Zhitong Hong Kong Stock Exchange Unravels | Under the election storm, Hong Kong stock internet giants are collectively hyping up

[Anatomy Dashboard]

The current US midterm elections will have a profound impact on the world. US stocks themselves are also showing positive results. The Dow surged more than 3%, and A-shares surged yesterday. Today, while those that can stabilize and are strong today, Hong Kong stocks are once again making great strides, surging 3.67%.

There were indeed a few surprises in this wave of elections. 1) I didn't expect the Republican Party to lose so badly. Even the traditional Deep Blue State lost, such as Texas welcoming the first Democratic governor in more than 30 years; Kansas's first Democratic senator since 1932; North Carolina breaking the Republican Party's 18-year winning streak; and South Carolina and Georgia are also turning blue. This indicates that there is indeed an internal problem. 2) Trump is surprisingly calm and calm this time, which is extremely unusual; 3) The internal situation is also being cut rapidly. Vice President Vance publicly questioned it because of a problem attacking Iran. It is estimated that for the 2028 general election, it is feared that it will be affected, and Trump agreed. 4) Since it is wrong to attack Iran, then there are always people who take the blame; it is likely that Defense Minister Hegseth will be removed from office. 5) Musk estimates that the days will also be difficult, but Trump is likely to protect him, but his stocks are estimated to be difficult. 6) The Democratic Party said it wants to “end the war in Iran.” However, the two sides still have many points of disagreement. It is not something that can be stopped by the US unilaterally; how to handle the strait issue is the key.

Overall, it can be said that Trump has experienced a major setback this time. After losing both houses, his powers are quite limited. I feel that he is calm this time probably because he is afraid of being attacked by all kinds and is mainly self-defense. As a result, many levels will converge, and the risk of “breaking the can and falling” is less likely.

Another point is that this is not only a decline in Trump's personal prestige and power; this kind of chaos is also weakening the prestige of the entire country. Zelensky is already shouting, warning the whole of Europe with Musk: America's role in global security is unavoidable; Europe must control its own security “switch”; it cannot be left to private companies. This will also encourage some US trading partners to fight back against Trump's aggressive trade policies, and the tariff level is expected to be eased. The Ministry of Commerce responds to expanding procurement of agricultural products from the US: maintaining an open attitude and implementing equal tax cuts is a prerequisite.

This is the background of a major rebound in Hong Kong stocks, and this pattern of falling back and forth is gradually showing. As a result, a large amount of capital has poured in today, and the transaction volume has also increased to a rare 356.7 billion dollars. Internet giants are being bombarded collectively.

The Democratic Party's victory did have a significant impact on data center construction. Goldman Sachs economists said that the Democratic Party's victory at the state and local levels may cause short-term data center suspensions, which may affect about 45% of the planned US data center capacity expansion. Texas alone accounts for about 25% of the planned capacity, and Gina Hinojosa promised a moratorium when she won the gubernatorial race. As a result, US stocks such as Nvidia and Intel continued to fall last night, so it is difficult for domestic companies that rely on overseas chains. Take a look at Changfei Optical Cable (06869): overseas revenue accounts for 40% +, and the weakening overseas has undoubtedly been greatly impacted. Today, it has dropped more than 14%. Although most of the other Jiantao laminates (01888) are sold to domestic PCB manufacturers, they are essentially following the line of overseas capital expenditure, so they are all dragged down. Including PCBs, optical modules, MLCCs, etc., all declined. However, pure domestic production remained strong in the direction of domestic demand. For example, Tianshu Zhixin (09903) rose more than 9%, and Bijiao Technology (06082) rose more than 3%.

Restrictions on data centers are not all bad. Conversely, existing electricity and licensed assets have become scarce goods, and the Democratic Party may slow down demand for AI tokens to pass approval and push up a new pricing or even price increase, which can also reduce the bubble effect caused by AI spending.

