HSI -415pts (-1.4%) 28,991 HSCEI -187pts (-1.7%) 11,284 T/O HK$206.16bn (+18.1% DoD)
Markets opened lower and trading sideways/lower. Investors attention on US treasury yields. Tech to be under pressure. Premarket data a slight +VE but sentiment very much risk off ahead of the weekend. Utilities leading, with Retail weak.Telecom Italia weak on uncertainty surrounding Italy’s single network project, according to Reuters. GEA Group strong after UBS upgraded the stock to “buy” and raised its price target.
PPI Feb +0.7% MoM vs +1.4% Jan (F/cast was +0.5%)
PPI Feb +1.9% YoY vs +0.9% Jan (F/cast was +1.8%)
Consumer Confidence Mar -16 vs -23 Feb (F/cast was -20)Public Sector Net Borrowing Feb GBP -19.1b vs -8.75b Jan (F/cast was -20.2b)
Opened flat in Asian time but picked up during the day but eased back in European time Dow +41pts S&P +0.2% and NDX +0.%% I would expect cautious trading ahead of th
Nike (NKE) came in 14 cents a share above estimates, with quarterly profit of 90 cents per share. The athletic footwear and apparel company’s revenue came in below analysts’ projections, however, and its full-year revenue outlook was also shy of estimates. Nike said North American revenue was hit by port-related issues which delayed shipments by up to three weeks. Nike shares slid 3.2% in premarket trading.
FedEx (FDX) reported quarterly earnings of $3.47 per share, beating the consensus estimate of $3.23 a share. Revenue also came in above forecasts. FedEx’s average revenue per package for its Ground service rose by 11%, as it continues to benefit from the pandemic-related surge in e-commerce orders. Its shares jumped 4% in premarket action.
Skillz (SKLZ) tumbled 7% in premarket action after the mobile gaming company announced a 32 million share public offering. The offering priced at $24 per share, with Skillz selling 17 million shares and certain stockholders selling the rest. Skillz said it would use the proceeds for general corporate purposes.
AstraZeneca (AZN) as its Covid-19 vaccine received the backing of Canada regulator Health Canada, which joined European countries in saying the vaccine is not linked to an increase in blood clots. Countries that had temporarily halted use of the vaccine have now resumed administering shots.
Hartford Financial (HIG) – The financial services company said it is “carefully considering” a takeover proposal from insurance company Chubb (CB) for $65 per share or more than $23 billion. Hartford shares surged 18.7% Thursday following news of the offer, although it Is giving back about 1.4% in premarket trade.
Ollie’s Bargain Outlet (OLLI) – Ollie’s beat estimates by 14 cents a share, with quarterly earnings of 97 cents per share. The discount retailer’s revenue also came in above Wall Street forecasts. Comparable-store sales jumped 8.8%, beating the consensus FactSet forecast of a 3.2% increase. Ollie’s shares gained 4.6% in premarket trading.
Enphase (ENPH), SolarEdge Technologies (SEDG) – Susquehanna Financial upgraded both alternative energy stocks to “positive” from “neutral,” based on an anticipated expansion in solar installations in the years ahead and the strength of the two companies in the residential sector. Enphase rose 3.3% in the premarket, while SolarEdge gained 2.1%.
Hims & Hers Health (HIMS) – Hims & Hers Health shares fell 3.3% in the premarket after the telehealth company reported a net quarterly loss of $3.1 million, even though that was smaller than the $12.4 million loss reported a year earlier. Revenue came in higher than anticipated, however, and total revenue was up by 80% for 2020.
Sarepta Therapeutics (SRPT) – The drugmaker’s shares rallied 5.4% in premarket trading after it reported upbeat results in a trial involving an experimental muscular dystrophy treatment.Data dueBaker Hughes Oil Rig Data
CSI 300 closed -135pts (-2.6%) @ 5,007
CSI 300 opened lower with concerns over China/US relations which started with both sides accusing the other of bad practices. It then drifted slightly lower through the morning. PM opened lower and continued to drift, day low was 4,980 around 2:30pm with a slight uptick in the last 30 mins to close.
Leading the decline were Banks, Insurance, Liquor, and Petrochems.
Northbound funds sold 4.032b yuan in net sales throughout the day, ending the eight-day net buying trend.
