Zhitong Hong Kong Stock Exchange Unraveled | Technology disrupted, surged and declined, and the performance of AI terminal devices was impressive

[Anatomy Dashboard]

The data released by the US Department of Labor is exactly in line with expectations: the unseasonally adjusted CPI in July recorded an annual rate of 3.4%, the smallest increase since March; the monthly CPI rate recorded 0.1% after the quarterly adjustment in July, returning to a positive growth range, showing that US inflation in July was relatively moderate. The trend of US stocks did not fluctuate much. Today, A-shares were fine this morning, but there was a dive at the end of the market. The impact on Hong Kong stocks was not significant, with a slight decrease of 0.17%.

After the release of moderate data, Bank of America economist Aditya Bhave (Aditya Bhave) reiterated that the Federal Reserve is expected to raise interest rates three times this year, and the first rate hike will be in September. The reason is that if interest rate hikes are suspended now, once inflation accelerates again, long-term US bond yields may lose their anchoring. In the current relatively sensitive situation, with such strong “hawkish” remarks, the market will naturally be very tense. Gold was shocked the most. Lingbao Gold (03330) fell by more than 9%, leading to adjustments in non-ferrous metals, etc., and China's non-ferrous mining industry (01258) also fell by more than 6%.

There was also a sudden surge in the yen. The market is worried that the Bank of Japan may raise interest rates. As the world's core financing currency, interest rate hikes may trigger the liquidation of arbitrage transactions, causing leveraged funds to withdraw from risky assets. This had the biggest impact on technology stocks. The weakening of A-shares was due to the collapse of many technology stocks. The same was true for Hong Kong stocks; they all retreated higher.

Tencent's (00700) results were released, with revenue exceeding expectations of 204.8 billion dollars, but free cash flow was negative 13.8 billion due to computing power prepayments, and Q2 capital expenditure of 52.8 billion dollars surpassed market expectations (65% higher than the estimated 32.1 billion yuan). Spending money on computing power is definitely right in the long run; it's impossible to balance the short and the long term for many things. The market is worried that the company will spend so much money and when it will be able to make it back, so today is a decline.

The company made it clear that Q3 will continue to increase procurement of computing power, and capital expenditure expectations for the whole year will be further revised, indicating that the expansion of AI computing power production by major domestic Internet companies is still at an accelerated stage. Today, individual A-share switch stocks all performed well. The Hong Kong stock market is Supernode, Huaqin Technology (03296): Very few domestic full-stack manufacturers with built-in 800G high-speed switch+integrated liquid cooling+HVDC power supply in a single cabinet, fully interconnected with up to 64 GPUs, dedicated to serving 10,000 card large model training clusters; order landing: Alibaba Pangjiu 128-card supernode core NRE designer, won the bid for 1500 units; Tencent Galaxy V3 supernode won the bid for 1000 units; took over the new generation of Guangxi Byte Full cabinet verification; Huawei Ascend 384 card supernode core ODM foundry; performance direction is also strong: the company guides Supernode's single business revenue to exceed 10 billion dollars in 2026, and large-scale batch delivery in the second half of the year. Today it surged more than 10%.

Optical communications giant Coherent recently released financial reports. Quarterly revenue reached a record high of US$2.05 billion. The performance outlook was higher than market expectations. The high prosperity of the optical communications industry was verified, and Cambridge Technology (06166) rose more than 6%.

Today's strength is mainly in the performance category. Lenovo (00992)'s performance exploded. In the 2026/27 fiscal year, Q1 revenue increased by 43%, net profit doubled, and revenue related to artificial intelligence increased 60% year over year, accounting for 35% of the group's revenue. The number of AI server orders in hand has increased from 140 billion yuan at the end of the last fiscal quarter to 360 billion yuan, an increase of nearly 157%. Recently, Internet giants such as Ali and Tencent have increased CAPEX, and demand for Lenovo's AI servers will increase further. Today, it has surged more than 20%. In an interview, CEO Honor said, “The entire consumer electronics industry, and possibly other industries that are strongly related to memory, are actually facing tremendous pressure, and the global market space is being compressed. But on the other hand, there is also an opportunity. The next 2 to 3 years will definitely be the time for a major explosion of AI terminal devices.”

