Investment Rating - The report maintains a "Buy" rating for China Water Affairs (855 HK) with a target price adjusted to HKD 6.52, reflecting a potential upside of 10.1% from the current price of HKD 5.92 [5][8]. Core Insights - Despite a decline in overall revenue and net profit for FY26H1, the core water supply business showed resilience with a revenue increase of 4.5% and a sales volume increase of 5.0% [2][5]. - The company has accelerated its water price adjustments, with 8 projects approved for price increases, surpassing the annual target of 8 to 10 projects [3][5]. - A significant reduction in capital expenditure by 31.8% to HKD 12.4 billion in FY26H1 is expected to support the company's high dividend policy [4][5]. Financial Performance Summary - For FY26H1, total revenue and net profit decreased by 12.9% and 24.4% year-on-year, amounting to HKD 5.18 billion and HKD 570 million respectively [1][5]. - The water supply connection revenue fell by 28.6% to HKD 560 million, primarily due to fluctuations in the mainland real estate market [1][5]. - The wastewater treatment service revenue increased by 14.5% to HKD 360 million, driven by the Huizhou Mobil project contributing revenue since FY25 [2][5]. Revenue and Profit Forecast Adjustments - The forecast for shareholder net profit has been reduced by 10.8%, 14.8%, and 14.8% for FY26, FY27, and FY28 respectively [5][17]. - The target price adjustment reflects these changes, with the new estimates indicating a decrease in revenue projections for FY26 to HKD 9.899 billion, down from previous forecasts [5][17].

Market Performance - The Hang Seng Index closed at 26,033 points, up 0.7%, while the Hang Seng China Enterprises Index rose 0.5% to 9,173 points[1] - Total turnover in the Hong Kong stock market reached HKD 200.9 billion, higher than HKD 146.2 billion on the previous Friday, indicating increased market confidence[1] - Key sectors such as materials, industrials, and energy saw increases of 5.2%, 1.5%, and 1.1% respectively, while utilities, finance, and healthcare rose only 0.5%, 0.3%, and 0.3%[1] Stock Highlights - Sunny Optical Technology (2382 HK) and Zijin Mining (2899 HK) led the blue-chip stocks with gains of 6.2% and 5.3% respectively[1] - Bubble Mart (9992 HK) and Meituan (3690 HK) were the biggest losers, falling 4.3% and 2.9% respectively[1] Metal Sector Dynamics - The metal sector performed strongly, with Zijin Mining (2899 HK), Jiangxi Copper (358 HK), and Luoyang Molybdenum (3993 HK) rising between 5.3% and 10.2%[2] - Gold and London copper prices reached recent highs of USD 4,250 and USD 11,190 respectively, driven by market expectations of U.S. interest rate cuts[2] Real Estate Insights - In mainland China, new home sales in 30 major cities fell by 34.9% year-on-year to 2.42 million square meters, a decline from the previous week's 28.2%[3] - Hong Kong's retail sales in October increased by 6.9% year-on-year, surpassing market expectations of 4.7%[3] Industry Trends - The autonomous taxi market in China is expected to see increased competition by 2026, with companies like XPeng Motors (9868 HK) and Didi (DIDIY US) entering the fray[4] - The healthcare sector saw a slight increase of 0.3%, with flu cases rising significantly, indicating potential growth for related companies[4]

