<Research>Citi Adds POWER ASSETS (00006.HK) TP to $59 as 1H25 Results Slightly Miss, but Remains Optimistic
Earnings Performance: POWER ASSETS reported a slight 1% increase in net profit for 1H25 to $3.042 billion, falling 2% short of Citi Research's expectations, primarily due to lower foreign exchange gains and increased financing costs.
Future Outlook: Citi Research raised its 2025-2027 net profit forecasts by 1-3% following the company's planned sale of a 10% stake in a UK project, while maintaining a Buy rating and increasing the target price from $58 to $59, citing potential acquisitions and favorable market conditions.
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<Daily Summary> HSI Ends at 26,834, Gaining 59 Points; HSTI Finishes at 5,467, Losing 59 Points; CSPC PHARMA Surges Over 8%; NEW ORIENTAL, HSBC HOLDINGS, MTR CORPORATION, POWER ASSETS, CIMC Reach New Peaks; Market Turnover Increases
Market Performance: The HSI rose by 59 points (0.2%) to 26,834, while the HSTI and HSCEI fell by 59 points (1.1%) and 27 points (0.3%) respectively, with a total market turnover of $335.15 billion.
Active Heavyweights: Major stocks like Tencent, Meituan, and Alibaba saw declines, with Tencent closing down 2.9% at $581, while Ping An was the only heavyweight to gain, closing up 0.8% at $71.3.
Notable Movers: CSPC Pharma and New Oriental experienced significant gains, rising 8.1% and 6.4% respectively, while Kuaishou-W and Baidu-SW faced notable declines, down 4.6% and 3.6%.
High Performers: CIMC and Wanguo Gold GP were standout performers, with CIMC surging 15% and Wanguo Gold GP increasing by 13.6%, both hitting new highs.
<Midday Update> HSI Ends Midday at 26,830, Gaining 54 Points; HSTI Ends Midday at 5,453, Losing 72 Points; TENCENT Falls More Than 3%; MTR CORPORATION, POWER ASSETS, CIMC, ZOOMLION, FIH Reach New Peaks
Market Performance: The HSI rose by 54 points (0.2%) to 26,830, while the HSTI and HSCEI fell by 72 points (1.3%) and 19 points (0.2%) respectively.
Active Heavyweights: Major stocks like Tencent, Alibaba, and Meituan experienced declines, with Tencent down 4.0% and Alibaba down 2.3%, while Ping An saw a slight increase of 0.9%.
Notable Movers: CSPC Pharma and CKH Holdings saw significant gains, up 3.5% and 3.4% respectively, while Kuaishou-W dropped 5.1%.
High Performers: Stocks like Fangzhou Jianke and CIMC achieved notable increases of 15.3% and 16.1%, reaching new highs in their respective performances.
<Daily Summary> HSI Ends at 26,749, Gaining 119 Points; HSTI Finishes at 5,798, Up 35 Points; XINYI SOLAR Surges Over 11%; MTR CORPORATION, CKH HOLDINGS, POWER ASSETS, MMG, MORIMATSU INTL Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) rose by 119 points (0.4%) to close at 26,749, with a total market turnover of $240.87 billion.
Active Heavyweights: Notable stock movements included Xiaomi (+2.8%), Alibaba (+2.2%), and HKEX (-1.0%), with significant short selling activity across these stocks.
Top Gainers: Xinyi Solar surged by 11.1%, Pop Mart increased by 6.6%, and New Oriental rose by 3.8%, all showing strong performance among HSI and HSCEI constituents.
High Performers in HSMI & HSSI: MMG and Flat Glass both saw significant gains of 11.5% and 10.4%, respectively, with several stocks hitting new highs during the trading session.
<Daily Summary> HSI Ends at 26,585, Gaining 97 Points; HSTI Finishes at 5,746, Up 62 Points; ANTA SPORTS Declines by More than 4%; BIDU-SW, MTR CORPORATION, POWER ASSETS, SINOPEC CORP, and CLP HOLDINGS Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) rose by 97 points (0.4%) to close at 26,585, while the Hang Seng Tech Index (HSTI) increased by 62 points (1.1%) to 5,746, with a total market turnover of $250.45 billion.