As a terminal AI device, in addition to Lenovo (00992) and Huaqin (03296), the head ODM company, there is also a second-tier ODM Longqi technology (09611): it used to be a mobile phone ODM, but now it has expanded to the AI PC direction. The company said it has completed mass production and delivery of multiple platforms such as Intel, AMD, and Qualcomm, such as lightweight, high-performance AI PCs, 360-degree flip PCs, etc., after acquiring Ke Juncheng, developed its own ultra-thin cooling solutions to perfectly solve the AI PC's high NPU The high-heat problems brought about by computing power form an exclusive synergy advantage. New additions include AI glasses, in-vehicle tablets, etc., but they are all very small. However, the growth rate should be high. Today, it has risen by more than 11%. Another AI terminal device, Weishi Jiajie (00856), rose nearly 5%.

There are also consumer products that have performed well. The revenue of Bruco (00325) increased 32.7% year on year in the first half of the year. The main highlight is that the overseas sector grew rapidly. Revenue increased from 111 million yuan in the same period last year to 366 million yuan, up 228.5% year on year, accounting for 8.3% to 20.6% of total revenue. Among them, American revenue increased from 44 million yuan in the same period last year to 198 million yuan, an increase of about 349% over the previous year, accounting for about 54% of overseas revenue. Basic earnings per share are $1.56, and an interim dividend of HK$0.3247 per share is proposed. Master Kong Holdings (00322) At the beginning of this year, Master Kong ended his ten-year career as a professional manager. The CEO returned to the founder's family and was succeeded by Wei Hongcheng, the founder's third son. The situation improved. In the first half of the year, its revenue was 40.545 billion yuan, up 1.1% year on year; net profit to mother was 2,433 billion yuan, up 7.1% year on year, up 7.1% year on year, an increase of 162 million yuan over the same period last year. The agency expects the company's dividend ratio to remain at 100% for the next 2-3 years, and the dividend ratio is attractive, rising more than 6% today.

Innovative pharmaceuticals are heavily invested in capital. As long as there is no large sector to attract money, capital will continue to move in this direction. The mainstream direction CXO Kanglong Chemical (03759), August Zhitong Jinshuo Baosetu (02315), and Kingsley (01548) all rose more than 5%.

Recently, global analog chip giants have intensively adjusted prices. ADI initiated the second round of price increases during the year due to increased demand, rising manufacturing costs, inflationary pressure, and investment in production capacity expansion; TI has completed three rounds of price adjustments since starting a wave of price increases in August 2025, covering core products such as digital isolators, isolated driver chips, and power management ICs. Domestic analog chip companies are facing historic opportunities. According to data from the China Business Industry Research Institute, the size of the domestic analog chip market has increased from 157 billion yuan in 2021 to about 2203 billion yuan in 2025, and is expected to reach 245.1 billion yuan in 2026. Currently, the domestic analog chip self-sufficiency rate is only about 16%, which is still low. The leading local company Shengbang Co., Ltd. (03661) has huge room for domestic autonomy, rising more than 9% today.

NVIDIA pointed out that with the introduction of next-generation acceleration platforms and the increase in power density, traditional AC power has already encountered efficiency bottlenecks. It is working with Google, Microsoft, and 80 equipment infrastructure companies to promote 800VDC HVDC architectures, and plans to gradually introduce AIDC starting in the second half of 2026. It directly benefits Nvidia's official partner InnoSec (02577): 800V full-link GaN chips; and Tianyue Advanced (02631): all 800V high-voltage SiC and SST devices must use SiC substrates.

On August 12, MSCI (MSCI) announced the results of the MSCI Stock Index review for August 2026. In this adjustment, 55 securities will be included in the MSCI Global Standard Index and 92 securities will be removed. The top three new constituents included in the MSCI Emerging Markets Index by market capitalization are: Zhi Spectrum (02513), South Asia Technology, and Dingtai Hi-Tech (301377.SZ). The current MSCI quarterly index adjustment will take effect after the market closes on August 31. Zhi Spectrum (02513) rose more than 9%, and Zhitong's August gold stock MINIMAX-W (00100) rose more than 5%.

