<Full-day Summary> HSI Gains 539 Points; HSTI Rises 124 Points; BABA Surges Over 18%; WUXI BIO, ZIJIN MINING, SINO BIOPHARM, SMIC, WH GROUP Reach New Peaks; Market Turnover Increases
Market Overview
- HSI Performance: The Hang Seng Index (HSI) increased by 539 points, or 2.2%, closing at 25,617.
- Other Indices: The Hang Seng Tech Index (HSTI) rose by 124 points, also 2.2%, to finish at 5,798, while the Hang Seng China Enterprises Index (HSCEI) gained 174 points, or 1.9%, closing at 9,121.
- Market Turnover: Total market turnover reached approximately $380.23 billion.
Active Heavyweights
- Alibaba (BABA): Shares surged by 18.5%, closing at $137.1, with short selling amounting to $4.90 billion and a short selling ratio of 12.77%.
- Xiaomi (01810.HK): Increased by 2.2% to $54, with short selling of $657.17 million and a ratio of 12.93%.
- Tencent (00700.HK): Rose by 1.4% to $605, with short selling at $875.11 million and a ratio of 17.55%.
- Ping An (02318.HK): Gained 0.6%, closing at $56.65, with short selling of $341.19 million and a ratio of 25.71%.
- Meituan (03690.HK): Up 0.3% to $103, with short selling of $1.95 billion and a ratio of 20.92%.
Notable Movers in HSI & HSCEI
- CSPC Pharma (01093.HK): Increased by 9.1% to $10.99, with short selling of $220.84 million and a ratio of 18.85%.
- Wuxi Biologics (02269.HK): Rose 8.4% to $35.98, hitting a new high, with short selling of $167.23 million and a ratio of 10.62%.
- Zijin Mining (02899.HK): Gained 7.7% to $27.56, also reaching a new high, with short selling of $669.72 million and a ratio of 43.04%.
- Wuxi AppTec (02359.HK): Up 7.5% to $116, with short selling of $64.54 million and a ratio of 9.84%.
- BYD Electronic (00285.HK): Increased by 7.1% to $44.1, with short selling of $405.31 million and a ratio of 14.41%.
Decliners
- BYD Company (01211.HK): Decreased by 5.2% to $108.4, with significant short selling of $1.66 billion and a ratio of 20.86%.
- Meitu (01357.HK): Fell by 13.9% to $10.18, with short selling of $216.61 million and a ratio of 9.90%.
Other Notable Stocks
- Microport (00853.HK): Surged by 22% to $14.77, with short selling of $28.55 million and a ratio of 4.67%.
- Melco International Development (00200.HK): Increased by 14.6% to $6.11, hitting a new high, with short selling of $10.71 million and a ratio of 3.41%.
- Mobvista (01860.HK): Rose by 14.1% to $16.1.
- Innocience (02577.HK): Gained 12% to $96.95, reaching a new high, with short selling of $2.87 million and a ratio of 0.95%.
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HSI Closes Down 384 Points on Futures Settlement Day; Declines in Tech, Auto, Consumer, and Pharma Sectors
Hong Kong Stock Market Performance: The Hong Kong stock market opened higher but closed lower, with the HSI down 384 points (1.4%) at 26,381, and total market turnover at HKD259.277 billion.
CKI Holdings' Stock Surge: A consortium led by CKI Holdings sold UKPN, resulting in a 4.5% increase in its stock price, while CKH Holdings and Power Assets also saw significant gains.
Tech Sector Declines: Alibaba's stock fell 3.6% after a report predicted weak quarterly profits, while other tech stocks like Tencent and Meituan also experienced declines.
Pharmaceuticals and Consumer Stocks Drop: Various pharmaceutical and consumer stocks saw significant losses, with declines ranging from 3.3% to 9.2% across multiple companies.
JPM Adjusts February GGR Projections, Names GALAXY ENT as Preferred Choice
Macau's GGR Performance: Macau's gross gaming revenue (GGR) for the first 22 days of February reached MOP14.3 billion, with a daily average of MOP650 million, falling short of JPMorgan's expectations during the Lunar New Year period.
Forecast Adjustments: Due to mixed performance, JPMorgan revised its February GGR forecast to a flat to 2% increase year-on-year, down from a previous estimate of 2-5% growth, while maintaining a 12-13% growth expectation for the first two months of 2026.
Casino Stock Preferences: JPMorgan updated its preference order for Macau casino stocks, ranking Galaxy Entertainment as the top pick, followed by MGM China and Sands China, all rated Overweight, while Melco Resorts and SJM Holdings were rated Underweight.