Active Heavyweights: Notable movements included Alibaba (BABA) up 2.2% to $163.2, Tencent (TENCENT) up 0.2% to $602.5, and Xiaomi (XIAOMI) down 0.2% to $35.42, with significant short selling activity across these stocks.
HSI & HSCEI Constituents: Anta Sports (ANTA) fell 4.2% to $79.1, while SMIC (SMIC) and Kuaishou (KUAISHOU) saw gains of 3.7% and 3.6%, respectively, indicating mixed performance among constituents.
HSMI & HSSI Constituents: Skyworth (SKYWORTH) surged 37.5% to $7.12, marking a new high, alongside other significant gainers like SF Intra-City (up 20.5%) and TCL Electronics (up 14.8%), reflecting strong upward trends in certain sectors.
BofAS Begins Coverage of POWER ASSETS with Buy Rating and HKD63 Price Target, Expects Growth in Interim Dividends
BofA Securities Coverage: BofA Securities has initiated coverage on POWER ASSETS (00006.HK) with a Buy rating and a target price of HKD63, anticipating a 6% CAGR in earnings from FY24-27 due to regulatory changes enhancing returns on Australian assets.
Dividend Growth Potential: The report suggests that operating capital growth will surpass dividend growth, potentially increasing interim dividends, with a forecasted dividend yield of 5% for 2026, the highest among its Hong Kong peers.
Midday Summary: HSI Ends at 26,158, Gaining 8 Points; HSTI at 5,674, Dropping 3 Points; XINYI SOLAR Falls Over 3%; CKI HOLDINGS, POWER ASSETS, ZHAOJIN MINING, CIMC ENRIC, ANE Reach New Peaks
Market Performance: The HSI rose slightly by 8 points to 26,158, while the HSTI and HSCEI experienced minor declines and gains, closing at 5,674 and 9,042 respectively.
Active Heavyweights: BABA saw a notable increase of 2.8% to close at $146.6, while Meituan, Tencent, Ping An, and Xiaomi all experienced declines in their stock prices.
Constituents on the Move: Xinyi Solar and CKI Holdings had contrasting performances, with Xinyi Solar down 3.1% and CKI Holdings up 2.2%, reaching a new high.
HSMI & HSSI Highlights: Zhaojin Mining and CIMC Enric both achieved significant gains, with Zhaojin Mining up 3.9% and CIMC Enric up 3.1%, both hitting new highs.
<Daily Summary> HSI Ends at 26,834, Gaining 59 Points; HSTI Finishes at 5,467, Losing 59 Points; CSPC PHARMA Surges Over 8%; NEW ORIENTAL, HSBC HOLDINGS, MTR CORPORATION, POWER ASSETS, CIMC Reach New Peaks; Market Turnover Increases
Market Performance: The HSI rose by 59 points (0.2%) to 26,834, while the HSTI and HSCEI fell by 59 points (1.1%) and 27 points (0.3%) respectively, with a total market turnover of $335.15 billion.
Active Heavyweights: Major stocks like Tencent, Meituan, and Alibaba saw declines, with Tencent closing down 2.9% at $581, while Ping An was the only heavyweight to gain, closing up 0.8% at $71.3.
Notable Movers: CSPC Pharma and New Oriental experienced significant gains, rising 8.1% and 6.4% respectively, while Kuaishou-W and Baidu-SW faced notable declines, down 4.6% and 3.6%.
High Performers: CIMC and Wanguo Gold GP were standout performers, with CIMC surging 15% and Wanguo Gold GP increasing by 13.6%, both hitting new highs.
<Midday Update> HSI Ends Midday at 26,830, Gaining 54 Points; HSTI Ends Midday at 5,453, Losing 72 Points; TENCENT Falls More Than 3%; MTR CORPORATION, POWER ASSETS, CIMC, ZOOMLION, FIH Reach New Peaks
Market Performance: The HSI rose by 54 points (0.2%) to 26,830, while the HSTI and HSCEI fell by 72 points (1.3%) and 19 points (0.2%) respectively.
Active Heavyweights: Major stocks like Tencent, Alibaba, and Meituan experienced declines, with Tencent down 4.0% and Alibaba down 2.3%, while Ping An saw a slight increase of 0.9%.
