Zhitong Hong Kong stocks have long been known | Domestic and foreign sales of excavators exceeded expectations in June, and the price war slowed down. The four major insurance institutions spoke out in support of A-shares on the same day

[Today's headlines]

Domestic and foreign sales of excavators continued to exceed expectations in June, and the price war in the domestic industry is slowing down

According to statistics from the China Construction Machinery Industry Association, 25,445 excavators of various types were sold in June, an increase of 35.3% over the previous year. Among them: domestic sales volume was 10,898 units, up 33.9% year on year; 14,547 units were exported, up 36.4% year on year. Furthermore, starting May 1, Sany, Xugong, Liugong, Shantui and other companies announced price increases for excavators by about 5%, while Sany and XCMG will also increase prices for crane products.

CITIC Construction Investment pointed out that domestic and foreign sales of excavators continued to exceed expectations in June. Domestic sales of excavators showed a clear backward trend in the peak season this year, because this year's Spring Festival is late compared to last year, and domestic excavators have recovered a high year-on-year positive growth since March, and it is expected to continue to grow in the future. Exports maintained strong performance. They were not disturbed by the international situation, changes in tariffs, interest rate cuts, etc., and China's construction machinery growth trend was maintained. The price increases of leading domestic companies reflect a slowdown in the price war in the industry since the beginning of the year and a shift towards healthy development.

[General outlook]

Overnight, the Dow Jones Industrial Average fell 307.16 points from the previous trading day, or 0.59%, to close at 51839.26 points; the S&P 500 stock index fell 14.41 points to close at 7443.28 points, or 0.19%; and the Nasdaq Composite Index fell 12.17 points to close at 25508.07 points, or 0.05%.

Major technology stocks had mixed ups and downs. Microsoft and Intel rose more than 2%, Apple fell more than 2%, Tesla fell nearly 3%, SpaceX fell more than 3%, and Oracle fell nearly 4%. Most of the optical communications and storage sectors rose, with Lumentum and Credo up more than 4%; SK Hynix fell nearly 2%.

Most popular Chinese securities rose, and the Nasdaq China Golden Dragon Index rose 0.9%. Alibaba rose more than 4%, while Tencent's ADR, iQiyi, JD, and Weibo rose more than 3%. The Hang Seng Index ADR declined. On a pro rata basis, it closed at 25101.94 points, down 41.11 points or 0.16% from the Hong Kong closing.

WTI crude oil futures on the New York Mercantile Exchange rose $0.64 for the month, or 0.78%, to close at $82.42 a barrel. COMEX gold futures fell $7.00 in consecutive contracts during the month, or 0.17%, to $4011.8 per ounce.

[Hot Topics Preview]

Support the stock market! Four trillion-dollar insurance institutions speak out

On July 20, three insurance institutions with over trillion yuan in asset management joined forces to support the stock market. China Taibao issued an announcement stating that in the future, the company will continue to invest in stocks and ETFs in the fields of technological growth, consumption, new energy, etc., to support the cultivation and development of new productivity and become real market patient capital; China Ping An will continue to increase its investment in strategic emerging industries, advanced manufacturing, new infrastructure and value varieties; Xinhua Insurance will continue to optimize the equity asset allocation structure and firmly support capital market development; on July 20, China Life Insurance said that it is firmly optimistic about the bright prospects of China's economy and the long-term positive trend of the capital market. Recently, China Life Insurance Assets, the group's main investment platform, was actively allocated in the market, with net purchases of A-shares and equity assets in the off-market fund market exceeding 10 billion yuan in a single day.

Lung Fung Group (02290)'s retail sales through retail stores in the first quarter were approximately HK$829 million, up about 21.2% year over year

According to the Zhitong Finance App, Longfeng Group (02290) announced its latest operating performance for the three months ended June 30, 2026. During this period, the Group achieved retail sales of approximately HK$829 million through retail stores, an increase of about 21.2% over the same period last year.

