Hong Kong Stock Market Closing (08.14) | Hang Seng Index fell by 0.35%, Tencent Music-SW plummeted by 18% after performance, WH Group led the blue chips

According to the Wisdom Financial APP, the market is waiting for the US CPI data to be released tonight. The Hong Kong stock market opened high in the morning but fell throughout the day. By the close, the Hang Seng Index fell by 0.35% or 60.7 points to 17113.36 points, with a total daily turnover of 68.045 billion Hong Kong dollars; the Hang Seng China Enterprises Index fell by 0.4% to 6025.16 points; and the Hang Seng Tech Index fell by 0.99% to 3395.7 points.

Guoyuan International stated that based on the judgment of the market environment, the bank holds a relatively cautious and optimistic attitude towards the future trend of the Hong Kong stock market. In the medium to long term, they expect more domestic policy dividends to boost market investor confidence. Anxin International reiterated its positive view on the short-term performance of the Hong Kong stock market, as the expectation of a US rate cut and the positive information brought by the performance and outlook of Hong Kong's internet leaders.

Performance of Blue Chip Stocks

WH Group Limited (00288) led the blue chips. By the close, it rose by 8.38% to 5.69 Hong Kong dollars, with a turnover of 4.19 billion Hong Kong dollars, contributing 5.9 points to the Hang Seng Index. WH Group Limited released its interim results, with revenue of 12.293 billion US dollars during the period, a decrease of 6.27% year-on-year; attributable net profit to shareholders was 784 million US dollars, an increase of 86.67% year-on-year; basic earnings per share were 6.11 US cents; and it plans to distribute an interim dividend of 0.1 Hong Kong dollar per share.

As for other blue chip stocks, China Biologic Products (01177) rose by 2.37% to 3.02 Hong Kong dollars, contributing 1.26 points to the Hang Seng Index; Master Kong Holdings (00322) rose by 1.98% to 9.27 Hong Kong dollars, contributing 0.58 points to the Hang Seng Index; WuXi AppTec (02359) fell by 4.04% to 33.25 Hong Kong dollars, dragging down the Hang Seng Index by 0.76 points; and Alibaba Health Information (00241) fell by 2.6% to 3 Hong Kong dollars, dragging down the Hang Seng Index by 0.85 points.

Hot Sectors

On the market, technology stocks fell across the board today. Entertainment stocks led the decline, with Tencent Music plunging by over 18% after its performance, leading to target price cuts by several major banks; wind power stocks collectively declined, with Dongfang Electric falling by over 13% leading the sector; pharmaceutical stocks, heavy machinery stocks, education stocks, non-ferrous metal stocks, etc., all fell. On the other hand, pork prices have started to rise rapidly, with pork-related concepts showing strong performance, and WH Group Limited surged by 8% after its performance; telecom stocks and some chip stocks rose slightly.

1. Pork-related concept stocks led the gains. By the close, WH Group Limited (00288) rose by 8.38% to 5.69 Hong Kong dollars; Huisheng International (01340) rose by 6.9% to 0.031 Hong Kong dollars; and YuRuan Food (01068) rose by 2.22% to 0.138 Hong Kong dollars.

WH Group Limited achieved revenue of 12.293 billion US dollars in the first half of this year, a decrease of 6.27% year-on-year; attributable net profit to shareholders was 784 million US dollars, an increase of 86.67% year-on-year; and it plans to distribute an interim dividend of 0.1 Hong Kong dollar per share. The company's management stated in the mid-term performance conference call that the second half of this year will be the peak season for meat product sales, and overall meat product business performance is expected to be very strong, with profits in the three major markets of China, the United States, and Europe all expected to grow.

In addition, CITIC Securities pointed out that with the rise in pork prices, the monthly sales revenue of major pork enterprises has all achieved month-on-month growth. In terms of prices, the average sales price in July ranged from 17.5 to 19.8 yuan per kilogram, with a month-on-month growth range of 3.2% to 15.6% From the perspective of sales revenue, with the rise in the price of live pigs, some pig enterprises have achieved a growth rate of over 20% in revenue. Overall, under the continuous optimization of breeding costs, the warming of pig prices will continuously improve the profitability of pig enterprises, with some already turning losses around and expanding breeding profits.

2. Apple concept stocks surged in the morning session. By the close, Foxconn Technology Group (02038) rose by 6.58% to HKD 0.81; AAC Technologies (02018) rose by 0.37% to HKD 27.2; while Q Technology Group (01478) fell by over 2% to HKD 4.63.

