Emotions reignite, Hong Kong stocks boil collectively | Review of today's important news

0226 ｜ Dolphin Research Key Focus:

🐬 Macro/Industry

1. Today, the three major indices of the Hong Kong stock market surged strongly, with market bullish sentiment rekindled, especially for Chinese concept stocks which rose continuously, and southbound capital enthusiasm was high. Dolphin Research emphasized in Monday's strategy weekly report: Hong Kong stocks have seen traditional real estate and financial industry valuations fully squeezed, and given the high technology + medical content, the revaluation intensity this time is particularly high compared to other markets. For specifics, please refer to:《 “Animal Spirits” Are Coming Back, Can Chinese Concepts Be Revalued?》。

🐬 Individual Stocks

1. $MEITUAN(03690.HK)

The market is rumored that Meituan is in negotiations to possibly acquire Starbucks' China business or take a stake in Starbucks China (Starbucks China had a revenue of 21 billion RMB in fiscal year 2024); by the end of November 2024, Starbucks had reported considering selling its stake in its China business. Other companies interested in acquisition include KKR, Fountainvest Partners, and PAG among private equity firms. Today, Meituan surged during trading, ultimately closing up 9.84%.

2. $CHINA LIT(00772.HK)

China Literature Group issued a profit warning, expecting an annual net loss of approximately 150 million to 250 million RMB, turning from profit to loss year-on-year, marking a rare annual net loss for China Literature Group. The expected loss mainly stems from non-cash goodwill impairment arising from the acquisition of New Classics Media in 2018, estimated to be between 1.05 billion to 1.15 billion RMB. Today, the Hong Kong stock market was collectively booming, but China Literature fell against the trend, closing down 9.21%.

3. $Alibaba(BABA.US)

Alibaba Cloud's visual generation base model Wanxiang 2.1 (Wan) has officially been open-sourced, adopting the most permissive Apache 2.0 license. All inference codes and weights for the 14B and 1.3B parameter specifications have been fully open-sourced, and it supports text-to-video and image-to-video tasks. Global developers can download and experience it on Github, HuggingFace, and the MoDa community4. $BIDU-SW(09888.HK)

Baidu has reached an acquisition agreement with JOYY Inc. (YY), with Baidu acquiring JOYY's domestic video entertainment live streaming business YY Live for USD 2.1 billion (approximately RMB 15.2 billion). This transaction can be traced back to 2020 when JOYY and Baidu signed a USD 3.6 billion acquisition agreement, but subsequently, Muddy Waters issued a short report on JOYY, directly accusing JOYY of revenue fraud. The closing of the deal was delayed multiple times until today, with the final transaction occurring at USD 2.1 billion, a reduction of about 43% from the original price. Baidu stated that the remaining funds will continue to be invested in AI infrastructure development. Dolphin Research has published a detailed commentary on this matter in "Baidu: On the Five-Year YY Acquisition Case".

$MIXUE GROUP(02097.HK)

As of 9 AM today, the public offering phase of Mixue Ice Cream City has ended. According to Changqiao data, the final financing subscription multiple reached 5,266 times, with the subscription amount reaching HKD 1.82 trillion, making it a phenomenon-level IPO.

6. $XPENG-W(09868.HK)

Following the official announcement of Li Auto's i8, XPeng has announced that the new XPeng G6 will officially debut on February 28. XPeng Motors rose 8.28% today.

🐬 Leading Sectors

Shanghai and Shenzhen: Real estate services, oil and gas refining and sales, steel;

Hong Kong Stocks: Real estate services, steel, catering services;

U.S. Stocks: Kitchenware, pharmaceutical retailers, residential construction companies.

🐬 Attention for Tomorrow

1. U.S. real GDP annualized quarterly rate revision;

2. Nvidia and Salesforce will release their financial reports, and Dolphin Research will track and provide interpretive analysis.

The risk disclosure and statement of this article: Dolphin Research Disclaimer and General Disclosure