Notable Movers: CSPC Pharma and CKH Holdings saw significant gains, up 3.5% and 3.4% respectively, while Kuaishou-W dropped 5.1%.
High Performers: Stocks like Fangzhou Jianke and CIMC achieved notable increases of 15.3% and 16.1%, reaching new highs in their respective performances.
<Daily Summary> HSI Ends at 26,749, Gaining 119 Points; HSTI Finishes at 5,798, Up 35 Points; XINYI SOLAR Surges Over 11%; MTR CORPORATION, CKH HOLDINGS, POWER ASSETS, MMG, MORIMATSU INTL Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) rose by 119 points (0.4%) to close at 26,749, with a total market turnover of $240.87 billion.
Active Heavyweights: Notable stock movements included Xiaomi (+2.8%), Alibaba (+2.2%), and HKEX (-1.0%), with significant short selling activity across these stocks.
Top Gainers: Xinyi Solar surged by 11.1%, Pop Mart increased by 6.6%, and New Oriental rose by 3.8%, all showing strong performance among HSI and HSCEI constituents.
High Performers in HSMI & HSSI: MMG and Flat Glass both saw significant gains of 11.5% and 10.4%, respectively, with several stocks hitting new highs during the trading session.
<Daily Summary> HSI Ends at 26,585, Gaining 97 Points; HSTI Finishes at 5,746, Up 62 Points; ANTA SPORTS Declines by More than 4%; BIDU-SW, MTR CORPORATION, POWER ASSETS, SINOPEC CORP, and CLP HOLDINGS Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) rose by 97 points (0.4%) to close at 26,585, while the Hang Seng Tech Index (HSTI) increased by 62 points (1.1%) to 5,746, with a total market turnover of $250.45 billion.
Active Heavyweights: Notable movements included Alibaba (BABA) up 2.2% to $163.2, Tencent (TENCENT) up 0.2% to $602.5, and Xiaomi (XIAOMI) down 0.2% to $35.42, with significant short selling activity across these stocks.
HSI & HSCEI Constituents: Anta Sports (ANTA) fell 4.2% to $79.1, while SMIC (SMIC) and Kuaishou (KUAISHOU) saw gains of 3.7% and 3.6%, respectively, indicating mixed performance among constituents.
HSMI & HSSI Constituents: Skyworth (SKYWORTH) surged 37.5% to $7.12, marking a new high, alongside other significant gainers like SF Intra-City (up 20.5%) and TCL Electronics (up 14.8%), reflecting strong upward trends in certain sectors.
BofAS Begins Coverage of POWER ASSETS with Buy Rating and HKD63 Price Target, Expects Growth in Interim Dividends
BofA Securities Coverage: BofA Securities has initiated coverage on POWER ASSETS (00006.HK) with a Buy rating and a target price of HKD63, anticipating a 6% CAGR in earnings from FY24-27 due to regulatory changes enhancing returns on Australian assets.
Dividend Growth Potential: The report suggests that operating capital growth will surpass dividend growth, potentially increasing interim dividends, with a forecasted dividend yield of 5% for 2026, the highest among its Hong Kong peers.
Midday Summary: HSI Ends at 26,158, Gaining 8 Points; HSTI at 5,674, Dropping 3 Points; XINYI SOLAR Falls Over 3%; CKI HOLDINGS, POWER ASSETS, ZHAOJIN MINING, CIMC ENRIC, ANE Reach New Peaks
Market Performance: The HSI rose slightly by 8 points to 26,158, while the HSTI and HSCEI experienced minor declines and gains, closing at 5,674 and 9,042 respectively.
Active Heavyweights: BABA saw a notable increase of 2.8% to close at $146.6, while Meituan, Tencent, Ping An, and Xiaomi all experienced declines in their stock prices.
Constituents on the Move: Xinyi Solar and CKI Holdings had contrasting performances, with Xinyi Solar down 3.1% and CKI Holdings up 2.2%, reaching a new high.
HSMI & HSSI Highlights: Zhaojin Mining and CIMC Enric both achieved significant gains, with Zhaojin Mining up 3.9% and CIMC Enric up 3.1%, both hitting new highs.
