The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this Application Proof, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this Application Proof. Application Proof of SHENZHEN HAN'S CNC TECHNOLOGY CO., LTD. 深圳市大族數控科技股份有限公司 (A joint stock company incorporated in the People's Republi ...

Core Insights - Investors are navigating a stock market at all-time highs, with mixed sentiments about the sustainability of the AI-driven rally [1][2] - A selective investment strategy focusing on companies with solid valuations is recommended, regardless of potential economic downturns or AI spending slowdowns [2] Group 1: AI-Focused Companies - Nvidia has seen a year-to-date increase of over 34% and is expected to outperform the S&P 500, with earnings growth remaining strong due to demand for its GPUs in AI workloads [4][5] - Oracle, while currently fourth in cloud market share, has the potential to become a leader in AI cloud services by 2031, contingent on the success of OpenAI's data center plans [6][7] - ASML holds a monopoly on EUV systems essential for semiconductor manufacturing, making it a key player in the AI chip production market [8][9] Group 2: Contrarian Investment Opportunities - Adobe's stock has declined 26% year-to-date and 34.5% over the last five years, despite the S&P 500 rising 90% during the same period, indicating a potentially undervalued position [12] - The current valuation of Adobe at 20.5 times earnings and 15.2 times free cash flow is significantly lower than its five-year median P/E ratio of 43.6, suggesting it may be a good buy for value-seeking investors [12][13] Group 3: Resilient Companies - Netflix, despite its high valuation, continues to grow cash flows due to increased revenue and expanding margins, demonstrating resilience in a challenging economic environment [15][17] - The company's ability to maintain subscriber growth amid inflationary pressures highlights its value proposition and recession resistance, making it appealing for long-term investors [16][17]

Group 1 - ASML is considered a predictable investment in the theme of Artificial Intelligence due to its monopoly-like position in the photolithography market, holding a 100% market share in advanced extreme ultraviolet (EUV) lithography [1] - The company operates in sectors such as autos, electric vehicles (EV), and IT hardware, which are areas of focus for future investment strategies [1] - The investment style emphasizes buying during pricing dislocations, particularly during earnings seasons, and is based on long-term thematic events like energy transitions and AI infrastructure [1] Group 2 - The analyst has a beneficial long position in ASML shares, indicating confidence in the company's future performance [2] - The article reflects the author's personal opinions and does not involve compensation from ASML or any related business relationships [2]