中泰国际港股指数周报-2025-03-26

Market Overview - On March 25, the Hang Seng Index fell by 561 points or 2.4%, closing at 23,344 points, while the Hang Seng Tech Index dropped by 3.8% to 5,517 points[1] - Market turnover increased to HKD 285.3 billion, with net inflow from the Hong Kong Stock Connect at HKD 13.9 billion[1] - Year-to-date, Hong Kong stocks have raised HKD 115.3 billion through placements or rights issues, with HKD 93.65 billion raised since early March, primarily from BYD and Xiaomi[1] Company Highlights - Xiaomi announced a placement of 800 million new shares at HKD 53.25 per share, raising approximately HKD 42.5 billion, aimed at R&D and business expansion[3] - BYD's 2024 revenue is expected to grow by 29% year-on-year, with a net profit increase of 34%[3] Economic Indicators - Recent U.S. economic data, including retail sales and industrial production, showed positive trends, with the 10-year U.S. Treasury yield rebounding to 4.3%[2] - The U.S. recession narrative is temporarily fading, contributing to a liquidity drain from Hong Kong stocks[2] Sector Performance - The pharmaceutical sector saw mixed results, with Hansoh Pharmaceutical's stock rising by 3.7% post-earnings announcement, while other companies like Sinopharm experienced slight declines[4] - The energy and utilities sectors showed a lack of direction, with some companies underperforming against market expectations[5] Water Price Adjustment - Shenzhen plans to increase water prices by 13.1%, with the comprehensive price rising from HKD 3.449 to HKD 3.8991 per cubic meter[6] - The adjustment reflects a broader trend of price increases across various regions in China, aligning with market-oriented policies[7] Investment Recommendations - China Water Affairs (855 HK) is favored due to its high revenue proportion from water supply operations, expected to benefit from the price increase[8] - Hansoh Pharmaceutical (3692 HK) is rated as a "Buy" with a target price of HKD 25.00, reflecting strong growth in its oncology drug segment[10][15]