The Hang Seng Index fell 83 points yesterday to close at 27,800 points, with a turnover of 79.2 billion yuan
After the sharp rise in Hong Kong stocks, it entered an adjustment period, but the overall selling pressure was not great. The preference of backward Hong Kong stocks, SHKP (0016) and Wharf Real Estate (1997) rose against the market. On Wednesday, strong oil stocks developed individually. CNOOC (0883) stabilized. Sinopec (0386) and PetroChina (0857) fell with the broad market. Gas stock China Gas (0384) was double-downgraded by Damo, and its stock price fell 6%. . Ling Zhan (0823) announced the first acquisition of an Australian project after the market closed. The transaction involved a small amount of money and the share price response may not be large, but the addition of a new acquisition area will help medium and long-term growth.
The US House of Representatives passed the impeachment bill, and Trump became the third president to face impeachment. The bill still needs the approval of two-thirds of the Republican-controlled Senate members. The chance of success is small and the response of the US stock market is quite calm. Hong Kong stocks were subject to some profit selling pressure after 28,000 points. The stock price of Qiu Titanium (1478) fell and fell below the price of 13.68 yuan. However, the performance of the entire sector was strong, and Sunyu (2382) fell less than 1%. The whole market has not seen many bright spots, mainly because the listing of new shares of Poly Property (6049) rose by nearly 30%. More shares fell than rose, and paper stocks and even industrial stocks fell sharply. Yanji Paper (2689), Minshi (0425), and Minhua (1999) fell between 3% and 5%.
Slowing gas demand or structure
China Fuel has been double-decreased by Big Motors, and its stock price has plummeted. Dama went to Harbin to conduct a field inspection and found that the national demand for natural gas has slowed sharply, increasing by 14.7% year-on-year from January 2019 to only 4.9% in November. Part of the reason may be related to the emergence of warm winter this year, but in fact urban gas demand (population) and industrial demand rose by only 8.8% and 4.8%, respectively, and the structure of gas demand may slow down. Especially in the Northeast region, in recent years, hype gas has been mainly used to go to the countryside, but the progress seems to be quite slow. Coupled with the country’s new sales (the main source of connection fees), it is unlikely that there will be any rapid growth. loser. From another perspective, if the structure of gas demand slows down, it also reflects that China’s urbanization process may have entered the middle and late stages, instead of just 60% as the central government believes.
Linkshow announced that it has spent $ 683 million to purchase a commercial office building in Sydney’s Central Business District, called 100 Market Street. The property currently has three tenants: local listed property investors, federal government agencies and sovereign wealth funds. The lease term is longer, the weighted average lease term is more than 8 years, and a rent increase mechanism has been established, about 4% per year.
The transaction involved amounted to less than HK $ 3.7 billion, which is negligible compared to the latest total assets of HK $ 220.4 billion, which should not have a significant effect on the share price. The property’s annual rental income is A $ 26.7 million. Assuming this is a net rental income, the project yield is equivalent to 3.9%, which is higher than the Mainland China and Hong Kong projects, but the rental increase is relatively low. The author checked several large-scale house trusts listed in Australia and found that the distributable growth per share in recent years has been relatively slow, generally only 3% to 5%, which is lower than the double-digit growth of distribution (distribution and repurchase).
Linking Top Australia has positive effects in the medium and long term
It is believed that Linkage ’s growth potential in Hong Kong has been used up to 7878. In recent years, it has been tactics to sell Hong Kong’s “dead field” and use the proceeds to buy back, make overseas acquisitions, or participate in property development in Hong Kong. As stock prices fall, management’s difficulty in acquisitions will become higher and higher, either because the target has a very high rental return (meaning low quality) or there is a huge rent increase potential. Otherwise, the dividend rate, which is lower than the group’s close to 4%, will be difficult to explain to shareholders and the board of directors. Exploring the Australian market now will not have significant benefits in the short term, but local property returns are much more reasonable than Hong Kong. The Group will have more acquisition opportunities to boost revenue and distribution, which will have a positive effect in the medium and long term. However, it is also important to note that the dividend rate of local room care companies reaches 4.5% to 6%, which is generally much higher than that of Link.