According to reports, as the countdown to the release of the iPhone 16 series products begins, recruitment demand at the Foxconn factory in Zhengzhou has peaked. According to a recruitment agency, with the rapid growth in labor demand, the highest hourly wage for workers has increased to 25 yuan, and after working in the manufacturing workshop for 3 months, a bonus of up to 7500 yuan can be earned. The agency also stated, "In the past two weeks, at least 50,000 new employees have entered the factory, and large-scale recruitment is still ongoing. In addition, the latest reports indicate that the iPhone 16 is expected to be officially released on September 10, with pre-sales starting on September 13 and full availability on September 20.

3. Biopharmaceutical stocks generally declined, with CXO leading the way. By the close, Hutchison China MediTech (03347) fell by 7.07% to HKD 31.55; Kanglong Chemicals (03759) fell by 4.26% to HKD 9; WuXi AppTec (02359) fell by 4.04% to HKD 33.25; and Hugel (06821) fell by 3.98% to HKD 42.25.

Southwest Securities pointed out that from a macro perspective, based on current economic data, the market's expectation of a Fed rate cut within the year is strengthening, the primary investment and financing environment for biopharmaceuticals may improve, market liquidity expectations are recovering, and there will be valuation repair opportunities in the innovative drug industry chain; the top CXO's commercial orders for the new crown have been fully digested, and geopolitical games are yet to be settled; sector valuations have fallen to historical lows, while individual stock valuations still show differentiation. From an industry perspective, global pharmaceutical research and development investment is steadily increasing, and the CXO industry's business climate remains volatile.

4. Performance of heavy truck concept stocks weakened. By the close, Zoomlion Heavy Industry (01157) fell by 3.89% to HKD 4.2; China National Heavy Duty Truck (03808) fell by 3.13% to HKD 19.52; and Weichai Power (02338) fell by 0.33% to HKD 11.96.

According to a report by Economic Daily, the "price war" in the heavy truck market is intensifying. An FAW Liberation dealer stated that currently, the J6P classic version 480 horsepower 6×4 LNG tractor has been reduced by 50,000 yuan, with previous discounts of around 20,000 yuan. Recently, prices of multiple tractor models have been lowered in the store, with the current reduction generally around 50,000 yuan. The report also quoted a China National Heavy Duty Truck dealer who mentioned that compared to the beginning of the year, the price difference for the same model is at least 30,000 yuan. Data shows that in July, domestic heavy truck market sales were 59,000 units, a 17% decrease from the previous month, marking the fourth consecutive monthly decline.

Hot **Stocks on the Move

1. Urban Beauty (02298) announces profit surge, closing up 24.21% at HKD 0.236.

Urban Beauty announced a profit surge, expecting the profit attributable to owners of the company in the first half of the year to increase by not less than 200% compared to the same period in 2023. This was mainly due to expanding e-commerce cooperation with affiliated businesses, increasing market share and revenue; effectively controlling costs during the period while improving efficiency; and several units of the industrial project in Fenggang Town, Dongguan City have been delivered and accounted for in this period.

2. Tencent Music-SW (01698) plunges after earnings, closing down 18.13% at HKD 43.8.

Tencent Music released its second-quarter results, with revenue of RMB 7.16 billion, a 1.73% year-on-year decrease; net profit attributable to equity holders of the company was RMB 1.682 billion, a 29.58% year-on-year increase. The monthly active users for online music services reached 571 million, a 3.9% year-on-year decrease; while the monthly active users on the mobile end of social entertainment services decreased by 31.6% year-on-year to 93 million.

Daiwa Research pointed out that the company's second-quarter performance roughly met market expectations, with the latest guidance for 2025 music subscription targets showing an 18% year-on-year growth, along with the guidance for the second half of this year, both lower than the bank's expectations, and the company has also delayed the time to achieve its medium to long-term goals. Daiwa downgraded Tencent Music's rating from "Buy" to "Hold" for two consecutive levels, with the target price reduced from HKD 66 to HKD 46.

3. China Biotech (01177) opens high and closes low, up 2.37% at HKD 3.02.

Furui mentioned that the company's mid-term revenue increased by 11% year-on-year, and net profit doubled. Excluding the sale of CP Lotus Qingdao and other one-time transactions, adjusted net profit increased by 14% year-on-year. The group had four innovative drugs approved in the first half of the year. New products and innovative drugs launched within five years contributed approximately 38% and 39% of revenue, higher than the 30% and 37% in the first half of last year.

4. Eastern Selection (01797) declines again, closing down 8.44% at HKD 10.2.

In response to Jiang Xiaobai's statement that "Eastern Selection anchor Tianquan in the Eastern Selection live broadcast room seriously deviates from the facts," Eastern Selection stated on its official Weibo account that the anchor's understanding of Baijiu category is indeed not professional and comprehensive, and will strengthen relevant training in the future. Jiang Xiaobai responded to Eastern Selection's statement, stating that they do not accept this informal form of apology and insincere attitude