Sentiment reignited, Hong Kong stocks collectively surged | Today's important news recap

Feb 26 | Dolphin Research Key Focus:

🐬 Macro/Industry

1、Today, the three major Hong Kong stock indices surged strongly, reigniting market optimism, especially with Chinese concept stocks rising steadily and southbound capital showing high enthusiasm. Dolphin Research emphasized in Monday's strategy weekly report: Hong Kong stocks, with traditional real estate and financial sectors' valuations fully squeezed while having relatively high tech + medical content, are experiencing particularly strong revaluation compared to other markets. For details, refer to: Is the "Animal Spirit" Coming Back? Can Chinese Concept Stocks Be Revalued?.

🐬 Stocks

1、$MEITUAN(03690.HK)

Rumors suggest Meituan is in negotiations to potentially acquire Starbucks China's business or take a stake in it (Starbucks China's FY24 revenue was RMB 21 billion); in late November 2024, Starbucks reportedly considered selling equity in its China business. Other interested buyers include private equity firms like KKR, Fountainvest Partners, and PAG. Today, Chinese concept stocks collectively surged, with Meituan closing up 9.84%.

2、$CHINA LIT(00772.HK)

China Literature issued a profit warning, expecting an annual net loss of approximately RMB 150-250 million, a shift from profit to loss YoY, marking a rare annual net loss for the company. The expected loss is mainly due to non-cash goodwill impairment from the 2018 acquisition of New Classics Media, estimated at RMB 1.05-1.15 billion. Despite today's strong Hong Kong market, China Literature closed down 9.21%.

3、$Alibaba(BABA.US)

Alibaba Cloud's visual generation base model Wanxiang 2.1 (Wan) was officially open-sourced. The open-source release adopts the most lenient Apache 2.0 license, with all inference code and weights for the 14B and 1.3B parameter specifications fully open-sourced. It supports text-to-video and image-to-video tasks, and global developers can download and experience it on GitHub, Hugging Face, and ModelScope.

4、$BIDU-SW(09888.HK)

Baidu reached an acquisition agreement with JOYY, acquiring the latter's domestic video entertainment live-streaming business YY Live for $2.1 billion (approximately RMB 15.2 billion). This deal dates back to 2020, when JOYY and Baidu signed a $3.6 billion acquisition agreement. However, Muddy Waters later issued a short report accusing JOYY of revenue fraud, leading to multiple delays in the transaction. The final price is about 43% lower than the original. Baidu stated the remaining funds would continue to be invested in AI infrastructure. Dolphin Research's detailed analysis can be found in Baidu: The Five-Year YY Acquisition Case.

5、$MIXUE GROUP(02097.HK)

As of 9 AM today, Mixue Bingcheng's public offering subscription closed. According to Longbridge data, the final oversubscription multiple reached 5,266x, with subscription amounts hitting HKD 1.82 trillion, making it a blockbuster IPO.

6、$XPENG-W(09868.HK)

Following Li Auto's i8 announcement, XPeng quickly followed up by announcing the new XPeng G6 will debut on February 28. XPeng's stock rose 8.28% today.

🐬 Top Gainers

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

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

U.S.: Kitchenware, drug retailers, residential construction companies.

🐬 Tomorrow's Focus

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

2、NVIDIA and Salesforce earnings reports; Dolphin Research will track and provide analysis.

Risk disclosure and disclaimer: Dolphin Research Disclaimer & General Disclosure