GMT EIGHT - Company

"Shanghai-Hong Kong Collaboration, Opening a New Chapter Together" The Hong Kong Investor Relations Association (HKIRA) Shanghai Chapter held its inaugural summit in Shanghai.

History does not repeat itself, but always rhymes in the same way. Recently, the three major stock indices in Hong Kong have successively reached new highs, and the trading volume of A-shares continues to rise, indicating a positive change in the investment logic of Chinese assets. With the market sentiment improving, investors are beginning to update their understanding of Chinese assets, either actively or passively. On February 21, 2025, the Hong Kong Investor Relations Association (HKIRA) Shanghai Chapter held its first summit. The theme of the summit was "H-Shares Looking Forward Together, Opening a New Chapter", bringing together dozens of guests from Hong Kong and mainland China, with over 2100 online participants. Jing Zhang, the head of the HKIRA Shanghai Chapter, delivered a speech at the opening ceremony and introduced the association's future activities in the Yangtze River Delta region to the guests. The sponsors, Saffar Legal and Edico of Jujing Finance, also presented at the event. Established in 2008, the Hong Kong Investor Relations Association is a non-profit professional association with the mission of "Investor Relations, Achieving Excellence." It advocates setting international standards in investor relations education, promoting best practices in investor relations, and meeting the professional development needs of those interested in investor relations. The summit currently has about 1300 members, with approximately 70% of them being constituents of the Hang Seng Index. The establishment of the Shanghai Chapter is aimed at better serving the growing number of companies in the Yangtze River Delta region listed in Hong Kong, and providing a platform for elite from various industries to deeply engage and exchange ideas. At the summit, Lingxiu Yang, Co-Chief Responsible of Guolian Minsheng Securities Research Institute, elaborated on his understanding of the macroeconomic trends in 2025 under the theme "Above the Turning Point". Yang believes that the market opportunities outweigh the risks in the new year, with a focus on real estate and exports. Market supply and demand are expected to converge, transitioning from liquidity turning points to fundamental turning points. From an industry perspective, attention can be focused on opportunities brought about by reversal of difficulties and changes in business models. Gao Yang, Managing Director of Ruihua Capital, shared with attendees from dozens of listed companies the key disclosure points that public funds and analysts pay attention to, providing valuable insights for listed companies to improve their disclosure work. During the roundtable private session, Ding Sujun, Board Secretary of LC LOGISTICS, Jiang Nan, Director General of Investor Relations of FOSUN INTL, Gao Yang, Managing Director of Ruihua Capital, and Ke Tingjun, a representative of the Shanghai Preparatory Committee, discussed in depth and candidly on how small and medium-sized companies can break through in the future. It is worth mentioning that nominations for the 11th Investor Relations Awards in 2025 are now being accepted. After the nominees and listed companies have confirmed their participation, the investment community can participate in online voting. The finalists will be selected by a professional judging panel, with expectations that this award will help listed companies and related teams seize new market opportunities together. With the theme of "Rui Snake Gifting Blessings, New Journey Opening", this summit is not only an important milestone for the Hong Kong Investor Relations Association Shanghai Chapter, but also a prelude to exploring the infinite possibilities in the field of investor relations in the new year. Looking ahead, with the improvement of the macro environment and positive micro changes in the industry, the historical process of reevaluating the value of Chinese assets will continue to progress. In this historical process, it is believed that the Hong Kong Investor Relations Association and its newly established Shanghai Chapter will continue to provide new insights and practical cases for the market.

21/02/2025

GMTEight exclusive offer | The stock price doesn't hit the brakes. Is NEXTEER (01316) becoming a dark horse stock in the smart driving industry chain?

