Zhitong Hong Kong Stock Exchange Unravels | Temasek Launches Korea to Drive Storage Cities Update “15th Five-Year Plan” and Activate Real Estate

[Anatomy Dashboard]

As technology advances, Hong Kong stocks generally fall, so the Hong Kong Index should indeed be thoroughly reformed; it cannot always be rated as a “takeaway” index by the outside world. The Hang Seng Index fell 0.83% today.

Unexpectedly, it was Temasek, a Singapore sovereign wealth fund. The company plans to directly invest in the Korean stock market for the first time. The target is Samsung Electronics and SK Hynix, and sees these two global memory chip giants as seriously underestimated targets in the AI value chain. It directly catalyzed the increase in Korean stocks to 5%. Samsung Electronics and SK Hynix both rose more than 8%; the South China doubled and Samsung Electronics rose more than 14%; the storage concept stock Lanqi Technology (06809) rose more than 7%; and GigaYi Innovation (03986) rose more than 5%.

The results of individual stocks related to US stocks were also boosted: US optical communications giant Lumentum (LITE.US) released its financial report for the fourth fiscal quarter of fiscal year 2026 after the market on August 11, local time, and the results greatly exceeded market expectations. Net revenue for the fourth fiscal quarter increased 109% year over year to US$1.01 billion, and non-GAAP adjusted earnings per share surged 267% year on year to $3.23; non-GAAP net profit increased 415% year over year. At the same time, the performance guidance for the first fiscal quarter of fiscal year 2027 was also significantly stronger than expected. The median revenue range is expected to be more than 8% higher than market expectations, and the median adjusted EPS guidance is more than 16% higher than market expectations. The target product Zhongji Xuchuang (03308) rose nearly 9%, Cambridge Technology (06166) rose nearly 7%, and Haiguang Xinzheng (01191) and Changfei Optical Fiber Cable (06869) rose more than 12% and 7% respectively; Zhitong's August gold stock MINIMAX (00100) will be included in the Hong Kong Stock Exchange Technology 100 Index and the Hong Kong Stock Exchange Technology and American Technology 100 Index after closing on August 12, and will officially take effect on August 13. Today it's up almost 9%. In addition to the Zhongji Xuchuang (03308) mentioned in yesterday's section, which is expected to be selected for the new Hang Seng Technology Index, the other two PCB categories Shenghong Technology (02476) and Jiantao Laminate (01888) all increased by nearly 5% and nearly 11%, respectively. In fact, there are also some potential candidates, all of which have gone up well; everyone is digging for themselves. Huahong Hongli (01347) plans to hold a board meeting on August 13 to approve financial results for the second quarter. Today's increase is over 7%.

Domestically, it is also being stimulated. The Shanghai Economic and Information Technology Commission issued the “15th Five-Year Plan for the Development of the Shanghai Software and Information Service Industry” on August 11, which clearly proposed implementing the “10 million” intelligent computing cluster project to build 100,000 card large-scale intelligent computing clusters in places such as Songjiang, Lingang, and Qingpu. Alibaba Cloud's Lingjun Zhenwu M890 supernode instance was officially launched, and the first batch has already been sold in the Ulanqab region; the supernode is the first supernode type computing power to successfully run a model with over 2 trillion parameters in China; Alibaba Cloud said it is planning to more than double the global production capacity of modular data centers, and related supernode instances will be launched in other regions one after another. This news itself is not good for Ali (BABA.US), because it was an investment period, mainly benefiting from the IDC partner service provider Wanguo Data-SW (09698) (GDS.US) rising by more than 5%; Huiju Technology (01729): It is the core supplier of Alibaba Cloud's overall intelligent computing center cable. Relying on Lixun Group's high share of high-speed interconnection in Alibaba, it has the supply qualifications and product compatibility to supply Alibaba Cloud's Lingjun 64-card supernode cluster, which is a potential target of benefit. Its AI server-related business is growing very fast, clearly benefiting from the country's computing power construction. Today, it has risen by nearly 7%. The inauguration ceremony of Pakistan's largest integrated data center with integrated computing and intelligent computing, which was jointly constructed by ZTE (00763) and Sky47, Pakistan's leading cloud service provider, was held in Islamabad, which means progress in overseas development is progressing, with an increase of nearly 5% today.

