Dahua Jixian: Tencent Holdings (00700), Cinda Biotech (01801) and others joined the “buy” list to maintain optimism about TMT and IT hardware

Zhitongcaijing · 2d ago

The Zhitong Finance App learned that Dahua Jixian released a research report saying that with the consolidation of Chinese stocks in August, the Hang Seng Index and MSCI China Index fell 1.2% and 0.4%, respectively, from month to month, and generally maintained the increase in July. The bank's fundamentals are still optimistic about TMT and IT hardware, preferring companies that benefit from capital expenses related to artificial intelligence, as well as the localization of semiconductors and advanced manufacturing equipment.

The bank added Dazu Laser (002008.SZ), Beifang Huachuang (002371.SZ), Cinda Biotech (01801), and Tencent Holdings (00700) to the “buy” list; locked in profits against BeiGene (06160) and stopped losses on Everweft Lithium (300014.SZ) and Ctrip Group-S (09961).

Dahua Jixian also maintained “buy” ratings for Alibaba-W (09988), ASMPT (00522), BYD shares (01211), Gaowei Electronics (01415), IFF (601138.SH), NetEase S (09999), and Double Ring Drive (002472.SZ).

Among them, the bank added Tencent to the list for reasons including revenue and efficiency improvements driven by artificial intelligence, enhanced WeChat video advertising, approval of game versions, and the expansion of the mixed-element ecosystem, with a target price of HK$608. Cinda Biotech was added to the list, with a target price of HK$132 based on strong revenue and profit growth, smooth R&D progress, continued launch of new products and expanded global cooperation.