Core Viewpoint - Continued recommendation for AI computing power chain, domestic multi-phase controllers, and accelerated OCS industry progress [2] Market Performance - Shanghai Composite Index rose by 1.70%, electronic sector increased by 7.02%, with components up by 9.88% and optical optoelectronics up by 2.36% [2] - Concurrently, Hang Seng Tech, Philadelphia Semiconductor, and Taiwan Information Technology indices rose by 1.52%, 1.32%, and 0.72% respectively [2] AI Computing Power Chain - Recent strong growth in North American computing power has driven sentiment, particularly benefiting the switch and server industry chain due to changes in network architecture under the ASIC trend [2] - Supply chains have recently revised up the 2026 shipment expectations for NVIDIA's GB series products, indicating increasing profit elasticity in the server assembly segment [2] - TSMC expects sustained strong AI demand and a moderate recovery in non-AI demand, raising annual revenue growth expectations from around 25% to 30% [2] Semiconductor Industry Outlook - Domestic semiconductor manufacturers such as SMIC and Hua Hong are approaching saturation in Q2 2025, with optimistic order demand outlooks supporting continued high prosperity in the semiconductor sector [2] - Recommendations include companies like Industrial Fulian, Sai Microelectronics, Jiewa Technology, Hua Hong Semiconductor, and others [2] Price Increases in PCB Industry - Jintao announced a price increase for copper-clad laminates due to high raw material costs, which is expected to enhance revenue and profitability for related companies [3] - Companies like Shengyi Technology and Nanya New Materials saw stock price surges following the price increase announcement [3] AI Server Market Growth - TrendForce reports that NVIDIA's Blackwell GPU is expected to account for over 80% of high-end GPU shipments this year, with significant growth in AI server revenue anticipated [4] - Recommendations include companies such as Industrial Fulian, Huqian Technology, and others [4] Domestic Storage Market Recovery - SanDisk reported a 12% quarter-over-quarter revenue increase in Q4 FY2025, with a notable recovery in the storage market and improved competition dynamics [4] - Recommendations for domestic storage manufacturers include companies like Demingli, Jiangbolong, and others [4] Domestic Computing Power Platforms - Concerns over potential backdoors in NVIDIA's H20 have increased the importance of developing domestic computing power chips [5] - Recommendations for domestic computing power supply chains include companies like Cambrian, Aojie Technology, and others [5] Mobile Panel Market - The mobile panel market is expected to maintain high operating rates in Q3 2025, driven by traditional peak season demand [5] - Recommendations include companies like BOE and others [5]

Market Overview - The Hang Seng Index recently peaked at 25,700 points but has since declined, with a current support level around 25,000 points, indicating potential downward adjustment risks [1][2] - The distribution of bull and bear certificates shows 69% are bullish and 31% bearish, suggesting a prevailing bullish sentiment despite the recent market pullback [1][3] Investment Products - For investors considering bull certificates, it is advised to select products with a recovery price not too close to the current market price to mitigate risks [1] - Specific products mentioned include: - Bull certificate 65915 with a recovery price of 24,818 points and a leverage of 50-60 times [1] - Bear certificate 65929 with a recovery price of 25,688 points and a leverage of 40 times [2] - Call warrant 18057 with an exercise price of 25,627 points and a leverage of 10 times, expiring in December [1] - Put warrant 19402 with an exercise price of 24,477 points and a leverage of 8 times, expiring in January [1] Individual Stock Analysis - Xiaomi (01810) is experiencing volatility ahead of its earnings announcement, with a current price around 51-52 HKD after a recent drop to 50.1 HKD [5][6] - Investors are favoring call warrants for Xiaomi, such as warrant 17257 with an exercise price of 61 HKD and a leverage of 5 times, expiring in April [5] - Hong Kong Exchanges and Clearing (00388) is benefiting from high trading volumes and new IPOs, with a suggested call warrant 17568 at an exercise price of 530.5 HKD and a leverage of 7 times [8][9] Sector Focus - The semiconductor sector is currently in focus, with companies like SMIC (00981) and Hua Hong Semiconductor (01347) facing price adjustments [12][13] - Investment products for SMIC include call warrant 18978 with an exercise price of 62.88 HKD and a leverage of 3 times, and put warrant 13689 with an exercise price of 42.5 HKD, also with a leverage of 3 times [12] - For Hua Hong, call warrant 19312 with an exercise price of 55 HKD and a leverage of 2 times is available [12] Risk Management - Investors are advised to monitor support and resistance levels closely when selecting products, particularly for high-leverage options [18][19] - The current support level for Xiaomi is around 49.2 HKD, while the resistance level is at 57.5 HKD [6][9]