Market Reactions: The report noted a decline in casino stocks, with Sands China slipping 2.5% after Citi cut its GGR forecast, reflecting broader market concerns about the gaming sector's performance.
UBS Research: Lunar New Year Daily GGR Average Falls Short; Recommended Stocks Include Melco Resorts, WYNN Macau, and MGM China
Macau GGR Performance: UBS reported that Macau's average daily Gross Gaming Revenue (GGR) during the Lunar New Year holiday was approximately MOP786 million, falling short of market expectations of MOP900-950 million, although it accelerated towards the end of the holiday.
Year-on-Year Comparison: The GGR run-rate increased to MOP1.2-1.3 billion per day in the last three days of the holiday, marking a 10-15% year-on-year increase, but the average daily GGR for the month to date remains down about 8% year-on-year and 11% month-on-month.
UBS Stock Recommendations: UBS identified Melco Resorts, WYNN Macau, and MGM China as top picks in the Macau gaming sector, with all receiving a "Buy" rating and specific target prices set for each stock.
Investment Ratings Overview: The report includes investment ratings and target prices for various Macau gaming stocks, with Melco Resorts at US$9.5, WYNN Macau at HK$8.9, MGM China at HK$18.5, and Galaxy Entertainment at HK$46.9, among others.
<Study>JPM Ratings and Price Targets for Casinos (Table)
Stock Performance: Galaxy Entertainment (00027.HK) saw a decrease of 0.975%, while Sands China Ltd (01928.HK) dropped by 2.474%. Other companies like MGM China and Wynn Macau also experienced declines in their stock prices.
Short Selling Data: Galaxy Entertainment had a short selling amount of $24.63M with a ratio of 19.415%, while Sands China Ltd had $35.30M in short selling with a ratio of 20.788%.
Analyst Ratings: Most companies listed, including Galaxy Entertainment, Sands China, and MGM China, received an "Overweight" rating, indicating a positive outlook from analysts.
Market Predictions: JPMorgan predicts a maximum 5% increase in Macau's February GGR, naming Galaxy Entertainment as a top pick, while UBS expects Sands China’s share price to react positively to its dividend announcement.
JPM Forecasts February GGR for MO to Increase by Up to 5% to MOP20.7B; GALAXY ENT Selected as Preferred Choice
Macau's GGR Performance: Macau's gross gaming revenue (GGR) for the first half of February reached MOP8.8 billion, with a daily run-rate decline to MOP543 million, compared to MOP625 million in the first week of February and MOP730 million in January.
Future GGR Projections: JP Morgan forecasts that GGR will fluctuate in the coming weeks, with expected daily run-rates of MOP850 million-MOP1 billion during the Lunar New Year period and MOP750 million-MOP800 million in the following week.
February GGR Growth Expectations: The broker anticipates a 2-5% year-over-year growth for February's GGR, estimating it to be between MOP20.1 billion and MOP20.7 billion, with a daily run-rate of MOP720 million-MOP740 million.
Investment Recommendations: JP Morgan recommends focusing on individual stocks, naming GALAXY ENT as the top pick with an Overweight rating, followed by MGM CHINA, SANDS CHINA LTD, WYNN MACAU, Melco Resorts & Entertainment, MELCO INT'L DEV, and SJM HOLDINGS.
Melco Cancels Sale of City of Dreams Manila Development
Melco's Decision on City of Dreams Manila: Melco has decided to abandon the sale of the City of Dreams Manila project, as no buyer was found that met the property's value expectations.
Lawrence Ho's Remarks: Lawrence Ho, Chairman and CEO of Melco, stated that while the sale process has concluded, he remains optimistic about the business's recovery and indicated that the situation may be reevaluated in the future.
HSI Closes Down 384 Points on Futures Settlement Day; Declines in Tech, Auto, Consumer, and Pharma Sectors
Hong Kong Stock Market Performance: The Hong Kong stock market opened higher but closed lower, with the HSI down 384 points (1.4%) at 26,381, and total market turnover at HKD259.277 billion.
CKI Holdings' Stock Surge: A consortium led by CKI Holdings sold UKPN, resulting in a 4.5% increase in its stock price, while CKH Holdings and Power Assets also saw significant gains.
Tech Sector Declines: Alibaba's stock fell 3.6% after a report predicted weak quarterly profits, while other tech stocks like Tencent and Meituan also experienced declines.
Pharmaceuticals and Consumer Stocks Drop: Various pharmaceutical and consumer stocks saw significant losses, with declines ranging from 3.3% to 9.2% across multiple companies.
