Zhitong Finance Hong Kong Stock September Investment Strategy and Top Ten Gold Stocks

Continuing to review last month's predictions: “If you take a closer look, I'm afraid it will be difficult for August to break out of the July unilateral rise. It is likely that it will embark on a strong volatile trend.” Quite consistent. The Hang Seng Index's operating space is 25089.14-26187.57 points. This is a narrow box oscillation; the lowest point is near the annual line.

The fundamental reason that Hong Kong stocks can maintain this large box is that their overall valuation is in a relatively low position, and the southbound capital continues to be underpinned. The cumulative net inflow to the south in August was about HK$27.1 billion, and during the downturn, they will buck the trend and increase positions, forming a downstream bearing capacity. The air sentiment still comes from repeated repetition in the Middle East. The game between the US and Iran gradually evolved into a tougher Iran, and its factual control over the straits became its trump card.

Furthermore, the overall performance of technology stocks is still sluggish under the influence of the US and South Korea, and the latest thing that came to light at the end of the month was the outbreak of various problems with US debt. In this context, capital priorities continued to select pharmaceutical directions, such as Jinsirui Biotechnology (01548), Pharmaceutical Kangde (02359), Zaiding Pharmaceutical (09688), and mRNA vaccine giant Modena Phase III clinical results at the end of the month, which stimulated Cansino Biotech (06185) to rise again; the second strong direction is that the leading brand, Zhitong, Jinshui Pacific Shipping (02343) showed a big increase in performance in August, and all other types of shipping jumped sharply. win the market;

The weakening of safe-haven gold combined with the US dollar is also quite strong. China Gold International (02099) and Zhitong's August gold stock Zijin Gold International (02259) both showed strong performance; others were consumer Bruco (00325) and the excellent physical AI Ruixin mentioned in the previous issue (02687);

The technology direction is mainly biased towards AI applications. For example, Zhitong's August gold stock MINIMAX--- W (00251) rebounded wildly at the beginning of the month due to a crazy rebound in performance and access at the beginning of the month, while Maifushi (02556) also showed impressive performance in the later stages under TOKEN price cuts. Entering September, the overall feeling was in HARD mode because there was so much uncertainty. However, in this state of affairs, there will be more opportunities.

In the game between the US and Iran until now, Iran has had the upper hand, because being able to persevere until now is itself a winner. However, the US has definitely failed quite a bit. It's just a small strait, and all kinds of tricks have been used, and there is still no solution at all. The consequence is that the Middle East has raised great doubts about its capabilities. Saudi Arabia is seeking protection from Pakistan. New groups such as Turkey, Pakistan, Saudi Arabia, etc. have been formed, shaking the US dollar's credibility. The strengthening of gold is a vivid picture of de-dollarization.

Currently, the United States is in a difficult situation where they can fight back and forth, and they are unable to reach an agreement. The latest measure is the imposition of various sanctions. However, at the core, there is no complete ban on Iranian oil, because it is feared that it will cause full inflation. Of course, the core does not dare to ban it, nor can it. The second step is to seek second-level sanctions. US President Trump hinted that the US government may sanction banks that still maintain business with Iran in order to further isolate Iran. US Treasury officials revealed to the media that Bezent will issue a warning at the G20 finance ministers meeting, asking participating countries to cooperate with sanctions against Iraq; otherwise, they will be removed from the US dollar system or face second-level sanctions. However, there was a lot of thunder and little rain in this move.

Currently, the US bond market is experiencing a crisis of trust. The 30-year yield has climbed to over 5.2%, a record high since 2007, and the size of treasury bonds has exceeded 40 trillion US dollars. The Ministry of Finance expanded the repurchase of long-term bonds with little effect. It is not ruled out that this meeting will discuss the issue of purchasing its treasury bonds. However, before the talks, there were also quite a few conflicts. The US side continued to make small moves like this, and the contradictions and differences between the two sides needed to be fully reconciled.

Large economies all raised interest rates in September. For example, the Bank of Japan is expected to announce an interest rate hike on September 18. The yield on 10-year Japanese bonds is approaching 3%, the highest level since the mid-1990s. The policy signals of the two major central banks within the same week will have a double impact. The market generally expects the ECB to raise deposit interest rates by 25 basis points to 2.50% at the September 10 meeting, but policymakers have no intention of sending a signal of further policy tightening. Well, the Federal Reserve meeting on September 16 became the focus of market attention. The US CPI data for August was released on September 11. This data is the key to whether the Federal Reserve raised interest rates in September. Every time it reaches a critical moment, this data generally never falls out of the chain and always moves in a positive direction. Goldman Sachs expects core CPI and core PCE to increase by around 0.2% month-on-month in August.

