1. Ingeniería

Morning Flash
29 January 2015
Hong Kong/China Market
Technical Strategy
Indices
Gold spot has trended up since Nov14, partly as a result of the EU and U.S. HSI
imposition of sanctions against Russia and the backlash from Euro over the HSI Future
new Greece cabinet…
DJIA
Source: Bloomberg, VC Research
But spot gold is still trading within a descending channel developed since
2H13. A key resistance stands at USD1,330/ounce, or the ceiling of the
channel.
Hong Kong Market Review
China shares remained weak yesterday, as the SHCOMP closed
down 1.4% and the HSCEI retreated 0.41%. But the HSI managed to
rebound 48 points, as local property developer shares generally
gained. The US Fed is to announce its meeting result on Thursday.
Perhaps investors put their bet on the Fed putting off its rate hike
schedule. And as such, interest rate sensitive shares generally had a
good run yesterday.
A checked rally. The SHCOMP retreated two days in a row, as
investors concerned about liquidity flowing in the equity market would
slow after a number of mainland banks revised down leverage for trust
products investing in shares. It is reported that the balance of margin
trading debt rose to Rmb773.8bn on the SHCOMP on Tuesday
yesterday, climbing to a record for a second day. The CSRC moved to
try to rein the running away margin financing in order to prevent the
formation of a financial bubble. And it is expected that trading of the
SHCOMP will become even choppier as the regulatory body tries to
control the pace at the equity market will grow. Anyhow, the
investment market is still on the A-shares in the medium term.
© 2015 VC Brokerage Limited. All rights reserved. Opinions, projections and other information contained in this
report are based upon sources believed to be accurate, but no responsibility is accepted for any loss occasioned by
reliance placed upon the contents herein. Further information on the companies mentioned in this report is available
upon request.
Latest
24,862
Chg. Pts
55
24,725
-153
17,191
-196
S&P 500
2,002
-27
NASDAQ
4,638
-44
H-share
11,964
-67
Red-chip
4,571
-1
Shanghai Comp
3,306
-47
Shenzhen Comp
1,539
-11
Morning Flash
29 January 2015
Economic News
Fed Raises Assessment of Economy While Staying Patient on
Rates: The Federal Reserve boosted its assessment of the economy
and played down low inflation while repeating a pledge to stay
“patient” on raising interest rates. The Federal Open Market
Committee described the expansion as “solid,” an improvement over
the “moderate” performance it saw in December. It substituted
“strong” for “solid” in its evaluation of job gains after a meeting
Wednesday in Washington. While inflation “is anticipated to decline
further in the near term,” the FOMC said in a statement, it is likely to
rise gradually toward its 2 percent goal “over the medium term” as the
impact of low oil prices diminishes. Policy makers also said cheaper
energy will help boost consumer buying power. The Fed’s confidence
in the outlook for higher inflation and lower unemployment suggests it
will stick to plans to raise interest rates this year for the first time since
2006. One caveat: officials will take “international developments” into
account when considering an increase, language that contributed to a
decline in stocks and Treasury yields. (Bloomberg)
$11 Billion Wiped From Greek Banks on Nationalization Threat:
The amount that investors gave Greek lenders last year was wiped off
in three days of trading amid the threat of greater government control.
In a bid to boost balance sheets, the nation’s banks raised more than
$11.5 billion in additional share sales in 2014, the most in at least a
decade, data compiled by Bloomberg show. That capital was almost
wiped out as bank stocks lost about $11.4 billion in market value this
week. Shares of Piraeus Bank SA and National Bank of Greece SA
plunged the most, becoming fractions of their pre-crisis peaks. In his
first week in office, Prime Minister Alexis Tsipras stood by pledges to
renegotiate the terms of Greece’s bailout and has appointed ministers
who said they will cease the sale of some state assets. That sparked
a record 44 percent selloff in the FTSE/Athex Banks Index. The
nation’s stocks and bonds slumped, even as Tsipras and his finance
chief pledged to avoid a standoff with creditors. The benchmark ASE
Index has fallen 15 percent in the past three days, and bond yields
spiked to levels not seen since 2012. A person familiar with the matter
said bank-deposit withdrawals accelerated to record levels in the runup to the Jan. 25 election. The losses took Greek stocks down 48
percent since a high in March, as anti-austerity party Syriza gained
ground among voters. (Bloomberg)
Japan’s Retail Sales Unexpectedly Slump in Challenge to Abe:
Japanese retail sales unexpectedly fell in December, underscoring
challenges to Prime Minister Shinzo Abe’s effort to stoke a recovery in
the world’s third-biggest economy. Sales slid 0.3 percent from
November for a third straight monthly decline, the trade ministry said
Thursday in Tokyo. That compared with the median estimate for a 0.3
percent gain in a Bloomberg News survey. Sales increased 1.7
percent in 2014. A recovery in consumer spending that was hurt by
last year’s sales-tax increase is needed to help spur the economy.
