Zhitong Hong Kong Stock Exchange Unravels | AI Applications: Individual Consumer Stocks Continue to Spread

[Anatomy Dashboard]

South Korea is actively squeezing the bubble to cool down. Today, the Bank of Korea raised interest rates by 25 basis points to 2.75%, the first rate hike since January 2023. In addition, measures to reduce leverage have also been introduced, and the threshold for individual investors to purchase individual stock leveraged ETFs has been raised drastically from the original 10 million won to 50 million won. The Korean stock market plus SK Hynix will naturally fall. Technology continues to be hit, and A-shares are weakening at the same time. Hong Kong stocks continued to be very strong. Today, they jumped 1.33% and the Hang Seng Index surpassed 25,000 points.

AI hardware continues to be in Waterloo, but the AI application side is clearly showing. Maifushi (02556), which has a “full-stack token factory” concept, expects the profit attributable to shareholders in the medium term to be about 188 million yuan to 222 million yuan, an increase of 386% to 494% over the previous year. In other words, the maximum increase in half a year was close to 5 times, completing the key transformation from “burning money for scale” to “platform-based profit.” Its unique “scene token” charging model is a highlight: instead of charging a fixed “head fee” based on the software account, the money is calculated based on how much work the AI actually does. In scenarios such as marketing, sales, and business analysis, the more AI can directly help customers find leads, improve conversion, and assist in decision-making, the more customers will pay; internally, self-developed AI can reduce costs and improve efficiency, directly reduce costs, and release profits. The company's moat serves more than 210,000 companies, covering 721 industry segments. The accumulated business logic and process data has all settled into its KnowForce AI knowledge platform. These “master experiences” are then encapsulated into standardized AI agents through the Agentforce platform. Today it surged more than 30%. Compared to “Token First Stock” Xunce (03317), its core competitiveness is stronger. Other apps that are doing well include Meitu (01357), which rose more than 6%.

On July 15, the State Internet Information Office released information that the first batch of generative artificial intelligence services on mobile phones had been registered, and seven mobile phone side generative artificial intelligence service products passed the registration in the same batch. The complete list of 7 models that have been reviewed: Apple Smart, Huawei Xiaoyi AI, OPPO AnDesGPT, Vivo Blue Heart, Xiaomi Surge AI, Samsung Galaxy AI, and Nubia Beanbag phone models. Hong Kong stocks benefited from Xiaomi (01810), which rose more than 6%, and ZTE (00763), which rose more than 3%. MeiG Intelligence (03268): The company pioneered the definition of the AI module 4.0 standard, which has the core competitiveness of communication, perception and reasoning, covering 0.5-700 TOPS AI computing power, and can flexibly adapt to the computing power deployment needs of different terminals. Its AI module products serve as the key foundation for end-to-end AI implementation to build the core advantage of “computing power+algorithm+security”, which has risen by more than 11% today.

The overall rebound in the direction of the fruit chain is highlighted by Ruisheng Technology (02018): Entering AI fields such as liquid cooling, XR, robotics, etc., and has long-term growth potential, such as the VC cooling solution for CDU (coolant distribution units), cold plates, manifolds, UQD quick couplings, and optical modules/SSDs, which are successfully expanding for customers at home and abroad; the supply of motors and microphones for OpenAI and Apple AI edge devices is significantly higher in value and profit margins than the mobile phone business; Google and Samsung AI's optical waveguide products have been released in multiple models; the humanoid robot business has obtained the release of multiple models of optical waveguide products from Google and Samsung Early customer orders, such as Lingxi Robot. Today it is up more than 6%.

As for the direction of consumption, the State Council issued the “Fifteenth Five-Year Plan to Expand Consumption”, which clearly proposes content such as expanding the supply of childcare products and services and increasing the effective supply of next-generation smart terminal products. Jinxin Reproduction (01951) in the direction of assisted reproduction increased by more than 7%; different groups leading childcare products (06090): The company will upgrade its core products (i.e. strollers, car safety seats, cribs and baby chairs) with AI and gradually expand to AI feeding scenario products, AI smart toys, and more intelligent products related to family life scenarios. Recently, a strategic cooperation framework agreement was formally signed with Cao Cao Chuxing (02643). Focusing on the Robotaxi smart cockpit scenario, we are jointly developing an integrated front installation solution for adult seats and child safety seats. Today's increase is over 11%.

