Top Hong Kong Large-Cap Stock Gainers in Sep 2023
Liquor distiller ZJLD Group (06979) had a strong run in the month leading up to the Mid-Autumn Festival and National Day. The stock advanced 37.37% in September 2023. Listed on the Hong Kong bourse in April this year, it has gained 35.36% since then. Over the same period, shares of its larger baijiu peers, Kweichow Moutai (600519) and Jiangsu Yanghe Brewery (002304) recorded single-digit losses.
Battery maker CALB Group (03931) climbed 25.35%, leaving the stock up 9.96% year to date. After the rally in September, the no-moat stock is trading in a 3-star price range, or 17% above its fair value estimate. Another Chinese battery manufacturer, CATL (300750) fell 14% in September.
Thermal coal miner Yankuang Energy Group (01171) rose 20.13% in September and gained 30.54% year-to-date. Commodity prices have generally stabilized after falling on concerns that China’s reopening would underwhelm, along with worries over a Western recession. According to the Chicago Mercantile Exchange, the price of thermal coal has seen a sequential recovery since June.
The Wharf Holdings (00004), which owns Harbour City in Tsim Sha Tsui and Times Square in Causeway Bay, had a great run on the share market with its stock up by 18.17%, narrowing its year-to-date loss to 12.43%. This is against a background where the city’s retail sales continue to recover on a year-on-year basis, with August’s sales rising 13.7% from a year back to HK$ 32.4 billion. The rebound momentum, however, has slowed over the past months.
Kunlun Energy (00135), which engages mainly in natural gas sales, was up 17.60% in September. The stock gained 26.83% so far this year.
Top Hong Kong Large-Cap Stock Losers in Sep 2023
AIM Vaccine (06660) retreated from its strong rally trading on its messenger RNA rabies shot for use in humans getting approval for clinical trials in June. The stock plunged 41.60%, narrowing the gains from the start of 2023 to 21.22%.
Bank of Guizhou (06199), a commercial bank in China, slid 22.84% in September and 40.06% so far this year.
Enterprise resource planning software vendor Kingdee International Software (00268) saw its shares sliding 20.46% in August and it is down 42.41% from the start of the year. Shares of the loss-making company have been almost halved from its last peak of HK$ 19.16 touched in January 2023.
Shanghai Junshi Biosciences (01877) ended September at HK$ 17.5. The biopharma company has widened its year-to-date stock loss to 63.96% after September’s share loss of 18.32%. The company is placed under review by our equity research team. The most recent fair value estimate by Morningstar is HK$ 45.5.
L'Occitane International (00973)’s controlling shareholder and chairman confirmed to move forward with a plan to take the company private. After an initial positive reaction, the shares tanked 15.83%, putting its year-to-date loss at 3.9%. The narrow-moat company has a 5-star rating.
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