Hong Kong stocks closed (08.04) | Hang Seng Index closed down 0.6%, Yaoming Kangde (02359) mid-term report ignites strong rebound in CRO market AI hardware stocks
The Zhitong Finance App learned that the three major indices of Hong Kong stocks opened high and went low today, and the Hang Seng Index failed to hold the 26,000 mark. At the close, the Hang Seng Index fell 0.6% or 156.48 points to 25852.92 points, with a full-day turnover of HK$257.819 billion; the Hang Seng State-owned Enterprises Index fell 0.9% to 8574.26 points; and the Hang Seng Technology Index rose 0.21% to 4885.61 points.
BOC International believes that Hong Kong stocks have a further upward foundation. The Hong Kong stock Hang Seng Index and Hang Seng Technology Index both bottomed out and rebounded in July after being adjusted in June. Benefiting from improved liquidity, valuation repairs, and profit improvements, there may be a basis for further upward movement in the future. The recommended configuration is a dumbbell structure with catalysts at both ends.
Blue-chip stock performance
Yao Ming Kangde (02359) led the blue chip increase. At the close, it rose 11.17% to HK$181.1, with a turnover of HK$3,538 million. Contributed 13.37 points. On the evening of August 3, Yao Ming Kangde announced its 2026 interim results. In the first half of the year, it achieved revenue of 28.897 billion yuan, an increase of 38.9% over the previous year; net profit to the mother was 11.08 billion yuan, an increase of 29.4% over the previous year, breaking the 10 billion yuan mark for the first time in the first half of the year. The company raised its revenue guidance for the full year 2026 to $58.5 billion to 60.5 billion yuan.
In terms of other blue-chip stocks, SMIC (00981) rose 4.98% to HK$65.3, contributing 19.96 points to the Hang Seng Index; Pharmaceutical Biotech (02269) rose 4.28% to HK$40.46, contributing 10.01 points to the Hang Seng Index; CCB (00939) fell 3.37% to HK$8.89, dragging down the Hang Seng Index by 45.57 points; and ICBC (01398) fell 3.14% to HK$7.26, dragging down the Hang Seng Index by 29.6 points.
Popular sector aspects
On the market, large technology stocks had mixed ups and downs, with Tencent falling 0.57% and Alibaba rising 0.48%. Yao Ming Kangde's mid-term report exceeded expectations and raised full-year guidance across the board. The CRO sector exploded; AI hardware stocks such as optical communications and PCBs returned strongly, and Zhongji Xuchuang surged 17%; cloud computing concepts, lithium battery stocks, and paper stocks improved. On the other side, pork concepts and domestic bank stocks had the highest declines; automobile stocks and shipping stocks all weakened.
The CRO sector had the highest gains. At the close, Kingsley Biotech (01548) rose 11.47% to HK$18.17; Pharmaceutical Kangde (02359) rose 11.17% to HK$181.1; and Kanglong Chemical (03759) rose 7.49% to HK$24.4.
On the evening of August 3, Yao Ming Kangde handed over an impressive mid-term questionnaire. In the first half of the year, revenue of 28.897 billion yuan increased 38.9% year on year, and net profit to mother of 11.08 billion yuan increased 29.4% year on year. As of the end of June, the number of on-hand orders of 66.43 billion yuan increased 25.2% year-on-year. The company raised its 2026 annual revenue guide to 58.5 billion yuan to 60.5 billion yuan, and the year-on-year growth rate of revenue from continuing operations increased from 18%-22% to 35%-39%. Zhongtai Securities said that the demand side is gradually improving, the procyclical repair logic continues to be applied, and the Q2 performance is expected to continue to be impressive. With the marginal improvement of the overseas Biotech financing environment, the continued implementation of BD transactions for innovative drugs in China, and the gradual advancement of commercialization projects, the order side of the industry is expected to usher in a recovery.
The concept of optical communication made a strong comeback. At the close, Cambridge Technology (06166) rose 19.81% to HK$86.2; Haiguang Xinzheng (01191) rose 17.43% to HK$95; Zhongji (03308) rose 17% to HK$1,177; and Changfei Optical Fiber Cable (06869) rose 10.34% to HK$105.6.