Market Overview - The Hang Seng Index and the Hang Seng China Enterprises Index rose by 2.5% and 2.4% respectively last week, influenced by improved investor sentiment due to expectations of a U.S. interest rate cut[1] - On Friday, the main board trading volume shrank nearly 30% to HKD 146.2 billion, marking the lowest for the month[1] - The Hang Seng Index and the Hang Seng China Enterprises Index fell by 0.3% and 0.4% respectively on Friday[1] Company Performance - Baidu Group reported a 7% year-on-year decline in revenue for Q3, resulting in a net loss of RMB 11.23 billion, although its stock rose by 1.0% on Friday[1] - Meituan's Q3 revenue increased by 2.0% year-on-year, but due to a more than 50% rise in distribution costs, it recorded a net loss of RMB 18.63 billion, leading to a 1.4% drop in its stock price on Friday[1] - Luk Fook Holdings reported a 25.6% year-on-year increase in revenue to HKD 6.84 billion and a 42.5% rise in net profit to HKD 620 million, aligning with its profit forecast[1] Sector Insights - The automotive sector saw GAC Group's stock surge by 16.6% on Friday, reaching a one-year high, following the delivery of its electric vehicle Aion UT super and the launch of a solid-state battery production line[4] - The renewable energy and utility sectors experienced a general rise, with notable increases in stocks like Dongfang Electric (up 9.3%) and Harbin Electric (up 6.3%) due to a 15.6% year-on-year increase in national electricity market trading volume in October[4] - The healthcare sector's Hang Seng Medical Care Index rose by 3.9% last week, although it fell by 0.9% on Friday[5] Economic Indicators - The China Manufacturing Purchasing Managers' Index (PMI) for November 2025 was reported at 49.2%, indicating a slight improvement but remaining below the growth threshold for eight consecutive months[3] - Large enterprises' PMI decreased by 0.6 percentage points to 49.3%, while small and medium enterprises saw increases of 0.2 and 2.0 percentage points, reaching 48.9% and 49.1% respectively[3]

Market Overview - The Hang Seng Index and the Hang Seng China Enterprises Index rose by 0.1% and 0.04% respectively, while the Hang Seng Tech Index also increased by 0.1%[1] - Market sentiment has improved recently, but trading remains cautious with a decrease in main board turnover by approximately 10%[1] - U.S. stock indices rose by 0.7% to 0.8%, with expectations of a potential interest rate cut by the Federal Reserve in December rising to 83%[1] Company Performance - Chow Tai Fook (1929 HK) reported half-year results below Bloomberg forecasts, leading to a 6.1% drop in stock price[1] - NIO (9866 HK) narrowed its third-quarter net loss to 3.66 billion yuan, but management's slightly conservative outlook for Q4 caused a 6.2% decline in stock price[3] - Meituan (3690 HK) saw a stock price increase of 5.7% due to favorable market conditions anticipated from Alibaba's expected reduction in flash sales investment[1] Sector Insights - In the automotive sector, NIO's total revenue increased by 16.7% year-on-year and 14.7% quarter-on-quarter, with a gross margin of 13.9%[3] - In the energy sector, coal prices are showing a cautious trend, with power generation stocks rising by 0.5% to 1.3%[3] - In the pharmaceutical sector, Heng Rui Medicine (1276 HK) rose by 4.6% after its new drug application was accepted, leading the innovation drug sector's increase[4]

Market Performance - The Hang Seng Index and the Hang Seng China Enterprises Index rose by 0.7% and 0.9% respectively[1] - The Hang Seng Tech Index increased by 1.2%, leading the market upward[1] - Xiaomi Group's stock price surged by 4.4% following the announcement of share purchases by its controlling shareholder[1] Company Earnings - Alibaba and Baidu's stock prices rose by 2.1% and 4.6% respectively, with Alibaba exceeding Bloomberg's revenue forecasts for Q2[1] - Xiaoma Zhixing reported a 72.0% year-on-year increase in Q3 revenue, leading to a 9.3% rise in its stock price[1] - Vitasoy International's revenue decreased by 6% year-on-year due to weak mainland operations, resulting in a 1.5% drop in its stock price[1] - China Wangwang's net profit fell by 7.8% year-on-year due to increased marketing expenses, causing a 4.3% decline in its stock price[1] Economic Indicators - The U.S. PPI rose by 0.3% month-on-month and 2.7% year-on-year, aligning with expectations[3] - The U.S. consumer confidence index for November was reported at 88.7, significantly below Bloomberg's forecast[3] - Hong Kong's total export value for October was HKD 461.8 billion, a year-on-year increase of 17.5%[3] Sector Insights - The healthcare sector saw a 0.5% increase in the Hang Seng Healthcare Index[5] - Innovent Biologics' stock rose by 2.0% after its drug application was accepted for review[5] - The automotive sector faced challenges, with Hesai Technology's stock rebounding by 13.4% after a significant decline since its listing[4]