In terms of film and television, the film and television category Maoyan Entertainment (01896) and China's Ruyi (00136), which were mentioned yesterday, performed well, and both increased by more than 5%. It seems that the market is confident about the subsequent box office of “Kung Fu Women's Soccer”. The latest box office surpassed 900 million, and the total box office forecast is in the neutral range of 2.5 billion, which has increased again, and revenue corresponding to the above categories will also increase.

On July 16, Apple CEO Tim Cook posted on Weibo welcoming the Bubble Mart (09992) team to Apple Park and posted photos of him having a live conversation with Apple CEO designate John Tenus and Bubble Mart founder Wang Ning. The two sides had in-depth exchanges on creative design, digital ecology, and global consumer trends. If we can reach some cooperation with Apple, this space of imagination is worth looking forward to. On July 10, Duan Yongping once again increased his shares in Bubble Mart. The number of shares held increased from 91.2728 million shares to 102 million shares, and the shareholding ratio further increased from 6.85% to 7.65%, up nearly 7% today.

E-commerce Oriental Selection (01797) With the core anchor leaving the company one after another to start a business, the company was not greatly impacted. The key was to focus on its core competitiveness: 1. The self-operated category continued to expand, open up a second growth curve, add Blue Hat health foods (ammonia, coenzyme Q10, DHA, etc.), standardize matrices for own agricultural products, prepared dishes, and snacks. C2M reverse customization reduces intermediaries, and profit margins continue to increase. 2. Phenomenal store model went through: The first offline store in Beijing surpassed expectations in May. Recently, the first store in northwest Xi'an opened on July 15, the first store in the Central Plains of Zhengzhou opened simultaneously on July 16, and the third offline experience store in the country was launched. The market recognizes the closed loop of online live streaming and offline retail channels. In terms of performance, the data picked up: the overall GMV growth rate continued to rise year-on-year in July. In the end, e-commerce competes for comprehensive strength, not just a live broadcast to bring goods. Today it surged more than 14%.

Since July, the national pig and pork prices have been rising for two consecutive weeks. On July 12, the wholesale price of white striped pork in the Beijing Xinfadi Market was 14.4 yuan per kilogram, up 15% from July 1, the highest price since the Spring Festival. The full cost of Dekang Agriculture and Animal Husbandry (02419) commercial pigs in June was 11.83 yuan/kg, and the level of cost control continued to be at the forefront of the industry. As long as the cost is above the current price, you can make money, and today it is up 6%. Other varieties of Muyuan shares (02714) and COFCO Jiajiakang (01610) all rose more than 3%.

According to information disclosed by the Shenzhen Stock Exchange, the Yuejiang (02432) GEM IPO will be reviewed by the Listing Committee on July 22. This will be the first H share return to A project in the Guangdong-Hong Kong-Macao Greater Bay Area after the implementation of the comprehensive reform pilot in Shenzhen. It only took 86 days from receiving the application to the upcoming conference, and the capital market served science and innovation enterprises at an impressive “Shenzhen speed.” In terms of performance, the revenue range for the first half of the year is expected to be between 300 million yuan and a year-on-year increase of 94.65%-114.12%; gross profit is expected to be 1.4 to 170 million yuan, an increase of 84.73%-124.31% year on year. Both revenue and gross profit have almost doubled rapidly. Today's increase is nearly 8%.

[Section Focus]

According to Guojin Automobile Research Report, the automobile industry continues to grow at a high rate of overseas growth, improvement in domestic demand, and an inflection point of intelligence. Domestic sales are expected to continue to improve in the second half of the year: the restoration mainly comes from: 1. The second half of the year has entered the peak car buying season; 2. Subsidies are more balanced compared to the same period in 2025; 3. Fuel vehicle repair is still driven by the launch of many powerful new models (such as Xiaomi, etc.); and continued to be removed from storage in May and June, and there is flexibility to replenish stocks. Combined with lower base pressure in the same period of 2025 compared to the first half of the year, domestic sales are expected to improve marginally in the second half of the year, and the fourth quarter is expected to be corrected year over year. The early July data has been initially verified. According to the retail sales data of the China Federation, the year-on-year decline in domestic retail sales narrowed to 15% from July 1-12 (23% year-on-year decline for the whole month of June), down only 1% from the same period in June.

