UOB Kay Hian Lowers BEKE-W Rating to Hold and Reduces Target Price to HKD39
Operating Revenue Performance: BEKE-W (02423.HK) reported a 2% YoY increase in 3Q25 operating revenue to RMB23.1 billion, aligning with market expectations, despite a 28% YoY decrease in non-GAAP net profit to RMB1.3 billion.
Forecast Adjustments: UOB Kay Hian has revised its forecasts, predicting an 18% YoY decline in adjusted net profit for 4Q25 to RMB1.1 billion and lowering operating revenue estimates for 4Q25 and 2026 by 25% and 18%, respectively.
Rating Downgrade: Due to a challenging macroeconomic environment, UOB Kay Hian downgraded BEKE-W's rating to Hold and reduced its target price from HKD60 to HKD39.
Market Activity: The stock experienced short selling of $52.74 million, with a short selling ratio of 17.044%, indicating significant market activity around BEKE-W.
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<Midday Update> HSI Ends Midday at 25,981, Gaining 21 Points; HSTI Reaches 5,073, Up 13 Points; GEELY AUTO Surges Over 8%; 160 HEALTH, AB&B BIO-TECH-B, GOFINTECH QUANT, CHUANGXIN IND, and JIAXIN INTL RES Achieve New Record Highs
Market Performance: The Hang Seng Index (HSI) rose by 21 points (0.1%) to 25,981, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also saw slight increases.
Active Heavyweights: Notable movements included Meituan down 2.7%, Tencent up 0.5%, and Alibaba up 0.3%, with significant short selling activity across these stocks.
Top Gainers: Geely Auto and CATL experienced substantial gains, rising 8.6% and 8.4% respectively, while several other stocks like XPeng and Xinyi Solar also saw notable increases.
Significant Movers: Stocks such as 51World and Seyond surged over 20%, while Breton faced a significant decline of 12.5%, highlighting a mix of strong performers and underperformers in the market.
HSI Rises 138 Points in Half-Day Trading as CMOC/LAOPU GOLD Jumps 6% After Blue Chip Inclusion; Overall HSI Increases 32% in Year of the Snake
Hong Kong Stock Performance: On February 16, Hong Kong stocks saw a positive half-day session, with the HSI closing up 138 points (0.5%) at 26,705, marking a strong overall performance in the Year of the Snake with a 32% gain.
HSI Quarterly Review Changes: The quarterly review of the HSI included the addition of CATL, CMOC, and LAOPU GOLD, which saw significant gains, while ZHONGSHENG HLDG was removed from the index.
Individual Stock Movements: Notable stock movements included SANDS CHINA LTD rising 2.7% despite a slight decline in property EBITDA, while ANTA SPORTS experienced a minor drop after shareholder approval for a significant acquisition.
US Department of War Update: The US Department of War's withdrawal of the "List of Chinese Military Companies" impacted stock prices, with BABA-W declining 0.5% and BIDU-SW increasing by 1.3%.
BEKE-W and HORIZONROBOT-W Join HSCEI; CHINA RES BEER and MENGNIU DAIRY Excluded
Index Review Announcement: Hang Seng Indexes Company announced the results of its quarterly review for the Hang Seng Family of Indexes, effective from March 9, 2026.
Additions and Deletions: BEKE-W and HORIZONROBOT-W will be added to the HSCEI, while CHINA RES BEER and MENGNIU DAIRY will be removed, keeping the total number of constituents at 50.
Short Selling Data: The short selling data indicates significant activity for the stocks involved, with BEKE-W showing a short selling ratio of 34.793%.
Market Impact: Changes will take effect after market close on March 6, 2026, potentially influencing trading strategies and market dynamics.
UBS: Premature to Declare Stabilization in China's Property Market; New Home Sales Continue to Struggle
Market Reaction: Chinese developers saw an average increase of 8% due to reports of a potential relaxation of the "Three Red Lines" policy and a recovery in second-hand home transactions, alongside stable home prices in major cities.
Caution on Stability: UBS cautioned that it is premature to declare the market stabilized, emphasizing the need for further observation of actual trading data post-Chinese New Year.
Sentiment vs. Reality: The recent uptick in second-hand property transactions is viewed as a reaction to policy shifts rather than a sign of genuine market recovery, supported by the People's Bank of China and the Ministry of Finance.
Weak New Home Sales: Despite the positive sentiment, new home sales remain weak, indicating ongoing challenges in the Chinese property market.
Guosen Securities Reveals Top 10 HK Stocks with Highest Foreign Capital Inflows and Outflows in Q4 2025 (Table)
Top Inflows: Guosen Securities reported the top ten Hong Kong stocks with the largest foreign capital inflows in 4Q25, led by INNOVENT BIO with an inflow of HKD6.43 billion.
Top Outflows: The report also highlighted the top ten stocks with the largest foreign capital outflows, with XIAOMI-W experiencing the highest outflow of HKD50.41 billion.
Short Selling Data: The report included short selling data for each stock, indicating significant short selling activity, particularly for XIAOMI-W and HSBC HOLDINGS.
Market Trends: The report reflects ongoing trends in the Hong Kong stock market, with notable shifts in foreign investment and short selling strategies among major companies.
UBS Lowers BEKE-W (02423.HK) Price Target to $47.5 Amid Ongoing Market Share Decline
UBS Research Report: UBS reassessed BEKE-W (02423.HK), noting a decline in market share in China's major cities, although the rate of decline has slowed compared to previous quarters.
