01415 Overview

Smartphone Shipment Forecasts: Citi Research has revised its global smartphone shipment forecasts for 2026 and 2027 to 1.04 billion and 1.17 billion units, indicating a 17% YoY decrease and a 12% YoY increase, respectively, with a projected 7% YoY rise to 1.25 billion units in 2028.

Market Influences: The adjustments are attributed to memory shortages, price hikes, and weak demand driven by rising inflation, with average selling price growth expected at 7%, 2%, and 3% YoY for the respective years.

Investment Focus: During the smartphone industry's downturn, Citi Research is selectively focusing on companies generating revenue from components, favoring stocks like SK Hynix, Sandisk, and Samsung Electronics.

Entry Points in the Market: The broker believes the recent sell-off in the smartphone industrial chain presents a potential entry point for investors, particularly in companies involved in the iPhone cycle and camera modules.

US Market Performance: The DJIA rose by 239 points (0.5%) and the Nasdaq increased by 1.4% following President Trump's announcement regarding the Iran war's imminent end.

Hong Kong Stock Market: The HSI opened 331 points higher and closed up 396 points (1.6%), with significant gains in tech stocks like MINIMAX-WP and KNOWLEDGE ATLAS.

Tech Stock Trends: AI stocks continued to surge, with MINIMAX-WP and KNOWLEDGE ATLAS seeing increases of 9.5% and 6.9%, respectively, while TENCENT also experienced a notable rise.

Sector Performance: Pharmaceuticals and chip stocks showed strong performance, with several companies like 3SBIO and ILUVATAR COREX posting significant gains, while some automakers faced declines.

Stock Performance Overview: Various stocks showed mixed performance with notable gains for SHENZHOU INTL (+2.953%) and SMIC (+2.061%), while others like UNIVERSAL SCIENTIFIC (-2.412%) and COWELL (-0.682%) experienced declines.

Short Selling Data: Significant short selling activity was observed, particularly in SMIC ($217.14M) and WUXI BIO ($160.63M), indicating market skepticism towards these stocks.

Estimated Impact of RMB Appreciation: The estimated impact of a 5% appreciation of the RMB against the USD on net profit varies, with some companies projected to face high single-digit impacts while others may see declines around 10-15%.

Market Outlook: UOB Kay Hian maintains a constructive medium-term view on markets, adding stocks like BABA and GANFENGLITHIUM to their buy list, while placing MEITUAN on the sell list.

Market Reaction to AI Threat: The software industry faced pressure from AI models by Alphabet and Anthropic, leading to declines in US software stocks and a drop in the Hong Kong bourse, with the HSI down 0.4% in the morning session.

Significant Stock Declines: Major tech companies like Tencent, Bilibili, and Meitu experienced substantial losses, with short selling ratios indicating increased market skepticism.

Broader Tech Sector Impact: Other tech stocks, including Alibaba and JD.com, also saw declines, while semiconductor stocks like SMIC and Hua Hong Semi faced significant drops, reflecting a broader downturn in the tech sector.

Resource Stocks Performance: Gold and silver prices rebounded, and oil stocks gained due to rising refined oil prices in mainland China and geopolitical events, with companies like Sinopec and PetroChina seeing modest increases.

Market Overview: The HSI closed down 39 points (0.2%) at 26,447, while the HSCEI fell 24 points (0.3%) to 9,070. The HSTECH saw a slight increase of 8 points (0.15%) to 5,691, with a total half-day turnover of HKD127.653 billion.

AI-Related Stocks Performance: Stocks like GDS-SW and UNISOUND experienced declines of 3.2% and 5.2%, respectively, while INSILICO and MINIMAX-WP surged by 5.5% and 6.6%.

Chip Sector Movements: SMIC, ASMPT, and HUA HONG SEMI saw gains of 3-4%, while INNOSCIENCE and BIREN TECH faced declines of 5.6% and 3.6%.

Tech Stocks Activity: BIDU-SW rose by 3.3% following a target price increase from Morgan Stanley and Citi, while other notable movements included a decline in LENOVO GROUP and a slight increase in KUAISHOU-W.

Market Performance: The HSI rose by 239 points (0.9%) to close at 26,848, with the HSCEI and HSTECH also showing gains, while total market turnover reached HKD315.192 billion.

Technology Sector Highlights: Notable gains were seen in BABA-W (+3.6%) and ALI HEALTH (+2.8%), while some AI stocks like SENSETIME-W and WEIMOB INC experienced declines of 4.9% and 4.5%, respectively.

Chip Stocks Movement: Chip stocks faced losses, with BIREN TECH and ILUVATAR COREX dropping 7.7% and 8.9%, while ASMPT and COWELL saw gains of 3.6% and 8.1%.

Automotive Sector Developments: Supported by a new tariff deal between China and the EU, BYD COMPANY and other car manufacturers like GWMOTOR and XPENG-W saw increases, while XIAOMI-W declined by 2%.