As a result, downstream CSP cloud factories are expected to increase prices. Cloud companies such as Microsoft and Amazon are all rising, corresponding to domestic Kingdee International (00268), focusing on domestic demand. In the first half of 2026, AI native product revenue was +189% year-on-year, and AI native subscription revenue grew 282.9%; cloud subscriptions to ARR continued to grow, ERP replacement orders for central state-owned enterprises and large enterprises continued to land, and the Sky Agent platform surged nearly 14% today; Jinshan Cloud (03896) surged nearly 13%; There is a micro alliance (02013) Recently, the company has connected to Alipay's AI open platform, which will be able to help merchants build smart devices and connect Alipay applets to support packaging of existing business services into agents. Alipay will provide a dialogue portal to support the ability to place stores, products, orders, etc., up more than 6%.

Alibaba (09988) has quite a few advantages. Apple has officially confirmed a partnership with Alibaba. The first batch of Apple Intelligence (Apple Intelligence) features will be tested with the latest iOS developer beta on November 4, and is scheduled to be launched to Chinese users with the official iOS 27.3 version in December this year. On Double 11 this year, Alibaba Cloud launched “A Thousand Questions AI Double 11,” which simultaneously launched promotions for model calls, AI applications, and cloud docks. From tokens and models to office, programming, and content creation agents, to enterprise applications and cloud deployments, this promotion surged more than 8% to provide individual users, developers, and enterprises with product choices for different scenarios; giants such as Tencent (00700), Xiaomi (01810), NetEase (09999), and Meituan (03690) all increased by more than 7%.

On November 4, the post-market performance and guidance of the US stock AppLovin (AI programmatic advertising leader) surged sharply, directly targeting Huiliang Technology (01860): its Mintegral is a domestic AI programmatic advertising platform, and its business model is very close. AI intelligent bidding already accounts for 90% + of Mintegral's revenue; benefiting from AI skits going overseas, the distribution of short dramas, and rising demand for purchases, it is a traffic investment link in the short drama overseas industry chain. The adjusted net profit was +39.5% year-on-year, and today it surged nearly 12%.

Yesterday, we talked about the Democratic Party's sweep of both houses. IRA clean energy subsidies, energy storage, and grid investment support are expected to be repaired. According to data from the National Energy Administration, China added about 38.76 GW of PV installed capacity in the third quarter of 2026, an increase of about 38% over 28.06 GW in the same period in 2025. Furthermore, after experiencing a long period of disorderly competition at low prices, the photovoltaic and energy storage industry is rapidly emerging from the “internal volume” dilemma. Recently, many major manufacturers of mainstream inverters and energy storage equipment, including Sunshine Power, Kehua Digital Energy, and Gurivat, have announced price increases ranging from 5% to 15%. Junda shares (02865) have surged by more than 16%. Yesterday, all other products have increased by more than 3%.

China Biopharmaceutical (01177) once again spread the benefits of BD. The company issued an announcement yesterday announcing that it has reached an external license agreement with multinational pharmaceutical company Boehringer Ingelheim for next-generation oncology therapy, covering six innovative drug pre-clinical projects. According to the agreement, China Biopharmaceuticals will receive an initial payment of 358 million US dollars and recent payments, and will be eligible for potential option exercise payments and development, regulatory and commercialization milestone payments, up to a total of up to 7 billion US dollars; in addition, it will also receive up to double-digit royalties based on future potential product sales, an increase of more than 9%. BeiGene (06160): The company's report for the third quarter of 2026 will be released on November 10, 2026, with an increase of more than 7%; Gloria Ying (06821): plans to repurchase no less than 500 million yuan of A-shares; Bottom Sihuan Pharmaceutical (00460), Ali Health (00241), and Kangfang Biotech (09926) will increase more than 6%.

On the morning of November 5, the main lithium carbonate futures contract surged more than 5% to about 93,000 yuan/ton. Ganfeng Lithium (01772) mentioned by individual stock nuggets yesterday rose more than 8%.

