The Hang Seng Internet ETF(513330) based on individual research： the performance of index heavyweights exceeded expectations, demonstrating the business resilience.
Source: ETF Chief Helmsman
synopsis
1. The Hang Seng Internet ETF tracks the Hang Seng Internet Technology Industry Index, which reflects the performance of the constituent companies mainly engaged in information technology business in the Hang Seng Composite Index.Its constituent stocks cover the whole industrial chain of digital innovation, and they are not only the Internet giants such as Alibaba, Tencent and Meituan, but also the upstream hardware manufacturers such as SMIC and Hua Hong Semiconductor, which has a large room for performance growth and high certainty.
2. The performance of leading constituent stocks exceeded expectations, and the index showed operational resilience.On May 26th, Alibaba and Baidu announced their latest achievements, all exceeding market expectations, with outstanding business resilience. On May 27th, Hong Kong stocks opened higher, the Hang Seng Index opened 2.63% higher, the Hang Seng Technology Index rose 4.45%, and Alibaba and Baidu Group rose about 12% and 15% respectively. Hong Kong stocks performed strongly all day. At present, the overall valuation of Hong Kong stocks has been adjusted in place after a continuous decline in the previous period, and its advantages as a global valuation depression are gradually recognized by the market. In the future, with the marginal improvement of unfavorable factors, it may usher in a systematic valuation upgrade opportunity.
3. The Internet sector led Hong Kong stocks to seize the current strategic allocation opportunity.Stimulated by the surge of US stocks and China Stock Exchange the previous day, on May 27th, Hong Kong stocks opened higher, the Hang Seng Index opened 2.63% higher and the Hang Seng Science and Technology Index rose 4.45%. Recently, the domestic policy of steady growth has been in the stage of sustained development on the right. The "525 National Conference on Stable Economy" has laid a strong arm for all localities to implement the central spirit. With the gradual resumption of work and production in Shanghai, the epidemic factors that had previously affected market sentiment have weakened marginally. In addition, the minutes of the FOMC meeting in May did not show an unexpected hawkish signal, the short-term risks of US stocks gradually cleared up, and Hang Seng Internet will gradually usher in a turning point.
Product elements
Fund size:24.110 billion yuan
On-site turnover:The total turnover last week was 12.264 billion yuan, with an average daily turnover of 2.453 billion yuan.
Net inflow of funds:Last week, the fund share increased by 410 million shares.
Last week’s earnings performance:Last week, prices rose and fell by-1.49%, while the Shanghai and Shenzhen 300 rose and fell by-1.87% and the Hang Seng Index rose and fell by-0.10%.
Chart: Top Ten Awkwardness Stocks of Hang Seng Internet ETF
Source of data: Wind, as of May 27, 2022, special note: the above are not recommended as stocks.
Chart: distribution of Hang Seng Internet ETF sub-sectors
Source: Wind, as of 2022/05/27.
1. Market Review
Chart: The performance of mainstream indexes in Hong Kong stock market last week.
Source: Wind, as of May 27, 2022.
Last week, the Hong Kong stock market fluctuated downward, with the Hang Seng Index falling slightly by 0.10% and the Hang Seng Internet Index closing down by 1.57%. In terms of individual stocks, 13 stocks rose and 21 stocks fell in the index last week, among which car home-S (7.87%), Baozun E-commerce-SW (7.53%), Baidu Group-SW (6.96%), SMIC (6.02%) led the gains, and IWC-SW (-15.92%).
2. Industry &; Information of constituent stocks
Last week, the total net inflow of southbound funds during the week was 8.591 billion Hong Kong dollars. As of May 27, 2022, the cumulative net inflow of southbound funds this year reached HK$ 153.599 billion.
Chart: Net purchases of southbound funds in recent 30 days
Source: Wind, as of May 27, 2022.
Alibaba-SW (9988.HK):On May 26th, the company announced the performance of FY2022, achieving a revenue of 853.062 billion yuan, up 19% year-on-year, which was higher than the unanimous expectation of Bloomberg. The Non-GAAP net profit was 136.388 billion yuan, down 21% year-on-year. Among them, FY2022Q4 revenue was 204.052 billion yuan, up 9% year-on-year, and Non-GAAP net profit was 19.799 billion yuan, down 24% year-on-year. In terms of GMV, FY2022 increased by 2% year-on-year to 8.32 trillion yuan, including 7.98 trillion yuan in China market and 341 billion yuan in international market. A number of business performances exceeded market expectations. FY2022Q4 China’s business income was 140.33 billion yuan, up 8% year-on-year, customer management income was 63.421 billion yuan, up 0.31% year-on-year, higher than the previous guidelines, and local life service income was 10.445 billion yuan, up 29% year-on-year, higher than Bloomberg’s consensus expectations. The growth was mainly caused by the long-term repeated epidemic situation, which increased consumers’ demand for necessities storage and the continuous optimization of the company’s The revenue from cloud business was 18.971 billion yuan, up 12% year-on-year, which was lower than the consensus expectation of Bloomberg, mainly due to the weak macro-economy, the reduced demand of Internet companies for cloud, and the impact of the epidemic on project delivery. 618 is approaching, and in the context of the weak economy in China, Ali has boosted consumption with subsidies greater than in previous years, boosting the release of online demand during shopping. Stimulated by the unexpected performance, the company’s Hong Kong stock price rose 12.21% the next day.
