Core Insights - The report highlights a mixed performance in the Hong Kong stock market, with the Hang Seng Index and the Hang Seng Tech Index showing declines, while southbound capital inflows reached a three-month high [2][5] - Structural opportunities are emerging in sectors such as brokerage firms, renewable energy, and healthcare, with significant gains observed in specific stocks [3][4] Market Overview - The Hong Kong stock market experienced a decline, with the Hang Seng Index and the Hang Seng China Enterprises Index both dropping nearly 1%, while the Hang Seng Tech Index fell by 0.59% [2] - Trading volume increased to HKD 312.69 billion, with short selling rising to HKD 65.23 billion, accounting for 22.78% of total trading [2] - Southbound capital saw a significant rebound, with net inflows into Hong Kong stocks reaching HKD 35.88 billion, the highest single-day flow in three months [2] Sector Performance - Chinese brokerage stocks performed well, with notable increases in shares of CITIC Securities, China Galaxy, and CICC, with gains ranging from 7% to 11% [3] - The renewable energy sector, including companies like GCL-Poly and Shanghai Electric, continued to lead the market [3] - In the healthcare sector, AI and internet healthcare stocks showed remarkable performance, with Dingdang Health surging by 36.07% and JD Health rising by 11.67% [4] Company Analysis - Lenovo Group reported better-than-expected Q1 results, driven by AI, with its PC market share reaching a historic high of 24.6% and a 17.8% year-on-year revenue growth in its Intelligent Devices Group [9] - The Infrastructure Solutions Group saw a 36% year-on-year revenue increase, with AI server revenue doubling [9] - The Solutions and Services Group also experienced strong growth, with a 19.8% revenue increase, driven by high-end services like hybrid cloud and AI solutions [10] Investment Recommendations - The report suggests focusing on sectors showing structural strengths, such as healthcare, brokerage, and renewable energy, while being cautious of traditional sectors like banking and consumer goods that are under pressure [5] - Lenovo's projected adjusted net profits for the fiscal years 2025/26 and 2026/27 are expected to be USD 1.63 billion and USD 1.89 billion, respectively, with a target price of HKD 14.4, indicating a "buy" rating [10]