[Section Focus]

As overseas gold prices continued to rise, domestic gold jewelry prices rose at the same time. Domestic pure gold jewelry prices announced by a number of gold and jewelry brands have increased compared to yesterday. Zhou Shengsheng (00116) pure gold jewelry reported 1,233 yuan/gram, up 45 yuan from yesterday; Zhou Daifu (01929) pure gold jewelry reported 1,229 yuan/gram, up 44 yuan from yesterday; Laomiao gold gold jewelry reported 1,225 yuan/gram, up 42 yuan from yesterday; the outlook for gold is highly dependent on the trend of the situation in the Middle East. According to Citi estimates, if the situation eases, the price of gold is expected to rise to 4,500 US dollars/ounce within the next three months, with a target price of 5,000 US dollars for 12 months; if the conflict continues, the gold price will fall back Risk up to $3,500.

Main varieties: Laopu Gold (06181), Zhou Shengsheng (00116), Zhou Daifu (01929), Zijin Gold International (02259), Chifeng Gold (06693), and Lingbao Gold (03330).

[Individual Stock Mining]

Daikin Heavy Industries (01081): Plans to repurchase up to 10% of the issued H shares in the shipbuilding sector to open a second growth curve

The board of directors of the company has reviewed and passed a bill relating to the repurchase of H shares. It is intended to apply for general authorization from the shareholders' meeting to repurchase no more than 10% of the total number of H shares issued. The upper limit of the repurchase price is 5% of the average closing price of H shares in the 5 trading days before the repurchase date. Revenue for the first three quarters of 2026 was $4.363 billion (-5.05%), and net profit attributable to mother was $710 million (-19.97%). The depreciation of the Euro exchange rate dragged down profits; net profit for the first three quarters was about +6% year over year after excluding exchange losses.

Comment: At this time, buybacks are a major support for the stability of stock prices, and at the same time, it is compounded by a good trend in the new energy situation. The company is the European export leader among domestic seabreeze manufacturers. Centralized European Sea Breeze delivery brought about an explosion in performance, and profitability continued to rise. The gross profit margin for wind power equipment was 35.90%, an increase of 10.37 percentage points over the previous year. The core is that the share of high-margin European orders continues to increase, with an overall gross profit margin of 35.6%. Cash flow improved significantly, operating cash flow of $2,043 million (+35.39%), and repayment quality was good.

Core highlights: 1) The gross margin of overseas orders is much higher than that of domestic tower peers. 2) The whole chain is closed loop (manufacture+own transport ship+European home port), the cost is controllable, and the delivery is highly competitive. 3) Shipbuilding's second growth curve has been implemented, and 10 billion ship orders will lock in revenue for the next few years and open up a new track. 4) Cash flow has been significantly restored, and the share of high-margin overseas business continues to rise.

The company is full of orders in hand, and overseas orders are being delivered in volume. Offshore wind power equipment orders: Overseas sea wind orders are concentrated in Europe (UK, Germany, France), and large long-term orders are mainly delivered from 2026 to 2027. The agency estimates that about 250,000 tons of sea breeze will be delivered in 2026. Shipbuilding orders are the company's second growth curve, with a cumulative total of 24 ship orders, with a total amount of about 12 billion yuan. The delivery period is 2027-2030, and 3+1 bulk carriers from Greek shipowners, totaling 2.1 billion dollars; 4 bulk carriers from Norwegian shipowners. The shipping business has a large order volume, but the delivery cycle is long, and the performance will gradually be realized after 2027.

The company built its own King/Emperor series heavy-duty carriers and no longer rent high-priced ships to control ocean transportation costs and ensure delivery timelines. We have 4 European home ports in Germany, Spain, and Denmark, covering the North Sea and the Baltic Sea. Overseas terminal assembly, warehousing, operation and maintenance, and one-stop delivery solutions for overseas customers. The company's gross margin of European Sea Breeze orders was significantly higher than that of domestic projects, accounting for 82.25% of overseas revenue.

The company benefits from Europe's profound ocean wind trend; it also enters high-value-added ships such as special ships, and is not limited to ordinary bulk carriers. The shipbuilding sector entered leading international shipowners, opening a second growth curve. The company's European Seabreeze order expectations and the progress of ship construction boosted confidence.