North Water Trends | Beishui's net purchase of 3,667 billion Tencent (00700) capital expenditure exceeded expectations, Beishui hit a low to raise Tencent over HK$5.6 billion

The Zhitong Finance App learned that on August 13, in the Hong Kong stock market, Beishui traded a net purchase of HK$3,667 billion. Among them, the Hong Kong Stock Connect (Shanghai) transaction had a net purchase of HK$3,771 million, and the Hong Kong Stock Connect (Shenzhen) transaction had a net sale of HK$104 million.

The individual stocks that Beishui Net bought the most were Tencent (00700), SMIC (00981), and Huahong Hongli (01347). The most sold individual stock by Beishui Net is Cambridge Technology (06166).

Hong Kong Stock Connect (Shanghai) active trading stocks

Hong Kong Stock Connect (Shenzhen) active trading stocks

Tencent (00700) plummeted 4% after the results and received a net purchase of HK$5.616 billion throughout the day. Tencent announced capital expenditure of $52.8 billion for the second quarter, far exceeding market expectations. Lyon said that Tencent's second-quarter results are in line with expectations; Tencent's capital expenditure is expected to reach 200 billion yuan this year, so it lowered its adjusted net profit forecast of 2% and 6% for 2026 and 27. However, Xiaowei is about to expand the trial, and Hybrid 4 is also expected to be released later this year. I believe these developments will further push the company to revalue its valuation.

SMIC (00981) and Huahong Hongli (01347) received net purchases of HK$834 million and HK$822 million respectively. Both SMIC and SMIC announced their results after the market. SMIC's revenue for the second quarter surpassed US$3 billion, and gross margin rose to 25.3%. Profitability improved across the board. Management expects revenue and gross margin to increase further in the third quarter. Huahong Hongli's second-quarter sales revenue reached a record high of US$717.5 million, up 26.8% year on year and 8.6% month on month; gross margin was 16.5%, up 5.6 percentage points year on year and 3.5 percentage points month on month.

Jiantao Laminate (01888) received a net purchase of HK$346 million. Bank of America Securities released a research report saying that the vertical integration capabilities of Jiantao laminated boards have significantly increased their profit sensitivity to shortages of upstream materials and rising prices. Jiantao Laminate's average sales price of CCL is expected to expand by 130% and 40% respectively this year and the first half of next year. According to the bank's analysis, if the average sales price of CCL increases by 100%, it will boost the company's CCL gross margin by 28 percentage points this year, and lead to a 200% increase in earnings per share.

MINIMAX-W (00100) received a net purchase of HK$337 million. The Hong Kong Stock Exchange recently announced that MINIMAX has complied with the HKEx Technology 100 Index quick inclusion rules. It will be included in the HKEx Technology 100 Index and the Hong Kong Stock Exchange Technology and US Technology 100 Index after the market closes on August 12, and will officially take effect on August 13. Notably, MINIMAX was included in the Hong Kong Stock Connect on August 6.

Changfei Optical Fiber Cable (06869) received a net purchase of HK$163 million. Yamato said that Changfei Optical Fiber is benefiting from the current strong upward cycle of the optical fiber industry. The company is expected to be supported by technology leadership and upward space in the optical interconnection business. Among them, the compound annual gross profit growth rate of the optical interconnect business is predicted to be 137%, driving the net profit compound annual growth rate of 135% from 2025 to 28.

In addition, Alibaba-W (09988) and GigaYi Innovation (03986) received net purchases of HK$189 million and HK$139 million respectively. Meanwhile, Cambridge Technology (06166) had a net sale of HK$47.84 million.