CICC 2026 Outlook: CICC has released its stock picks for Hong Kong in 2026, highlighting companies like Tencent, Alibaba, and China Mobile, along with their short selling data and ratios.

Everbright Securities Report: Everbright Securities International also published a report in December focusing on key stocks for 2026, including Tencent, Alibaba, and Jiangxi Copper, with detailed short selling statistics.

Market Trends: Both reports indicate a significant amount of short selling activity across various stocks, suggesting cautious investor sentiment in the Hong Kong market.

Trade-in Policy Impact: Citi anticipates that a new trade-in policy will positively affect Chinese e-commerce platforms, potentially mitigating the high base impact expected in the first half of 2026.

HSBC's Proposal Impact: HSBC Holdings' proposal to privatize Hang Seng Bank is expected to lead to the bank's shares being withdrawn from the Hong Kong Stock Exchange, with the last trading day set for January 14, 2026.

Index Removals: Following the privatization, Hang Seng Bank will be removed from several indexes, including the Hang Seng Index and various sub-indexes, without replacement.

Replacement Stocks: Several companies will replace Hang Seng Bank in various indexes, including MMG in the Hang Seng HK 35 and CK Asset in the Corporate Sustainability Index.

Short Selling Data: The article includes short selling data for HSBC and Hang Seng Bank, indicating significant short selling activity prior to the proposed privatization.

Acquisition Announcement: MAN WAH HLDGS announced a US$32 million acquisition of Gainline Recline Intermediate Corp. to enhance its sofa business in the US market.

Financial Strategy: The company aims to achieve breakeven for Gainline within 12 months by reducing supply chain costs and leveraging bulk purchase discounts.

Earnings Forecast Adjustment: Citi Research adjusted its earnings forecasts for MAN WAH HLDGS for FY2026-2028 and raised the target price from $5.3 to $6.5, reflecting an improved competitive position.

Investment Upgrade: Citi Research upgraded MAN WAH HLDGS from Neutral to Buy, citing an expected return rate exceeding 6% for FY2027 and a 7% CAGR in EPS over three years.

Acquisition Announcement: Man Wah Holdings announced the acquisition of Gainline Recline Intermediate Corp. for US$32 million, along with assuming US$27.9939 million in bank debt.

Market Expansion: The acquisition is expected to enhance synergy and increase Man Wah's market share in North America through a distribution network of over 1,000 furniture retailers and established brands.

Cost Optimization: The company benefits from advantages in raw material procurement and automation, which will facilitate supply chain synergy with the acquired group.

Profit Forecasts: CICC maintained its profit forecasts for FY2026/2027 at $2.124 billion and $2.248 billion, respectively, and kept the rating at Outperform with a target price of $6.5.

Interim Results Overview: Man Wah Holdings reported interim results for the period ending September 2025, with revenue and other income at $8.241 billion, a decrease of 2.7% year-over-year.

Profit and Earnings: The company achieved a net profit of $1.146 billion, reflecting a slight increase of 0.6% year-over-year, resulting in an earnings per share (EPS) of $29.54 cents.

Dividends: The interim dividend per share (DPS) remained unchanged from the previous year at $0.15.

Market Activity: The stock experienced a short selling of $853.39K, with a short selling ratio of 14.567%.