Top Hong Kong Large-Cap Stock Gainers in Oct 2023
Drug manufacturer Hansoh Pharmaceutical Group (03692) led the leader-board with a 38.27% gain for October. The HK$ 87 billion stock remains roughly 20% below its 52-week high of HK$ 18.2.
Shanghai Junshi Biosciences Co (01877), a narrow-moat antibody R&D firm, brought investors a 24.14% return in October. After this strong month, the stock is still 55% below where its stock price was at the beginning of 2023.
Akeso Inc (09926), a biotech firm specializing in antibody therapies, recorded a surge of 21.94%. Listed in 2020, the stock has had a cumulative gain of 81% since its IPO.
Innovent Biologics Inc (01801), which focuses on the research and development of therapeutic antibodies, was traded up by 20.39%. The increase from the past month brought the narrow-moat stock to a fair valuation. So far this year, the company has generated a 37.46% gain.
Sunny Optical Technology (Group) (02382) registered a 19.84% gain. Despite the rally, our analyst regards the narrow-moat optical and imaging product manufacturer as undervalued, trading in a 4-star price range.
Top Hong Kong Large-Cap Stock Losers in Oct 2023
AIM Vaccine Co Ltd (06660) continued to retreat from its strong rally that rode on its messenger RNA rabies shot for use in humans getting approval for clinical trials in June. The stock plunged 68.25% after sliding 41.60% in September. The heavy losses from the past two months erased all the gains cumulated from the start of the year and posted a 61.51% loss.
Shengjing Bank Co Ltd (02066), a commercial bank in Shenyang, slumped 65.99%. The October result deepened the decline to a 69.37% free fall for the year.
The share price of Chinese digital pharma platform YSB Inc (09885) halved in the month of October. This decline sees the stock sliding back near the IPO offer price of HK$ 20. The company, which has a market cap of HK$ 14 billion, was listed on the Hong Kong bourse on June 29.
Li Ning Co Ltd (02331) fell 27.16%, which contributed to its year-to-date loss of 63.77%. Our analyst thinks Li Ning is facing company-specific issues, and investors should not consider this a sign of weakness across the entire industry. Our fair value estimate on Li Ning is adjusted downward by 15% to HK$ 37.50 and the company is trading in a 4-star price range.
ZTE Corp (00763), a telecommunications equipment maker, posted a drop of 26.51% and ended the first 10 months with a 2.88% gain.
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