Market Trends: The physical market remains weak, with home prices in major cities dropping by 1.7% month-over-month in November, prompting a moderate policy response from the Central Economic Work Conference.
Earnings Forecasts: UBS lowered its earnings forecasts for BEKE-W for 2026-2027 by 4-5% due to reduced revenue expectations.
Target Price Adjustments: UBS cut its target price for BEKE-W's US stock from $19 to $18 and for its H-shares from $48 to $47.5, maintaining a Neutral rating.
<Midday Update> HSI Ends Midday at 25,981, Gaining 21 Points; HSTI Reaches 5,073, Up 13 Points; GEELY AUTO Surges Over 8%; 160 HEALTH, AB&B BIO-TECH-B, GOFINTECH QUANT, CHUANGXIN IND, and JIAXIN INTL RES Achieve New Record Highs
Market Performance: The Hang Seng Index (HSI) rose by 21 points (0.1%) to 25,981, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also saw slight increases.
Active Heavyweights: Notable movements included Meituan down 2.7%, Tencent up 0.5%, and Alibaba up 0.3%, with significant short selling activity across these stocks.
Top Gainers: Geely Auto and CATL experienced substantial gains, rising 8.6% and 8.4% respectively, while several other stocks like XPeng and Xinyi Solar also saw notable increases.
Significant Movers: Stocks such as 51World and Seyond surged over 20%, while Breton faced a significant decline of 12.5%, highlighting a mix of strong performers and underperformers in the market.
HSI Rises 138 Points in Half-Day Trading as CMOC/LAOPU GOLD Jumps 6% After Blue Chip Inclusion; Overall HSI Increases 32% in Year of the Snake
Hong Kong Stock Performance: On February 16, Hong Kong stocks saw a positive half-day session, with the HSI closing up 138 points (0.5%) at 26,705, marking a strong overall performance in the Year of the Snake with a 32% gain.
HSI Quarterly Review Changes: The quarterly review of the HSI included the addition of CATL, CMOC, and LAOPU GOLD, which saw significant gains, while ZHONGSHENG HLDG was removed from the index.
Individual Stock Movements: Notable stock movements included SANDS CHINA LTD rising 2.7% despite a slight decline in property EBITDA, while ANTA SPORTS experienced a minor drop after shareholder approval for a significant acquisition.
US Department of War Update: The US Department of War's withdrawal of the "List of Chinese Military Companies" impacted stock prices, with BABA-W declining 0.5% and BIDU-SW increasing by 1.3%.
BEKE-W and HORIZONROBOT-W Join HSCEI; CHINA RES BEER and MENGNIU DAIRY Excluded
Index Review Announcement: Hang Seng Indexes Company announced the results of its quarterly review for the Hang Seng Family of Indexes, effective from March 9, 2026.
Additions and Deletions: BEKE-W and HORIZONROBOT-W will be added to the HSCEI, while CHINA RES BEER and MENGNIU DAIRY will be removed, keeping the total number of constituents at 50.
Short Selling Data: The short selling data indicates significant activity for the stocks involved, with BEKE-W showing a short selling ratio of 34.793%.
Market Impact: Changes will take effect after market close on March 6, 2026, potentially influencing trading strategies and market dynamics.
UBS: Premature to Declare Stabilization in China's Property Market; New Home Sales Continue to Struggle
Market Reaction: Chinese developers saw an average increase of 8% due to reports of a potential relaxation of the "Three Red Lines" policy and a recovery in second-hand home transactions, alongside stable home prices in major cities.
Caution on Stability: UBS cautioned that it is premature to declare the market stabilized, emphasizing the need for further observation of actual trading data post-Chinese New Year.
Sentiment vs. Reality: The recent uptick in second-hand property transactions is viewed as a reaction to policy shifts rather than a sign of genuine market recovery, supported by the People's Bank of China and the Ministry of Finance.
Weak New Home Sales: Despite the positive sentiment, new home sales remain weak, indicating ongoing challenges in the Chinese property market.
Guosen Securities Reveals Top 10 HK Stocks with Highest Foreign Capital Inflows and Outflows in Q4 2025 (Table)
Top Inflows: Guosen Securities reported the top ten Hong Kong stocks with the largest foreign capital inflows in 4Q25, led by INNOVENT BIO with an inflow of HKD6.43 billion.
Top Outflows: The report also highlighted the top ten stocks with the largest foreign capital outflows, with XIAOMI-W experiencing the highest outflow of HKD50.41 billion.
Short Selling Data: The report included short selling data for each stock, indicating significant short selling activity, particularly for XIAOMI-W and HSBC HOLDINGS.
Market Trends: The report reflects ongoing trends in the Hong Kong stock market, with notable shifts in foreign investment and short selling strategies among major companies.
UBS Lowers BEKE-W (02423.HK) Price Target to $47.5 Amid Ongoing Market Share Decline
UBS Research Report: UBS reassessed BEKE-W (02423.HK), noting a decline in market share in China's major cities, although the rate of decline has slowed compared to previous quarters.
Market Trends: The physical market remains weak, with home prices in major cities dropping by 1.7% month-over-month in November, prompting a moderate policy response from the Central Economic Work Conference.
Earnings Forecasts: UBS lowered its earnings forecasts for BEKE-W for 2026-2027 by 4-5% due to reduced revenue expectations.
Target Price Adjustments: UBS cut its target price for BEKE-W's US stock from $19 to $18 and for its H-shares from $48 to $47.5, maintaining a Neutral rating.
