01318 Overview

Morgan Stanley's Analysis: Morgan Stanley believes MAO GEPING (01318.HK) aligns well with China's K-shaped consumption model and is resilient to geopolitical tensions, positioning it for market share growth.

Stock Price Adjustment: The company's recent share price decline is attributed to short-term sales fluctuations related to the Lunar New Year and heightened market risk aversion, presenting a favorable opportunity for long-term investors.

Earnings Projections: The broker estimates a PE ratio of 21x for 2026, with an expected average CAGR of 25% in earnings from 2025 to 2027, indicating strong future performance.

Investment Rating: Morgan Stanley has rated MAO GEPING as Overweight, setting a target price of $100 and designating it as a top pick in China's cosmetics sector.

Goldman Sachs Report: Goldman Sachs has added Alibaba (BABA.US) to its APAC Conviction List while removing HORIZONROBOT-W (09660.HK), highlighting Alibaba's expected robust EPS growth of 31% and 36% for FY27 and FY28, respectively.

Market Insights: The report indicates that Alibaba's earnings may be temporarily squeezed in 2HFY26, but its leadership in AI and cloud services, along with a recovery in its e-commerce business, positions it well for future growth.

Short Selling Data: The report includes short selling data for other companies, with MAO GEPING (01318.HK) and GUMING (01364.HK) also listed, showing significant short selling ratios.

Valuation Concerns: Goldman Sachs believes that Alibaba's current valuation does not adequately reflect its comprehensive AI deployment and the potential of its international cloud business.

Market Opening: The HSI, HSCEI, and HSTECH opened lower, with declines of 0.3% and 0.7%, reflecting a negative market sentiment.

ANTA SPORTS Performance: ANTA SPORTS saw a 5.6% drop in share price due to low retail sales growth and management's indication of a challenging investment year ahead.

Other Stock Movements: LI NING and POP MART also experienced declines, while SINOTRUK reported a significant block trade despite a slight opening increase.

Financial Sector Trends: Major financial stocks like HSBC, HKEX, and AIA faced minor declines, while gold-related stocks like CHINAGOLDINTL and ZIJIN MINING saw gains amidst rising gold prices.

US Stock Market Impact: President Trump's threat to impose "Greenland tariffs" negatively affected US stock futures, leading to a decline in Hong Kong stocks, with the HSI down 0.3% and significant drops in major tech stocks like Tencent and Meituan.

Tech Sector Performance: Major tech companies experienced losses, with Tencent and Meituan dropping 1.5% and 1.2%, respectively, while JD and Bilibili saw slight gains. AI-related stocks had mixed results, with Knowledge Atlas plunging 7.4%.

Mobile and Chip Sector Declines: Mobile component stocks like AAC Tech and Sunny Optical fell over 3%, while chip sector stocks, including SMIC and Innosilicon, also experienced declines of up to 3.6%.

Consumer Stocks Surge: Consumer stocks rose, particularly Pop Mart, which surged 9.1% after repurchasing shares for the first time in nearly two years, while other consumer-related stocks benefited from extended loan interest subsidies in Mainland China.

Market Performance: The HSI closed down 11 points at 26,552, with the HSCEI and HSTECH also experiencing slight declines. Total market turnover for the half-day was HKD129.845 billion.

Tech Stock Movements: Major tech stocks like TENCENT and BIDU-SW fell by approximately 1.5%, while JD-SW and BILIBILI-W saw gains of around 1.1% and 1.2%, respectively.

Sector Highlights: Consumer stocks performed well, with POP MART surging 8.5% after announcing a share buyback, while pharmaceutical stocks like HENGRUI PHARMA and WUXI APPTEC faced significant declines.

Economic Indicators: China's Fixed Asset Investment for December showed a year-on-year decrease of -3.8%, and the GDP growth rate for Q4 was reported at 4.5%, slightly below expectations.

Short Selling Activity: MAO GEPING has reported short selling of $7.10 million with a ratio of 10.747%.

H Share Full Circulation Filing: The company has completed a filing with the China Securities Regulatory Commission (CSRC) for the implementation of H Share Full Circulation involving 228 million unlisted shares.

Filing Validity: The filing notice issued by the CSRC is valid for 12 months, starting from January 13, 2026.

Listing Application: MAO GEPING plans to apply to the Stock Exchange's listing committee for approval to list and trade the relevant H Shares.