Core Insights - The company reported a significant increase in revenue, rising from HKD 0.01 million in the same period last year to HKD 19.36 million, primarily due to the integration of Minshang Zhihui's IT solutions business [1] - The loss attributable to shareholders decreased slightly from HKD 11.11 million in the previous year to HKD 10.44 million in the current period [1] Revenue Performance - Revenue increased by approximately HKD 19.35 million compared to the same period last year [1] - The growth in revenue is mainly attributed to the incorporation of Minshang Zhihui's comprehensive IT solutions [1] Profitability - The loss attributable to shareholders was HKD 10.44 million, showing an improvement from the loss of HKD 11.11 million in the previous year [1]

Core Viewpoint - The recent pullback in Hong Kong's tech sector is sensitive to changes in risk appetite, but there are still revaluation opportunities as liquidity conditions improve [1] Group 1: Market Conditions - The Hong Kong tech sector has experienced significant recent pullbacks, with a decreased sensitivity to positive catalysts due to a decline in risk appetite [1] - The peak of liquidity suppression factors may have passed, indicating a potential for recovery in the tech sector [1] Group 2: AI Narrative and Industry Focus - Companies in the Hong Kong tech sector are primarily focused on domestic computing power, models, and applications, with their prospects closely tied to China's technological development [1] - The current progress in the sector differs from the continuous development cycle in the U.S. since 2023 [1] Group 3: Long-term Outlook - The "14th Five-Year Plan" supports the theme of technological self-sufficiency, which is crucial for the sector's long-term growth [1] - Despite short-term market sentiment being fully released, the Hong Kong tech sector is entering a phase for potential investment [1] Group 4: ETF and Index Information - The Hong Kong tech ETF (513020) tracks the Hong Kong Stock Connect Technology Index (931573), which focuses on technology companies traded through the Stock Connect [1] - The index consists of 30 constituent stocks and is weighted by market capitalization, reflecting the core performance of China's tech industry, particularly in hardware manufacturing and high-end technology [1]

Core Insights - The technology sector in Hong Kong's stock market is shifting focus from capital expenditure to investment return rates, particularly in the AI field, with domestic AI listings accelerating and AI animation becoming a rapidly commercialized scenario [1] - Cloud computing businesses and internet companies with rich application scenarios are gaining attention due to quick revenue realization and high valuation cost-effectiveness [1] - The gaming sector is experiencing fundamental improvements, with an increase in license approvals not leading to intensified competition, as companies differentiate through user and category competition, and AI technology enhances game production and innovation [1] - Music platforms need to focus on the monetization capabilities of mid- and long-tail content and community cultivation, with free models relying on improved advertising ROI [1] - Some companies in the education publishing industry are showing signs of operational turning points [1] - Overall, the technology sector is concentrating on the practical application of AI, the recovery of gaming fundamentals, and the enhancement of content platform monetization efficiency [1] Index and ETF Information - The Hong Kong Technology ETF (513020) tracks the Hong Kong Stock Connect Technology Index (931573), which selects listed companies focusing on technology themes from the Hong Kong Stock Connect range, covering sectors such as information technology, electronic components, and interactive media and services [1]

Core Viewpoint - The Hong Kong technology sector is currently undervalued, and if foreign capital flows in, it is expected to benefit from valuation recovery in the medium to long term [1] Group 1: Industry Insights - The Hong Kong technology sector has just entered the earnings release phase, and market expectations have not fully reflected the growth potential of the industry [1] - The AI industry is still in its early stages, with performance in the computing infrastructure segment starting to explode, but the prosperity in the downstream application layer has not yet fully spread [1] - The ceiling expectations for the industry have not yet peaked, indicating that future earnings may continue to exceed expectations [1] Group 2: Investment Opportunities - Overall, the Hong Kong technology sector possesses medium to long-term allocation value, but attention should be paid to foreign liquidity and the pace of industry prosperity diffusion [1] - The Hong Kong Technology ETF (513020) tracks the Hong Kong Stock Connect Technology Index (931573), which focuses on technology companies listed in Hong Kong that are traded through the Stock Connect channel [1] - The index selects the top 30 securities by market capitalization from sectors such as information technology, electronic components, and interactive media and services, reflecting the overall performance of growth-oriented technology enterprises in the Hong Kong market [1]

Core Viewpoint - The company announced a non-binding memorandum of understanding with Hu Jian Yong to focus on developing advanced technologies in China, including IT services and artificial intelligence [1] Group 1: Partnership and Collaboration - The memorandum involves the establishment of a joint venture named Hu Zhong Zhi Suan Group Limited, aimed at leveraging resources and expertise in IT and AI services [1] - The parties intend to sign a formal joint venture agreement based on the terms of the memorandum and the actual development of the projects [1] Group 2: Business Expansion and Diversification - The board believes that the joint venture agreement will provide a framework for collaboration with Hu, facilitating the expansion of the company's construction business and promoting business diversification [1] - The terms of the joint venture agreement are based on normal commercial terms, deemed fair and reasonable, aligning with the overall interests of the company and its shareholders [1]

Core Viewpoint - The company is renewing its lease for office space at Manhattan Place, located in the core area of Kowloon Bay, which is expected to enhance business efficiency and save costs related to renovations and relocation [1] Group 1: Lease Renewal Details - The company’s wholly-owned subsidiary, 财丰有限公司, has entered into a lease renewal offer with 万泰拓展 for the entire 28th floor of Manhattan Place, Kowloon Bay [1] - The current lease is set to expire on December 14, 2025, prompting the need for renewal discussions [1] Group 2: Strategic Considerations - The board believes that the location in Kowloon Bay, a well-developed commercial area, attracts various industries including finance, insurance, IT, professional services, and real estate, which can significantly enhance business operations [1] - Maintaining the current office location will help the company avoid renovation costs and expenses associated with moving [1]

