Market Overview - On January 12, the Hang Seng Index rose by 1.44%, with total southbound trading amounting to HKD 1,474.94 billion, including buy transactions of HKD 774.00 billion and sell transactions of HKD 700.94 billion, resulting in a net buy of HKD 73.06 billion [2][3]. Southbound Trading Details - The southbound trading through Stock Connect (Shenzhen) had a total transaction amount of HKD 610.81 billion, with buy transactions of HKD 334.20 billion and sell transactions of HKD 276.61 billion, leading to a net buy of HKD 57.60 billion [2]. - The southbound trading through Stock Connect (Shanghai) had a total transaction amount of HKD 864.13 billion, with buy transactions of HKD 439.80 billion and sell transactions of HKD 424.33 billion, resulting in a net buy of HKD 15.46 billion [2]. Active Stocks - The most actively traded stock by southbound funds was Alibaba-W, with a total transaction amount of HKD 156.07 billion, followed by Tencent Holdings and Xiaomi Group-W, with transaction amounts of HKD 70.06 billion and HKD 46.71 billion, respectively [2][3]. - Among the net buying stocks, Kuaishou-W had the highest net buy amount of HKD 22.45 billion, with a closing price increase of 7.43%. Tencent Holdings followed with a net buy of HKD 20.12 billion, and Southern Hang Seng Technology had a net buy of HKD 8.58 billion [2][3]. Continuous Net Buying and Selling - Three stocks experienced continuous net buying for more than three days, with Xiaomi Group-W leading at 8 days, followed by Tencent Holdings at 4 days and SMIC at 3 days. The total net buy amounts were HKD 63.26 billion for Xiaomi Group-W, HKD 62.43 billion for Tencent Holdings, and HKD 12.79 billion for SMIC [3]. - Two stocks faced continuous net selling, with China Mobile and Meituan-W having the highest net sell amounts of HKD 44.80 billion and HKD 10.76 billion, respectively [3].

Group 1 - Southbound funds net bought Hong Kong stocks worth 7.306 billion HKD on January 12, with notable purchases including Kuaishou-W (2.245 billion HKD), Tencent Holdings (2.012 billion HKD), and Xiaomi Group-W (0.773 billion HKD) [1] - Continuous net buying trends were observed, with Xiaomi receiving a total of 6.327 billion HKD over the last eight days and Tencent accumulating 6.243 billion HKD over the last four days [4] - China Mobile experienced a continuous net sell-off for six days, totaling 4.480 billion HKD, while Meituan faced net selling for three days, amounting to 1.075 billion HKD [4] Group 2 - Tencent Holdings repurchased 1 million shares for 635.7 million HKD on January 12 [5] - Xiaomi Group-W announced significant upgrades to its new generation SU7 model, indicating an increase in overall weight compared to the first generation [5] - Meituan expressed support for a government investigation into the competitive landscape of the food delivery service industry, advocating for rational competition and collaboration among platforms [6]

Core Insights - On January 12, 2026, Alibaba-W (09988), Tencent Holdings (00700), and Xiaomi Group-W (01810) were the top three companies by trading volume in the Southbound Stock Connect, with trading amounts of 8.776 billion, 3.590 billion, and 2.802 billion respectively [1] - In the Shenzhen-Hong Kong Stock Connect, Alibaba-W (09988), Tencent Holdings (00700), and Meituan-W (03690) also led the trading volume, with amounts of 6.830 billion, 3.416 billion, and 2.100 billion respectively [1] Southbound Stock Connect Trading Activity - **Top Active Companies in Southbound Stock Connect:** - Alibaba-W (09988): Trading amount of 8.776 billion, net buy of -74.5144 million [2] - Tencent Holdings (00700): Trading amount of 3.590 billion, net buy of 1.184 billion [2] - Xiaomi Group-W (01810): Trading amount of 2.802 billion, net buy of 289 million [2] - Meituan-W (03690): Trading amount of 2.450 billion, net buy of -875 million [2] - SMIC (00981): Trading amount of 2.427 billion, net buy of -21.875 million [2] - Other notable companies include Kuaishou-W (01024) with a trading amount of 1.949 billion and a net buy of 948 million [2] Shenzhen-Hong Kong Stock Connect Trading Activity - **Top Active Companies in Shenzhen-Hong Kong Stock Connect:** - Alibaba-W (09988): Trading amount of 6.830 billion, net buy of 278 million [2] - Tencent Holdings (00700): Trading amount of 3.416 billion, net buy of 828 million [2] - Meituan-W (03690): Trading amount of 2.100 billion, net buy of 393 million [2] - Kuaishou-W (01024): Trading amount of 1.990 billion, net buy of 1.298 billion [2] - Xiaomi Group-W (01810): Trading amount of 1.869 billion, net buy of 484 million [2]