Shanghai Comp -58pts (-1.7%) @ 3,405
Shenzhen Comp -358pts (-2.6%) @ 13,606
ChiNext -52pts (-1.8%) @ 2,805
No data today but on Monday we get Loan Prime Rate; no change expected
HSI Pre market opened at 29,159 -247pts vs -241pts ADR’s impacted by the US sell off, Oil slumping and the T10 surging despite the Fed comments after the FOMC meeting.Broad weakness following the US sell off and the frosty start to US/China talks but CK Asset +VE following earnings. Market initially traded sideways but then trended lower after 10am to trade around 29,000 into lunch. PM opened lower and trending lower, day low 28,737 around 2:15pm (-527pts) but then worked slightly better for the rest of the afternoon, with an uptick in the closing auction to regain 112pts from the day low.
HONG KONG DATA
The Centre for Health Protection reported 13 new covid cases (vs10 Thursday ) 4 from unknown sources
SHORT SELLING Friday 17.7% vs 15.2% Thursday
Top Shorts Ping An (2318) 44%, Bud Apac (1876) 42%, Sands China (1928) 32%, Ali Health (241) 29%, Hengan (1044) 29%, Baba (9988) 27%, Country Garden (2007) 26%, Power Assets (6) 26%, SinobioPharm (1177) 25%.
Earnings out Friday still due, Fountain Set (420), Chongqing Iron (1053), SinoPharm (1099), Zijin Mining (2899),
AFTER MARKET NEWS
BILIBILI-SW (09626.HK)’s IPO registered approximately $26.2 billion margin as at around 6:00 pm according to brokers. Based on the public fundraising amount of $741 million, the IPO was over-subscribed by about 34.4 times.
HENGAN INT'L (01044.HK) Chief Financial Officer Li Wai Leung said the wood pulp price had slid to an all-time low in 2020; compounded with RMB appreciation, the gross profit. margin. of the group rose 3.7 ppts to 42.3% last year. However, the wood pulp price surged substantially from 4Q20, which was expected to exert pressure on gross profit margin of tissue products this year. The CFO furthered the group had hoarded up its inventory when the raw material cost was lower. So far, it has no plan for product price adjustment.
The first high-level face-to-face meeting between the U.S. and China under Joe Biden's presidency kicked off on Thursday (18th). Chinese Foreign Ministry Spokesman Zhao Lijian, at today's regular press conference, said it was not Beijing's intention for such a tension and dramatic tone in the opening remarks. Zhao hoped that both sides could communicate and exchange views in depth during closed-door meetings, while the China-US ties could get back on track following this dialogue.
The tender for a residential site at Kai Tak Area 4E Site 2 was awarded to CK ASSET (01113.HK) at $10.28 billion earlier. The Lands Department announced that the tender amounts submitted by the four unsuccessful tenderers ranged $6.808-9.75 billion. The second-highest tender amount was 5.16% below the bid-winning price.
Lamborghini reported record-high profit last year since customers ordered automobile at higher prices. Sales last year topped EUR1.6 billion at the current exchange rate, down 11% from 2019. Despite factory shutdown of over two months during the pandemic, Lamborghini delivered 7,430 cars in 2020, down 9% from the historic high in 2019.
HK & CHINA GAS (00003.HK) unveiled the results for the year ended 31st December 2020. Net profit amounted to HK$6.007 billion, down 13.8% yearly. EPS. equaled HK33.8 cents. The Company proposed to make a bonus issue of one new share for every twenty existing shares.A final dividend of HK23 cents per share was declared. Including the interim dividend of HK12 cents per share, the total dividend payout for the whole year shall be HK35 cents per share.
U-PRESID CHINA (00220.HK) announced annual result ended December 2020. The net profit amounted to RMB1.626 billion, up 19% yearly. EPS was 37.64 fen. A final dividend of 37.64 fen was declared against a dividend of 31.63 fen in the corresponding period of the previous year.
TENCENT (00700.HK) and SWIRE PACIFIC A (00019.HK) 's Coca-Cola China announced the conclusion of a deep strategic cooperation agreement, whereby both sides will team up in commodity and user digitization, channel digitization, private domain operation, cloud technology, enterprise services and so on.
CK ASSET (01113.HK) announced to buy a 10%-20% stake in the European infrastructure assets from Li Ka Shing Foundation (LKSF) at around HK$17 billion, to be satisfied by the issue of 333 million shares at HK$51 each, reported Moody's. CKA would then carry out a share buyback program, the net effect of which will be similar to using HK$17 billion in cash to buy these assets. Moody's saw limited impact from the deal on CKA's credit ratings. As of end-2020, the firm had cash balance of HK$59.5 billion with low financial leverage, which should sufficiently accommodate its HK$17-billion cash outlay.
Centa-City Leading Index (CCL) last stood at 178.59, down 0.16% weekly, Centaline Property.