2025 年 11 月 24 日 星期一 ➢ 每日大市点评 11 月 21 日，港股受隔夜美股下跌拖累，继续下探。周五恒生指数最终收报 25,220 点，跌 615 点（2.3%）；恒生科技指 数下跌 179 点（3.2%），收报 5,395 点；全天大市成交额扩大至 2,857 亿元。港股通净流入大幅减少至 1.1 亿元。盘面 上，科技股下跌幅度较大，腾讯（700 HK）下跌 1.8%；阿里巴巴（9988 HK）跌 4.6%，中芯国际（981 HK）跌 6.4%。国 内磷酸铁锂行业推进"反内卷"，中国化学与物理电源产业协会要求企业应将协会 11 月 18 日披露的行业平均成本区间 作为报价的重要参考，不要突破成本红线开展低价倾销。锂电相关个股受压，赣锋锂业（1772 HK）周五跌 12.5%；天齐 锂业（9696 HK）跌 11.9%；宁德时代（3750 HK）解禁后连续下跌，周五跌 3.7%。领展房产基金（823 HK）由于宣布减 少派息，令投资者失望，连续两天放量下跌。 美股方面，英伟达季度业绩强劲，令市场对人工智能前景重启乐观情绪；加上延迟发布的美国 9 月非农业职位增长远高 于预期，带动美股周四高开 ...

2025 年 11 月 21 日 星期五 ➢ 每日大市点评 11 月 20 日，港股缺乏向上推动力。除美国 12 月减息的不确定性外，中日关系紧张亦增加市场风险情绪，加上近期迎来 多达 28 只股份将陆续解禁，为港股带来调整压力。周四恒生指数最终收报 25,835 点，微涨 4 点（0.02%）；恒生科技指 数下跌 32 点（0.6%），收报 5,574 点；全天大市成交额稍稍扩大至 2,451 亿元。港股通净流入增长至接近 160 亿元，是 近一个月以来单日净流入金额最高。盘面上，市场传闻政府将推出新一轮房地产刺激措施，消息导致内房股周四造好， 碧桂园（2007 HK）涨 3.1%；万科（2202 HK）涨 3.7%；中海外（688 HK）涨 2.5%。11 月 19 日宁德时代（3750 HK）有 7,000 多万股 H 股解禁，周四股价下挫 5.7%。除了宁德时代，年底前还有曹操出行（2643 HK）、英诺赛科（2577 HK） 和药捷安康（2617 HK）等较大规模股份解禁。投资者警惕基金在假期前减持股份。 美股方面，英伟达季度业绩强劲，令市场对人工智能前景重启乐观情绪；加上延迟发布的美国 9 月非农 ...