TEEREPSSBWNEXTEERTEER has achieved a leading position in the global field of steer-by-wire, standing alongside a few companies like Bosch. It has successfully provided matching products to overseas large new energy vehicle companies, domestic NIO and two large European car companies, as well as closely cooperating with leading domestic new energy companies. Due to the high technical barriers of steer-by-wire technology, the market landscape will become more concentrated. If NEXTEER can achieve a production volume of one million units in the next two years, it will greatly increase revenue and gross profit, injecting strong momentum for the continuous rise in stock price.From the perspective of performance repair, the industry's upstream and downstream structure is stable, with no significant price reductions expected in 2025. It is predicted that NEXTEER's profitability will recover to the stable levels of 2021 and earlier. If a net profit margin of over 4% can be achieved in 2025, profits are expected to approach $200 million. As of the closing on February 21st, NEXTEER's total market value was 14.66 billion Hong Kong dollars. If the company's annual profit reaches $200 million, when converted at the current exchange rate to Hong Kong dollars, the corresponding price-to-earnings ratio will be below 10. According to Guotai Junan International's forecast, it is estimated that from 2024 to 2026, NEXTEER's revenue will reach $4.36 billion, $4.65 billion, and $5.0 billion, with net profits attributable to shareholders being $80 million, $150 million, and $210 million. Guotai Junan International's forecast also indicates that after the company's future profitability improves, its valuation is expected to return to a reasonable or even undervalued level. Furthermore, NEXTEER's current price-to-book ratio is less than 1, which may mean that the company's asset value is not fully reflected in the stock price. Investors can own the company's assets at a relatively low price, with the assurance of asset quality, suggesting some investment potential. As of June 30, 2024, NEXTEER's asset-liability ratio was 40.61%, well below the industry's caution line, indicating low financial risk for the company and a relatively light debt burden. With sufficient asset support for business development, this provides a foundation for future profit growth and CKH HOLDINGS' value appreciation. In conclusion, NEXTEER's strong foundation in the automotive steering system field, forward-looking layout in the wire-controlled steering business, upgrading of traditional businesses, and performance restoration, as well as the opportunities in the intelligent driving industry chain transformation triggered by DeepSeek, have positioned it favorably in the market. With industry development and strategic advancement, NEXTEER is expected to continue to reap benefits in the future. With its stock price supported by numerous positive factors, it has a solid foundation for continued upward momentum, making it worthy of investors' ongoing attention.

21/02/2025

GMTEight exclusive offer | SUNEVISION (01686) soaring behind: embracing AI enterprises intensively accessing Deepseek new air outlet, with funding gaining billions of profits. Hong Kong Stock Connect becomes the largest buyer.

