GMT EIGHT - Market

HK Stock Market Move | BOE VARITRONIX (00710) up nearly 6% Again, the company plans to expand its overseas business. Citigroup is optimistic about market share growth and gross margin recovery.

BOE VARITRONIX (00710) rose nearly 6%, rising to 4.79% at the time of publication, reaching 7 Hong Kong dollars with a trading volume of 15.8544 million Hong Kong dollars. In terms of news, BOE VARITRONIX, a subsidiary of BOE, recently showcased over 60 innovative technology products and a variety of IoT scene technology solutions at CES, and also announced the "HERO" plan for applications in the era of smart cars. Su Ning, Vice President of BOE Technology Group and CEO of BOE VARITRONIX, revealed that last year, overseas revenue accounted for 42% of BOE VARITRONIX's total revenue, and they plan to increase this to 50% in the future. Citi released a research report stating that looking ahead to 2025, with the acceleration of the trend towards smart cabins, the demand for automotive displays is expected to remain strong. The utilization rate of the Chengdu factory is expected to reach 70 to 80% by the end of 2025, supporting financial performance improvement. Citi raised the target price of BOE VARITRONIX from 5.6 Hong Kong dollars to 8.5 Hong Kong dollars, maintaining a "buy" rating.

22 min ago

HK Stock Market Move | CTIHK(06055) rose by more than 7% again, domestic HNB product research and development progress has accelerated, and the company's market share is expected to increase rapidly.

CTIHK (06055) rose by over 7%, reaching a 7.35% increase to HK$26.3 as of the time of reporting, with a trading volume of HK$88.9394 million. Zheshang released a research report stating that the global trend towards smoking control is accelerating, with the market share of new tobacco products continually increasing. By 2023, the market size for HNB (Heat-Not-Burn) products will reach 34.1 billion US dollars, with a CAGR of over 23% between 2018 and 2023, showing rapid development. The progress in research and development of HNB products domestically has accelerated, leading to significant growth in business and profitability levels, with great potential for future development. As of 2018, provincial tobacco companies under China Tobacco had submitted 1,391 technical patent applications related to the manufacturing of heat-not-burn products. Many international trading companies have shown strong interest in Chinese heat-not-burn products and are actively introducing them to overseas markets. Sinolink pointed out that the HNB products are currently in a period of development dividend, with product enhancement and regional expansion driving accelerated development. The revenue share of this business in 2023 is 1.1%, with a CAGR of 48% between 2019 and 2023, and a year-on-year revenue growth of 28% in the first half of 2024. According to Euromonitor, the global market size for HNB products will reach 34.1 billion US dollars by 2023, and is expected to maintain a CAGR of 13.5% between 2023 and 2027, indicating that the industry is currently in a period of development dividend. Currently, the market share of China Tobacco's HNB brand is still relatively low, but with continued product enhancement (such as natural smoke technology) and ongoing regional expansion, the market share is expected to accelerate.

23 min ago

HK Stock Market Move | GD LAND (00124) has fallen by over 33% again. Since early December, it has fallen by over 60%. GUANGDONG INV has completed the physical distribution of GD LAND shares.

GD LAND (00124) has fallen by more than 33%, with a cumulative decrease of over 60% since the beginning of December. As of the time of writing, it has dropped by 26.43%, trading at 0.167 Hong Kong dollars with a turnover of 1111.99 million Hong Kong dollars. On the news front, GUANGDONG INV has completed the physical distribution of GD LAND shares on January 21, 2025. It is reported that GUANGDONG INV had previously proposed to distribute special dividends to shareholders in the form of physical distribution of GD LAND shares, involving the distribution of 1.261 billion shares, accounting for approximately 73.72% of GD LAND's share capital. After the distribution is completed, GD LAND will no longer be a subsidiary of GUANGDONG INV, and its financial performance will no longer be consolidated into GUANGDONG INV's financial statements. Through this distribution, the major shareholder, Yuehai Holdings, will maintain its 58.26% stake in GUANGDONG INV unchanged, while GUANGDONG INV will no longer hold any shares of GD LAND, making GD LAND and the company sister companies.

34 min ago

HK Stock Market Move | ZTE Corporation (00763) rose by over 4% again, with an increase of over 50% in the past two months. The self-developed chip business is driving up the company's valuation.