AI Application Reading Group (00772) performed well, with revenue growth of 10.7% in the first half of the year. The revenue for reading skits and AI comics in the first half of the year reached 430 million yuan, more than three times that of the same period last year. Reading IP's efficient visualization channel has been fully opened. The proportion of popular short dramas is 4 times the market average; 46 AI comics have surpassed 100 million views, and 367 have surpassed 10 million views. At the same time, the continuous expansion of the influence of Readingwen IP has also driven the IP derivatives business to show a steady and sustainable growth trend. The IP derivatives business GMV reached a new record high of 780 million yuan, an increase of 60% over the previous year.

Diversified breakthroughs in the new IP business format led to a 41.9% year-on-year increase in copyright revenue to 1.61 billion yuan, and the profitability of the Reading IP ecosystem reached a new level. Today it surged more than 10%.

Real estate is finally making a big move. Last week, Beijing issued policies to drastically relax regulations in the three areas of purchase restrictions, provident funds, and gifts. The latest is the introduction of the “Fifteenth Five-Year Plan” for Urban Renewal, which clarifies 23 key tasks and provides 10 quantitative indicators. The main ones are: starting new construction to renovate 115,000 old urban neighborhoods, renewing about 500,000 dilapidated urban housing units, rehabilitating 1,500 factories in old neighborhoods, and promoting the renovation of 4,000 urban villages; it is estimated that an investment of 15 trillion yuan will be completed. Funding mainly depends on the diversified model of “government guidance, market operation, and public participation”. It directly brings new business opportunities to the real estate industry, and is currently mainly concentrated in the stock sector. If stocks are revitalized, it is hoped that the direction of growth will gradually ease in the next step. The next focus will be on the implementation of the policy, especially whether the funding level is in place.

China Jinmao (00817): The cumulative sales amount signed in the first 7 months increased 7.92% year on year, and sales growth will accelerate in the third quarter, surging nearly 14% today; Yuexiu Real Estate (00123), a leader in urban village renovation, surged nearly 10%; Longhu Group (00960): According to the August 11 announcement, the company has completed the “21 Longhu 06” principal payments of about 1,029 billion yuan. Since then, all credit bonds due within 2026 have been paid off, and the debt structure continues to be optimized, rising nearly 9% today; China Resources Land (01109): a major comprehensive development subsidiary under its umbrella Project Rui Jing No. 1 Qi Rui Jing I announced the first price list today. The first price list involved 102 units. The developer offered a discount of up to 16%. The actual price started at HK$5.298,000, and the initial discounted average price was HK$17,880. Currently, Hong Kong is in a low interest rate environment. Coupled with strong demand for local property purchases, the market is optimistic about its sales performance. Today, the market is optimistic about its sales performance.

J.P. Morgan Chase (JPM.US) expects polysilicon prices to recover and may rise back to 50-55 yuan per kilogram, which is roughly equivalent to the full cost of marginal producers plus 13% VAT. It appears that the last meeting achieved results. GCL Technology (03800) rose by more than 6%; Xinte Energy (01799) rose nearly 5%.

The Federal Reserve continues to be unwilling to provide clear forward-looking guidance, so the market can only look at inflation data. Tonight, the US CPI data for July will be released at 20:30 Beijing time tonight. The survey shows that the July CPI is expected to rise 0.1% month-on-month (previous value was -0.4%), while the year-on-year increase will fall back to 3.4% (previous value was 3.5%) — cooling down for the second month in a row. Excluding volatile energy and food prices, the core CPI is expected to rise 0.2% month-on-month (0.0%) and 2.5% year-on-year (previous value 2.6%) in July. The overall CPI is significantly higher than the Federal Reserve's 2% target, but the two-month slowdown in year-on-year growth may give Federal Open Market Committee (FOMC) policymakers some time before deciding on interest rate policies.

