<Midday Takeaway>HSI Down 270 pts; HSTI Up 18 pts; MEITUAN Down over 3%; PING AN Down over 3%; MEITU, KINGDEE INT'L, SKB BIO-B, MGM CHINA, PA GOODDOCTOR Hit New Highs
Market Performance: The Hang Seng Index (HSI) fell by 1.1% to 24,906 points, while the Hang Seng Technology Index (HSTI) rose slightly by 0.3%. Key stocks like Meituan and Ping An experienced significant declines, while Tencent saw a modest increase.
Stock Movements: Kuaishou-W surged by nearly 9%, while several other stocks, including Longfor and Zijin Mining, faced notable drops of over 4%. New highs were achieved by companies such as Meitu and Kingdee International.
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Midday Update: HSI Ends at 27,299, Gaining 116 Points; HSTI Reaches 5,510, Up 59 Points; XIAOMI Surges Over 4%; TECHTRONIC IND, ZTO EXPRESS-W, CHINA RES MIXC, WH GROUP, and HANG LUNG PPT Achieve New Highs
Market Performance: The Hang Seng Index (HSI) rose by 116 points (0.4%) to 27,299, while the Hang Seng Tech Index (HSTI) increased by 59 points (1.1%) to 5,510, and the Hang Seng China Enterprises Index (HSCEI) gained 38 points (0.4%) to 9,281.
Active Heavyweights: Notable stock movements included Xiaomi (+4.7%), Alibaba (+0.8%), and Ping An (-1.1%), with significant short selling activity observed across these stocks.
Top Gainers and Losers: Techtronic Industries saw a notable increase of 5.9%, while SMIC experienced a decline of 3.6%. Other significant movers included BYD (+3.9%) and Pop Mart (-3.5%).
New Highs: Several stocks, including ZTO Express and WH Group, reached new highs, indicating strong market interest and performance in certain sectors.
<BofAS Analysis> Ratings and Target Prices for Hong Kong Property Developers and Landlords (Table)
Property Developers Performance: Various property developers showed mixed performance with SHK PPT and Henderson Land rated as neutral, while CK Asset and Sino Land received buy ratings. New World Development was rated underperform.
Landlords Overview: Hysan Development and Swire Properties experienced declines, but all listed landlords, including Wharf REIC and Hang Lung Properties, received buy ratings, indicating positive market sentiment.
REITs Market Status: LINK REIT saw a significant increase in share price and was rated a buy, reflecting optimism in the REIT sector.
Conglomerates Insights: MTR Corporation and CKH Holdings were rated underperform and buy respectively, with short selling activity indicating varying investor confidence in these conglomerates.
BofAS Increases Target Prices for Hong Kong Property Developers by Approximately 10%, Chooses LINK REIT as Underperformer
Investor Sentiment: BofA Securities reports that investors are optimistic about the real estate market's recovery, leading to an average 10% increase in target prices for several real estate stocks due to strong sales in Hong Kong.
Stock Preferences: The broker favors CK ASSET and SINO LAND for their earnings sensitivity to property price growth, while SWIRE PROPERTIES and HANG LUNG PPT are preferred for their higher dividend yields amidst resilient luxury retail in mainland China.
Non-Consensus Pick: LINK REIT is highlighted as a non-consensus laggard due to its widened valuation gap with peers and short-term challenges in e-commerce, despite a high dividend yield.
Market Outlook: BofA Securities has adjusted its FY25-28 EPS forecasts for HYSAN DEV and provided detailed ratings and target prices for Hong Kong property developers and landlords in a separate table.
<Daily Summary> HSI Ends at 27,183, Gaining 155 Points; HSTI Finishes at 5,451, Up 33 Points; CSPC PHARMA Surges Over 5%; ZTO EXPRESS-W, WH GROUP, BOC HONG KONG, WHARF REIC, and HANG LUNG PPT Reach New Peaks; Market Activity Increases
Market Performance: The Hang Seng Index (HSI) rose by 155 points (0.6%) to close at 27,183, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also saw gains, with market turnover reaching $234.04 billion.