ZTE Corporation (00763) has surged more than 4% again, with a cumulative increase of over 50% since early December. As of the time of writing, it has risen by 3.44% to HK$28.55, with a trading volume of HK$7.52 billion. In terms of news, according to media reports, ByteDance plans to invest $12 billion in artificial intelligence chip research and procurement by 2025. Minsheng Securities previously pointed out that ByteAI is making initial efforts on the edge, collaborating with ZTE Corporation in the mobile phone business to redefine AI phones together. This cooperation reshapes the company's consumer business imagination space; ZTE Microelectronics is a domestic semiconductor design company second only to Huawei HiSilicon, continuously increasing the company's gross profit margin with self-use chip products. It has recently started shipping CPUs to internet giants, and the bank expects ASIC chips to also break through. Sinolink pointed out that ZTE Microelectronics has gradually developed from custom processors in the communication field to custom computing generalization + accelerator domain customized computing power chips, covering a variety of specifications and applications. Self-developed Everest and Taihai chips provide high-performance, diverse computing acceleration hardware. The self-developed chip business provides impetus for the company's valuation enhancement and opens up growth opportunities.

46 min ago

HK Stock Market Move | XTALPI-P(02228) rose over 11% against the market trend. The company recently raised over 1.1 billion Hong Kong dollars in net placement, exceeding the total amount raised in its IPO.

XTALPI-P (02228) rose more than 11% against the market, with an 8.99% increase at the time of writing, reaching HKD 4.85, with a turnover of HKD 3.05 billion. On the news front, on January 19th, XtalPi Technology announced that on January 18th, the company successfully raised approximately HKD 1.13 billion by placing a total of 264 million shares. It is worth noting that the fundraising amount from this placement exceeds the amount raised from its IPO. The company went public on the main board of the Hong Kong Stock Exchange on June 13, 2024, raising HKD 9.89 billion, plus additional fundraising from exercising excess share option, totaling approximately HKD 10.36 billion. Furthermore, XtalPi Technology recently announced a partnership with the National Cancer Centre, Singapore (NCCS) and Duke-NUS Medical School, Singapore, to collaborate on AI-driven drug discovery. They plan to use their AI and automation-driven peptide R&D platform to discover and design clinical candidate drugs targeting a newly identified target for clear cell renal carcinoma by NCCS, and to share subsequent commercialization results with their partners. In addition, the company has formed a strategic partnership with Microsoft China to explore innovative applications of AI, big models, Siasun Robot & Automation Lab, and other cutting-edge technologies in the fields of biomedicine and materials science, ushering in a new chapter in research, education, and innovation applications.

55 min ago

HK Stock Market Move | ZENGAME (02660) fell more than 9% after issuing a profit warning. It is expected that the net profit attributable to shareholders for the year 2024 will decrease by about 35% to 45% year-on-year.

After the profit warning, ZENGAME (02660) fell by over 9%, as of the time of publication, it dropped by 9.73%, closing at HK$2.32, with a turnover of HK$2,723,300. On the news front, on January 21, ZENGAME announced that the Group expects a decrease in the profit attributable to owners of the company for the year ending December 31, 2024, of approximately 35% to 45% compared to the year ending December 31, 2023. The expected decrease is mainly due to: lower than expected sales of new products and gameplays, and a general downturn in the gaming market in 2024, leading to a decrease in the Group's revenue by around 15% to 25%; higher operating costs for games, resulting in a decrease in the Group's gross profit margin by around 5% to 10%; and the transfer of retained profits of RMB 500 million from indirect wholly-owned subsidiary Shenzhen ZENGAME Co., Ltd. to the Group, benefiting the Group and its shareholders as a whole, while incurring additional tax expenses of approximately RMB 70 million.

56 min ago

HK Stock Market Move | YOURAN DAIRY (09858) up over 4% again, post-holiday animal husbandry may usher in a new round of clearing. The company's gross profit margin in the second half of the year will remain steady.

YOURAN DAIRY (09858) rose by over 4% again, with a three-day cumulative increase of nearly 20%. As of the time of publication, it rose by 4.55% to HK$1.84, with a turnover of HK$176.392 million. On the news front, Citic Securities previously released a research report stating that following YOURAN DAIRY's release of its interim results on August 26, 2024, it maintained a "buy" rating for YOURAN DAIRY with a target price of HK$2.1, a premium of 90%. The bank pointed out that YOURAN DAIRY's raw milk sales volume and gross profit margin in the first half of 2024 were better than expected. During the reporting period, YOURAN DAIRY's cost per kilogram of feed decreased by 12.9%, non-feed costs decreased by 2.9%, and overall costs decreased by 11%. This was due to the company's continuous optimization of cost structure, which successfully led to an overall decrease in unit costs. Management expects that with further decreases in feed prices and improvements in operational efficiency, the gross profit margin in the second half of the year will remain stable. CITIC SEC pointed out that the elimination and consolidation of the dairy industry continued to progress in 2024, with a 6.7% decrease in inventory in the main production areas in Q1-3, and a 2.8% year-on-year decrease in raw milk production for the whole year. Downstream dairy companies were relatively cautious in stocking up for the 2025 Spring Festival, and after a short-term surge in the price of bulk milk in December, dairy industry enterprises continued to face operational pressures. Following the Spring Festival and in the off-season, the industry may see a new round of accelerated consolidation, maintaining the judgment of a supply-demand turning point in the industry in 2025H2.

