250106 Dog News

Happy New year!

New year, let’s reflect a little bit and see some of the Blue Chip overall results. Did you start to build that portfolio?
Or maybe you made awesome progress on your goals and targets. And for sure you’ll find yourself making new ideas of how to improve your investment style. (otherwise you wouldn’t have signed up for this newsletter)

Reading time of this email: 3 minutes. You will come out wiser, trust me.

• This weeks Blue Chip highlight  the Dogs 2024 and 2025
• One thing that is Remarkable in the FREE Blue Chip file. Let’s end 2024
• This is coming up for the Blue Chip newsletters.

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This weeks Blue Chip highlight 
The Dogs of the Hang Seng 2025 are announced. And yes, this probably is the most silly way of putting a portfolio together.

If you’re new to The Dogs concept, follow these steps

1. On January 1 list of all Blue Chips the 10 companies that yield the highest dividends.
2. Buy worth of HK$10.000 each, so your portfolio starts at a total of HK$100.000
3. Sit and wait al year. No buying, no selling. Just collecting dividends
4. December 31, sell and hope for the best.
5. On January 1, repeat.

For 2025 you can find them here. Now let’s look at the results of 2024. For good measures, I think HKG:3110 Global X Hang Seng High Dividend Yield ETF  is the best way to mirror the Dogs portfolio, because of it’s high dividend focus.
(let me know if you have an alternative)

When you look at the 2 red arrows, you’ll see that putting your money in the High Dividend ET would have gotten you better results. 30% vs.19%

Top Performer

• Sinopec (HKG:0386):
  • Capital Gain: 8.8%.
  • Dividend Yield: 9.29%.
  • Total Gain: 18.1%.
  • The high dividend yield combined with solid price appreciation contributed to its leading performance.

Worst Performer

• New World Development (HKG:0017):
  • Capital Loss: -57.4%.
  • Dividend Yield: 1.65%.
  • Total Loss: -55.8%.
  • The significant decline in stock price overshadowed its modest dividend yield.

The 2024 Dogs of the Hang Seng strategy delivered mixed results, with gains driven by high dividend yields in some stocks like Sinopec but significantly offset by sharp losses in others like New World Development.
One thing remarkable in the Blue Chip 2024:

2024 Blue Chip Review: Losers & Winners

As the year wrapped up, it’s time to take stock of how Hong Kong’s Blue Chip companies fared in 2024. Here we’ll highlight the top three gainers and losers among these heavyweights, shedding light on some trends and movements that shaped the market.

Let’s start with the ones that took a tumble. While you might assume the property sector dominated the losers, the reality tells a more intriguing story. Only one property company made the list of top decliners. And here’s where it gets clever: two notable names—0017.HK New World Development and 6098.HK CG Services—were expelled from the Blue Chip index earlier this year.

Here’s the Top 3 Blue Chips that declined in price in 2024:

Chow Tai Fook Jewellery Group, a prominent Hong Kong Blue Chip, experienced a notable decline in stock price this year. Here’s why:

1. Weak Sales in China: Same-store sales fell 28% year-on-year due to elevated gold prices, which dampened consumer spending.
2. Disappointing Dividend: A total dividend payout of HK$0.55 per share (84.6% payout ratio) failed to meet investor expectations as no special dividend was announced.

Budweiser Brewing Company APAC Limited, 1876.HK,  has experienced a significant decline in its stock price throughout 2024, influenced by

1. Declining Sales Volumes: The company reported a 6.1% decrease in revenue for the first nine months of 2024, totaling $5,104 million. This decline is primarily attributed to challenges in the Chinese market, where consumers have been purchasing less beer or opting for more affordable alternatives amid economic uncertainties.

