2023: The Best and Worst Stock Performers in Hong Kong

A Foshan-based home appliance maker scored a triple-digit rise this year, while the biggest slump came from Li Ning.

Kate Lin 08 January, 2024 | 14:35
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Top Hong Kong Large-Cap Stock Gainers in 2023

Hisense Home Appliances Group (00921) is the only large-cap stock in Hong Kong that scored a triple-digit gain in 2023. Topping the chart among all peers, the Foshan-based company returned a whopping 101.3% in a year of profit recovery and robust overseas growth. Moreover, the stock has retreated in the more recent trading days as shares were down 12.37% in December.

Shares of MINISO Group Holding Ltd (09896) were at the bottom of the chart for December, but it delivered a solid gain of 95.09% in the full-year period.

The stock New Oriental Education & Technology Group (09901) was a painful memory for investors in 2021 amid the regulatory crackdown. But, the company staged a meaningful turnaround in 2023. New Oriental outperformed most of the large-cap stocks in Hong Kong with a 91.54% yearly return. After almost doubling in share price, the no-moat stock, with a fair value estimate of HK$ 37, is rated with a 2-star rating meaning that the stock is moderately overvalued.

EV maker Li Auto Inc (02015) ranked fourth as shares advanced 91.54% in 2023. Closing at HK$ 147.40 at the end of the year, the no-moat stock is fairly valued.

In the last month, the rally of computer manufacturer Lenovo Group (00992) did not lose steam as shares rose 13.16% in December. The shares brought a yearly gain of 77.54% and a dividend yield of 3.61% over the past 12 months. The stock is fairly valued and without an economic moat.

Top Hong Kong Large-Cap Stock Losers in 2023

Including the 3.91% decline recorded in December, sports apparel maker Li Ning (02331) slumped 68.45% in 2023. The narrow moat company is regarded as significantly undervalued. Its rival ANTA Sports Products (02020), which received a narrow economic moat rating and a 5-star rating registered a small loss for the year, which totaled 24.59%. Morningstar analysts believe both Li Ning and ANTA have an upside of around 100% based on their respective fair value estimates.

China Tourism Group Duty Free Corp (01880) fell 66.44% in 2023. The last close price of HK$73.70 is 73.68% below its 52-week high reached in January 2023. The stock was listed in Hong Kong in August 2022 and the return since inception was a negative 51.12%. 

Hangzhou Tigermed Consulting (03347) slid 60.40% for the year. After the slump, shares of Hangzhou Tigermed posted a since-inception loss of 68.19%.

After dropping another 17.10% in December, Shanghai Junshi Biosciences (01877) ended the year with a 59.92% fall.

Pharmaron Beijing Co Ltd (03759) dropped 16.30% in December and 55.47% in 2023.

Top Hong Kong Large-Cap Stock Gainers in Dec 2023

Conglomerate Swire Pacific Ltd Class A (00019) topped the list with a 30.37% gain in December. Within a month, the stock flipped its year-to-date loss to a 16.55% gain for 2023. The stock gave out a 4.67% dividend for the past 12 months. The narrow moat company is trading a 4-star rating, meaning that the shares are moderately undervalued. Its Class B shares (00087) ranked fifth with a 22.40% gain for the month and closed the year with a 21.55% increase.

Chinese electric vehicle maker NIO Inc (09866) advanced by 29.01% for the month, but the strong rally closer to the year-end wasn’t enough to cover the accumulated losses. Shares in the no-moat car maker fell 6.24% for the year and the closing price of HK$ 65.8 was about 47% below its 52-week high. At this price level, our analysts believe NIO is currently trading at a moderate undervaluation.

The Wharf Holdings (00004), which owns Harbour City in Tsim Sha Tsui and Times Square in Causeway Bay, had a great run on the share market with its stock up by 23.89%. Shares were up 12.14% in 2023. This is against a backdrop where the city’s retail sales continued to recover on the back of a revival of inbound tourism. Retail sales notched up an 11th consecutive month of growth in October. The rebound momentum, however, has slowed over the past months.

Logistics and express delivery services provider J&T Global Express (01519) rose 23.59%. Since its listing in October this year, the stock is up 31.83% above its IPO offer price of HK$ 12.00.

Top Hong Kong Large-Cap Stock Losers in Dec 2023

WuXi Biologics (02269) ended December at HK$29.55 with a monthly loss of 31.95%. The decline recorded in December widened the stock’s yearly loss to 50.54%. The HK$120 million company is now 63.11% below its 52-week high. At this price level, our analysts believe the narrow-moat company is currently trading at a significant undervaluation to its fair value estimate.

Retail store of lifestyle products MINISO Group (09896) slumped 23.45% after solid gains in the past months. Despite a double-digit loss before the year ends, investors still reaped a 95.09% gain for the year.

Chinese mobile game developer NetEase Inc (09999) tanked 20.25%, as the country’s video gaming regulatory released a set of draft rules to reduce spending on video games towards the latter part of December. NetEase is placed under review following the announcement. Its larger gaming peer Tencent Holdings (00700), which earns a wide economic moat rating, closed the month with a 10.21% decline, concluding this challenging year with an 8.36% loss.

Shanghai Junshi Biosciences (01877) ended the year at HK$19.44. The biopharma company delivered a 17.10% fall in December and plummeted by 59.92% for the year. The company is placed under review by our equity research team.

In December, biotech company RemeGen Co (09995) fell 17.05%. In 2023, the shares were down 35.32%. The stock is around 55% below its 52-week high. 

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About Author

Kate Lin

Kate Lin  is an Editor for Morningstar Asia, and is based in Hong Kong

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