Overseas sales continued to grow at a high rate: passenger car/NEV exports continued to exceed expectations by +82%/+152% year-on-year in June, and the structure was significantly optimized - the share of new energy sources with better profitability increased (the penetration rate of new energy sources in exports reached 55%), the share of exports to high-potential energy markets such as Europe increased, and exports of high-end vehicles accelerated. Judging from June data, exports already account for more than 37% of passenger car sales, with remarkable flexibility. Looking ahead to the second half of the year, overseas travel is expected to continue the high growth trend.

Major Hong Kong stock products: BYD (01211), Geely (00175), Zero Run (09863), Xiaopeng (09868), NIO (09866), and Ideal Auto (02015).

[Individual Stock Mining]

BYD (01211): The internationalization process accelerates giant energy storage orders and brings definite revenue

Former Hungarian Foreign Minister Sialdor announced his resignation as a member of parliament to join the BYD Group as an executive responsible for the Group's foreign relations and the expansion of new business lines. The company's revenue for the first quarter of 2026 was 15.225 billion yuan, down 11.8% year on year; net profit to mother was 4,085 billion yuan, which was under pressure in the short term, but gross margin rebounded to 18.81%.

Comment: This important personnel appointment is seen as an important step for BYD to enhance its global expansion and public relations capabilities, which means that the company's internationalization process is speeding up. The global penetration rate of new energy sources continues to rise. Energy storage is a trillion-level incremental track, and the company also occupies a leading position in two booming racetracks. BYD New Energy accounts for 80% + of passenger vehicle revenue. Dynasty, Ocean, Tense, Equation Bao, and Yew look forward to full price coverage. Hybrid+pure electric dual lines run in parallel, leading the world in new energy sales. The energy storage system is the company's second growth curve. The vast Haohan energy storage, grid side/household optical storage integration. Overseas high gross profit has exploded, and the company's overseas bicycle gross profit is significantly higher than domestic. Overseas business is expected to contribute nearly 80% of the vehicle's net profit in 2026, which is the core increase in profit. Energy storage is simultaneously deployed globally in the Middle East, Europe, and Latin America, and the unique advantages of integrated optical storage solutions are obvious.

There are plenty of orders in hand. Energy storage order: 2026 is a major overseas order, with the strongest certainty, 1) The UAE's Masdar 11.275GWh energy storage system was launched in July 2026, with the world's largest single energy storage procurement contract, equipped with 5.2 GW photovoltaic power plants. The industry estimates that the contract size is 4.4-10.9 billion yuan, delivered in 2027-2028; the battery capacity is equivalent to the battery capacity of 186,000 new energy vehicles. 2) Poland's 600mW/2.4GWh energy storage project, the largest lithium battery energy storage power plant in Polish history. 2026Q3 construction began, connected to the grid at the end of 2027, and European benchmark orders opened up space in the EU energy storage market. 3) Saudi Arabia's 12.5 GWh grid-side energy storage project, previously launched a giant energy storage project in the Middle East, establishing a leading position in the Middle East market.

Vehicle orders: 1) Domestic: Orders for Dynasty, Ocean, Formula Bao, and Tension models are full. The number of second-generation fast charging models arriving in stores has picked up significantly, and the domestic market share is expected to rise to 23%-27% by the end of the year. 2) Overseas vehicles: 792,200 vehicles were delivered overseas in the first half of 2026 (+71% year over year), and the agency expected annual overseas sales volume of 1.5 to 1.8 million units, impacting 2.5 million vehicles in 2027; long-term orders from overseas dealers were locked in, and production capacity in Hungary and Thailand climbed to match delivery demand. 3) Battery external supply: Long-term supply of Tesla, Toyota, Renault, and overseas car companies have stable annual framework agreements, and external supply continues to increase. The company's 2026 sales agency expects 5 million new energy vehicles and 1.7 million overseas vehicles for the whole year. BYD's overseas markets are growing rapidly, and it has achieved a leading position in markets such as the UK, showing strong long-term competitiveness. Huge orders for energy storage have brought definite revenue.