Since February 14th, SUNEVISION (01686) has attracted the attention of Hong Kong stock investors, strong rise in multiple trading days, and the stock price has doubled in less than 10 trading days. As of the close on February 21st, SUNEVISION's stock price was 9.28 Hong Kong dollars, an increase of 25.75%, with a trading volume of 112 million shares, and a total market value of 21.71 billion Hong Kong dollars. Worth noting is that the stock had a monthly increase of 147.5%, and its stock price performance is considered stunning. On the news side, Alibaba released its third quarter fiscal year 2025 report last night. Revenue in the third quarter increased by 8% year-on-year, cloud revenue increased by 13%, and capital expenditure reached 31.4 billion, exceeding market expectations. Alibaba Group CEO Wu Yongming said, "Looking ahead, the growth rate of AI-driven cloud intelligence group revenue will continue to increase. We will continue to focus on e-commerce and cloud computing strategies and continue to invest to drive long-term growth." It is rumored that SUNEVISION is deeply integrated with Alibaba Cloud China data centers. Reportedly, SUNEVISION is the largest data center service provider in Hong Kong, and at the end of March 2023, New World Telecom announced the official opening of the MEGA Gateway, a large-scale data center in Tsuen Wan, the seventh high-end data center in the New World Telecom data center portfolio. In addition, the company will release its performance for the first half of fiscal year 2025 on February 25th. BOCOM INTL pointed out that the company's revenue is expected to achieve high single-digit year-on-year growth, EBITDA will achieve low double-digit year-on-year growth, mainly benefiting from the contribution of the MEGAIDC project going into operation; the utilization rate of existing and new data centers will improve; and the increase in prices and electricity usage of existing projects. Given the strong demand for generative artificial intelligence in data centers, New World Telecom's performance is expected to have potential for growth in utilization rate, electricity consumption, and pricing. Stock price has risen nearly 125% in nine trading days, nearly one billion shares bought through the Hong Kong Stock Connect Why did the funds launch a bullish trend on SUNEVISION at this time? Let's hear the details. According to information, before the stock price surged, major players always collect chips through various means to achieve the process from light control to moderate control to high control. Often in the chip collection stage, the volume and price trend is relatively moderate, just like SUNEVISION in the chip collection stage before February 11 (from January 3 to February 7), with a fluctuation range of only 0.72%, a turnover rate of only 1.68%, and a daily average trading volume of only about 1.7 million shares. It is worth noting that SUNEVISION's stock price performance began on February 11. From February 11th to February 21st, the company's stock price rose by 124.7%, the total trading volume reached 498 million shares, and the daily average trading volume was 55.37 million shares, almost 33 times the previous average daily trading volume. Behind the huge trading volume, which funds are driving it? Noticeably, looking at the data of the top ten net buying/net selling brokers, the Hong Kong Stock Connect (Shanghai), Hong Kong Stock Connect (Shenzhen), Citibank, and CICC brokers have become important forces driving the rise in SUNEVISION's stock price. In the five trading days up to February 20th, the Hong Kong Stock Connect (Shanghai) and Hong Kong Stock Connect (Shenzhen) collectively bought 92.27 million shares of SUNEVISION, while Citibank, CICC, and Bank of China Yonglong Bank bought 2.33 million shares, 1.31 million shares, and 1.06 million shares respectively during the same period. Looking back at the past 20 days, the Hong Kong Stock Connect (Shanghai), Hong Kong Stock Connect (Shenzhen), and Citibank are still major buyers. The Hong Kong Stock Connect has bought a total of 96.19 million shares, helping the company's monthly increase exceed 147%. It is worth noting that in this round of rise, the distribution of SUNEVISION's chips has also shifted from low-density to multi-peak form. As the stock price rises, low chip costs gradually shift to high levels, and when most of the chips concentrate at the top, it may indicate that low-cost chips have already exited with profits. In the past 20 days, the main sellers of SUNEVISION were HSBC Hong Kong, Morgan Stanley, BNP Paribas, and UBS, selling 46.85 million shares, 10.53 million shares, 10.31 million shares, and 7.37 million shares respectively. And there is no shortage of Hong Kong Stock Connect figures as the buyers at higher levels. As of February 20th, the top five brokers of SUNEVISION were HSBC Hong Kong, Hong Kong Stock Connect (Shanghai), Hong Kong Stock Connect (Shenzhen), Citibank, and Bank Of China (Hong Kong), with shareholding ratios of 8.7%, 3.03%, 1.61%, 1.28%, and 0.96% respectively. It is worth noting that in the situation of a significant increase in stock price, only HSBC Hong Kong and Bank of China (Hong Kong) among the top five brokers saw a decline in their shareholding ratios, decreasing by 1.95% and 0.24% respectively. The funding sources behind these two banks are still unknown. For example, HSBC Hong Kong sold 45 million shares in 8 trading days, expecting a profit (calculated at an average price of 7.18 Hong Kong dollars) of 143 million Hong Kong dollars. With continuous fund outflows and huge profits, how long can the nearly one billion shares net bought by the Hong Kong Stock Connect "support" the company? Welcoming the New Opportunity from Deepseek Multiple institutions release positive signals According to the company's information, MEGA-i data center under SUNEVISION has been rated as one of the highest interconnected data centers in the world, with over 15,000 cross-connections, achieving network access in the MEGA-i ecosystem, leading in the industry. New World Telecom has successfully entered the top 15 with the outstanding performance of MEGA-i data center, occupying an important position in the global connectivity and data center service market, accelerating the smooth sailing of mainland companies. In terms of performance, New World Telecom's revenue for fiscal year 2023/2024 was 2.674 billion Hong Kong dollars, an increase of 14% year-on-year; net profit attributable to equity holders was 907 million Hong Kong dollars, almost the same as theCompared to the same period last year, there was no change. In addition, the company's operating cash flow amount was 1.59 billion Hong Kong dollars, an increase of 7.9% compared to the same period last year. As of the end of the 2024 fiscal year, the company's cash and cash equivalents were 499 million Hong Kong dollars, a significant improvement compared to the 237 million Hong Kong dollars in the same period last year. The improvement in various financial data indicates that the company's fundamentals are becoming increasingly solid.As mentioned at the beginning of the article, BOCOM INTL is optimistic about the performance of SUNEVISION. The bank expects the company's net profit to increase by over 20% in the first half of the 2025 fiscal year. BOCOM INTL's confidence in SUNEVISION's growth naturally stems from the substantial market increment behind it. SUNEVISION focuses on the Hong Kong data center market, which is currently in a period of steady growth. Reports show that the size of the Hong Kong data center market is expected to reach $2.1 billion in 2024 and will rise to $3.5 billion by 2029, with a compound annual growth rate of 10.0% from 2024 to 2029. Against the backdrop of the booming data center hosting market in the Asia-Pacific region, Hong Kong has become a popular choice for many companies to set up data centers due to its unique advantages. Of course, the sharp rise in stock prices inevitably involves some catalytic factors, such as the intensive access of domestic and foreign AI companies to Deepseek. Recently, Guosen released a research report stating that DeepSeek, as a more efficient AI model, will bring new opportunities for IDC data center equipment and services. The bank pointed out that data center IDC service providers will have some relief in energy consumption pressure. Generating and distributing the large amount of electricity required for AI has always been a challenge. DeepSeek is expected to significantly increase the efficiency of computing power usage and relieve the energy consumption pressure of IDCs. Morgan Stanley is optimistic about the Chinese Internet data center (IDC) sector. REITs provide onshore financing channels for IDCs, which can help them deleverage and raise future capital expenditures, providing valuation indicators for IDC assets. The valuation multiples of private REITs have reached 10-13 times, which will trigger a market reevaluation. Morgan Stanley has raised the target prices for Wangsu Data and 21Vianet to $39 and $11.7 respectively, maintaining a "hold" rating, with Wangsu Data as the preferred choice. At the same time, they are optimistic about SUNEVISION, with a "hold" rating. It can be seen that as a leader in the Hong Kong data center field, SUNEVISION has become one of the choices predetemed by many institutions. Some investors on Snowball even express that SUNEVISION is expected to achieve a tenfold valuation at the bottom. In conclusion, under the new trend, SUNEVISION has achieved a strong increase of nearly 150% in the month with active trading volume and stable fundamentals, allowing some investors to profit over a billion. However, for the average investor, whether to get involved in such a hot market still needs careful consideration.

