Top Hong Kong Large-Cap Stock Gainers in Nov 2023
Electric vehicle manufacturer Zhejiang Leapmotor Technology (09863) led the gainers board, with a 48% gain for November. In November, index provider MSCI announced that Leapmotor will join 15 other Chinese stocks to become a constituent of the MSCI China All Shares Index. Larger peers registered smaller gains, with XPeng (09868) gaining 16.26% and Li Auto (02015) rising 9.05% for the month. NIO Inc (09866) saw a slight drop of 1.47% while BYD Co (01211) slumped 11.54%.
Sino Biopharmaceutical Ltd (01177) narrowed its year-to-date loss to 13.93% after November’s gain of 26.32%. Shares of the biopharma group were 23.20% below the recent high of HK$ 5.
New Oriental Education & Technology Group (09901) brought investors a 23.14% return in November after its earnings announcement for the quarter that ended in August. Revenue at the education platform topped guidance and delivered a 47.7% rise year on year. The no-moat stock, with a fair value estimate of HK$ 37, is currently overvalued with a 2-star rating.
Weichai Power Co (02338), a diesel engine maker, registered a 22.74% gain in November. So far this year, the stock was up 42.29%
Chinese developer Longfor Group (00960) recorded a surge of 21.62% in November. However, even after the double-digit gain, the stock is still down 40.6% year to date.
Top Hong Kong Large-Cap Stock Losers in Nov 2023
United Energy Group (00467) plummeted 40.8%, giving up all the returns accumulated so far this year. The stock returned 0.03% through the end of October.
Heavy equipment and machinery manufacturer Sany Heavy Equipment International (00631) posted a drop of 21.0%. The single-month performance almost erased all the gains accumulated since the beginning of the year. The stock’s year-to-date return is 3.1%.
Haidilao International (06862), a hotpot restaurant chain, retreated 20.55% for the month. Year to date, the stock slid 30.2%. Although the stock price is currently hovering around its 52-week low, the stock remains overvalued trading 13% premium to its fair value of HK$ 13.7. The stock has a 2-star rating and has no economic moat.
Shares of NWS Holdings (00659), the infrastructure unit under New World Development (00017), slumped 19.7% for the month. In November, the shareholders of NWS approved the takeover proposed by Hong Kong’s third-richest family led by billionaire Henry Cheng Kar-shun. New World Development, a real estate conglomerate, fell 5.8% for the month and 37.3% so far this year. The no-moat stock is regarded as undervalued, holding a 4-star rating.
Yum China (09987), which operates KFC and Pizza Hut chains on the mainland, fell 19.1% in November. The month’s poor performance turned a minimal single-digit loss into a 24.0% loss for the year. The valuation of the wide-moat stock is sitting 47% beneath its fair value of HK$ 626.
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