Harbin Electric (01133) Fa Yingxi expects net profit to increase to about 1.7 billion yuan in the first half of the year

Harbin Electric (01133) announced that it is expected that the company will earn net profit of about RMB 1.7 billion (approximately RMB 1.05 billion in the same period last year) for the first half year of 2026, which is a high increase over the same period of the previous year. The main reason is that the company's revenue scale grew steadily in the first half of 2026, the positive results achieved in deepening efforts to improve quality and efficiency, and the gross margin level of operating business increased compared to the same period last year.

Yip's Chemical Group (00408) Fa Yingxi expects net profit to increase by no less than 110% year-on-year in the medium term

The expected sharp increase in net profit in the medium term is mainly due to the following factors: 1) Due to soaring sales prices of solvent products and successfully grasping this market opportunity, the Group's solvent joint venture business recorded significant net profit growth in mid-2026; 2) In mid-2026, the Group's ink business continued to make progress in expanding its market share, and both sales and tonnage increased, and the ink business category profit increased compared to mid-2025; 3) Following the completion of the acquisition of a leading chemical gas recovery and treatment company in mainland China, Beijing Xinnuo Haibo Petrochemical Technology Co., Ltd. After about 60% of the shares, Cigna Haibo's financial results were merged into the group in mid-2026; and the net profit increase mentioned above was partially offset by the following circumstances: 4) It recorded non-recurring income from the sale of vacant land in Jinshan, Shanghai in mid-2025.

China Longgong (03339) is pleased, and net profit is expected to increase 16% to 27% year-on-year in the first half of the year

The increase in net profit during the reporting period was mainly due to the Group's vigorous development and improvement of various product lines, continued to explore domestic and overseas markets, and the scale of production and sales achieved steady growth during the reporting period; the Group achieved results in improving quality control costs, and the overall gross margin of products increased year-on-year.

Lee & Man Paper (02314) is making a profit, with an expected mid-term profit of around HK$1.33 billion to HK$1.39 billion, up 64% to 71% year over year

This increase in earnings was mainly due to a rise in the Group's marginal profit.

Shanghai Electric (02727) Fa Yingxi expects mid-term net profit to be 920 million to 1.0 billion yuan, an increase of about 12% to 22% year-on-year

The company's semi-annual profit growth in 2026 was mainly due to improvements in operations in some core business segments, as well as confirmed government subsidies and non-recurring revenue generated by the disposal of shares in some subsidiaries, which together provided positive support for the profit level and promoted the increase in the company's net profit attributable to owners of the parent company compared to the same period last year.

Xinzhi Holdings (02166) is pleased. It is expected that profits attributable to shareholders will increase by no less than 460% in the first half of the year

The increase in profits attributable to the Company's owners during this period was mainly due to the overall rise in demand for the Group's integrated circuit chips. Benefiting from the booming development of AI technology and increasing market demand, the Group's business units related to AI infrastructure construction, namely optical communication and storage products, achieved significant growth during this period.

[Individual stock prices are clear]

Daikin Heavy Industries (01081) subsidiary won an order for 3+1 bulk carriers from Greek shipowners, with a total amount of about 2.1 billion yuan

Daikin Heavy Industries (01081) announced that recently, Tangshan Daikin Offshore Engineering Co., Ltd., a subsidiary of the company, signed a 3+1 bulk carrier construction contract with a Greek shipowner. Of these, 3 are confirmed ships and 1 is the buyer's choice ship (the shipowner has the right to decide whether to build the ship at the agreed price within 2 months after signing the contract).

The total amount of the above 4 ship construction contracts is equivalent to about RMB 2.1 billion, of which the total contract amount for the 3 confirmed ships is equivalent to about RMB 1,575 billion, and the total contract amount for 1 optional ship is equivalent to approximately RMB 525 million.

In response to investors' questions on the interactive platform, Daikin Heavy Industries said that by the end of 2025, the company had accumulated a total overseas order amount of more than 10 billion yuan, mainly for delivery in the next two years. The projects covered various offshore wind power projects in Europe, such as the North Sea and the Baltic Sea.