Core Viewpoint - The company, Zhihui Power (智动力), confirmed that it does not currently have a partnership with Doubao and is not supplying components for Doubao's smartphones [2]. Group 1: Company Information - Zhihui Power (300686.SZ) stated that its functional devices, structural devices, and precision optical components can be applied in smart devices, including AI smartphones [2]. - Current smartphone brands that Zhihui Power collaborates with include Samsung, OPPO, and Vivo [2].

Core Viewpoint - Nomura's research report anticipates a potential decline of 0% to 7% in global smartphone shipments by 2026, primarily due to rising memory costs that may increase retail prices and suppress market demand [1] Industry Summary - The report highlights that some smartphone manufacturers are struggling to secure sufficient memory supply, which could ultimately lead to a reduction in shipments for 2026 [1] Company Summary - Nomura downgraded Sunny Optical's rating from "Buy" to "Neutral," significantly reducing the target price from HKD 102 to HKD 60 due to the challenges in the supply of non-core smartphone components [1] - The rating for Q Technology was downgraded from "Buy" to "Reduce," with the target price raised from HKD 5 to HKD 7.1, reflecting an upward adjustment in earnings forecasts due to gains from the disposal of its Indian branch [1]

Core Viewpoint - Zhaoyin International's report indicates that BYD Electronics' Q3 revenue met expectations, but net profit was impacted by weak smartphone component business, declining revenue from new smart products, and falling gross margins, while the new energy vehicle business showed stable growth [1] Summary by Sections Financial Performance - BYD Electronics' Q3 revenue aligned with market expectations, but net profit was negatively affected by several factors including weak performance in the smartphone components sector, a decrease in revenue from new smart products, and a drop in gross margins [1] - The forecast for earnings per share from 2025 to 2027 has been revised down by 8% to 14%, and the target price has been adjusted from HKD 47.37 to HKD 43.54, while maintaining a "Buy" rating [1] Management Outlook - Management anticipates that Q4 revenue and gross margins will remain stable, primarily due to the impact of iPhone components and delays in AI server projects [1] - However, there is an expectation of benefits from component upgrades, the launch of new smart home products, growth in high-end new energy vehicle products, and shipments from AI server projects, with stronger revenue growth anticipated in 2026 [1]

Core Viewpoint - Xinyi International (00732.HK) reported a decrease in mid-term performance for the first half of 2025, with revenue declining approximately 5.7% year-on-year due to reduced sales related to smartphones in China [1] Financial Performance - Revenue for the first half of 2025 was approximately HKD 8.098 billion, a year-on-year decrease of about 5.7% [1] - Gross profit amounted to HKD 637 million, reflecting a year-on-year decrease of 8.7% [1] - Profit attributable to owners for the period was HKD 141 million, down 19.2% year-on-year, with basic earnings per share at HKD 0.0449 [1] - The company proposed an interim dividend of HKD 0.05 per share [1] Market Context - The decline in revenue is primarily attributed to a decrease in sales related to smartphones in China compared to the same period in 2024 [1]

Core Viewpoint - Bank of America Securities has upgraded AAC Technologies (02018) from "Neutral" to "Buy" due to improvements in fundamentals driven by smartphone component specification upgrades and a better environment for optical products [1] Financial Performance - The company is expected to achieve more stable growth and return to an upward cycle, with profit forecasts for 2025 to 2027 raised by 4% to 29% to reflect stronger margin performance [1] - Revenue is projected to experience double-digit growth from 2025 to 2027, with an improvement in profit margins [1] Valuation - The target price for AAC Technologies has been increased from HKD 44 to HKD 57, indicating a belief that more structural profit growth will support a revaluation of its stock [1] Market Position - The strategy of major competitor Sunny Optical Technology (02382) to shift towards the high-end market is expected to create greater growth opportunities for AAC Technologies in the mid-to-high-end market [1]

Core Viewpoint - Citigroup believes that Apple is likely to receive exemptions from chip tariffs, which has positively impacted Apple-related stocks [2][8]. Group 1: Apple-Related Stocks - Apple-related stocks experienced a boost, with notable increases in shares such as Highpower Technology (+9.62%), Sunny Optical Technology (+3.30%), and others [6][7]. - The overall market saw the Hang Seng Index rise by 0.69% to 25081.63 points, with the technology index up by 0.26% [2][3]. Group 2: Semiconductor Stocks - Semiconductor stocks also benefited, with Huahong Semiconductor and SMIC rising by 2.52% and 0.76%, respectively [9][10]. - The positive sentiment in the semiconductor sector is linked to the potential tariff exemptions for Apple [8]. Group 3: Gaming Sector - The gaming sector continued to rise, with companies like China Star Group and Sands China increasing by 7.43% and 5.01%, respectively [12][14]. - Macau's gaming revenue for July reached 22.125 billion MOP, a year-on-year increase of 19%, marking a post-pandemic high [14]. Group 4: Real Estate Sector - The real estate sector showed signs of recovery, with New World Development rising over 10% [17][19]. - Recent policy adjustments in core cities aim to stabilize the real estate market, focusing on urban renewal and redevelopment [19]. Group 5: Pharmaceutical Sector - The pharmaceutical sector faced pressure, with stocks like CanSino Biologics and Innovent Biologics declining by 8.06% and 7.16%, respectively [20][23]. - Upcoming tariff policies on imported drugs announced by the U.S. government are contributing to the negative sentiment in this sector [21].

Group 1: Market Overview - The Hang Seng Index rose by 386 points or 1.6%, closing at 24,590, marking a four-day cumulative increase of 697 points or 2.9% [4][5] - The trading volume for the day was 288.4 billion HKD, with a net inflow of 3.82 billion HKD from northbound trading [4] - Major blue-chip stocks such as HSBC and Tencent saw increases of 1.1% and 3.5% respectively, while Meituan surged by 4.4% [4] Group 2: Economic Indicators - Hong Kong's overall export volume increased by 13.4% year-on-year in May, while import volume rose by 16.5% [8] - The export prices and import prices rose by 1.8% and 1.9% respectively [8] - Exports to Taiwan, Vietnam, India, and mainland China showed significant year-on-year increases of 48%, 39.5%, 37.6%, and 15.9% respectively [8] Group 3: Company-Specific Developments - QiuTai Technology plans to sell 51% of its Indian subsidiary for approximately 4.61 billion RMB, with expected net proceeds of about 3.57 billion RMB for operational funding [13] - Longfor Group reported a 31.51% year-on-year decrease in total contract sales amounting to 35.01 billion RMB in the first half of the year [14] - Air China experienced a 3.9% year-on-year increase in passenger turnover for June, with an average seat occupancy rate of 81.1% [15] Group 4: Regulatory and Policy Updates - The Hong Kong Industrial Federation proposed seven policy initiatives to develop a new industrial strategy focusing on high-end manufacturing [9] - The State Administration for Market Regulation is intensifying efforts to regulate the live e-commerce sector, aiming to address prominent issues and protect consumer rights [10] - New regulations prohibit local asset management companies from creating new hidden debts for local governments [11]