Talks between business and labor leaders this spring will determine
the extent of pay gains that have been too small to offset rising living
costs for consumers. (Bloomberg)
© 2015 VC Brokerage Limited. All rights reserved. Opinions, projections and other information contained in this
report are based upon sources believed to be accurate, but no responsibility is accepted for any loss occasioned by
reliance placed upon the contents herein. Further information on the companies mentioned in this report is available
upon request.
Morning Flash
29 January 2015
Market News
Taobao responds to disputed inspection report: China's largest
shopping website, Taobao.com, gave an official response to a
controversial quality inspection report by the country's commerce
regulator on Wednesday. The online store will file a complaint to the
State Administration for Industry and Commerce (SAIC) based on
accusations of a senior official's improper supervision, according to an
announcement on Taobao's Sina Weibo account. "Director Liu
Hongliang followed improper procedures and his legal assessment
was emotional," Taobao said, "He reached a conclusion that was not
objective, bringing a negative effect on Taobao and e-commerce
businesses." "We welcome any supervision that is fair but oppose
nonfeasance and random or malicious official actions," the post said.
The move is the latest salvo between Taobao, the most profitable
branch of e-commerce giant Alibaba Group, and the SAIC since the
latter published a quality inspection report on Jan. 23 that gave
Taobao the lowest rank in terms of certified product rate. The SAIC's
sample test showed that only 37.25 percent of surveyed commodities
sold on the website were authentic, lower than a 58.7-percent
average of major online shopping platforms. Taobao's major rival,
JD.com saw its rating at 90 percent. (Xinhua)
China to push exports of railway, nuclear power products:
China's State Council, the cabinet, on Wednesday announced plans
to push exports of advanced railway, nuclear power and building
material products. In a notice on gov.cn, the cabinet said government
departments and enterprises should facilitate China "going global", by
increasing international trade, investment cooperation and pushing for
domestic economic restructuring. China's outbound investment
reached 102.89 billion U.S. dollars last year, up 14.1 percent from a
year earlier, ascending to the world's net capital exporters for the first
time. China will support enterprises in steel, textile and building
material sectors to develop the industrial chain to export not only
China's products, but also its technology and standards. The
government will aid enterprises with foreign exchange reserves to
finance them "going global" through stocks or bonds issuance.
(Xinhua)
© 2015 VC Brokerage Limited. All rights reserved. Opinions, projections and other information contained in this
report are based upon sources believed to be accurate, but no responsibility is accepted for any loss occasioned by
reliance placed upon the contents herein. Further information on the companies mentioned in this report is available
upon request.
Morning Flash
29 January 2015
Result Announcements
China Billion Resources Limited (0274.HK) said it expects to record
a net loss for each of the three financial years ended 31 December
2011, 2012 and 2013, mainly due to the debt restructuring in 2011
and significant impairment losses on property, plant, equipment,
goodwill, mining rights and trade and other receivables. (Infocast)
Willie International Holdings Limited (0273.HK) expects a
consolidated net profit around HK$750 million for the year ended 31
December 2014, up 815% compared to the consolidated net profit of
HK$82 million for the previous year. The rise in profitability was
primarily attributable to the higher amount of realized and fair-value
gains on financial assets held by the group for investment trading
purpose plus fair-value gains on the group's long-term investments.
(Infocast)
Taking no account of the gain on disposal of other financial assets of
approximately HK$32.2 million recorded for the year ended 31
December 2014, and one-off reversal of impairment loss on other
financial assets of HK$25.6 million during the year ended 31
December 2013, it is expected that RoadShow Holdings Limited's
(0888.HK) profit from operations for the year ended 31 December
2014 will decrease significantly by more than 45% as compared with
that for the year ended 31 December 2013 of HK$83 million, the
board of the company said. (Infocast)
Beijing Jingcheng Machinery Electric Company Limited
(0187.HK) said that it expects a gain in operating results for the year
of 2014, as compared to a RMB108.239 million loss for 2013, and to
realize net profit attributable to the shareholders of RMB20-30 million.
(Infocast)
Guotai Junan International Holdings Limited (1788.HK)
announces that the consolidated net profit of the group for the year
ended 31 December 2014 is expected to increase significantly by not
less than 40% as compared with that for the year ended 31 December
2013. (Infocast)
Shenzhen Expressway Company Limited (0548.HK) expects its net
profit attributable to owners for the year of 2014 to have increased by
185-215% compared to the net profit of RMB719.692 billion for 2013.