21/02/2025

CALB(03931) has been included in the Hang Seng Composite Index and is expected to become a target of the Hong Kong Stock Connect.

On February 21, the Hang Seng Index Company announced the latest quarterly review results, in which CALB (03931) was included in the Hang Seng Composite Index. All changes will be implemented after the market closes on March 7, 2025 (Friday) and will take effect on March 10, 2025 (Monday). According to a CITIC SEC research report, CALB may be included in the Hong Kong Stock Connect, as it meets a series of criteria including market value, liquidity, and listing time. CALB Chairman Liu Jingyu revealed to the media that the company has decided to invest 2 billion euros to build a battery factory in the Sintra Industrial Logistics Park in Portugal, with construction expected to start in the second quarter of this year. The factory is expected to create 1800 direct jobs. According to data disclosed by SNE Research, CALB's global installed power battery capacity reached 39.4GWh in 2024, an increase of 16.6% year-on-year, with a market share of 4.4%.

21/02/2025

DMALL (02586) has been included in the Hang Seng Composite Index and is expected to become a stock connect target.

On February 21, the Hang Seng Index Company announced the latest quarterly review results, in which DMALL (02586) was included in the Hang Seng Composite Index constituent stocks. All changes will be implemented after the close of trading on March 7, 2025 (Friday) and will take effect starting from March 10, 2025 (Monday). According to a CITIC SEC research report, DMALL may be included in the Hong Kong Stock Connect, as it meets a series of criteria including market value, liquidity, and time of listing. As a well-known domestic retail digital solution service provider, DMALL helps offline physical retail enterprises digitize their business transformation through the Dmall OS system and AIoT solutions. In addition to cooperation with Wumart, it also covers more than 400 global customers such as Pindao, 711, Lawson, Dennis, Metro, and SM, especially benchmark customers like Pindao.

21/02/2025

WANGUO GOLD GP(03939) has been included in the Hang Seng Composite Index and is expected to become a stock connect target.

On February 21st, Hang Seng Index Company announced the results of the latest quarterly review, in which WANGUO GOLD GP (03939) was included in the Hang Seng Composite Index constituent stocks. All changes will be implemented after the market close on March 7th, 2025 (Friday) and will be effective starting from March 10th, 2025 (Monday). According to CITIC SEC research report estimates, WANGUO GOLD GP may be included in the Stock Connect scheme, as it meets a series of criteria including market value, liquidity, and listing time. On the evening of December 27th, 2024, Wanguo Gold disclosed updates on the Jinling Mine's mineral resources and reserves. The Jinling Mine, in which it holds a 88.2% equity interest, saw a significant increase in total mineral resource quantity from 72 million tons at the end of last December to 196 million tons by the end of July this year, an increase of 172.2%, with a gold content increasing from 3.3 million ounces to 7.3 million ounces, up by 121.2%.