Group 1 - Southbound funds recorded a net purchase of 7.306 billion HKD today [1] - Kuaishou-W, Tencent Holdings, and Southern Hang Seng Technology were the top three net purchases, with net buys of 2.245 billion HKD, 2.012 billion HKD, and 858 million HKD respectively [1] - On the sell side, China Mobile, Meituan-W, and Ping An of China experienced net sales of 1.03 billion HKD, 482 million HKD, and 342 million HKD respectively [1]

Core Viewpoint - The Hong Kong stock market experienced significant net inflows from northbound trading, totaling HKD 73.06 billion on January 12, with notable net purchases in specific stocks such as Kuaishou-W, Tencent, and Southern Hang Seng Technology [1][2]. Group 1: Northbound Trading Activity - Northbound trading saw a net purchase of HKD 73.06 billion, with HKD 15.46 billion from the Shanghai Stock Connect and HKD 57.6 billion from the Shenzhen Stock Connect [1]. - The most purchased stocks included Kuaishou-W (01024), Tencent (00700), and Southern Hang Seng Technology (03033) [1]. - The most sold stocks were China Mobile (00941) and Goldwind Technology (02208) [1]. Group 2: Individual Stock Performance - Kuaishou-W received a net inflow of HKD 22.45 billion, driven by its AI capabilities gaining popularity globally, with a reported 102% increase in daily revenue from December 2025 to January 2026 [4]. - Tencent saw a net inflow of HKD 20.11 billion, with a positive outlook from Zhongtai Securities, highlighting its potential in the AI sector [5]. - Xiaomi Group-W had a net inflow of HKD 7.73 billion, with plans for a significant increase in R&D investment over the next five years [5]. - Alibaba-W experienced a net inflow of HKD 2.03 billion amid ongoing regulatory scrutiny in the food delivery sector [5]. - Horizon Robotics-W received a net inflow of HKD 1.79 billion, with optimistic growth expectations due to advancements in smart driving technology [6]. - JingTai Holdings (02228) had a net inflow of HKD 42.04 million, with a focus on its AI and robotics business model [7].

Core Viewpoint - The Hong Kong stock market experienced significant net inflows from northbound trading, with a total net buy of HKD 73.06 billion on January 12, 2023, indicating strong investor interest in certain stocks [1]. Group 1: Northbound Trading Activity - Northbound trading through Stock Connect saw a net buy of HKD 15.46 billion from Shanghai and HKD 57.6 billion from Shenzhen [1]. - The stocks with the highest net buy included Kuaishou-W (01024), Tencent (00700), and Southern Hang Seng Technology (03033) [1]. - The stocks with the highest net sell included China Mobile (00941) and Goldwind Technology (02208) [1]. Group 2: Individual Stock Performance - Kuaishou-W (01024) received a net buy of HKD 22.45 billion, driven by its AI capabilities gaining popularity globally, with a reported 102% increase in daily revenue from December 2025 to January 2026 [4]. - Tencent (00700) saw a net buy of HKD 20.11 billion, with a positive outlook from Zhongtai Securities, highlighting its potential in the AI sector [5]. - Xiaomi Group-W (01810) had a net buy of HKD 7.73 billion, with plans for a significant increase in R&D investment over the next five years [5]. - Alibaba-W (09988) experienced a net buy of HKD 2.03 billion amid ongoing regulatory scrutiny in the food delivery sector [5]. - Horizon Robotics-W (09660) received a net buy of HKD 1.79 billion, with optimistic growth expectations due to advancements in smart driving technology [6]. - Jingtai Holdings (02228) had a net buy of HKD 42.04 million, with a focus on its AI and robotics platform [7]. - Southern Hang Seng Technology (03033) and SMIC (00981) received net buys of HKD 8.57 billion and HKD 2.334 million, respectively [7].

Investment Rating - The report maintains a "Buy" rating for the company [5][10]. Core Insights - The company is expected to achieve adjusted net profits of CNY 204 billion, CNY 225 billion, and CNY 259 billion for the years 2025 to 2027, respectively. The valuation for 2026 is set at 18x PE, leading to a target price of HKD 103.20 per share [3][10]. - The launch of the KOL 2.6 action control feature has significantly increased the company's influence in overseas markets, with notable download spikes in countries like South Korea and India [9]. - The company anticipates a steady revenue growth of 9% in 2026, reaching CNY 154.9 billion, with advertising and other business segments expected to grow by 10% and 21%, respectively [9]. Financial Summary - The company's projected financials for 2023 to 2027 are as follows: - Revenue (CNY million): 113,470 (2023), 126,898 (2024), 142,053 (2025), 154,873 (2026), 167,518 (2027) [4]. - Adjusted Net Profit (CNY million): 6,396 (2023), 15,335 (2024), 18,287 (2025), 21,457 (2026), 24,770 (2027) [4]. - Earnings per Share (CNY): 1.48 (2023), 3.56 (2024), 4.26 (2025), 5.00 (2026), 5.77 (2027) [4]. - Gross Margin (%): 50.6% (2023), 54.6% (2024), 55.1% (2025), 56.3% (2026), 56.8% (2027) [4].

