Zhitong Hong Kong Stock Exchange Unraveled | May had a good start and continued to gather, and the performance of technology gold stocks was remarkable

[Anatomy Dashboard]

On the last trading day, I mentioned that “the stability at the end of the month brought expectations”. Entering the first trading day of May, the Hang Seng Index fluctuated upward by 1.74%, and the Hang Seng Technology Index rose 3.08%.

Don't look at US stocks; in fact, capital is flowing out. Bank of America quoted EPFR data as showing that as of Wednesday, the US stock market had outflows of 8.9 billion US dollars, Japanese and European stock markets had capital inflows, and US debt had outflows of 4.5 billion US dollars, the largest since December 2023.

At the end of the day, it is also due to tariffs. On April 30, local time, US President Trump also had to admit after holding a cabinet meeting at the White House that his tariff policy and trade war may result in empty shelves in stores and higher product prices, especially in toy stores. Trump admits that he used to be able to buy 30 toys, but now he can only buy two. More than just toys. May 2 - On behalf of more than 3 million businesses and organizations across the United States, the American Chamber of Commerce, one of the largest and most influential business organizations in the world, sent a letter to the Trump administration, urging it to immediately implement a “tariff exemption mechanism” to prevent the US economy from falling into recession and causing “irreparable harm” to small businesses. It is impossible for the White House not to consider this issue.

Today, a spokesman for the Ministry of Commerce answered questions from reporters on the Sino-US economic and trade dialogue negotiations. A spokesman for the Ministry of Commerce said that the Chinese side has taken note of the many statements made by senior US officials and expressed their willingness to engage in negotiations with China on the tariff issue. Meanwhile, the US side recently took the initiative to send information to China through relevant parties several times, hoping to discuss it with the Chinese side. The Chinese side is currently evaluating this. Today, there has been a clear change in our attitude compared to the previous one. In the early stages, we have always refuted rumors and said that there was no such thing, but now we have a positive response, so at least we have begun to consider it.

FTSE China A50 Index futures clearly reacted in the morning, rising more than 0.9% at one point. Furthermore, on May 2, the offshore RMB surged more than 500 points against the US dollar, rising more than 0.7% during the day to 7.226, and the increase narrowed slightly thereafter. Corresponsibly, gold experienced weekly outflows for the first time since January. Chifeng Gold (06693) fell nearly 4%.

The latest tariff adjustments have arrived. The US Customs and Border Protection confirmed on May 1, local time, that auto parts made in Canada and Mexico are part of the US-Canada-Mexico Agreement (USMCA) and will be exempt from 25% tariffs. The tariff will take effect on May 3.

Auto stocks are active again today. As of April, Xiaopeng Motors (09868) has delivered more than 30,000 vehicles for 6 consecutive months, setting a new record. In terms of specific models, the Xiaopeng MONA M03 has delivered more than 100,000 units in 8 months; the Xiaopeng P7+ has been on the market for 5 months, and recently completed the 50,000th new vehicle launch. Today it is up more than 6%.

According to data released yesterday by Zhitong Gold Stock Zero Sports Auto (09863) official Weiwei in May, in April 2025, the monthly delivery volume of Zero Sports Auto was 41,039 vehicles, an increase of 173% over the previous year. As mentioned earlier, this variety has benefited the most from tariff adjustments. Today, it has surged by more than 7%. Another gold stock, the Xiaomi Group (01810), surged more than 6%. More than 28,000 Xiaomi cars were delivered in April.

Another category that is more sensitive to tariffs is the CXO category. Kanglong Chemical (03759) announced first-quarter results, with revenue of 3,099 billion yuan, an increase of 16.03% over the previous year; net profit to mother was 306 million yuan, an increase of 32.54% over the previous year. Also, Yao Ming Kangde (02359) all rose by more than 7% today.

In the direction of technology, the financial reports of US giants such as Meta, Microsoft, and Apple are still impressive, and the impact of tariffs cannot be seen at all; the point is that these giants have all reaffirmed their aggressive artificial intelligence investment plans. It can be seen that the industry that competes for supremacy between China and the US is still gathering a large amount of capital. The relevant computing power stock Zhitong's May gold stock -- Universal Data (09698) surged more than 7%. Another May gold stock, Jinshan Software (03888), brings together major topics such as games, office software, Jinshan Cloud, Hongmeng, and Xinchuang, and is also up nearly 7% today.