Gilad Shainer, senior vice president of Nvidia, recently announced that co-packaged optics (CPO) has entered mass production, while pointing out that the business opportunity for the future optical communication market is vertical expansion (scale-up). The required bandwidth efficiency will be ten times that of horizontal expansion (scale-out), injecting a strong needle into the optical communications market. In addition, recent earnings reports from North American cloud vendors also give positive AI expectations. CITIC Securities said that in a context where the business performance of cloud manufacturers continues to confirm that AI is driving business growth, the scale of AI clusters will expand further. Optical interconnection, as an important part of the cluster network, will continue to grow rapidly under the triple factors of increased GPU ratio, port rate upgrades, and “light entering and falling into copper”, and is optimistic about the medium- to long-term prosperity of the optical communication sector.
Most PCB concepts are getting stronger. At the close, Chiptune (09630) rose 22.14% to HK$310; Dazu CNC (03200) rose 15.94% to HK$104.4; and Guanghe Technology (01989) rose 12.22% to HK$110.2.
According to Citigroup's latest research report, the price of electronic cloth recorded the biggest monthly increase in August. Among them, the average price of mainstream series such as 1080/2116/7628 rose 17% to 18% in a single month, reaching 13.1 yuan/meter, 12.7 yuan/meter, and 10.1 yuan/meter respectively. The cumulative increase during the year has reached 118% to 165%. Furthermore, due to AI power crowding out traditional production capacity, cost pressure continues to be transmitted to the upstream copper-clad CCL. Industry leader Jiantao plans to raise CCL's tax-inclusive spot price by another 10% to 15% in August, and the cumulative average price has nearly doubled during the year.
Storage concepts are on the rise today. At the close, GigaYi Innovation (03986) rose 8.29% to HK$459.8; Lanqi Technology (06809) rose 5.55% to HK$262.6; Southern Doubled and Hynix (07709) rose 4.68% to HK$37.1.
According to reports, storage constraints will continue until 2027. According to industry sources, the original factory was the first to complete the 2027 annual capacity allocation negotiations, and the DRAM and high-bandwidth storage (HBM) production capacity of the three major original manufacturers was sold out ahead of schedule. Furthermore, Korean stocks showed a “W-type” rebound today. According to reports, South Korea's Finance Minister Koo Yun-cheol said at a cabinet meeting that South Korea will work to improve market fundamentals to mitigate stock market fluctuations and ensure long-term structural stability. South Korea has recently introduced additional measures for single-stock leveraged ETFs, and will focus on promoting the speedy implementation of these measures.
Popular exotic stocks
Guangdong-Hong Kong Bay Intelligent Computing (01396) was strong throughout the day. At the close, it was up 14.12% to HK$10.51.
Overnight, the cloud computing sector of the US stock market strengthened across the board. According to market analysis, the recent performance of the three major cloud companies together proved that AI infrastructure investment is not limited to a long-term narrative, but has translated into faster revenue growth, higher order visibility, and gradually improved profitability. Guangdong-Gangwan Intelligent Computing added more than 15 billion yuan in orders in the first half of this year, with a total scale of over 30 billion yuan, and a cumulative delivery computing power of nearly 50,000 P (FP16 intensive); net profit for the first half of the year is expected to be no less than 240 million yuan, 3.3 times that of last year.
Zhi Spectrum (02513) performed brilliantly. At the close, it was up 7.45% to HK$1,010.
According to reports from Whipper, the next generation model of Zhi Spectrum, the GLM-5.3, is suspected to have been revealed ahead of time. On the afternoon of August 3, some netizens discovered that the Zhipu GLM-5.3 official documentation page suddenly opened to the public. Within about an hour, many people directly visited the GLM-5.3 documentation page.
FuRui Medical Technology (01696) issued a profit warning. At the close, it was down 6.07% to HK$2.32.
FuRui Medical Technology issued a profit warning. The Group expects revenue of no less than US$171 million for the first half of 2026 and US$166 million for the same period in 2025, but losses attributable to the owners of the company are about US$900,000 to US$1.4 million, which is a loss compared to a profit of US$6.4 million for the same period last year.
China Cinda (01359) was under pressure throughout the day. At the close, it was down 4.52% to HK$0.95.
China Cinda expects net profit for the first half of the year to fall 20% to 25% year on year, and net profit to mother to fall 60% to 70% year on year. The year-on-year decline in net profit was mainly affected by changes in deferred income tax expenses and an increase in current taxable income; the main reason for the year-on-year decline in net profit due to Cinda Real Estate's year-on-year decline in the first half of this year is that Cinda Real Estate is expected to lose losses sharply year on year, and losses attributable to uncontrolled interests fell sharply year on year.