HK Index
HSI
HS Red-chip
HSCEI
30921.61
4673.74
12197.11
-312.74 -1.00%
-34.87 -0.74%
-152.50 -1.23%
information provided by AASTOCKS. Last updated:2018-05-23 13:30
Daily Commentary

23 May 2018

Market Outlook
HSI might fluctuate at around 31,000 and 31,400 points today.

The Hang Seng Index opened higher by 184 points on Monday to touch its intra-day low of 31,232 points. Afterwards, the market extended its gains and grew 416 points at most to reach its intra-day high of 31,464 points. During the afternoon session, HK stocks narrowed its gains. The HSI finally closed at 31,234.35 points, up 186.44 points or 0.60%. Market turnover amounted to HKD95.945 billion. The ADR proportional HSI index closed overnight at 31,289 points with 54 points higher than closing price on Monday. Trump claimed that the US-DPRK Summit may be postponed. Dow was down by 178 points to 24,834 points. HSI may fluctuate at around 31,000 to 31,400 points today.

Today’s A-share Snapshot

Company’s Profile:Tianqi Lithium (002466.SZ)’s major businesses include lithium resource development and exploitation, downstream production processing and trade for lithium products.

Brief Comments:

Business catalysts:The Company proposed to acquire 23.77% equity interests in SQM (SQM.US) with the consideration of approximately USD4.066 billion. SQM is a world-leading lithium product supplier, having the high-quality resource of Salar de Atacama and strong profitability in lithium products. Such strategic move is expected to be beneficial for the Company to improve its core business, which might enhance its comprehensive competitiveness. For 1Q2018, the Company’s revenue rose 56.92% YoY to RMB1.669 billion while its net profit added 62.70% YoY to RMB660 million. The Company predicted to record a net profit ranging from RMB1.3 billion to RMB1.45 billion for 1H2018, up 40.69% to 56.93% YoY.

Risk factors:The volatilities of lithium product price and foreign exchange rate might bring negative impacts to the Company’s gross profit margin.

Stock Pick

Sands (01928) reasonable valuation, continues to benefit from industry growth

The June GGR may be affected by the upcoming World Cup, meanwhile the full year industry growth rate remain bullish. Investors are advised to find a good entry point to accumulate the gaming stock.

Sands China generated adjusted EBITDA of a USD789 million, an increase of 26% over the prior year, representing the highest EBITDA margin since the third quarter of 2006. The VIP business which recorded a significant improvement also explains the turnaround story. The Venetian Macao, which generated the highest proportion of the GGR, performed satisfactorily. Its EBITDA rose 20% YoY in 1Q18. With more renovations and the Londoner Macao to be launched, it is expected that Sands can attract more overnight tourist to support its gaming business growth. The prospect of the Group remains positive.

In addition, expecting the improvement of FCF, Sands has chance to raise dividend payout.

Investors are advised to buy the share at HKD47 or below. Target price and stop-loss price are at HKD55 and HKD42 respectively.

More

Exchange Rates
Ticker Bid Ask
EUR to USD

1.1732

1.1843

EUR to HKD

9.2070

9.2975

USD to JPY

110.2493

111.3012

JPY to HKD

0.070510

0.071210

GBP to USD

1.3379

1.3498

GBP to HKD

10.4995

10.5970

USD to SGD

1.3342

1.3429

SGD to HKD

5.8440

5.8840

USD to CNY

6.3302

6.3896

CNY to HKD

1.2280

1.2405

USD to HKD

7.8354

7.8634

More

DisclaimerLast updated: 09:32
Top Active Stocks
Name Last Change %Change
IB SETTLEMENT 0.465 +0.095 +25.676%
DASHENG AGR FIN 0.110 +0.021 +23.596%
SANAI HEALTH GP 0.350 +0.060 +20.690%
IDG ENERGY 1.280 +0.180 +16.364%
PAX GLOBAL 3.940 +0.460 +13.218%
APEX ACE HLDG 0.450 +0.050 +12.500%
G-RESOURCES 0.067 +0.007 +11.667%
ALI HEALTH 6.620 +0.690 +11.636%
CGN NEW ENERGY 1.260 +0.130 +11.504%

More

At least 15-minute delayed quote, information provided by AASTOCKS.
Disclaimer Last updated:2018-05-23 13:31

A vs H Shares
Name H-share Last A-share Last %Premium
FIRST TRACTOR 2.850 6.530 -64.702 %
NE ELECTRIC 1.130 2.340 -60.940 %
SICHUAN EXPRESS 2.690 3.930 -44.639 %
TSINGTAO BREW 48.850 51.950 -23.950 %
JIANGSU EXPRESS 11.320 9.670 -5.320 %
JINGCHENG MAC 2.150 5.960 -70.824 %
KUNMING MACHINE 2.490 6.440 -68.730 %
COMEC 9.860 19.460 -59.021 %
MAANSHAN IRON 3.890 3.680 -14.505 %
SHANGHAI PECHEM 5.660 6.020 -23.955 %
ANGANG STEEL 7.920 6.170 3.814 %
JIANGXI COPPER 11.420 17.510 -47.252 %
SINOPEC CORP 8.000 7.110 -8.998 %
CHINA RAILWAY 6.340 7.470 -31.356 %
GUANGSHEN RAIL 4.530 4.650 -21.204 %
SHENZHENEXPRESS 7.840 8.820 -28.106 %
NANJING PANDA 3.850 7.370 -57.753 %
ZMJ 4.300 6.300 -44.801 %
SHANDONG MOLONG 1.560 5.600 -77.470 %
BEIJING N STAR 2.830 4.150 -44.845 %

More

At least 15-minute delayed quote, information provided by AASTOCKS.
DisclaimerLast updated:2018-05-23 13:22