Zhitong Hong Kong Stock Exchange Unravels | Smart Driving Affirmative Nuclear Bomb Attacks, Cars Are Once Again Involving New Types of Consumption, Raising Concerns

[Anatomy Dashboard]

After a continuous rise, the two markets showed adjustments today. Hong Kong stocks fluctuated downward after opening higher today, closing down 1.06%, and volume capacity shrank slightly by 219.6 billion yuan.

US President Trump signed an executive order on the 10th local time announcing a 25% tariff on all steel and aluminum imported into the US. This is yet another major upgrade in Trump's trade policy reforms, which may increase the risk of a multi-line trade war breaking out between the US and many countries. The latest measures also abolish the steel and aluminum duty-free quota and exemption policies for some trading partners. According to US White House officials, the US imposition of 25% tariffs on steel and aluminum will take effect on March 4. Many European countries responded harshly. European Commission President von der Leyen said that they will take firm and proportionate countermeasures against US tariffs. German Deputy Chancellor and Minister of Economy Robert Habeck also issued a statement saying that Europe will respond to unilateral trade restrictions in a “united and firm manner.”

Judging from the historical past, the last round of steel and aluminum tariffs not only did not bring about a revival in the manufacturing industry, but also dealt a blow to American industry and consumers. Steelmakers in the US have not significantly increased production capacity, but have begun to raise prices for this reason. On the other hand, American automobile manufacturers have been greatly impacted, directly devouring the US steel industry, such as American steel: they have fallen into the dilemma of “if you don't sell to the Japanese, you have to lay off workers and close the factory.” Currently, a lawsuit is still being filed with the US government over this takeover case.

US President Trump made another astonishing statement about Gaza last Saturday. He said that according to his proposal to rebuild the enclave in Gaza, Palestinians will not have the right to return to Gaza and they will get “better housing conditions” in neighboring countries. It is already the norm for Trump's remarks to be repeated. They are all interests, including the desire to achieve a Russian-Ukrainian cease-fire, which is probably not that easy.

In this state of entanglement, market sentiment also fluctuated, and spot gold rose in a straight line to 2,920 US dollars/ounce, continuing to reach a record high. Gold stocks took advantage of this opportunity earlier today, such as Lingbao Gold (03330), but weakened at the end of the market, and the relatively stronger Zijin Mining (02899), formed a bullish ranking. Better performance was the main reason.

Musk, who led the “Department of Government Efficiency” (DOGE), began pointing the finger at the Federal Reserve. In a tweet on the X platform on Sunday, he wrote, “All aspects of government must be fully transparent and responsible to the people. There are no exceptions, including but not limited to the Federal Reserve”. This is tantamount to putting pressure on Powell. At 23:00 Beijing time tonight, Powell will first attend the Senate Finance, Housing, and Urban Affairs Committee hearing and give his semi-annual monetary policy statement. By 23:00 tomorrow evening, Powell will also give his semi-annual monetary policy statement before the House Financial Services Committee. These two hearings should have quite a few answers, such as opinions on Trump's tariff policy, views on economic prospects, how the Federal Reserve can maintain its independence, and key forward-looking guidelines. Until these are unclear, the market will be relatively cautious.

Automobile stocks are having a big impact on the market today. BYD (01211) announced that all of its models will be equipped with advanced intelligent driving systems, with no additional price increases. The Qin PLUS DM-i smart driving version is 79,800 yuan, and the Seagull smart driving version even costs only 69,800 yuan. As the number of cameras equipped with each car continues to increase, Shunyu Optics (02382) naturally benefited, rising more than 3% today. BYD's move undoubtedly triggered a nuclear bomb. For new car builders, advanced smart driving was originally a major advantage and a major selling point, which directly led to a decline in advantage. For example, Xiaopeng (09868) and Ideal (02015) fell by more than 9% and 5% respectively. In fact, there are big car companies such as Smart Driving, but they are passive; adjustments should be an opportunity.

Cars were quite cruel this year. Last year was just a small test; this year was a battle of life and death. After rolling the price roll, the cycle was repeated, and finally those that couldn't stand it were eliminated. BYD's wave of smart driving has attacked many models. For example, at the price range of 150,000 yuan to 250,000 yuan, the pressure on SAIC Motor is huge. It requires all-round support from technology, products, and brand power to withstand the fierce attacks of companies such as BYD. Today, it is rumored that the cooperation model between Huawei and SAIC Motor has decided to use the smart car model. Judging from the trademarks registered by SAIC Motor, the brand name is initially “Shangjie.”

Unlike the original four brands of Hongmeng Zhixing, the market is still aimed at a younger market. Sources revealed that “the price of the model will start at 170,000 yuan and 180,000 yuan, reaching around 250,000 yuan.” According to sources, the first “Shangjie” model will be developed based on the original product development of SAIC Motor's subsidiary brand Feifan Auto. “The appearance of the first car has not changed much; the core is integration with Huawei's electronic and electrical architecture and intelligent technology.” Huawei will use its product and marketing experience to refine the product. The new car is expected to hit the market in the fourth quarter of 2025.

The executive meeting of the State Council supports the accelerated development of new types of consumption, and AI+ consumption is expected to rise to the forefront. New types of consumption, such as Keep (03650), cover sports (marathons), fitness, weight loss, etc. The average monthly activity of Keep remains around 30 million, and the member penetration rate is over 11%; the company has adopted an All in AI strategy and will upgrade and iterate the App 8.0 version in 2025. It is expected to launch a closed beta version with AICoach in April, and launch the new 9.0 AI version later. It may have boosted late-stage results, up 8.85% today.