Hang Lung Properties Limited 0101.HK experienced a significant decline in stock price during 2024, influenced by several key factors:

1. Decreased Rental Revenue: The company reported a 7% year-on-year decrease in rental revenue, amounting to HK$4.886 billion for the first half of 2024. This decline was attributed to weakened luxury retail consumption in Mainland China and a slowdown in Hong Kong’s retail and office markets
2. Reduced Operating Profit: Operating profit fell by 10% to HK$3.43 billion, primarily due to the downturn in leasing income and increased financial expenses.
3. Currency Depreciation Impact: The depreciation of the Renminbi (RMB) against the Hong Kong Dollar (HKD) further impacted revenue, as Mainland China operations constitute a substantial portion of the company’s income.

Here’s the Top 3 Blue Chips that went up most in price in 2024:

1-Here’s a short summary of the key factors contributing to Xiaomi Corporation’s 1810.HK significant stock price increase over 2024. Among many reasons, here is the highlight:
Strong Financial Performance:

• Revenue Growth: In Q3 2024, Xiaomi reported a 30.5% increase in revenue year-over-year, reaching RMB 92.5 billion. This growth was driven by increased sales in smartphones, IoT devices, and internet services.

Successful Entry into the Electric Vehicle (EV) Market:

• Launch of SU7 Electric Vehicle: In March 2024, Xiaomi launched its first electric vehicle, the SU7, which received an overwhelming market response. By the end of 2024, the company delivered approximately 130,000 units, surpassing initial targets. This success positioned Xiaomi as the third most valuable vehicle manufacturer by market capitalization, following Tesla and Toyota.

2-For Meituan 3690.HK we see their success coming from:

Strong Financial Performance:

• Revenue Growth: In Q3 2024, Meituan reported a 22% increase in revenue, reaching 93.58 billion yuan ($12.94 billion), surpassing analyst expectations
• Profit Surge: Net profit for the same period more than tripled to 12.86 billion yuan ($1.78 billion), indicating improved operational efficiency and cost management.

3-And then there is C-trip 9961.HK , one of the reasons for their success is

Promising Financial Performance:

• Revenue Growth: In Q3 2024, Trip.com reported a 16% increase in revenue, reaching 15.9 billion yuan, driven by strong demand in both domestic and international travel markets.
• Earnings Surge: Adjusted earnings per share rose by 20% to 8.75 yuan, reflecting improved operational efficiency and cost management

If we look at the remarkable performances of Xiaomi, Meituan, and Trip.com over the past year, it’s clear that keeping a clean financial ship, innovation, and strategic growth are key drivers of success in today’s dynamic market.

This is coming up for the (Blue Chip) newsletters in January

1. Did you hear about the Dogs of the Hang Seng? Catch up here . January 1 we look at how they did. Exciting to see how this weird strategy worked for 2024. done
2. Who the new Dogs of the Blue Chip league are going to be. done
3. What happened to the companies that are both Blue Chip and Dividend growth? How did they do? And is this a safe strategy to pick only those stocks? up next

Updated links you cannot miss out on:
– All Hong Kong Blue Chip companies
– Dividend growth and Blue Chip stocks that go Ex-Dividend soon.
– Download 25-Highest-yield Dividend Growth Stocks.
– Dogs of the Hang Seng mid-year results
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Give yourself the gift of a Champion Membership
and take your investing to the next level. Build your dividend growth portfolio like a pro with exclusive insights, weekly in-depth reports, and easy to understand analysis at your fingertips. Make 2025 the year your financial goals take flight!
Start now

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Thank you all for the support and have a great week!
Petra @ Hong Kong Dividend Stocks

PS did you download the Dividend Growth Blue Print already? If not, get yours here . It will help you make better decisions in stock picking based on 3 pillars.

The Blue Print Clarity on the 3 Pillars: Get a simple, step-by-step breakdown of the three key criteria that separate the long-term winners from the rest of the pack. No guessing—just a proven framework   The Best Part? It’s completely free. No catch—just honest, data-driven insights that arm you with a consistent approach to dividend growth investing.

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