Market Overview - On November 19, Hong Kong stocks experienced narrowed volatility, opening high but trending downwards, fluctuating between 25,742 and 26,045 points. The Hang Seng Index closed at 25,830 points, down 99 points (0.4%) [1] - The Hang Seng Tech Index fell by 38 points (0.7%), closing at 5,606 points, with total market turnover slightly decreasing to HKD 211.4 billion [1] - Net inflow from the Hong Kong Stock Connect further decreased to HKD 6.59 billion [1] Company Performance - Xiaomi Group (1810 HK) reported a 22.3% year-on-year increase in revenue for Q3, but a 2.4% quarter-on-quarter decline, meeting expectations. However, concerns over rising memory costs and slowing smartphone demand pressured the company's gross margin, leading to a 4.8% drop in stock price [4] - The electric vehicle segment recorded quarterly profitability, but the outlook for the new energy vehicle industry has become increasingly pessimistic, compounded by the expiration of tax exemption policies next year [4] Industry Dynamics Automotive Sector - The overall new energy vehicle sector has been trending downwards, with companies like NIO and Li Auto experiencing declines of 0.3% to 2.6% [4] Pharmaceutical Sector - The Hang Seng Healthcare Index fell by 1.7%, but major companies saw limited declines. The National Medical Products Administration is expected to approve 43 innovative drugs by mid-2025, reflecting improved R&D capabilities among Chinese firms and government support for innovation [4] - BeiGene (6160 HK) announced positive clinical research results for its HER2-targeted bispecific antibody, leading to a 1.0% increase in its stock price [4] Renewable Energy and Utilities - The renewable energy sector showed mixed performance, with the photovoltaic segment continuing to decline. Companies like Xinyi Solar (968 HK) and Flat Glass Group (6865 HK) fell by 1.4% to 1.6% [5] - Some environmental stocks received support due to their high dividends and stable business models, with companies like China Everbright Environment (257 HK) and GCL-Poly Energy (1330 HK) rising by 1.2% to 2.0% [5]

Market Overview - On November 17, U.S. interest rate cut expectations cooled, leading to a decline in technology stocks, with major Asia-Pacific markets generally falling. The Hang Seng Index closed at 25,930 points, down 454 points (1.7%), breaching the psychological level of 26,000 points [1] - The Hang Seng Technology Index fell by 111 points (1.9%), closing at 5,645 points, with total market turnover increasing to 242.1 billion HKD [1] Company Specifics - Xpeng Motors (9868 HK) reported a total revenue of 20.38 billion HKD for Q3, a year-on-year increase of 102%. However, the company’s Q4 revenue guidance of 21.5 billion to 23 billion HKD, representing a year-on-year growth of 33.5%-42.8%, was below market expectations, leading to a 10.5% drop in its stock price [4] - Alibaba (9988 HK) saw a brief increase in stock price due to the launch of its Qianwen APP but ultimately closed down 0.2% [1] - Tencent (700 HK) and Kuaishou (1024 HK) also experienced declines of 2.0% and 3.2%, respectively [1] Industry Dynamics - The automotive sector saw a broad decline, particularly affecting Xpeng Motors due to concerns over future delivery growth amid the phasing out of new energy vehicle subsidies [4] - The healthcare sector, represented by the Hang Seng Healthcare Index, fell by 1.7%, but major companies did not experience significant declines. Notably, BeiGene (6160 HK) saw a 1.0% increase in stock price following positive clinical research results for its HER2-targeted therapies [5] - The renewable energy and utility sectors also faced declines, with stocks like Xinyi Solar (968 HK) and GCL-Poly Energy (3800 HK) dropping between 2.9% and 8.6% [5]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 12.00 [3][5]. Core Insights - The company is focusing on research and development of large models, AI-native software, and AI intelligence as its core development direction. The management expects cloud services to maintain a revenue growth of 20% annually, while overall core business revenue is projected to grow by 15% annually [3]. - The company has introduced a new software product, "浪潮海岳 inSuite by DELMIAWorks," aimed at the discrete manufacturing industry, which integrates various core business functions for digital transformation [2]. - The company plans to expand its overseas enterprise service market, starting with SaaS services for Southeast Asian companies next year, which is expected to become a second growth curve for the company [3]. Financial Summary - For FY25E, the net profit is projected to be RMB 522 million, representing a year-on-year increase of 35.6%, and for FY26E, it is expected to reach RMB 624 million, a 19.5% increase. The compound annual growth rate (CAGR) for net profit from FY25E to FY27E is estimated at 19.1% [3][4]. - The company’s revenue for FY23 was RMB 8,294 million, with a growth rate of 19.1%. For FY24, revenue is expected to decrease slightly to RMB 8,201 million, followed by a recovery to RMB 8,758 million in FY25 [4][8]. - The diluted earnings per share (EPS) for FY25E is projected at RMB 0.457, increasing to RMB 0.546 in FY26E and RMB 0.648 in FY27E [4][8].