Core Insights - The fourth quarter is expected to see Hong Kong tech leaders regain their advantages, with the Hong Kong tech ETF (513020) experiencing a net inflow of over 1.1 billion yuan in the past 20 days [1] - Optimism in the AI sector is driving the internet sector back to the AI narrative, contributing to a positive overall performance in the Hong Kong market [1] - The potential for foreign capital to return is heightened by the Federal Reserve's resumption of interest rate cuts, which may lead to sustained inflows from southbound funds [1] Industry Summary - The Hong Kong tech ETF (513020) tracks the Hong Kong Stock Connect Technology Index (931573), focusing on technology-related companies listed in Hong Kong that are traded through the Stock Connect [1] - The index includes the top 30 companies by market capitalization, reflecting the core performance of the Hong Kong tech sector with significant industry purity and leadership characteristics [1] - The upward trend in the AI industry cycle is confirmed, indicating that Hong Kong tech leaders are likely to regain their advantages in the fourth quarter [1] Market Dynamics - The overall bullish market pattern for Hong Kong stocks remains unchanged in the fourth quarter, with AI-driven tech stocks being the main theme of the market [1] - The Hong Kong market is benefiting from policies that strengthen dividends and low interest rates, making new consumption and innovative pharmaceutical assets relatively scarce compared to A-shares, which are worth monitoring in the second half of the year [1]

Group 1 - Recent market sentiment has cooled, but the new economy, represented by technology, remains strong, providing structural opportunities for the Hong Kong stock market [1] - Continuous inflow of foreign and southbound funds supports the valuation advantage of Hong Kong stocks [1] - The gradual easing of U.S. inflation and a shift in Federal Reserve policy towards employment are expected to bolster market expectations for interest rate cuts, which historically lead to an increase in Hong Kong stocks [1] Group 2 - The Hong Kong stock market has entered a consolidation phase after previous gains, with positive factors expected to accumulate in Q4, including rapid development in the technology sector and easing U.S.-China trade tensions [1] - The Hong Kong Technology ETF (513020) tracks the Hong Kong Stock Connect Technology Index (931573), focusing on technology-related listed companies traded through the Stock Connect, covering sectors like information technology and electronic components [1] - The index selects the top 30 companies by market capitalization, reflecting the overall performance of core enterprises in the Hong Kong technology sector, characterized by significant industry purity and leading features [1]

Core Viewpoint - The Hong Kong technology sector is experiencing a rebound in macro liquidity and is at the early stage of the AI technology cycle, presenting high mid-term allocation value [1] Group 1: Market Dynamics - The underlying logic benefits from the explosion in application and content driven by new technological changes, currently positioned at the starting point of the AI technology cycle [1] - The competition for existing market user numbers and user engagement is intensifying against the backdrop of diminishing traffic dividends, alongside the optimization of business models [1] Group 2: Sector Performance - The e-commerce and local lifestyle sectors are performing steadily due to policy stimulation and operational efficiency improvements, with positive trends in GMV and advertising revenue growth [1] - The acceleration of smart driving and mobility scenarios is expected to become a new growth driver for the industry [1] Group 3: Technology and Innovation - In the AI hardware sector, there is a continuous resonance between cloud computing power and edge AI, with accelerated launches of new edge products and preemptive supply chain demand [1] - Software applications are in the early stages of AI empowerment, with optimism regarding opportunities arising from overseas software performance releases [1] Group 4: ETF Overview - The Hong Kong Technology ETF (513020) tracks the Hong Kong Stock Connect Technology Index (931573), focusing on technology-related companies listed in Hong Kong that can be traded through the Stock Connect [1] - The index selects the top 30 companies by market capitalization, reflecting the overall performance of core enterprises in the Hong Kong technology sector, characterized by significant industry purity and leading features [1]

Core Viewpoint - Morgan Stanley's report indicates that the covered markets are nearing their "bull case" target for June 2026, primarily due to valuation multiple expansion, but questions the sustainability of this trend without significant acceleration in global growth [1] Market Analysis - The analysis suggests that Asian and emerging market stock valuations are unlikely to sustain without a renewed acceleration in earnings growth, with optimism for a rebound in India's growth [1] - The report anticipates a potential further weakening of the US dollar, with the Bank of Japan having room for interest rate hikes, while the Federal Reserve is expected to implement significant rate cuts [1] Investment Strategy - Following increased holdings in China and South Korea this year, current portfolio risk is lower than in previous years, with "overweight" positions in Japan, Singapore, India, UAE, and Brazil, while "underweight" positions are taken in Indonesia and Saudi Arabia [1] - The industry strategy favors sectors including finance, domestic e-commerce/consumption, and industrials, while maintaining an "underweight" stance on energy and materials (excluding gold), and adopting a selective strategy in the information technology sector [1] Index Projections - Morgan Stanley maintains a "base case" target for the Hang Seng Index at 24,500 points by June 2026, corresponding to a forecasted P/E ratio of 10.6x; the "bull case" target is set at 28,000 points with a P/E ratio of 11.5x, while the "bear case" target is 18,300 points with a P/E ratio of 8.2x [1]