[Section Focus]

August 12 - Emirati company Emirates Global Aluminium plans to resume production early next year after Iran's March attack caused its main smelter to shut down production, which may help ease the pressure on the aluminum market where prices are soaring due to supply shortages. EGA said that the company is investing 400 million US dollars in maintenance to restore production to pre-war levels in the first quarter of next year, while efforts are being made to speed up this progress. This will boost the region's aluminum supply prospects — the region accounted for about 10% of global production before the conflict. The Middle East's largest aluminum producer said in a statement on Wednesday that even if production resumes, subsequent shipments will depend on the reopening of the Strait of Hormuz. Additionally, Norwegian Hydro announced that the company's Alunorte plant in Brazil has cut alumina production to 50% of production capacity due to “gas supply” issues. According to public information, the Alunorte plant is designed to have an annual production capacity of 6.3 million tons/year and is known as “the largest alumina plant outside of China.” Alumina is a key raw material in aluminum smelters. As can be seen from the above, the shortage of aluminum supply has spread all over the world, and the rise in aluminum prices is a probable event. Hong Kong stocks are related varieties: Innovation Industry (02788), China Aluminum (02600), China Hongqiao (01378), and Nanshan Aluminum International (02610).

[Individual Stock Mining]

JD Industrial (07618): The company actively promotes the “smart chain” layout of overseas business to open a second growth curve

Recently, at the ESCC Embodied Intelligent Supply Chain Ecology Conference with the theme “Smart Chain for a Win-Win Future”, relevant officials from JD Industrial presented the JD “Embodied Smart Chain” layout, which integrates the seven elements of “acquisition, storage, standardization, training, evaluation, simulation, and testing.” Interim results will be released this Thursday.

Comment: The company uses scale and standardization to promote the “physical smart chain” layout. While improving efficiency, it is also creating new growth points. JD Industrial's profit growth rate far exceeded revenue, and profitability exploded sharply. The company is the absolute leader in domestic MRO procurement of industrial products, the largest industrial supply chain service, and shares JD's nationwide warehousing, and the whole country can achieve same-day/next-day delivery of industrial products. Leading the way in technical barriers. JoyIndustrial-2.0 industrial supply chain model has been fully implemented, equipped with 27 AI agents, increased material standardization efficiency by 10 times, labor costs were reduced by 80%, AI purchase orders exploded in robot manufacturing tracks, intelligent global supply chain scheduling, automatic distribution of domestic shipping warehouses, overseas storage warehouses, and local spot warehouses. Overseas procurement costs were reduced by 18%-30%, procurement efficiency increased by 30% +, and was selected as the Davos World Economic Forum AI benchmark case. The Taipu digital intelligence integrated supply chain system is the company's flagship core product. It can handle enterprise procurement sourcing, compliance control, supplier management, warehousing, audit, and digitization of the entire process in one stop; it can help enterprises reduce procurement costs by 5%-30%, reduce the procurement cycle from 21 days to 7 days, and has become a standard procurement system for central enterprises and new energy vehicle companies. New energy orders are being released at a high rate, and moped companies are replacing imported tools and precision spare parts with domestic production. Laying out overseas supply chains, long-term general contract orders for energy infrastructure from central enterprises, 1) China Coal Energy: Group-wide digital intelligence supply chain and AI big model procurement framework agreement. 2) Shandong Energy Group: full-link procurement service for 461 projects across the country. 3) China Power Construction: domestic+overseas infrastructure supply chain turnkey, overseas companion service. 4) Annual centralized procurement framework for China Resources Gas, State Grid, China Construction, and CRRC Group. BYD, Changan, Dongfeng, Geely, and Ningde Era: MRO turnkey procurement for all overseas factories in Southeast Asia, Brazil, and Hungary; won a major cross-border order for Malaysia's 10-million-grade cable to serve the construction and supply of the Malaysian Phase II plant in the Ningde Era. The company focused on 13,300 major KA customers in 2026, all of which were long-term annual framework orders; new customers for robotics, new energy, and energy storage were launched in batches; the number of small and medium-sized manufacturing enterprise customers exceeded 2.6 million, and platform turnover continued to skyrocket. The company continues to seize market share: AI supply chain technology services open up high margin space, and overseas business starts a second growth curve.