Express News | Morgan Stanley lowers Kuaishou's target price to HKD 50 and cuts earnings forecasts.
Intraday quick overview: The gains of the three major indexes have narrowed, golden industrial concepts have strengthened, and Chinagoldintl has risen nearly 5%.
Hang Seng Index rose 0.4%, Science Index rose 0.42%, and National Index rose 0.29%; Commercial vehicle and home appliances stocks joined forces to rise, Sinotruk rose by more than 11%, and Haier Smarthome rose by nearly 5%; Famous anchor Dong Yuhui left the company, East Buy fell by more than 19%.
DBS has lowered its target price for Kuaishou (01024.HK) to 50 yuan and revised down its earnings forecast.
Credit Suisse released a report, lowering its earnings per share estimate for Kuaishou-W (01024.HK) from 2024 to 2026 by 3% to 6% due to weak Chinese macroeconomic conditions affecting Gross Merchandise Volume (GMV) and advertising revenue forecasts. The corresponding target price was also lowered from 55 yuan to 50 yuan. The rating remains "in step with the market." Credit Suisse predicts that Kuaishou's second-quarter revenue and adjusted net profit will be 30.2 billion yuan and 4.4 billion yuan, an increase of 9% and 62% year on year, respectively, consistent with market expectations. For the third quarter, the bank lowered its forecasts for advertising business and other revenue to a year-on-year increase of 17% and 16%, respectively, lower than the market's expectations.
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Hang Seng Index fell by 306 points, Meituan dropped more than 5%, and resource and energy stocks were weak.
The USD/JPY exchange rate fell to the edge of 152, triggering a global stock market decline due to arbitrage trading and unwinding. As for the Hong Kong stock market, the Hang Seng Index opened low by 50 points and the decline expanded. It fell to 16,964 points after a drop of 346 points, and closed at 17,004 points, a decrease of 306 points or 1.8% for the whole day. The national index fell 125 points or 2.1%, closing at 6,016 points. The Hang Seng Tech Index fell 69 points or 2%, closing at 3,421 points. The total turnover of the market for the day was HKD 105.734 billion, with a net outflow of RMB 0.36 billion and 1.64 billion in the southbound trading under the Shanghai and Shenzhen-Hong Kong Stock Connect. The chip equipment manufacturer ASMPT (00522.HK) fell after its performance announcement yesterday.
Hang Seng Index fell below 17,000 in the afternoon, hitting a three-month low, while Meituan declined more than 6%. Local stocks outperformed Evergrande and reached a nearly two-year high in energy.
Dragged down by heavyweight technology stocks such as 'Amazing Seven Heroes', the three major stock indices in the US fell significantly on the night of the 24th; the VIX index, which reflects the market panic, surged 22.6%. Stimulated by the increase in global arbitrage trade liquidation, the yen continued to rise to a two-and-a-half-month high, rising 1% at its highest to 152.22 against the US dollar. Safe-haven sentiment has risen sharply, and major stock markets in the Asia-Pacific region fell across the board today (25th), with the Nikkei index closing down 1,285 points or 3.3%. Following the decline in the past two days, the Hong Kong stock market fell below the 17,000 mark in the afternoon, dropping 335 points at its lowest to a three-month low of 16,975, and is currently reporting 17,010, continuing its decline by 300.