Zhitong Hong Kong Stock Exchange Unravels | What to do after the huge technological shock and choose to avoid spending money

[Anatomy Dashboard]

Amidst the huge technological shock, both markets emerged from a downward trend. Hong Kong stocks once again jumped downward, closing down 1.55%.

On November 12, local time, Trump said that the US does not need to reach an agreement with Iran. Those days are long gone. He claims that the US already has hundreds of billions of dollars in Iran's capital and the Strait of Hormuz. The Iran issue is still unresolved; repetition is the norm. It is expected that oil prices remain high. Against this background, the performance of the petrochemical industry will be quite nourishing, and the trends of Sinopec Refining and Chemical Engineering (02386), Sinopec Guande (00934), and Sinopec (00386) are all clearly stronger than the general market.

The worst results have already come out. Nvidia announced that Hwang In-hoon, the company's co-founder and the only CEO who has been in charge of the company for 33 years, immediately resigned and stepped down from the board of directors at the same time. Wong In-hoon himself does have bugs. Check out how many voting rights these founders have in their company: Elon Musk (SpaceX): over 82%, Mark Zuckerberg (Meta): about 61%, Elon Musk (Tesla): about 20%; while Hwang In-hoon (Nvidia) only has about 3.6%. In order to protect Myung-chul, Hwang In-hoon had no choice but to quit, but even so, it's hard to say whether he can retreat with his whole body; there are still various investigations and hearings awaiting later.

The Board of Directors appointed Chief Financial Officer Colette Kress as interim CEO and appointed Harvey Jones, former Synopsys CEO, as the new Chairman. The board of directors may take up to six months to determine Wong In-hoon's permanent successor, and if the successor is from outside, it will take additional time for him to officially take office. Nvidia's business fundamentals are not expected to be immediately compromised. However, it should be noted that Hwang In-hoon maintains his ecosystem by using Nvidia's financial resources to support cutting-edge laboratories such as OpenAI and Anthropic to underwrite financing transactions for cloud computing companies such as CoreWeave. The entire AI ecosystem holds shares and guarantees each other. However, the new CEO, Colette Kress, is mainly involved in finance. Naturally, I don't agree with this risky operation. If this ecosystem is changed, then I'm afraid Nvidia's actual demand will be greatly reduced. The valuation part will also be re-evaluated, and the entire industry chain will have to be re-evaluated. Therefore, even if it may be possible to toss around in the short term, the medium-term risks are already showing, and prudent funding is already considering the negative effects that lie ahead.

This is the root cause of the overall weakening of technology stocks today. Coupled with the Democratic Party's victory, the suppression of data center construction and various unfriendly actions against us, the situation of domestic AI technology stocks will become even more difficult. Many types of technology have declined, such as Jingwang Technology (03228), Shenghong Technology (02476), which fell by more than 13%, Zhongji Xuchuang (03308), and Dingtai Hi-Tech (01377), which fell more than 9%; the overall narrative of AI technology feels like it is on the verge of collapse. Technology is a relatively good part of the domestic chain.

For Nvidia, Wong In-hoon is the soul of the company: as many as 60 executives report directly to him, and each employee must list the five most important tasks and disclose them internally. He reviews them one by one, and even personally writes email guidance to grassroots employees. It's hard for any successor to replicate. So is it possible for Hwang In-hoon to return to Nvidia in the future? I don't feel like it's likely anymore, because all the jobs are gone. The best situation would be to be a consultant, but after the investigation was over, it wasn't that fast. In the longer term, unless the Republican Party takes power again in 2028. However, the development of the technology industry is changing rapidly, and Nvidia doesn't even know what it will become after a year. High-rise buildings often take years to build, but they collapse very fast.

The suffering of institutions that bought technology stocks was unspeakable. They had already fallen far enough, but I didn't expect another big one to come. I have to say that Zhou Xiaochuan's last speech contained gold in the risk of AI cues.