Mass Centa-City Leading Index (CCL Mass) came in at 181.04, down 0.17% weekly. CCL (small-to-medium units) last reported at 179.05, down 0.04% weekly. CCL (large units) last tracked 176.22, down 0.82% weekly.
The three major CCL indices dropped altogether this week, yet the decrease was mild
*PETROCHEMS WEAK Oil plunged more than 9% at one point in part on concerns that new virus-related curbs in Europe will sap demand. CNOOC (883 HK -4.8%) CH OILFIELD (2883 HK -5.4%) PETROCHINA (857 HK -6.3%) SINOPEC (386 HK -5%).
*TECH & COMPONENTS WEAK on refreshed concerns on US restrictions, after the China/U.S. meeting in Alaska started with rebukes from both sides. SMIC (981 HK -2%) will build a US$2.35b plant with funding from the govt of Shenzhen. HUA HONG (1347 HK -3.2%) ZTE (763 HK -2.8%) BYDE (285 HK -5.4%).
*HK PROPERTY WEAK except CK ASSET (1113 HK +6.9%), after reported FY underlying profit beat estimate, -32% YoY at HK$19.34b, and net income -44% YoY to HK$16.33b. CKA said it will purchase holding stake in some European utility and infrastructure firms from LKS Foundation for HK$17b, by issuing 333.3m shares at HK$51 each to the foundation; and proposes share buy-back for cancellation of up to 333.3m shares at HK$51 each to cancel out the dilutive effect. KERRY PROP's (683 HK unch) after net profits -22% to HK$5.4b and plans to declare a special dividend to distribute 25% to 30% of the HK$11b proceeds from the sale of KERRY LOGISTICS (636 HK) shares to mainland logistics giant SF Holdings. SHKP (16 HK -2.5%) SINO (83 HK -2.1%).
*SPORTWEAR WEAK after LI NING (2331 HK -2.4%) despite reporting net income for 2020 +13% YoY to 1.7b yuan, which beat market est. XTEP (1368 HK +7.5%) jumped on hopes that the worst is over, after reported net profit fell 29.5% to 510m yuan last year, and the chairman said the profit margin fall will bottom out this year. ANTA (2020 HK -4%) 361 DEGREE (361 HK -1.9%) TOPSPORTS (6110 HK -1.6%).
*POWER STRONG after earnings and hopes for renewable energy plans amid China's carbon-neutral goals which President Xi is pushing. +VE report from Global Wind Energy Council, a Belgium-based international trade association saying that last year China added 52 gigawatts of wind power as companies scrambled to take advantage of China’s subsidies. This year it expects only a small drop as Beijing pushes clean power.CR POWER (836 HK +13.3%) net income +15% YoY to 7.58b yuan, beat est. TOWNGAS (1083 HK +8.3%) net income +11% YoY to 1.44b yuan, beat est. DATANG (991 HK +4.2%) HUANENG PWR (902 HK +2.7%).
*OTHER MOVERS: EVER SUNSHINE SERV (1995 HK -4%) on a short-sell report by GMT, accusing the company to to be engaging in issuing contradictory financial info to meet profit expectations, while the company denied such allegation. CK HUTCH (1 HK -4.1%) posted its first decline in annual profit since 2015, Net Income -27% to HK$29.1b, which was inline with market estimate.
Opened lower and sold down to 6,674 in the first hour but then rebounded to almost flat at midday but then drifted lower into the close. Energy -2% and materials -1.4%, but the heavily-weighted financials subindex finished -0.31%
Pre market inflation data was in line but at lunchtime the BoJ widened the band at which it allows long-term interest rates to move around its target, as part of a raft of measures to make its ultra-easy policy more sustainable amid a prolonged battle to fire up inflation. BUT removed its explicit guidance to buy exchange-traded funds (ETF) at an annual pace of roughly 6 trillion yen ($55 billion), which gives it more room to wind back its market stimulus.
Nikkei 225 opened lower following the US sell-off. It moved slightly higher on the in-line inflation data but then drift slightly lower into lunch. Market sold down on the BoJ news but then rebounded before drifting lower to close off the day low but -425pts (-1.4%) @29,792
Topix open on the lows and worked higher in the morning. Choppy start to the PM after the BoJ news but then worked higher into the green and then traded around flat to close +4pts (+0.2%) @ 2,021
Inflation Rate Feb -0.4% YoY vs -0.6% Jan (F/cast was -0.4%)
Inflation Rate Feb MoM +0.1% vs +0.6% Jan (F/cast was +0.1%)
Core Inflation Rate Feb -0.4% YoY vs -0.6% Jan (F/cast was -0.5%)
Inflation Rate Ex Food & Energy Feb +0.2% YoY vs +0.1% Jan (F/cast was +0.1%)
Monday we get Coincident and Leading Economic Indexes during market hours.