1 h ago

HK Stock Market Move | CHINA BEST (00370) rose more than 16% against the market trend, with its subsidiary Shenzhen Shuwu participating in the construction of the data center in Zhongwei City, Ningxia.

CHINA BEST (00370) rose more than 16% against the market trend, as of the time of writing, it has risen 8.93% to HK$0.305. On the news front, CHINA BEST announced in July last year that its subsidiary Shenzhen Shuwu and China Radio and Television Ningxia Network signed a strategic cooperation framework agreement covering the development of artificial intelligence, various types of computing power services, and advanced computing infrastructure. According to the framework agreement, through participating in the construction of the Zhongwei Data Center in Ningxia, the two parties will use their resources and expertise to carry out a series of investments and collaborations in the field of computing power and digital economy-related projects. It is expected that this cooperation will enhance the group's competitiveness and expand its business coverage in the rapidly growing technology sector. In addition, according to documents disclosed by the Hong Kong Stock Exchange on January 15, 2025, on January 13, South Leader Limited increased its holding of 87 million ordinary shares of CHINA BEST, worth approximately HK$14.79 million. After the increase, South Leader Limited's latest holding is 625 million shares, and its holding ratio has increased from 25.72% to 29.88%.

1 h ago

HK Stock Market Move | GUIXIN GROUP (08349) rose nearly 20% against the market, planning to acquire a mining company with a potential reserve of 10,000 tons of gold.

GUIXIN GROUP (08349) rose nearly 20% against the market, with an increase of 19.68% at the time of publication, reaching HK$2.25 with a turnover of HK$5.3129 million. On the news front, recently, GUIXIN GROUP announced that the company is in the process of a possible acquisition of a target company. The target company has been granted exploration licenses for three mining areas (SOMANGUINA, PASGANPA, and YELEMBASSE) by the government of Burkina Faso. Among them, the SOMANGUINA project is considered to have a large potential, with estimated inferred resources of 12 tons, with a surface exposure of 45 tons, and previous drilling work recorded high grades of 744 grams per ton. According to a preliminary research report, Burkina Faso is rich in mineral resources, especially in the Birimian zone, where estimated potential reserves of gold mines could reach 10,000 tons. The target company speculates that the mineral valuation is not less than HK$1.5 trillion and will hire an international valuation agency for further evaluation in the future. In addition, this transaction still requires necessary approvals from relevant regulatory authorities, including the consent of the government of Burkina Faso. Shareholders and investors should note that no formal agreement has been signed yet, and the completion of the possible acquisition is not certain.

1 h ago

HK Stock Market Move | LINGBAO GOLD (03330) rises by over 11%. It is expected that the full-year net profit will increase by up to 1.4 times year-on-year. Institutions are optimistic about the widening pre-tax profit per ounce.

LINGBAO GOLD (03330) rose by more than 11%, as of the time of writing, it has increased by 11.11% to 4.8 Hong Kong dollars, with a trading volume of 19.5696 million Hong Kong dollars. On the news front, LINGBAO GOLD announced its profit announcement, expecting annual revenue to be around 11.587 billion to 11.903 billion yuan, an increase of about 10% to 13% year-on-year; expected annual net profit of about 617 million to 706 million yuan, an increase of about 110% to 140% year-on-year, mainly due to the group overcoming the impact of policy and infrastructure renovations in the first half of the year, making efforts to increase production in the second half of the year, and optimizing mineral processing and mining technology, achieving significant results in fine management reform, significantly improving overall operational efficiency, and also benefiting from the rise in the price of the group's main product, gold. CICC released a research report stating that looking forward to 2025, the price of gold may still be in a bull market trend, and it may break through $3,000 per ounce in 2025, with the price of gold in RMB potentially experiencing a larger increase compared to the price in USD. From 1Q24 to 3Q24, as cost increases slow down and gold prices continue to rise, the pre-tax profit per ounce begins to stabilize and rise from $692 to $1,019. Looking ahead to 4Q24 and 2025, CICC predicts that the pre-tax profit per ounce of global gold companies may further widen.

1 h ago

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