Investment Rating - The report maintains an "Outperform" rating for the electronic industry, indicating expected performance above the market index by more than 10% [1][11]. Core Views - The report emphasizes the continued recommendation of the AI computing chain, domestic multi-phase controllers, and the acceleration of the OCS industry process. The electronic sector is expected to benefit from macro policy cycles, inventory cycles, and AI innovation cycles, leading to a valuation expansion trend in 2025 [1]. - The semiconductor industry remains optimistic, with TSMC raising its revenue growth forecast from approximately 25% to 30% due to strong AI demand and moderate recovery in non-AI demand [1]. - The report highlights the significant growth in the AI server business, with expectations of over 170% year-on-year revenue growth in the third quarter for AI servers [4]. Summary by Sections Market Performance - The Shanghai Composite Index rose by 1.70%, while the electronic sector increased by 7.02%, with components up by 9.88% and optical electronics up by 2.36% in the past week [12]. - The report notes that the North American computing power surge has driven sentiment in related supply chains, particularly benefiting the switch and server industries [1]. Semiconductor Industry - The report discusses the impact of potential tariffs on chips by the U.S. government, emphasizing the trend towards semiconductor localization and recommending companies with strong reserves in mature processes [2]. - The report also mentions the optimistic outlook for domestic semiconductor manufacturers, with companies like SMIC and Huahong Semiconductor showing strong order demand [1][2]. PCB and Copper Clad Laminate Industry - The report notes a price increase in copper clad laminates due to high raw material costs, which is expected to enhance revenue and profitability for related companies [3]. - The demand for high-end PCBs is expected to surge due to the explosion of AI computing infrastructure, leading to significant growth for companies in this sector [3]. Storage Market - The storage market is showing signs of recovery, with SanDisk reporting a 12% quarter-on-quarter revenue increase and a significant rise in cloud business revenue [5]. - The report highlights the potential for domestic storage manufacturers to gain market share as Micron exits the mobile NAND market [8]. Key Investment Recommendations - The report recommends a focus on companies such as Industrial Fulian, Saiwei Electronics, and Huahong Semiconductor, among others, as part of the investment strategy in the electronic sector [1][10].