Active Heavyweights: Notable movements included Meituan down 2.5%, Alibaba up 1.6%, Tencent down 1.6%, and Xiaomi up 1.1%, with significant short selling activity across these stocks.
Top Gainers: CSPC Pharma, Innovent Bio, and Pop Mart were among the top gainers, with CSPC Pharma increasing by 5.5% and Pop Mart by 4.9%, while New Oriental saw a decline of 4.4%.
High Performers in HSMI & HSSI: China Literature surged by 15.4%, Vobile Group by 14.4%, and GeekPlus by 11%, indicating strong performance in smaller stocks within the market.
JPM Maintains HANG LUNG PPT as Preferred Choice, Raises Target Price to HKD12
Tenant Sales Recovery: HANG LUNG PPT reported an 18% year-on-year growth in tenant sales for 4Q25, indicating a strong recovery in China, surpassing the 10% growth seen in 3Q25.
Future Growth Expectations: Management anticipates mid-single-digit percentage growth in tenant sales for FY26, maintaining positive momentum as of January 2026.
Valuation Insights: JPMorgan highlights HANG LUNG PPT's current valuation as attractive, with a 66% discount to net asset value, a P/B ratio of 0.3, and a dividend yield of 5.5%.
Analyst Recommendations: JPMorgan has reiterated HANG LUNG PPT as a top pick in the industry, raising its target price from HKD11.5 to HKD12, citing the potential for revaluation driven by the recovery in tenant sales.
Citi Increases HANG LUNG PPT's Target Price to HKD11.2, Maintains Buy Rating
Stock Performance: HANG LUNG PPT (00101.HK) experienced a decline of 1.377%, with short selling amounting to $58.83M and a ratio of 13.073%.
Sales Growth Forecast: Citi's research report indicates potential for 5-7% same-store sales growth in China by 2026, driven by an improved product mix and new flagship store openings.
Historical Sales Increase: The estimated same-store sales growth for HANG LUNG PPT in 4Q25 is projected to reach an 18% year-over-year increase, attributed to initiatives aimed at boosting customer traffic and retention.
Analyst Rating Update: Citi has maintained a Buy rating for HANG LUNG PPT and increased its target price from HKD10.1 to HKD11.2, reflecting positive outlook on the company's performance.
Midday Update: HSI Ends at 27,299, Gaining 116 Points; HSTI Reaches 5,510, Up 59 Points; XIAOMI Surges Over 4%; TECHTRONIC IND, ZTO EXPRESS-W, CHINA RES MIXC, WH GROUP, and HANG LUNG PPT Achieve New Highs
Market Performance: The Hang Seng Index (HSI) rose by 116 points (0.4%) to 27,299, while the Hang Seng Tech Index (HSTI) increased by 59 points (1.1%) to 5,510, and the Hang Seng China Enterprises Index (HSCEI) gained 38 points (0.4%) to 9,281.
Active Heavyweights: Notable stock movements included Xiaomi (+4.7%), Alibaba (+0.8%), and Ping An (-1.1%), with significant short selling activity observed across these stocks.
Top Gainers and Losers: Techtronic Industries saw a notable increase of 5.9%, while SMIC experienced a decline of 3.6%. Other significant movers included BYD (+3.9%) and Pop Mart (-3.5%).
New Highs: Several stocks, including ZTO Express and WH Group, reached new highs, indicating strong market interest and performance in certain sectors.
<BofAS Analysis> Ratings and Target Prices for Hong Kong Property Developers and Landlords (Table)
Property Developers Performance: Various property developers showed mixed performance with SHK PPT and Henderson Land rated as neutral, while CK Asset and Sino Land received buy ratings. New World Development was rated underperform.
Landlords Overview: Hysan Development and Swire Properties experienced declines, but all listed landlords, including Wharf REIC and Hang Lung Properties, received buy ratings, indicating positive market sentiment.