According to data from Cat's Eye Pro Edition, as of 3:00 p.m. on February 11, the box office (including pre-sale) of “Nacha 2” (“Nacha 2” for short) had surpassed 8.8 billion yuan, continuing to set new records in Chinese film history. Benefiting from the outstanding performance of “Nacha 2”, “Nacha 2” peripheral products are popular. Among them, the “Nezha 2” blind box figure launched by Bubble Mart is particularly popular. The latest pre-sale delivery schedule is until May 20, and Bubble Mart physical stores in many parts of the country are also sold out. Bubble Mart (09992)'s hidden blind box model has become a luxury item. This model is also addictive. Furthermore, Bubble Mart still has strong growth potential, and overseas markets can continue to expand. Today it hit a record high of 107 yuan. Another one, Bruco (00325): It is a leader in building character toys in China. It has strong original IP capabilities, and also has partnerships with about 50 well-known IPs. With the development of AI technology and the growth of the character toy market, there is an opportunity to incorporate AI technology into products. From an IP perspective, Reading Text Group (00772) has massive online literature IP resources, which can be monetized by adapting these IPs into various entertainment formats such as AI toys, and has great potential for content creation and IP application of AI toys.

OPENAI CEO Altman wrote: AI costs are being reduced tenfold every year, and OpenAI is making every effort to deploy AI agents. On February 11, Weimeng Group launched a shopping guide agent product for the retail industry: “Shopping Guide Task AI+”. Through “Weimeng WAI”, the large domestic model DeepSeek is integrated to reshape the planning and management process of shopping guide tasks with stronger reasoning and scheduling capabilities, helping retail enterprises improve operational efficiency and optimize customer reach and transformation effects. Previously, Weimeng's big model application product “Weimeng WAI” had integrated the domestic big model DeepSeek to help AI products such as WAI SaaS achieve capacity upgrades and enhance AI agent-related capabilities. Today's increase is 2.62%.

The HKSAR Government's new budget will be announced at the end of the month. The Hong Kong General Chamber of Commerce proposes to expand the Cross-border Banking Connect scheme to other major cities in the Mainland and expand the range of products. For Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, it is proposed to relax the threshold for “Southbound Connect” eligible investors and exempt individual mainland investors from the 20% tax on purchasing Hong Kong stocks through the Shanghai-Hong Kong Stock Connect. If the threshold is relaxed, there will be a major improvement in terms of funding.

[Section Focus]

The General Office of the People's Government of Guangdong Province issued “Certain Measures to Promote the Deep Integration and Development of Manufacturing and Productive Service Industries”. Among them, it is proposed to promote the integration of manufacturing and e-commerce. Support enterprises to accelerate business collaboration in e-commerce services and industrial chain links such as raw material procurement, manufacturing, and terminal sales in the manufacturing industry, focusing on strategic pillar industrial clusters such as electronic information, home appliances, light industry textiles, modern agriculture and food, enhancing e-commerce industry agglomeration and public service capabilities, and carrying out pilot projects for the integrated development of industrial clusters and cross-border e-commerce. By 2027, 20 “industrial clusters+cross-border e-commerce” pilot projects will be built, and 100 e-commerce brands with sales of more than 100 million yuan will be cultivated.

Main products: JD Group (09618), JD Logistics (02618), Weimeng Group (02013), Sinotrans (00598), Zhongtong Express (02057).

[Individual Stock Mining]

China Tower (00788): Expected to achieve steady mid-single-digit revenue growth in 2025, I am optimistic about the company's two major highlights

Goldman Sachs recently released a research report stating that China Tower expects revenue to grow steadily in the middle single digits in 2025, and the net profit growth rate will remain low in double digits. This was mainly due to cost control and lower depreciation. As 5G base station construction progresses, the company expects telecom tower business revenue to remain stable in 2025, and the indoor station business is expected to achieve stronger growth due to telecom operators' emphasis on indoor coverage.

Comment: China Tower is the world's largest telecommunications tower infrastructure supplier, and the “one, two wings” business layout is progressing steadily. As 5G base station construction progresses, the company expects telecom tower business revenue to remain stable in 2025, and the indoor station business is expected to achieve stronger growth due to telecom operators' emphasis on indoor coverage. The company has two major points of interest: 1. The “communication tower” becomes a “digital tower”: through “steel+big data+AI+edge computing”, it strives to turn the communication tower into a medium- to high-point IoT sensor integration, launch a large model for the spatial governance industry, and promote the integrated development of “artificial intelligence +”. 2. Tower drones are widely used: Relying on communication towers and computer rooms, equipped with drones and smart nests, and linked to advanced monitoring equipment such as emergency monitoring instruments, they can fully automate drone flight and charging in key scenarios such as emergency rescue and traffic inspection.

The smart link business continues to maintain good revenue growth, and the energy business revenue growth rate is slowing down. The new round of commercial pricing agreements is transitioning smoothly. Depreciation of acquired assets will reach an inflection point in 2026. Depreciation will absolutely dominate the company's operating expenses and will have a significant impact on the company's profitability. The depreciation period for existing tower assets acquired in 2015 will expire in the fourth quarter of 2025, which will provide a strong impetus for profit growth in 2026. At that time, the company's profits are expected to be released at an accelerated pace. The company has the dual attributes of steady business performance and stable dividends, and is expected to open up long-term broad space as businesses related to the low-altitude economy expand in the future.

[Disclaimer] This VIP information product is for communication and discussion purposes only, and does not constitute any investment advice. Unauthorized reproduction is strictly prohibited. For more high-quality information and data products, please log in to the “Zhitong Finance” app.