Summary of Conference Call Records Industry Overview - The domestic computing power sector is benefiting from policy implementation and overseas market trends, with an overall positive outlook for the second half of the year. There is potential for significant price increases from late August to the end of the year as major companies provide KPI guidance and mid-year financial reports [1][2][19]. Key Companies and Recommendations - **Cambricon (寒武纪)**: Recommended as a key player in the domestic GPU and ASIC segments. If the n+2 expansion proceeds smoothly by the second half of 2025, the expected capacity could reach over 600 billion, supporting a substantial market valuation [1][5]. - **New Yuan Co. (新元股份)**: Still presents investment opportunities in the second half of the year, particularly due to its collaboration with Alibaba and potential overperformance in film progress, which could lead to a strong stock price reaction [1][8]. - **Switch Chip Sector**: Expected to grow significantly, with domestic companies like Shenghe Communication (盛和通信) likely to see major catalysts. The market for non-NVIDIA computing chips is projected to reach approximately $3.8 billion by 2026 [1][10][11]. - **ZTE and Hua Hong Semiconductor**: Both companies have positive expectations for Q3 and Q4, with ZTE launching new technologies and products, indicating strategic importance [1][14]. Market Dynamics - The domestic computing power sector has shown significant market performance since June, driven by supply and demand changes and chip testing progress. The overall trend remains positive despite some fluctuations [2][19]. - The relationship between GPU and ASIC segments is characterized by shared growth opportunities, with both experiencing high demand and tight supply [6]. Financial Projections and Market Size - The market for PCIe switch chips is projected to grow significantly, with estimates suggesting a market size of approximately $3.8 billion by 2026, potentially doubling by 2027 as technology upgrades occur [11]. - **Yongxin Electronics (永新电子)**: Expected to benefit from advanced manufacturing and domestic GPU client integration, with projections indicating a potential market valuation of up to 400 billion if certain sales targets are met [18][21]. Investment Opportunities - The recent adjustment in the Hong Kong stock market provides a good opportunity for investors to reposition, particularly in companies like Hua Hong Semiconductor, which is expected to have significant future developments [15][16]. - The domestic advanced packaging sector, including companies like Yuxi Electronics (有锡电子) and Yongxin Electronics, is highlighted as having substantial growth potential due to their roles as suppliers to major GPU clients [20][21]. Conclusion - The domestic computing power sector is poised for growth, with several key players and segments showing promise. Investors are encouraged to focus on companies with strong strategic positions and potential catalysts for growth in the coming months [19].

8月19日恒生指数下跌0.21%，南向资金全天合计成交金额为1689.97亿港元，其中，买入成交937.85亿 港元，卖出成交752.12亿港元，合计净买入金额185.73亿港元。具体来看，港股通（深）累计成交金额 657.95亿港元，买入成交377.29亿港元，卖出成交280.67亿港元，合计净买入金额96.62亿港元；港股通 （沪）累计成交金额1032.02亿港元，买入成交560.56亿港元，卖出成交471.45亿港元，合计净买入金额 89.11亿港元。 成交活跃股方面，今日上榜个股中，南向资金成交金额最多的是东方甄选，合计成交额103.37亿港元， 盈富基金、腾讯控股成交额紧随其后，分别成交71.27亿港元、52.39亿港元。以净买卖金额统计，净买 入的个股共有10只，盈富基金净买入额为70.71亿港元，净买入金额居首，该股收盘股价下跌0.16%，恒 生中国企业净买入额为22.15亿港元，南方恒生科技净买入额为14.12亿港元。净卖出金额最多的是东方 甄选，净卖出5.13亿港元，该股收盘股价下跌20.89%，中芯国际、华虹半导体遭净卖出4.87亿港元、 1.49亿港元。 今日上榜个股中，盈富基金、腾讯控 ...

Market Overview - On August 19, the Hang Seng Index fell by 0.21%, closing at 25,122.90 points, while southbound funds through the Stock Connect recorded a net inflow of HKD 18.573 billion [1][3] - The total trading volume for the Stock Connect on August 19 was HKD 168.997 billion, with a net buy of HKD 18.573 billion [1][3] Trading Activity - In the Shanghai Stock Connect, the trading volume was HKD 103.202 billion, with a net buy of HKD 8.911 billion; in the Shenzhen Stock Connect, the trading volume was HKD 65.795 billion, with a net buy of HKD 9.662 billion [1][3] - The most actively traded stock in the Shanghai Stock Connect was Dongfang Zhenxuan, with a trading volume of HKD 7.043 billion, followed by the Tracker Fund of Hong Kong and Tencent Holdings, with trading volumes of HKD 5.106 billion and HKD 3.221 billion, respectively [1][2] Net Buy and Sell Analysis - The Tracker Fund of Hong Kong had the highest net buy amount of HKD 5.089 billion, despite a closing price drop of 0.16% [1][2] - The stock with the highest net sell amount was Hua Hong Semiconductor, with a net sell of HKD 149 million and a closing price drop of 3.12% [1][2] Shenzhen Stock Connect Highlights - In the Shenzhen Stock Connect, Dongfang Zhenxuan also led in trading volume with HKD 3.294 billion, followed by Hang Seng China Enterprises and the Tracker Fund of Hong Kong, with trading volumes of HKD 2.215 billion and HKD 2.021 billion, respectively [2] - The stock with the highest net buy in the Shenzhen Stock Connect was Hang Seng China Enterprises, with a net buy of HKD 2.215 billion, despite a closing price drop of 0.37% [2]