Baidu Group-SW (9888.HK):On May 26th, the company announced the results of 2022Q1. In the first quarter, the company’s overall revenue was 28.4 billion yuan (+1%), and the Non-GAAP net profit was 3.9 billion yuan (-22%). The revenue met expectations and the profit exceeded expectations. In terms of business, Baidu core’s revenue is expected to increase by 1% to 21.4 billion yuan, of which advertising revenue is 15.7 billion yuan (-4%), mainly due to macro headwinds caused by local epidemic distribution and other factors. Non-advertising revenue was 5.7 billion yuan (+35%), of which intelligent cloud revenue increased by 45%, exceeding expectations. On the profit side, Baidu core’s Non-GAAP operating profit margin is 17%, the Non-GAAP net profit margin is 18%, and the overall Non-GAAP net profit of the group is 3.9 billion yuan (-10%). The profit growth is mainly due to the relatively cautious operation of Baidu core and the substantial improvement of iQiyi’s profit. With the impact of the epidemic gradually fading in mid-March, we judge that the company’s advertising business is expected to gradually stabilize in the second half of the year. As the company’s second growth curve, Baidu AI Cloud has continued to expand in the fields of intelligent transportation and industrial Internet, and its growth rate is higher than the industry average. Although it faces quarterly fluctuations, its overall health is still good. Intelligent driving has also progressed steadily. Apollo obtained the letter from Dongfeng Motor, and radish quickly expanded to Wuzhen and Wuhan, and the commercialization process continued to advance. Optimistic about the investment opportunities for the company’s fundamentals to improve after the industry recovery. Stimulated by the unexpected performance, the company’s Hong Kong stock price rose 14.26% the next day.
The Internet sector led the gains in Hong Kong stocks, seizing the current strategic allocation opportunity.Stimulated by the surge of US stocks and China Stock Exchange the previous day, on May 27th, Hong Kong stocks opened higher, the Hang Seng Index opened 2.63% higher and the Hang Seng Science and Technology Index rose 4.45%. Among them, the performance of Alibaba and Baidu Group exceeded expectations, rising by about 12% and 15% respectively. Hong Kong stocks performed strongly throughout the day. At the close, Hang Seng Internet ETF(513330) and Hang Seng Technology Index ETF(513180) rose by 3.36%/4.06% respectively. Recently, the domestic policy of steady growth has been in the stage of sustained development on the right. The "525 National Conference on Stable Economy" has laid a strong arm for all localities to implement the central spirit. With the gradual resumption of work and production in Shanghai, the epidemic factors that had previously affected market sentiment have weakened marginally. In addition, the minutes of the FOMC meeting in May did not show the hawkish signal that exceeded expectations, and the short-term risks of US stocks gradually cleared up. Hang Seng Internet will gradually usher in a turning point, and the Hong Kong stock Internet sector represented by the platform economy will usher in the bottom of valuation, policy and profit. Resonance.
(Data sources: Wind, CITIC Jiantou, CITIC Securities, Zheshang Securities, note: the above does not constitute a stock recommendation)
3. Valuation analysis
Last week, the Internet sector of Hong Kong stocks fluctuated downward as a whole. On Friday, it was boosted by the performance of constituent stocks exceeding expectations and rose sharply. The resilience of the index performance was highlighted. At present, the overall valuation of Hong Kong stocks has been adjusted in place after a continuous decline in the previous period, and its advantages as a global valuation depression are gradually recognized by the market. In the future, with the marginal improvement of unfavorable factors, it may usher in a systematic valuation upgrade opportunity. The current shock city is a more suitable layout time for fixed investment, and you can accumulate chips through low-level small-batch admission or fixed investment.
Chart: Changes in the valuation of Hang Seng Internet Index
Source: Wind, as of 2022/05/27.
(Be cautious about risky investment in the market)