The basic earnings per share is expected to be RMB0.33. (Infocast)
Announcing its preliminary annual results for 2014 according to
China's accounting standards, China CITIC Bank Corporation
Limited (0998.HK) said its net profit attributable to shareholders was
RMB40.692 billion for the year, up 3.87% on year. Operating income
rose 19% to RMB124.717 billion. Operating profit advanced a slight
4% to RMB54.405 billion. (Infocast)
CITIC Securities Company Limited (6030.HK) has issued its
preliminary financial data for 2014 using PRC accounting standards.
Net profit attributable to owners of the parent was RMB11.295 billion
for the year, up 115% on year. Operating revenue gained 83% to
RMB29.511 billion. Operating profit climbed 97% to RMB13.51 billion.
(Infocast)
© 2015 VC Brokerage Limited. All rights reserved. Opinions, projections and other information contained in this
report are based upon sources believed to be accurate, but no responsibility is accepted for any loss occasioned by
reliance placed upon the contents herein. Further information on the companies mentioned in this report is available
upon request.
Morning Flash
29 January 2015
Today’s Theme
The European Union and U.S. are considering additional sanctions against Russia over its support for separatist
rebels in eastern Ukraine, where renewed fighting in the region has caused heavy casualties. The economic
turmoil in Russia has worsened after S&P revised its credit rating to junk level earlier this week. Gold price is
expected to trade at the strong side as investors in search of safe haven.
Zhaojin Mining (1818.HK)
•
Trailed down along a
descending channel since
2H13.
•
But rising above all major
MAs is a good sign.
•
A key resistance lies at
HKD5.0/share, the upper
band of the channel.
Source: Bloomberg, VC Research
Zijin Mining (2899.HK)
Source: Bloomberg, VC Research
© 2015 VC Brokerage Limited. All rights reserved. Opinions, projections and other information contained in this
report are based upon sources believed to be accurate, but no responsibility is accepted for any loss occasioned by
reliance placed upon the contents herein. Further information on the companies mentioned in this report is available
upon request.
•
Rising momentum has
strengthened after Zijin
shot through the ceiling of
an ascending channel.
•
But a tough resistance
lies at HKD2.75/share.
Morning Flash
29 January 2015
Lingbao Gold (3330.HK)
Source: Bloomberg, VC Research
Hang Seng Composite Sectors
Sector
Hang Seng Index (HSI)
Hang Seng Composite
HSCI Utilities
HSCI Industrial Goods
HSCI Materials
HSCI Conglomerates
HSCI Telecommunication
HSCI Property & Construction
HSCI Info Technology
HSCI Consumer Goods
HSCI Financials
HSCI Services
HSCI Energy
HS Mainland 100
HS China Enterprises
HS China H-Financial
HS China Affiliated Corps
HS HK 35
HS HK Large Cap
HS HK MidCap
HS HK Small Cap
Index
24,861.81
3,387.79
Day (%) Week (%) MTD (%)
0.22
2.09
5.32
0.11
1.59
3.69
YTD (%)
5.32
3.69
7,766.59
1,297.71
5,404.12
2,960.60
2,142.78
3,092.81
5,945.69
4,740.01
3,749.32
4,013.51
9,825.36
0.40
-0.42
0.22
0.41
0.49
0.42
0.52
0.41
-0.15
-0.38
-0.11
1.43
2.03
-0.92
2.32
1.36
1.10
4.94
0.29
1.09
6.15
0.22
3.35
2.82
-0.56
8.10
12.57
4.13
16.40
1.63
1.08
1.37
-0.64
3.35
2.82
-0.56
8.10
12.57
4.13
16.40
1.63
1.08
1.37
-0.64
7,549.33
11,963.64
18,327.76
4,571.44
-0.04
-0.55
-0.71
-0.03
0.44
-0.48
-0.99
0.01
4.03
-0.18
-0.54
5.09
4.03
-0.18
-0.54
5.09
2,830.08
2,030.95
4,501.58
2,256.08
0.40
0.16
-0.33
0.81
3.62
1.94
0.28
0.74
5.49
4.59
0.74
0.42
5.49
4.59
0.74
0.42
Source: Bloomberg
© 2015 VC Brokerage Limited. All rights reserved. Opinions, projections and other information contained in this
report are based upon sources believed to be accurate, but no responsibility is accepted for any loss occasioned by
reliance placed upon the contents herein. Further information on the companies mentioned in this report is available
upon request.
•
Regained
some
momentum after Lingbao
retaking the 50-day and
250-day MA.
•
Retreated after hitting the
ceiling of a descending
channel
at
HKD1.55/share,
which
remains a key resistance
in near-term.
Morning Flash - 29 January 2015
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recommendations or views expressed by that research analyst in the research report.
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T
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© 2014 VC Brokerage Limited. All rights reserved. Opinions, projections and other information contained in this report are based upon sources believed to be
accurate, but no responsibility is accepted for any loss occasioned by reliance placed upon the contents herein. Further information on the companies mentioned in this
report is available upon request.