JPM Adjusts February GGR Projections, Names GALAXY ENT as Preferred Choice
Macau's GGR Performance: Macau's gross gaming revenue (GGR) for the first 22 days of February reached MOP14.3 billion, with a daily average of MOP650 million, falling short of JPMorgan's expectations during the Lunar New Year period.
Forecast Adjustments: Due to mixed performance, JPMorgan revised its February GGR forecast to a flat to 2% increase year-on-year, down from a previous estimate of 2-5% growth, while maintaining a 12-13% growth expectation for the first two months of 2026.
Casino Stock Preferences: JPMorgan updated its preference order for Macau casino stocks, ranking Galaxy Entertainment as the top pick, followed by MGM China and Sands China, all rated Overweight, while Melco Resorts and SJM Holdings were rated Underweight.
Market Reactions: The report noted a decline in casino stocks, with Sands China slipping 2.5% after Citi cut its GGR forecast, reflecting broader market concerns about the gaming sector's performance.
UBS Research: Lunar New Year Daily GGR Average Falls Short; Recommended Stocks Include Melco Resorts, WYNN Macau, and MGM China
Macau GGR Performance: UBS reported that Macau's average daily Gross Gaming Revenue (GGR) during the Lunar New Year holiday was approximately MOP786 million, falling short of market expectations of MOP900-950 million, although it accelerated towards the end of the holiday.
Year-on-Year Comparison: The GGR run-rate increased to MOP1.2-1.3 billion per day in the last three days of the holiday, marking a 10-15% year-on-year increase, but the average daily GGR for the month to date remains down about 8% year-on-year and 11% month-on-month.
UBS Stock Recommendations: UBS identified Melco Resorts, WYNN Macau, and MGM China as top picks in the Macau gaming sector, with all receiving a "Buy" rating and specific target prices set for each stock.
Investment Ratings Overview: The report includes investment ratings and target prices for various Macau gaming stocks, with Melco Resorts at US$9.5, WYNN Macau at HK$8.9, MGM China at HK$18.5, and Galaxy Entertainment at HK$46.9, among others.
<Study>JPM Ratings and Price Targets for Casinos (Table)
Stock Performance: Galaxy Entertainment (00027.HK) saw a decrease of 0.975%, while Sands China Ltd (01928.HK) dropped by 2.474%. Other companies like MGM China and Wynn Macau also experienced declines in their stock prices.
Short Selling Data: Galaxy Entertainment had a short selling amount of $24.63M with a ratio of 19.415%, while Sands China Ltd had $35.30M in short selling with a ratio of 20.788%.
Analyst Ratings: Most companies listed, including Galaxy Entertainment, Sands China, and MGM China, received an "Overweight" rating, indicating a positive outlook from analysts.
Market Predictions: JPMorgan predicts a maximum 5% increase in Macau's February GGR, naming Galaxy Entertainment as a top pick, while UBS expects Sands China’s share price to react positively to its dividend announcement.
JPM Forecasts February GGR for MO to Increase by Up to 5% to MOP20.7B; GALAXY ENT Selected as Preferred Choice
Macau's GGR Performance: Macau's gross gaming revenue (GGR) for the first half of February reached MOP8.8 billion, with a daily run-rate decline to MOP543 million, compared to MOP625 million in the first week of February and MOP730 million in January.
Future GGR Projections: JP Morgan forecasts that GGR will fluctuate in the coming weeks, with expected daily run-rates of MOP850 million-MOP1 billion during the Lunar New Year period and MOP750 million-MOP800 million in the following week.
February GGR Growth Expectations: The broker anticipates a 2-5% year-over-year growth for February's GGR, estimating it to be between MOP20.1 billion and MOP20.7 billion, with a daily run-rate of MOP720 million-MOP740 million.
Investment Recommendations: JP Morgan recommends focusing on individual stocks, naming GALAXY ENT as the top pick with an Overweight rating, followed by MGM CHINA, SANDS CHINA LTD, WYNN MACAU, Melco Resorts & Entertainment, MELCO INT'L DEV, and SJM HOLDINGS.
Melco Cancels Sale of City of Dreams Manila Development
Melco's Decision on City of Dreams Manila: Melco has decided to abandon the sale of the City of Dreams Manila project, as no buyer was found that met the property's value expectations.
Lawrence Ho's Remarks: Lawrence Ho, Chairman and CEO of Melco, stated that while the sale process has concluded, he remains optimistic about the business's recovery and indicated that the situation may be reevaluated in the future.