With the exception of banks and a few utilities, what can still rise today is basically consumption left over. On November 13, the Ministry of Commerce and other departments successively issued two consumer promotion policy documents, namely “Implementation Opinions on Promoting the Expansion and Upgrading of Commodity Consumption” and “Opinions on Further Stimulating Sinking Market Vitality and Active Consumption in Counties” to accurately fill the shortfall in consumer supply in counties. For example, luggage consumption, Samsonite (01910): The results were announced last night. The company's net sales increased 0.6% year-on-year at a fixed exchange rate in the third quarter, better than previous guidance, and improved month-on-month in all regions. The stimulus was the implementation of a further share repurchase program under the 2026 share repurchase mandate from November 13, totaling $50 million. That's pretty good for small-cap stocks that trade less than 100 billion dollars per day. In addition, the target dividend ratio remained at 40% to 50% of the adjusted net profit, up more than 5%; there is also the repurchase concept of Connett Optics (02276): It plans to repurchase H shares no more than HK$400 million. The XR business will grow significantly this year, up 1.6%.

In terms of pork consumption for people's livelihood, pig ownership contracts rose by 3.01% on November 13. On November 13, the average price of three-yuan pigs nationwide was about 8.54-8.60 yuan/kg, a slight increase of 0.03 yuan/kg from the previous day. This is the first time that pig prices have rebounded steadily since falling to a new low in nearly ten years. The marginal improvement on the demand side directly mitigated the market's pessimistic expectations of a “poor peak season”. The increase in slaughter rate meant that downstream procurement demand for pigs was recovering from a low level, while the stabilizing price of pigs around 8.5 yuan/kg eliminated the fear that continued to decline. Together, the rebound in futures markets provided a basis for spot anchoring. The entire industry has been losing money continuously for 15 months since September 2025, and deep losses for 8 months since March 2026. Deep losses have forced production capacity to clear, and policy support expectations have increased. Leading Muyuan shares (02714) rose more than 4%. COFCO Jiajiakang (01610) rose nearly 3%.

In terms of home appliances, Midea Group (00300) showed outstanding performance. According to HKEx information, J.P. Morgan Chase's holding ratio of Midea Group H shares rose from 14.83% to 15.16% on November 10, and the average share price purchased was HK$100.2294. Recently, it has continued to rise and has broken through a record high. Skyworth Group (00751) rose more than 4% at the bottom.

On November 12, JD released the JD Famous Liquor 11.11 full-cycle battle report. According to war reports, from October 8 to November 11, the turnover of JD liquor increased 25% year on year, Maotai's turnover increased 10% year on year, Wuliangye increased 13%, and Luzhou Laojiao increased 10% year on year. Zhenjiu Li Du (06979) is one of the few listed liquor companies that achieved a “double increase in net profit” in the first half of this year, and the trend is relatively stable today; Yasui Foods (02648) frozen baking is a new growth pole that the company focuses on, launching the “Yasui Baking Workshop” sub-brand to target new tea and coffee chains, small B merchants, and C-end household consumers. The Indonesian joint venture has been established. The first phase plans to start construction in the third quarter of 2027 and put into operation in the first quarter of 2029, using a dual brand strategy to lay out the market. In response to the rise in surimi prices, the company gradually narrowed its promotion efforts, adjusted its price strategy flexibly, and guaranteed supply and cost control through mergers and acquisitions and process improvements, increasing by more than 2%.

The global L4 autonomous driving market for commercial vehicles in closed scenarios has grown from 2 billion yuan in 2021 to 10.3 billion yuan in 2025; it is expected to reach 19.7 billion yuan in 2026 and rise to 110.1 billion yuan in 2030, with a compound growth rate of 53.8%. Yushi Technology (01511), an autonomous driving supplier focusing on L4 unmanned solutions, is the leading L4 autonomous driving solution provider for commercial vehicles in the Greater China airport scene and factory scene, with market shares of 90.5% and 31.7% respectively. It has operated more than 70 unmanned vehicles at Hong Kong International Airport, including driverless electric tractors, driverless patrol vehicles, and driverless shuttle buses, which efficiently guarantee the operation of more than 300 flights every day. Hong Kong International Airport has accumulated more than 4 million kilometers of unmanned operation, accounting for half of its global airport operating mileage, up 1.6%; acquisition concepts have also risen well, with Evergrande Property (06666) and Yingxing Holdings (01440) both rising by more than 3%.