Group 1 - Kuaishou concept stocks rose by 8.65%, ranking 6th in concept sector gains, with 46 stocks increasing in value [1] - Notable gainers in the Kuaishou concept include Zhongwen Online and Meiri Interactive, both reaching a 20% limit up, while Liou Co., Zhejiang Wenlian, and Shengguang Group also hit the limit up [1] - The Kuaishou concept sector saw a net inflow of 2.847 billion yuan, with 36 stocks receiving net inflows, and 9 stocks exceeding 100 million yuan in net inflow [1] Group 2 - The top net inflow stocks in the Kuaishou concept include Zhongwen Online with 632 million yuan, followed by Meiri Interactive with 368 million yuan, and Zhidema with 238 million yuan [2] - The net inflow ratios for leading stocks are as follows: Yilv Media at 70.24%, Liou Co. at 65.15%, and Vision China at 48.00% [2] - Other notable stocks with significant net inflows include Sanwei Communication and Shengguang Network, with net inflows of 224 million yuan and 102 million yuan respectively [3]

Group 1 - Kuaishou's stock surged by 7.43% to HKD 80.25, reaching a new high with a trading volume of HKD 6.691 billion, and has increased over 25% year-to-date, leading the Hong Kong tech sector [1] - The recent popularity of Kuaishou's AI feature, "Keling AI," has sparked a creative trend on social media, particularly with the viral "pet dancing" videos spreading globally from South Korea [1] - Multiple international investment banks have reassessed Kuaishou's positioning and value in the generative AI sector, with JPMorgan highlighting its advantageous position and potential as one of the most undervalued AI stocks globally [1] Group 2 - Goldman Sachs noted that the recent upgrades to Keling AI are expected to enhance overseas user recognition and monetization efficiency, leading to increased revenue expectations for Kuaishou in fiscal year 2026 [1] - Macquarie identified Kuaishou as a core player in AI applications by 2026, emphasizing its differentiated advantages in video generation models amid growing demand from professional users and enterprises [1] - Current market pricing suggests that Kuaishou's main platform valuation remains reasonable, while its AI business has not been fully reflected, indicating potential for further revaluation as commercialization accelerates [2]

Market Overview - The Hong Kong stock market indices collectively rose, with the Hang Seng Index increasing by 1.44% to close at 26,608.48 points, and a total trading volume of HKD 306.23 billion [1] - The Hang Seng Tech Index saw a significant rise of 3.1%, closing at 5,863.2 points, indicating a strong performance in the technology sector [1] Blue-Chip Stocks Performance - Meituan-W (03690) surged by 6.6% to HKD 105, contributing 57.12 points to the Hang Seng Index, with a trading volume of HKD 11.31 billion [2] - Alibaba Health (00241) rose by 10.23% to HKD 6.36, contributing 6.17 points to the index [2] - Kuaishou-W (01024) increased by 7.43% to HKD 80.25, contributing 26.89 points [2] - Other notable movements included a decline in Shenzhou International (02313) by 2.8% and Hansoh Pharmaceutical (03692) by 2.31%, which negatively impacted the index [2] Sector Highlights - The AI sector experienced a significant surge, with stocks like Maifushi (02556) rising by 32.09% and Zhipu (02513) by 31.4%, reflecting a growing interest in AI applications [3][4] - The commercial aerospace sector also saw gains, with Asia Pacific Satellite (01045) increasing by 18.16% and China Technology Group (01725) by 16.84% [5] - Gold stocks were active, with the price of gold surpassing USD 4,600, leading to increases in companies like China Silver Group (00815) and Lingbao Gold (03330) [5][6] Lithium Battery Sector - Lithium battery stocks showed mixed performance, with Ganfeng Lithium (01772) rising by 4.69% while CATL (03750) fell by 2.45% [6] - The recent adjustment in export tax policies for battery products is expected to impact the sector, with potential short-term benefits due to increased export orders before the tax changes take effect [7] Notable Stock Movements - Haowei Group (00501) debuted with a significant increase of 16.22%, closing at HKD 121.8, following its IPO pricing at HKD 104.8 [8] - Baiaosaitu-B (02315) reached a new high, rising by 10.03% to HKD 39.5, following a licensing agreement aimed at accelerating the development of bispecific antibody drug conjugates [9] - COSCO Shipping Energy (01138) continued to rise, up by 9.03% to HKD 11.47, driven by increased shipping demand in the Middle East [10]