Walsh looked quite hawkish in his speech at the annual meeting of global central banks in Jackson Hole: he made it clear that “fighting inflation is a top priority” and reiterated that the 2% inflation target is “firm and fixed”; the current financial environment “has no limits”. If inflation does not fall clearly and quickly enough, the Federal Reserve “still has work to do.” After careful analysis, there is no essential difference from previous speeches. The subtext is still “look at the data,” and US stocks have not declined much.

Let's take another look at US debt. The US 40 trillion treasury bonds have an interest rate of 7% for personal housing loans. Interest pressure is huge, almost locking up the room for interest rate hikes. Taken together, the probability that the Federal Reserve will raise interest rates in September is still low. Of course, there is almost no possibility of cutting interest rates, and inflation is unlikely to fall quickly. The best outcome is to stay on hold again.

US stocks themselves are also facing many problems. In particular, technology stocks are very divided. Nvidia Beautiful has not been able to take up technology stocks; it has only maintained a one-day market. There is also the issue of financing. Anthropic is expected to become the next mega-tech company to go public after SpaceX. According to people familiar with the matter, Anthropic plans to publish its IPO prospectus after US Labor Day (September 7), and may go public in the US in late September or early October. According to the report, Anthropic hopes to raise at least 130 billion US dollars in the IPO to expand computing power, which will surpass SpaceX, which went public in June, and raised 86 billion US dollars at the time.

In terms of Hong Kong stocks, September was the peak of the lifting of the ban in the second half of the year. The total lifting of the ban was about HK$394.7 billion. The software services and non-ferrous sectors were under the greatest pressure. There seems to be some light in the direction of Russia and Ukraine. According to Xinhua News Agency, Ukrainian President's Office Director Budanov said in an interview with Ukrainian media on the 27th that Ukraine and Russia may resume the negotiation process in September. Budanov said that the negotiations between Ukraine and Russia are currently at a standstill, but the two sides plan to “restart” the process. He revealed that with the participation of the United States, the Ukrainian and Russian delegations will resume contacts in September as soon as possible.

The domestic stimulus is mainly in the direction of real estate. The latest policy: the three departments have jointly issued a document to improve the commercial housing sales system, implement existing housing sales, achieve “what you see is what you get”, and put an end to the end of the house system. Central Bank+General Financial Supervisory Authority's “Opinions on Reforming and Improving Real Estate Credit Management”: Two major changes: first, extending the term of personal mortgages from a maximum of 30 to 40 years; second, “getting a house and then repaying the loan” — personal loans for pre-sale housing can only be issued after the project is completed and registered. Close all kinds of misappropriation loopholes;

The Securities Regulatory Commission's “Opinions on Capital Market Support for the Construction of a New Model of Real Estate Development”. Support listed real estate companies to refinance and acquire housing-related assets, promote commercial real estate REITs, and support real estate private equity investment funds. It directly opens up new financing channels for housing enterprises. But this is only an improvement on the supply side; the demand side also needs new incentives. Whether real estate prices can actually be stabilized depends on data. On the positive side, it is very friendly to bank stocks.

The Hong Kong Stock Connect was closed during the Mid-Autumn Festival this month (September 25-27), but Hong Kong Stock Connect was suspended, and southbound capital cannot be traded; Hong Kong Stock Connect resumed on September 28. During the market closure period, Hong Kong stocks were dominated by foreign capital and local capital, and fluctuations could easily increase. Overall, Hong Kong stocks will fluctuate quite a bit in September. The important point is to look at the US Federal Reserve interest rate meeting in the middle of the month, and be careful of sharp fluctuations at the end of the month.

Investment Strategy for September 2026: Diversify Your Investments

Zhitong Finance's gold stocks outperformed the market sharply in August. The biggest increase in the Hang Seng Index during the same period in August was 1.2%; the average biggest increase of the top ten gold stocks in August was 22.8%. The biggest monthly gains of the top ten gold stocks are as follows: MiniMax (00100) rose 71.3%, Baiaosetu-B (02315) rose 50.2%, Zijin Gold International (02259) rose 41.1%, Pacific Shipping (02343) rose 32%, China Dragon Gong (03339) rose 15.2%, Huiliang Technology (01860) rose 8.6%, China Software International (00354) rose 4.1%, Sagiteng Juchuang (02498) rose 3.2%, BYD shares ( 01211) rose 2.7%, and MGM China (02282) rose 0.

The record in August was pretty good, with half of the varieties rising sharply. The hot spot was caught in several directions. However, there is also strong differentiation; if it is not a hot topic, there is no market.

Next September, because there are many uncertainties, and no clear main line can be seen, no one direction can be suppressed. A good strategy is to diversify investments, avoid risks while striving to obtain good returns. Specifically, the AI direction has been settled over a long period of time. The chip structure is relatively stable, and the country's industrial policy and future direction cannot be circumvented. However, the differentiation is also obvious. Consider multiple dimensions such as headings, price increases, and performance as much as possible. Whether it is hardware, large models, or application sides, it is necessary to include the combination.