Weakness on US inflation fears, prompting weakness in tech; especially Samsung and Hynix. But all large caps weak
Kospi opened slightly lower but sold down immediately to 3,030 then dipped to 3,022 before rebounding and trading sideways around 3,040 level to close -27pts (-0.9%) @ 3,040
Kosdaq saw a similar open, with a low of 935, but then worked better to flat at 1pm and slightly higher for the rest of the session to close +2pts (+0.2%) @ 952.
Opened lower and drifted lower for the first two hours before trading sideways with a slight lift in the last 40 minutes to close -218 (-1.3%) @ 16,070
Monday after market we get Unemployment and Export Orders.
Northbound RMB 58,421m Sell 30,409m : 28,012m Buy
Southbound HK$ 17,024m Sell 9,487m : 7,537m Buy
Northbound RMB 61,400m Sell 31,517m : 29,883m Buy
Southbound HK$ 22,372m Sell 11,840m : 10,533m Buy
CCB (00939.HK) -.1%
TENCENT (00700.HK) -2%
MEITUAN (03690.HK) -1.3%
PING AN (02318.HK) -1.1%
HKEX (00388.HK) -0.6%
AIA (01299.HK) -0.6%
BABA (09988.HK) +0.4%
HSI & HSCEI Constituents on Move:
CK ASSET (01113.HK) +7.2%
GALAXY ENT (00027.HK) -6.3%
HAIDILAO (06862.HK) -36.1%
PETROCHINA (00857.HK) -5.6%
SINOPEC CORP (00386.HK) -5.6%
WUXI BIO (02269.HK) -5.3%
ALI HEALTH (00241.HK) -4.9%
CNOOC (00883.HK) -4.7%
CM BANK (03968.HK) -4.6%
ANTA SPORTS (02020.HK) -4.1%
CKH HOLDINGS (00001.HK) -4.1%
MENGNIU DAIRY (02319.HK) -4%
CPIC (02601.HK) -3.6%
CHINA RES LAND (01109.HK) -3.5%
ABC (01288.HK) -3.1%
GEELY AUTO (00175.HK) -3%
HSMI & HSSI Constituents on Move:CHINA RES POWER (00836.HK) +13.3%, hitting new high
GCL-POLY ENERGY (03800.HK) -11%
COFCO JOYCOME (01610.HK) -10.6%
ND PAPER (02689.HK) -10.1%
CIMC ENRIC (03899.HK) +5.6%, hitting new high
FE HORIZON (03360.HK) +3.8%, hitting new high
HARMONY AUTO (03836.HK) +0.5%, hitting new high
MARKET HOURS NEWS
Nobel Prize-winning economist Paul Krugman told Bloomberg that he did not expect the U.S. inflation scourge of the 1970s and 1980s to reappear. The worst-case scenario could be a transitory consumer price hike as was recorded early in the Korean War, he opined. Washington's relief bill was merely a significant stimuli rather than a wildly inflationary one, he added.
The "Bitant" virtual currency has recently sprung up on social media, claiming to be run by BABA-SW (09988.HK) and backed by SMIC (00981.HK), according to Chinese reports. Ant Group replied that it has never teamed up with the so-called "Bitant" in any way, stressing that it will neither partake in nor support the issuance and speculation of any virtual money. The group also urged investors to take heed of relevant risks.
LI NING (02331.HK) Joint CEO Qian Wei said the company strove to cut costs, broaden income sources and manage its inventory facing pandemic uncertainties last year. Hence, LI NING achieved revenue stability, cost control and other goals in 2020.The company aims to amplify its revenue by around 25% and enhance net profit margin
by 100 bps this year, revealed CFO Terence Tsang.
At lunch ZHONGSHENG HLDG (00881.HK) announced annual result ended December 2020. The net profit amounted to RMB5.54 billion, up 23.1% yearly. EPS was RMB2.44. A final dividend of HK$0.58 was declared.
At lunch HENGAN INT'L (01044.HK) announced annual result ended December 2020. The revenue declined 0.5% year on year to RMB22.374 billion. The net profit amounted to RMB4.595 billion, up 17.6%. EPS was RMB3.864. A final dividend of RMB1.3 was declared against a dividend of RMB1.25 in the corresponding period of the previous year.
At lunch HUA MEDICINE-B (02552.HK) announced annual result ended December 2020. The loss narrowed to RMB393 million from RMB425 million in the corresponding period of previous year. LPS was RMB0.41. No dividend was declared.