21/02/2025

CITIC FAMC (02799) has been included in the Hang Seng Composite Index and is expected to become a target for the Hong Kong Stock Connect.

On February 21, Hang Seng Index Company announced the latest quarterly review results, with CITIC FAMC (02799) being included in the Hang Seng Composite Index constituents. All changes will be implemented after the market close on March 7, 2025 (Friday) and will take effect from March 10, 2025 (Monday). According to a CITIC SEC research report, CITIC FAMC is likely to be included in the Stock Connect program, as it meets a series of criteria including market value, liquidity, and listing time. CITIC FAMC announced that based on preliminary accounting data, the group's attributable net profit for the year 2024 is expected to be between 9 billion and 10 billion yuan, an increase of 410% to 466% year-on-year compared to last year (2023: 1.766 billion yuan).

21/02/2025

REFIRE (02570) is included in the Hang Seng Composite Index and is expected to become a target of the Hong Kong Stock Connect.

On February 21, Hang Seng Index Company announced the latest quarterly review results, in which REFIRE (02570) was included in the Hang Seng Composite Index constituent stocks. All changes will be implemented after the close of trading on Friday, March 7, 2025, and will take effect from Monday, March 10, 2025. According to CITIC SEC research report estimates, REFIRE may be included in the Hong Kong Stock Connect, as it meets a series of criteria including market value, liquidity, and listing time. REFIRE focuses on the design, development, manufacturing, and sales of hydrogen fuel cell systems, hydrogen equipment, and related components, and provides hydrogen fuel cell engineering development services. According to Frost & Sullivan data, in terms of the total output power of heavy-duty hydrogen fuel cell systems sold in 2023, total sales output power, and total sales revenue, REFIRE ranked first in the Chinese hydrogen fuel cell system market, with market shares of 23.8%, 42.4%, and 29.4%, respectively.

21/02/2025

MAO GEPING (01318) has been included in the Hang Seng Composite Index and is expected to become a target stock for the Hong Kong Stock Connect.

On February 21st, Hang Seng Index Company announced the latest quarterly review results, with MAO GEPING (01318) included in the constituents of the Hang Seng Composite Index. All changes will be implemented after the market close on March 7, 2025 (Friday) and will take effect from March 10, 2025 (Monday). According to CITIC SEC research report estimates, MAO GEPING is likely to be included in the Stock Connect due to meeting a series of criteria including market capitalization, liquidity, and listing time. According to the research report from Open Source Securities, MAO GEPING is a scarce high-end domestic beauty and skincare group that develops makeup and skincare products based on the founder's unique oriental "light and shadow aesthetics" concept, and builds a moat with offline experiential makeup services. Open Source Securities predicts the company's net profit attributable to shareholders will be 893 million/1.172 billion/1.467 billion yuan from 2024 to 2026, with corresponding EPS of 1.82/2.39/2.99 yuan. The current stock price corresponds to a PE ratio of 37.4/28.5/22.7 times. Initiating coverage, with a "buy" rating.

21/02/2025

TS LINES (02510) was included in the Hang Seng Composite Index and is expected to become a target for Hong Kong stock connect.

On February 21st, Hang Seng Index Company announced the latest quarterly review results, in which TS LINES (02510) was included in the Hang Seng Composite Index constituents. All changes will be implemented after the market close on March 7th, 2025 (Friday) and will take effect from March 10th, 2025 (Monday). According to a CITIC SEC research report, TS LINES may also be included in the Hong Kong stock connect, as it meets a series of criteria including market capitalization, liquidity, and listing time. TS LINES is a container shipping company focusing on the Asia-Pacific region. By fleet size, as of January 1st, 2024, the company ranked 21st among global container shipping companies with a market share of 0.3%. It also ranked 6th among Asia-Pacific-based container shipping companies with a market share of 2.3% in December 2023. As of April 30th, 2024, the company's container shipping network covered 21 countries and regions worldwide and 56 major ports. As of April 30th, 2024, the company operated route services covering 16 countries and regions in the Asia-Pacific region.

21/02/2025

Contact: contact@gmteight.com