Core Insights - On August 19, 2025, Oriental Selection (01797), Tracker Fund of Hong Kong (02800), and Tencent Holdings (00700) were the top three stocks by trading volume in the Southbound Stock Connect, with trading amounts of 7.043 billion, 5.106 billion, and 3.221 billion respectively [1] - In the Shenzhen-Hong Kong Stock Connect, Oriental Selection (01797), Hang Seng China Enterprises Index ETF (02828), and Tracker Fund of Hong Kong (02800) were the top three stocks, with trading amounts of 3.294 billion, 2.215 billion, and 2.021 billion respectively [1] Southbound Stock Connect - Top Active Companies - Oriental Selection (01797) had a trading amount of 7.043 billion with a net buy of -48.8231 million [2] - Tracker Fund of Hong Kong (02800) recorded a trading amount of 5.106 billion with a net buy of 5.089 billion [2] - Tencent Holdings (00700) had a trading amount of 3.221 billion with a net buy of 979 million [2] - Alibaba Group (09988) had a trading amount of 2.547 billion with a net buy of -7.2321 million [2] - SMIC (00981) recorded a trading amount of 2.084 billion with a net buy of 160.3 million [2] Shenzhen-Hong Kong Stock Connect - Top Active Companies - Oriental Selection (01797) had a trading amount of 3.294 billion with a net buy of -464 million [2] - Hang Seng China Enterprises Index ETF (02828) recorded a trading amount of 2.215 billion with a net buy of 2.215 billion [2] - Tracker Fund of Hong Kong (02800) had a trading amount of 2.021 billion with a net buy of 1.982 billion [2] - Tencent Holdings (00700) recorded a trading amount of 2.018 billion with a net buy of 46.322 million [2] - Alibaba Group (09988) had a trading amount of 1.984 billion with a net buy of 268 million [2]

Summary of Key Points Core Viewpoint - The Hong Kong stock market saw significant net inflows from Northbound trading, with a total net buy of HKD 185.73 billion on August 19, 2023, indicating strong investor interest in Hong Kong stocks [1]. Northbound Trading Activity - Northbound trading through Stock Connect recorded a net buy of HKD 89.11 billion from Shanghai and HKD 96.62 billion from Shenzhen [1]. - The most bought stocks included the Tracker Fund of Hong Kong (02800), Hang Seng China Enterprises (02828), and Southern Hang Seng Technology (03033) [1]. - The most sold stocks were Oriental Selection (01797), SMIC (00981), and Hua Hong Semiconductor (01347) [1]. Individual Stock Performance - **Tracker Fund of Hong Kong (02800)**: Net buy of HKD 70.7 billion [6]. - **Hang Seng China Enterprises (02828)**: Net buy of HKD 22.14 billion [6]. - **Southern Hang Seng Technology (03033)**: Net buy of HKD 14.11 billion [6]. - **Tencent Holdings (00700)**: Net buy of HKD 10.25 billion; reported a 15% year-on-year revenue growth to HKD 184.5 billion and a 17% increase in net profit [6]. - **Xiaomi Group (01810)**: Net buy of HKD 7.39 billion; reported a 30% year-on-year revenue increase to HKD 115.96 billion [7]. - **Sangfor Technologies (01530)**: Net buy of HKD 2.82 billion; recently completed a share placement to Pfizer [7]. - **Jingtao Holdings (02228)**: Net buy of HKD 1.79 billion; expects a significant increase in revenue and profit for the first half of 2025 [8]. Market Sentiment and Future Outlook - Analysts from Industrial Securities maintain a bullish outlook on Hong Kong stocks, predicting a long-term bull market driven by increasing confidence among global and Chinese investors [6]. - The potential for a Federal Reserve interest rate cut is seen as a catalyst for further liquidity in the Hong Kong market [6].