Rakshasa Street: Wargod, a strategy card game distributed by KUAISHOU-W (01024.HK), has amassed more than a million new players on debut today (18 March), reported Sina Finance. The publisher will keep developing mid-core and hardcore games going ahead, with large-scale recruitment in Beijing and Shanghai this year, according to the firm's representative.
Geely plans to launch Zeekr, a new EV brand positioned in the high-end segment, under its to-be-launched EV firm Lingling Technologies, Reuters citing sources. The new brand will roll out marques based on Geely's open-source EV chassis, which was unveiled in September 2020 and named Sustainable Experience Architecture (SEA), the people said.
XIAOMI-W (01810.HK) is expediting its car-building business and expecting project initiation in the next month or two at the soonest, as Chinese media learnt from investors and car firm executives close to Lei Jun.Based on preliminary talks, the auto brand will have a similar position as XPeng, focusing on the strongly tech-driven mid-to-high end market. The project will purportedly be headed by XIAOMI-W's old-timer Wang Chuan.
Industry bodies representing financial and corporate interests in Hong Kong are circulating a draft letter urging the government to follow international best practices against COVID-19 and draw up a clear roadmap, Bloomberg citing insiders. It is uncertain which group will sign the letter. Managers of a global financial firm said they are struggling to retain and woo overseas talents if Hong Kong maintains its quarantine policies while other cities are starting to relax anti-plague curbs.
Apple Inc. will expand the scope of App Store rules to the entire world, allowing users to restrict personal data tracking by apps, according to foreign media. Apps disregarding users' permission will be rejected from the App Store. The giant's upcoming iOS 14.5 software update will require apps to obtain users' permission before tracing them across other services and webs for targeted advertising.
PRE MARKET HOURS NEWS
BYD COMPANY (01211.HK)'s battery company is preparing to build its first overseas battery factory, as Shanghai Securities News confirmed from the related party. People with the knowledge of the matter revealed that the plant construction aims to supply supporting to automobile customers in Europe.
HKEX (00388.HK)'s Chief China Economist's Office, in its research report, suggested the launch of more RMB-traded securities products covering various equity securities, fixed-income securities, ETFs and REITs. Apart from being salubrious to investors' wide-ranging RMB asset allocation, the move would also be compatible with repurchase instruments and RMB derivatives dedicated to RMB investment portfolio and risk management.
Top American and Chinese diplomats met face to face for the first time on Thursday since Joe Biden takes the helm as president. The US Secretary of State Antony Blinken, at the meeting, expressed the country's deep concern on China's issues, including those in Xinjiang, Hong Kong and Taiwan, as well as cyber attacks on the US and economic coercion of its allies. China’s top diplomat Yang Jiechi responded that Xinjiang, Hong Kong and Taiwan are inseparable parts of Chinese territory, stressing China firmly opposed the US interference in its internal affairs. China hoped the US to show mutual respect for win-win cooperation in absence of confrontations and conflicts.
The State Administration for Market Regulation (SAMR)'s Hefei branch is investigating into Meituan and Ele.me after discovering unqualified food service operators on these online catering platforms, according to Chinese media. Once the probe is over, the platforms will be punished should there be any illegal practice.
HK FERRY (HOLD) (00050.HK) announced annual result ended December 2020. The net profit amounted to HK$26.59 million, down 80.5% yearly.
EPS was HK7 cents. The final dividend of HK15 cents, together with the interim dividend already paid, will make a total distribution of HK25 cents for the full year.
CHINA EB LTD (00165.HK) announced annual result ended December 2020. The net profit amounted to HK$2.264 billion, up 1.2% yearly. EPS was HK$1.344. A final dividend of HK35 cents was declared, against HK23 cents in a year-ago period.
CITIC SEC (06030.HK) announced annual result ended December 2020. The net profit amounted to RMB14.902 billion, up 21.9% yearly. EPS was RMB1.16. A dividend of RMB4 for every 10 shares was declared.
CHI MER LAND (00978.HK) released the final results for the year ended 31 December 2020. The net profit faded 60.9% yearly to RMB701 million, with an
EPS of 14.3 fen. A final dividend of HK7 cents was declared.
CHINA FEIHE (06186.HK) announced annual result ended December 2020. The net profit amounted to RMB7.437 Billion, up 89% yearly. EPS was 83 fen. A final dividend of HK15.86 cents was declared, against HK19.43 cents in a year-ago period.
CGN POWER (01816.HK) announced annual result ended December 2020. The net profit amounted to RMB9.562 billion, up 1% yearly. EPS was 18.9 fen. A final dividend of 8 fen was declared.