晨间快照：香港及中国市场日报（英）

MorningSnapshotKingsway Financial Services Group Limited-http://www.sunwahkingsway.com/Please see the important disclaimer and disclosures (if any) at the end of this report. HongKong&ChinaMarketDailyChina & HK IndicesCLOSE1DYTDHSI24,965 0.1%6.7%HSCEI8,787 0.3%6.7%HSCCI4,201 1.3%7.7%CSI3004,779 -0.9%-3.3%Shanghai A3,691 -0.9%0.1%Shanghai B286 -0.3%0.1%Shenzhen A2,498 -1.3%-5.6%Shenzhen B1,174 -0.5%0.1% Key Int'l IndicesCLOSE1DYTD Dow Jones34,265 -1.3%-5.7% S&P 5004,397 -1.9%-7.7% Nasdaq13,768 -2.7%-12.0% NIKKEI Index27,223 -1.1%-5.4% FTSE Index7,494 -1.2%1.5% CAC Index7,068 -1.7%-1.2% DAX Index15,603 -1.9%-1.8%CommoditiesCLOSE1DYTDGOLD(US$/oz.)1,835 -0.2%0.2%STEEL(US$/oz.)1,557 -7.0%-1.4%SILVER(US$/oz.)24 -0.7%4.0%CRUDE OIL(US$/bbl)85 -5.3%14.1%COPPER(US$/oz.)9,941 1.0%2.3%ALUMINIUM(US$/oz.)3,040 -0.3%8.3%PLATINUM(US$/oz)1,033 -1.0%6.8%ZINC(US$/oz.)3,635 1.5%2.9%WHEAT(US¢/bu)780 -2.1%1.2%CORN(US¢/bu)616 0.9%3.9%SUGAR(US¢/lb)N/AN/A-3.4%SOYBEAN(US¢/bu)1,414 1.7%5.6%PVC(US$/t.)N/AN/A-6.3%CRB248 -0.6%3.0%BDI1,415 -9.9%-36.2%Exchange RatesUSDHKDEURJPYCHFRMBUSD7.7870.882113.6800.9126.339HKD0.1280.11314.60011.7110.814EUR1.1348.833128.9800.9677.191JPY0.0096.8490.7750.8020.056CHF1.0978.5390.967124.6876.956RMB0.1581.2280.13917.9340.144 Market SentimentCURRENT5DCDS Monitor - USD SR 5Y GreeceN/AN/A Ireland83 -2.4% Italy139 -0.6% Portugal207 -0.0% Spain108 0.3%VIX28 42.0%Source: Bloomberg24 January 2022 Latest Research Reports DateCompanyAnalyst20-Jan361 Drgrees (1361 HK)Eason Cui14-JanBinjiang Services (3316 HK)Ken Li15-DecMeidong Auto (1268 HK)Eason Cui17-NovEdvantage Group (382 HK)Katherine Dai27-OctTruly Int'l (732 HK)Jade Wang10-SepTruly Int'l (732 HK)Jade Wang09-Sep361 Drgrees (1361 HK)Research Department03-SepiDreamsky (1119 HK)Katherine Dai13-AugTruly Int'l (732 HK)Jade Wang09-AugXinyi Solar (968 HK)Research Department06-AugXinyi Energy (3868 HK)Jade Wang04-AugXinyi Glass (868 HK)Research Department03-AugTruly Int'l (732 HK)Jade Wang02-AugWeimob (2013 HK)Katherine Dai27-JulEdvantage Group (382 HK)Katherine Dai07-JuliDreamsky (1119 HK)Katherine Dai23-JunDIT Group (726 HK)Endy Lo16-JunWeimob (2013 HK)Katherine Dai26-AprEdvantage Group (382 HK)Endy Lo15-AprGench Edu (1525 HK)Endy Lo01-ApriDreamsky (1119 HK)Katherine DaiWhat’s Hot Today:►XDInc.(2400HK–HK$36.35)conferencecallnotesNewsCommentary/ReportsSummary►XDInc.(2400HK–HK$36.35)conferencecallnotesRecently, we held a conference call with XD Inc. (2400 HK –HK$36.35) for updates. Below are the outlook of its main business segments (i) self-developed games and (ii) Tap Tap:Existing games are in the maturity stage, while new games are absent: As disclosed in July 2021, 6 self-developed games were still in process (figure 1), with the earliest commercialization expected in 2023. And there is a particular risk of delay launching in the domestic market if the suspension of game license continues. Therefore, game revenue in FY21 has been mainly contributed by existing games, with monthly grossing in a natural downward trend. And the bottom line continues to be under pressure due to high R&D investment (est. ~100% YoY in FY21). Tap Tapuser growth on track, but not time yet to commercialize: MAUs growth in 2H21 accelerated to 32m at 20% YoY, thanks to its enhanced functionality such as TDS (Tap TapDeveloper Services (serving 100+ game developers which can reduce their workload), and TapPlay(an instant game launcher, added in 4Q21). The average user time has increased to 12mins currently from 7-10mins in mid-2021. Regarding Tap Tapoverseas version, its MAUs growth surprised the market in the first half, but there was a slight drop in MAUs in the second half mainly due to scattered users in different countries and limited operation. In FY22, the English version would be a focus to increase its recognition overseas. Policy risks: per management, its adolescent users account for ~10% in Sausage Party, 3-4% on average in the rest of the games. In terms of revenue contribution, only ~1% of game revenue in FY21 was from adolescents. Therefore, we do not think related policy (limits gaming time for under-18s) has a material impact to the company’s business. Investment thesis: the stock is trading at 5.2x PS TTM. The fundamental is weak, and FY21 loss is expected. The stock has dropped more than 66% from its high in early 2021, reflecting the negatives. We suggest investors to be cautious because resumption of game license approval has to happen before the stock can move. (Katherine Dai)Figure 1: Game pipeline Source: Company data and Sunwah Kingsway Research Kingsway Financial Services Group Limited-http://www.sunwahkingsway.com Please see the important disclaimer and disclosures (if any) at the end of this report. Kingsway coverage listDividendHistFY1FY2FY25D%1M%3M%HANG SENG