HSI Declines 252 Points at Midday; Technology Stocks Slip; Certain Commodity Shares Increase
Market Performance: The HSI fell by 252 points (nearly 1%) to 25,843, with the HSCEI and HSTECH also experiencing declines of 1.3% each, leading to a reduced half-day turnover of HKD86.066 billion.
Tech Sector Declines: Major tech stocks like JD-SW, Meituan-W, and Alibaba-W saw losses, with short selling ratios indicating significant market pressure, particularly on Alibaba and Kuaishou.
Carmakers' Struggles: BYD, NIO, and XPENG faced declines of 1.6% to 3.9%, while LEAPMOTOR was an exception, gaining 2.1%.
Commodity Stocks Surge: In contrast to the overall market trend, commodity stocks like CHALCO and MMG thrived, with gains ranging from 2.9% to 5.7%.
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HSI Rises 26 Points at Midday; Developers and Commodities Surge; ZIJIN MINING Jumps 5%
Market Performance: The HSI rose by 26 points (0.1%) to 26,775, while the HSCEI fell slightly by 7 points (less than 0.1%) to 9,153, and the HSTECH dropped by 75 points (1.3%) to 5,722, with a total turnover of HKD151.051 billion.
Developer Stocks Rally: Hong Kong developers saw significant gains, with SHK PPT and HANG LUNG PPT rising by 4.5% and 4.1% respectively, while CKH HOLDINGS increased by 4% amid plans to advance a port sale.
Gold and Silver Stocks Surge: Demand for gold and silver stocks increased as spot gold surpassed USD5,000, leading to notable gains for companies like CHI SILVER GP (+11.8%) and CHINAGOLDINTL (+6.4%).
Tech Stocks Mixed Performance: While Tencent gained slightly by 0.3%, Alibaba fell by 2.2%. Other tech stocks like KUAISHOU and BIDU saw declines of 4.4% and 4.4% respectively, amidst varying short selling activities.
Jefferies: KINGDEE INT'L Expected to Maintain 2H25 Revenue and Net Profit; Anticipated Profit Growth Starting in 2026
Revenue and Profit Growth: KINGDEE INT'L announced a 12.5% revenue growth for 2H25 and a 135% increase in net profit, aligning with Jefferies' expectations.
Future Projections: Jefferies forecasts a strong growth trajectory for KINGDEE's profits post-2025, estimating a 70% CAGR for net profit over the next three years.
AI Technology Resilience: The broker believes KINGDEE's ERP system is well-integrated with customer processes, making it unlikely to be disrupted by AI technology.
Investment Recommendation: Jefferies maintains a Buy rating on KINGDEE with a target price of HKD22.54, positioning it as a top pick in the Chinese software sector.