[Section Focus]

November 13 -- The National Development and Reform Commission and the National Energy Administration issued the “15th Five-Year Plan” for New Energy Storage Implementation Plan. Among them, it is proposed to guide collaborative innovation between private enterprises, universities, research institutes, etc., and to support private enterprises to participate in the selection of major science and technology projects in the field of new energy storage and invest in new energy storage. Make good use of new policy financial instruments, medium- and long-term manufacturing loans, local government special bonds, etc., to support the construction of eligible new energy storage projects. Encourage financial institutions to increase green finance support for new types of energy storage.

Hong Kong stock related products: Yuanxin Energy Storage (09621), Ningde Era (03750), Sega New Energy (06656), Ruipu Lanjun (00666).

[Individual Stock Mining]

Shunyu Optical Technology (02382): Apple expands production of folding screen phones to boost optical chain automotive and XR orders continue to be fulfilled

Apple is said to have raised the production plan for the first 12 months of the first folding screen phone from 9.7 million units to 14 million units, an increase of about 44%, driving the market's expectations for the optical and consumer electronics supply chain to heat up. The company's revenue for the first half of 2026 was RMB 21.906 billion, +11.47% YoY; net profit to mother was RMB 1,808 billion, +9.86% YoY.

Comment: The expansion of Apple's folding screen phone production is driving the market's expectations for the optical and consumer electronics supply chain boom heating up. The company is a global leader in optics, taking the lead in many categories of markets. The number of shipments of mobile lenses and mobile phone camera modules has been the highest in the world for many years. Android has significantly led the market share, and the penetration of high-end models continues to increase. Major North American customer (Apple): The lens has been stably mass-produced and supplied. The module will return to mass production in the second half of 2025, and production capacity is climbing. The company has proposed “optics+AI”, and optical interconnection components have entered customer verification, and it is expected to be delivered in small quantities by 2027. Vehicles continue to grow by double digits, the number of bicycle lenses is rising, high-pixel, heated self-cleaning modules are iterating, and lidar optics continue to be implemented at fixed points. Vehicle: A large number of long-term fixed points, covering 8M and 17M ADAS front vision, cockpit OMS, and lidar optics; the fixed-point cycle is generally 2 to 4 years, which is the most solid stock; well-known overseas European car companies have landed at fixed points.

XR: AI glasses exploded. Revenue related to AR/smart glasses increased by more than 50% year-on-year in the first half of the year, received large orders from leading customers, and began contributing significantly in 2027. IoT and other business outbreaks: Revenue in the first half of the year was +88.51%. Robotic vision, industrial inspection, medical optics, and multiple head customers gradually switched to mass production. XR/AR optics: Pancake, optical waveguides, AR light engines, and smart glasses imaging modules were mass-produced and supplied to leading customers. High-pixel vehicle module: The world's first 8MP COB vehicle module, about 1,200 yuan per module, supporting BYD, NIO, Tesla, etc.; it has received a 17MP order and is expected to be mass-produced in 2026. AI+optical fusion: Integrated lense+algorithm solution, deeply bound to Nvidia/Qualcom/Mobileye to serve L2+/L3 smart driving. Orders are plentiful, XR: mass production orders for Pancake modules/optical waveguide lenses such as Meta, Pico, Huawei, etc.; AI glasses have an optical module shipping target of 10 million in 2025. Robotic vision: 2 billion+ projects in hand, covering navigation and obstacle avoidance, 3D vision, robotic/dexterous hand/hand-eye and brain systems, and in-depth cooperation with Sony and Preferred Choice. The company's later outlook is that from 2026 to 2028, there is a steady rise in mobile phones, the doubling of vehicles, the explosion of XR, and the deployment of robots. There is plenty of room for long-term growth, and it is becoming the second growth curve. The company ordered long-term frames for Apple and Android flagship high-end Periscope and glass plastic lenses, and their share continued to increase.