 1.98%, down 17 basis points year on year. Additionally, the company plans to distribute a cash dividend of 2 yuan per share (tax included). CICBC said that CMB's 2024 results are in line with expectations. However, CICC mentioned that looking forward to the future, CMB's revenue is still expected to be under negative pressure due to bond market adjustments and loan repricing factors.

Popular exotic stocks

1. Evergrande Motors (00708) soared in the afternoon. At the close, it rose 74.79% to HK$0.208.

According to a report by the Financial Federation, as an investor, the reporter sought evidence from the GAC Group Secretary's Office about “the GAC Group Huawang (GH) project will acquire Evergrande Automobile's Nansha plant”. The other party responded that the GAC GH Project is an asset-light operating company and will prioritize the use of production capacity of the Aian and Trumpchi brands. “Don't take any rumors lightly; the company announcement shall prevail.” According to reports, on March 18, Huawang Automobile, a new company invested and established by the GAC Group, was formally established in Nansha.

2. Youchao Innovation (02431) has risen sharply. At the close, it rose 31.79% to HK$37.1.

Youjiao Innovation was previously designated by a new energy vehicle company and will provide it with mid-range and high-end intelligent driving domain control products to be installed on 300,000 yuan high-end models. The project will be delivered within the year. On March 9, the company also announced that it has received multiple fixed-point notices to provide DMS and OMS smart cockpit solutions for joint ventures and luxury brands owned by a world-renowned car company. According to industry sources, the two car companies are Volkswagen and Audi, respectively.

3. Bubble Mart (09992) reached a record high. At the close, it was up 10.87% to HK$140.7.

Bubble Mart announced its 2024 results at noon, with revenue of 13.038 billion yuan (RMB, same below), up 106.92% year on year; gross profit of 8.708 billion yuan, up 125.4% year on year; profit attributable to shareholders of 3.125 billion yuan, up 188.77% year on year; basic profit per share of 2.36 yuan; proposed final dividend of 81.46 points per share, up 28.21 points in the same period last year, a year-on-year increase of nearly 1.9 times. In 2024, Bubble Mart's mainland China business revenue was 7.97 billion yuan, up 52.3% year on year. At the same time, the Group increased its international market development efforts and further promoted the localization strategy, so that Hong Kong, Macao, Taiwan and overseas businesses maintained a rapid growth trend. Revenue reached 5,066 billion yuan, an increase of 375.2% year on year, accounting for 38.9% of total revenue.

4. COFCO Jiajiakang (01610) strengthened after its performance. At the close, it was up 8.51% to HK$1.53.

COFCO Jiajiakang announced its 2024 annual results, with revenue of 16.326 billion yuan (RMB, same below), a year-on-year decrease of 5.29%; profit attributable to shareholders was 538 million yuan; loss due to shareholders was 9.597 million yuan in the same period last year, turning a year-on-year loss into a profit; basic profit per share was 0.1,175 yuan. According to the announcement, the decline in earnings was mainly due to the year-on-year decline in pig production and the active contraction of the meat import business due to risk control considerations.