The US non-farm payrolls report for April, which will be released tonight, is also receiving market attention. This data will directly affect the market's bet on the Fed's interest rate cut. Economists expect that the April US employment report will show 135,000 new jobs, down from 228,000 in March. Mark Zandy, chief economist at Moody's Analytics, warned that financial markets may need to prepare for Friday's disappointment with non-farmers. Specifically, his focus is on employment growth below 100,000, which he anticipates will lead to negative economic sentiment dominating. Overall, the current non-agricultural data will not have much impact on the next Federal Reserve interest rate meeting, and the market expects that interest rates will not be cut this time.

Note that on May 1, local time, US President Trump posted on social media that any country or individual that buys petroleum or petrochemical products from Iran will be subject to US sanctions and will be banned from doing business with the US. This direction is obvious, and it is expected to be just a bargaining chip.

Berkshire Hathaway's Annual Shareholders' Meeting will be held again in Omaha this Saturday at 21:00 p.m. Beijing time. Buffett, the “stock god,” will once again be on the same stage as his successor, Greg Abell, and the head of the insurance business, Ajit Jahn, to answer questions from shareholders around the world. Over the past year, Buffett's main operation was to slash Apple's stock holdings by two-thirds and continue to reduce Bank of America holdings. Then they frantically hoarded cash to $334.2 billion. This shareholders' meeting will give a glimpse into Buffett's views on the market, economy, or tariffs, as well as when he plans to cut the bottom and whether to continue to hold cash.

[Section Focus]

The end of AI is electricity. Due to countries' response to climate change and the urgent need for clean, low-carbon energy from large-scale technology, the development of small-scale nuclear power reactors is booming around the world. Last October, Google announced a power purchase agreement with Kairos Power, which will deploy seven small modular reactors around 2030 to meet Google's electricity needs. China has achieved important results in small reactor technology development. It is leading the way in deploying small onshore pressurized water reactors. It has developed and formed 12 types of small reactor technologies for different uses, different power levels, and different reactor types.

On May 1, the final assembly work for the Hefei Compact Fusion Energy Experimental Unit (BEST) project was officially launched at the Fusion Reactor Main Key Systems Comprehensive Research Facility Park two months ahead of schedule.

Based on the first-generation Chinese artificial solar EAST device, the BEST installation will demonstrate fusion energy power generation for the first time, lead research on combustion plasma physics, and make forward-looking and pioneering contributions to the development of fusion energy in China. The main related products are: Shanghai Electric (02727) and CGN Mining (01164).

[Individual Stock Mining]

China Construction International (03311): Steady growth in the first quarter results, increasing the contribution of technology revenue

The company achieved revenue of 23.9 billion yuan in 25Q1, +5.5% year-on-year, operating profit and profit attributable to joint ventures of $3.96 billion, or +10.8% year-on-year. The amount of new contracts signed in 25Q1 was $50.5 billion, -29.1% year-on-year.

Comment: The company's first quarter results maintained steady growth. The order structure was optimized, and the performance was strong after excluding the impact of major projects. Although the amount of new contracts signed by the company decreased by 29.1% year on year in the first quarter of 2025, excluding the high base impact of major projects in the Hong Kong New Territories West Landfill Expansion Plan in the same period in 2024, the amount of new contracts signed increased 59% year on year, up 21.5% from the same period in 2023; the compound order growth rate reached 10.2% in two years, indicating that the company's order growth has maintained a steady trend.

By business, technology orders still account for a large share, and the growth rate of construction orders is increasing. Technology-driven revenue grew rapidly, accounting for 20%. 25Q1's technology-driven, investment-driven, construction/operation categories achieved revenue of 48/114/62.5 billion yuan respectively, +22%/+5%/-9%/+11% compared with the same period last year, accounting for 20%/48%/26%/2%, +2.7/-0.4/-4.1/+0.1pct. As the construction of the northern metropolitan area of Hong Kong progresses, capital project expenditure will increase to about HK$120 billion per year over the next five years. As the leading construction project in Hong Kong, the company is expected to fully benefit from the market conditions.

The company MiC was selected for the national promotion list, and its BIPV products were certified by TÜV Rheinland. Recently, the company completed the comprehensive renovation project of Beijing No. 14 Middle School, making it the first modular construction school in Beijing and the group's second MiC project in Beijing. With smart, efficient, green and environmentally friendly MiC technology, the company is expected to seize market share in the mainland.

Overall, considering that the company's new contracts have maintained double-digit growth and cash flow continues to improve, medium- to long-term technological empowerment is expected to optimize business models and profitability, and emerging projects may contribute performance growth points to the company.