Market Overview - The Hong Kong stock market experienced a slight decline on August 19, with the Hang Seng Index falling by 0.21% to 25,122.90, the Hang Seng China Enterprises Index down by 0.30% to 9,006.23, and the Hang Seng Tech Index decreasing by 0.67% to 5,542.03, indicating a relatively stable overall sentiment [1][2]. Sector Performance - Major technology stocks mostly declined, with significant drops in the film and television sector, semiconductor stocks, Chinese brokerage firms, rare earth concept stocks, innovative pharmaceuticals, gold stocks, and brain-computer interface concept stocks. Notably, the live-streaming stock Dongfang Zhenxuan plummeted nearly 21% [2][3]. - The property management sector showed strength throughout the day, while consumer sectors such as restaurants and sports goods performed actively [2][3]. Individual Stock Movements - Major tech stocks like NetEase and Xiaomi fell by 1.2% and 1.23% respectively, while Meituan and JD.com also saw slight declines. Tencent and Kuaishou experienced minor increases [4][5]. - Semiconductor stocks faced significant declines, with SMIC and Hua Hong Semiconductor dropping over 3%. However, a report from Tianfeng Securities suggests a positive outlook for global semiconductor growth driven by AI by 2025 [5][6]. - The pharmaceutical outsourcing sector saw substantial losses, with Tigermed down over 8% and other companies like WuXi AppTec and Zai Lab also declining significantly [7][8]. - Chinese brokerage stocks fell, with Xingsheng International down over 6% and other major firms like China International Capital Corporation and Shenwan Hongyuan also experiencing declines. However, there are indications of improving liquidity in the securities market, which could benefit brokerage firms [8]. Gold and Precious Metals - Gold and precious metals stocks declined, with companies like Chifeng Jilong Gold and Lingbao Gold dropping over 3%. Market sentiment is influenced by expectations surrounding the Federal Reserve's policy direction and geopolitical developments [8][9]. Property Management and Consumer Sectors - The property management sector saw notable gains, with Wanwu Cloud rising over 7% and other firms like Zhengrong Service and Rongchuang Service also increasing by more than 5%. This is supported by government measures to stabilize the real estate market [9][10]. - The restaurant sector experienced significant gains, with Daoxiang Holdings up over 11% and other companies like Xiaocaiyuan and Haidilao also showing positive performance [11]. Capital Inflows - Southbound funds recorded a net inflow of 18.573 billion HKD, with the Shanghai-Hong Kong Stock Connect contributing 8.911 billion HKD and the Shenzhen-Hong Kong Stock Connect adding 9.662 billion HKD [14]. Market Sentiment - Huatai Securities noted that the Hong Kong stock index has been fluctuating but is on an upward trend, with increased volatility. The market is currently in a critical phase awaiting verification of significant domestic and international events, suggesting a window for position adjustments [16].

Group 1 - The core point of the announcement is that Dongfang Fund Management Co., Ltd. will adjust the valuation method for the suspended stock held by its funds, specifically for Huahong Company (688347) [1] - Starting from August 18, 2025, the valuation method for Huahong Company will change to the "index income method," using the AMAC industry index as the reference [1] - The fund will consider various influencing factors and negotiate with the custodian bank, and will revert to using the closing price for valuation once the stock demonstrates active market trading characteristics [1]