[Section Focus]

August 13 -- SMIC (00981) announced that in the second quarter, the company achieved overall sales revenue of 3 billion US dollars, an increase of 20% over the previous quarter; gross margin was 25.3%, an increase of 5.2 percentage points over the previous quarter. In the third quarter, revenue is expected to increase by 2% to 4% month-on-month, and gross margin guidance is 26%-28%. Looking ahead to the second half of the year, the industrial drive and spillover effects generated by artificial intelligence will continue, bringing widespread demand for integrated circuit manufacturing. The company flexibly allocates existing production capacity, quickly verifies new production capacity, and helps ease the shortage situation in the industrial chain. Overall, the company remains optimistic about the direction of the industry and the company's development.

Huahong Hongli (01347) had a gross profit margin of 16.5% for the second quarter, estimated at 14.9%; revenue for the second quarter was US$717.5 million, up 27% year over year, estimated at US$702.7 million; net profit for the second quarter was US$38.6 million, estimated at US$39.4 million. Huahong Hongli expects a gross profit margin of 16% to 18% for the third quarter, and the market estimates 16.6%; the company expects third-quarter revenue of US$770 million to US$780 million, and the market estimate is US$822.3 million.

Both giants have surpassed expectations, and Q3 guidance continues to improve, which means that the overall AI direction remains optimistic.

[Individual Stock Mining]

McFTSE (02556): Explosive profit growth accelerates implementation of AI intelligence in foreign trade

The company announced interim results, achieving total revenue of 1.96 billion yuan, up 111.2% year on year; AI application business revenue of 1.13 billion yuan, up 123.7% year on year; net profit of 200 million yuan, up 466.1% year on year; adjusted net profit of 213 million yuan, up 150.9% year on year; and profit per share.

Comment: Revenue and profit increased dramatically at the same time, reflecting the resonance between large-scale implementation of AI applications and improvements in operating efficiency. The company's overseas trade revenue for the year 2025 was 759.34 million yuan, +134.4% year-on-year, far exceeding the domestic business growth rate. In the first half of 2026, overseas revenue was +89% year-on-year, and there were 982 overseas paying customers. The company's AI business exploded in 2026, with AI accounting for more than half. 2026Q1 AI revenue was +110.5%, traditional marketing +0.9%, and precision marketing service revenue was about 1,331 billion yuan, an increase of nearly 86% over the previous year, providing enterprises with more flexible online promotion solutions in advertising and marketing data analysis. The company's core AI-AgentForce 3.0 platform + self-developed GEO large model - self-developed multi-model fusion framework, can schedule large models such as Tforce+ Baidu/Ali, etc., with the best cost and controllable results. Thousands of reusable knowledge maps have been accumulated, and a total of 210,000 enterprises have been served. The company's core partners include Baidu and Alibaba Cloud General Large Model+Cloud Computing Power Platform. Mu Xi Co., Ltd. (domestic GPU) has jointly built a “domestic chip+smart” all-in-one computer, suitable for Xinchuang, cost reduction+safety. Beijing Union Guoxin, OceanBase (Ant): Xinchuang server, database, autonomous and controllable.

Globalization is accelerating, the company will focus on Southeast Asia, the Middle East and Europe in 2026, directly serving local enterprises, and increasing the share of overseas revenue. AI all-in-one machines, GEO intelligent assistants, and industry vertical agents continue to iterate to build a “term factory” (priced based on output value). The self-sufficiency rate of computing power reached 60% +, making it one of the few leading AI applications in China that are self-sufficient in computing power. The Token factory model is mature, and payment is based on call volume/performance, and revenue certainty and gross profit are significantly improved. The number of the company's KA customers doubled, AI agent penetration increased, overseas travel accelerated, and pay-for-performance ratio increased (higher gross profit). Localized deployment of overseas (Southeast Asia/Middle East) computing power opens up a second growth curve. The company's AI smart orders have been placed in batches. The long-term framework orders for the consumer, automotive, and financial industries are sufficient, the renewal rate is extremely high, and the share of AI orders has increased rapidly.