The market is waiting for breakthrough opportunities.
The Hang Seng Index saw resistance after it rose above 29000 points twice last week and gradually adjusted its high position by nearly 1000 points. The representatives of China and the United States finally spoke on Tuesday. The US Department of Commerce also responded to US President Trump’s statement, allowing some US companies to continue selling products to Huawei. The market temporarily waived further declines. The Hang Seng Index rebounded to 28583 yesterday. Point, the closing price rose 227 points to 28,431 points. However, the market wait-and-see atmosphere is quite strong, with a turnover of less than 70 billion yuan.
The Sino-US trade war has been going on for more than a year. Apart from the impact of the Chinese economy, the US economy is also difficult to protect itself. The US Federal Reserve is further biased towards “pigeons." The Mainland has released economic data for June and the first half of the year, especially the second quarter and first half of the year, and the economic growth (GDP) data for the second quarter and the first half of the year are the key factors affecting the mainland and Hong Kong stock markets. If the economic data in the second quarter is still unsatisfactory, the market will instead introduce more measures to support the economy. Therefore, the market will be consolidated at the current level, and the market will have to break through again depending on whether there are any stimulus measures. The market is still waiting for the real direction, but individual sectors are underperforming. China property stocks are still the target of depreciation. Property management stocks have released earnings pre-history, and cash flow is strong, so they can continue to pay attention to buying opportunities.
Zhengrong shares are behind
Real estate stocks Zhengrong Real Estate (6158), last year’s real estate sales contract amount exceeded 100 billion yuan (RMB, the same below), an increase of more than 50% year-on-year, the group mainly in the Yangtze River Delta, the West Coast of the Straits, the Central Region, the Bohai Sea, the West and the Pearl The 28 cities in the six major regions of the triangle are mainly based on the saleable area and selling price. The sales volume this year is expected to increase by 30%, and the gross profit margin will remain at around 25%.
At the end of last year, the Group’s land bank reached a total of 24.56 million square meters of construction area, including 145 projects jointly developed by the joint venture and joint ventures. The above-mentioned land bank ensures sufficient land development and income growth in the future. The Group has been actively optimising its financial structure in the past month. The current net debt ratio is 70%. The S&P has confirmed its long-term issuer’s credit rating of “B” in April this year. It also upgraded its outlook from “stable” to “positive”. Help reduce borrowing costs and increase financing channels.
In the first five months of this year, the contracted sales amount was 45.858 billion yuan, equivalent to 35% of the expected sales amount of 130 billion yuan this year. The sales revenue in the second half of the year is expected to increase gradually. Compared with other domestic contract shares selling more than 100 billion yuan in other years, Zhengrong’s share price is still behind, and the current price can be bought in stages.