REITs Market Status: LINK REIT saw a significant increase in share price and was rated a buy, reflecting optimism in the REIT sector.
Conglomerates Insights: MTR Corporation and CKH Holdings were rated underperform and buy respectively, with short selling activity indicating varying investor confidence in these conglomerates.
BofAS Increases Target Prices for Hong Kong Property Developers by Approximately 10%, Chooses LINK REIT as Underperformer
Investor Sentiment: BofA Securities reports that investors are optimistic about the real estate market's recovery, leading to an average 10% increase in target prices for several real estate stocks due to strong sales in Hong Kong.
Stock Preferences: The broker favors CK ASSET and SINO LAND for their earnings sensitivity to property price growth, while SWIRE PROPERTIES and HANG LUNG PPT are preferred for their higher dividend yields amidst resilient luxury retail in mainland China.
Non-Consensus Pick: LINK REIT is highlighted as a non-consensus laggard due to its widened valuation gap with peers and short-term challenges in e-commerce, despite a high dividend yield.
Market Outlook: BofA Securities has adjusted its FY25-28 EPS forecasts for HYSAN DEV and provided detailed ratings and target prices for Hong Kong property developers and landlords in a separate table.
<Daily Summary> HSI Ends at 27,183, Gaining 155 Points; HSTI Finishes at 5,451, Up 33 Points; CSPC PHARMA Surges Over 5%; ZTO EXPRESS-W, WH GROUP, BOC HONG KONG, WHARF REIC, and HANG LUNG PPT Reach New Peaks; Market Activity Increases
Market Performance: The Hang Seng Index (HSI) rose by 155 points (0.6%) to close at 27,183, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also saw gains, with market turnover reaching $234.04 billion.
Active Heavyweights: Notable movements included Meituan down 2.5%, Alibaba up 1.6%, Tencent down 1.6%, and Xiaomi up 1.1%, with significant short selling activity across these stocks.
Top Gainers: CSPC Pharma, Innovent Bio, and Pop Mart were among the top gainers, with CSPC Pharma increasing by 5.5% and Pop Mart by 4.9%, while New Oriental saw a decline of 4.4%.
High Performers in HSMI & HSSI: China Literature surged by 15.4%, Vobile Group by 14.4%, and GeekPlus by 11%, indicating strong performance in smaller stocks within the market.
JPM Maintains HANG LUNG PPT as Preferred Choice, Raises Target Price to HKD12
Tenant Sales Recovery: HANG LUNG PPT reported an 18% year-on-year growth in tenant sales for 4Q25, indicating a strong recovery in China, surpassing the 10% growth seen in 3Q25.
Future Growth Expectations: Management anticipates mid-single-digit percentage growth in tenant sales for FY26, maintaining positive momentum as of January 2026.
Valuation Insights: JPMorgan highlights HANG LUNG PPT's current valuation as attractive, with a 66% discount to net asset value, a P/B ratio of 0.3, and a dividend yield of 5.5%.
Analyst Recommendations: JPMorgan has reiterated HANG LUNG PPT as a top pick in the industry, raising its target price from HKD11.5 to HKD12, citing the potential for revaluation driven by the recovery in tenant sales.
Citi Increases HANG LUNG PPT's Target Price to HKD11.2, Maintains Buy Rating
Stock Performance: HANG LUNG PPT (00101.HK) experienced a decline of 1.377%, with short selling amounting to $58.83M and a ratio of 13.073%.
Sales Growth Forecast: Citi's research report indicates potential for 5-7% same-store sales growth in China by 2026, driven by an improved product mix and new flagship store openings.
Historical Sales Increase: The estimated same-store sales growth for HANG LUNG PPT in 4Q25 is projected to reach an 18% year-over-year increase, attributed to initiatives aimed at boosting customer traffic and retention.
Analyst Rating Update: Citi has maintained a Buy rating for HANG LUNG PPT and increased its target price from HKD10.1 to HKD11.2, reflecting positive outlook on the company's performance.