At the consumer level, September is the traditional peak season for consumer electronics: IFA 2026 in Berlin will be held in Germany from September 4 to 8. It is a global consumer electronics trend vane. Major brands will display mobile phones, AR glasses, smart homes, AI terminals, and overseas supply chain information release windows. At Apple's fall press conference (estimated September 8-10), the iPhone 18 Pro/Pro Max, iPhone Fold (Apple's first horizontal folding screen), Apple Watch, new iPad products, and the Huawei Mate90 series press conference (estimated September 23). All Mate 90 series and Mate XT2 second-generation tri-fold; Kirin 9050 chip, Hongmeng OS7.0, domestic high-end flagship benchmarked Apple, driving the HUAWEI Chain order expectations. Meta Connect 2026 is officially scheduled for September 23-24, and a variety of XR hardware and new smart glasses are ready to go; demand for coal in response to the outbreak in the Middle East, mainly in the direction of the energy crisis, and copper in the non-ferrous direction is relatively rigid. Choosing agricultural machinery in the direction of climate warming combined with performance improvements; the vast majority of pharmaceuticals were completed in August; AI pharmaceuticals may have potential; finally, finance chose leading securities with mergers and acquisitions.

Specific varieties:

PCB: JIANTAO LAMINATED BOARD (01888)

Hardware: Huiju Technology (01729)

Application: Maifushi (02556)

Model: Smart Spectrum (02513)

Electricity consumption: Ruisheng Technology (02018)

Pharmaceuticals: Insili Smart (03696)

Securities: CICC (03908)

Coal: Shougang Resources (00639)

Copper Industry: China's Nonferrous Mining Industry (01258)

Agricultural Machinery: First Tractor Co., Ltd. (00038)

The detailed list is as follows:

1. Jiantao laminate board (01888)

26H1 achieved operating income of HK$14.904 billion, +55.0% YoY; gross profit of HK$4.588 billion, +159.8% YoY; and net profit to mother of HK$2,887 billion, +209% YoY. The company's profit margin increased dramatically. Due to: a) the overall acceleration of the AI industrialization process, and the supply of copper-clad panels and their upstream materials continued to be in short supply, the price of the company's products raised several times during the period, and the pace of price increases accelerated in the second quarter; b) the Group's vertical integration advantages were highlighted. The profit of the electronic glass fiber yarn and electronic glass fiber cloth business was about HK$1 billion, +280% over the same period last year. 2) Revenue from the main business grew rapidly year-on-year, and the copper-clad panel business performed well. By business segment, the company's copper-clad panel/property/investment revenue for the first half of 2026 was 14.775 billion/ 49,000,000/ HK$80 billion, respectively, +56%/+11%/+70% year-on-year. The boom in the AI industry is driving demand growth by leaps and bounds. The sharp shift in traditional production capacity to AI-related products has led to serious supply shortages. The sales volume of copper-clad panels is +14% year over year, with an average monthly sales volume of over 10 million sheets. Profit before interest, taxes, depreciation and amortization of the copper-clad panel business increased 170% year over year to HK$4.336 billion. 3) Announcement of an interim dividend: The board of directors of the company resolved to declare an interim dividend of HK$0.28 per share, +87% over the same period last year.

The company's supply chain stability and cost control capabilities are outstanding, and the “profit flexibility release” logic continues to be implemented. By building a complete vertically integrated industrial chain, the company produces its own core raw materials such as electronic glass fiber yarn, electronic glass fiber cloth and copper foil, and superimposes the bargaining advantages brought by the fragmentation of downstream customers, so that the company has strong supply chain stability and cost control capabilities. According to the 2026 interim results announcement, the electronic glass fiber yarn production line with an annual output of 70,000 tons in Shaoguan was put into early operation at the end of June; 8 special electronic glass fiber yarn kilns are under construction in Qingyuan, 2 of which will be put into operation in the second half of 2026; several electronic glass fiber cloth projects will be put into operation one after another from the third quarter of 2026 to the third quarter of 2027; the number of high-efficiency looms will gradually increase from 3,333 in 2025 to 5,833 units in 2028, and the total annual production capacity will jump to 10.5 100 million meters, of which the annual production capacity of special electronic fiberglass cloth will reach 100 million meters. The company's production capacity expansion pace is clear, supply chain advantages are expected to continue to increase profit margins, and AI high-end electronic cloth will open up space for medium- to long-term growth.

2. Huiju Technology (01729)

26H1 achieved revenue of HK$10.07 billion, +107.4% year over year; gross profit of HK$1.26 billion, +96.5% year over year; net profit to mother of HK$8.3 billion, +163.5% year on year; gross profit margin of 12.6%, -0.6 pct year on year; net profit margin of 8.2%, +1.7 pcts year on year. The sharp increase in revenue was mainly driven by three factors: 1) the acquisition and listing of De Jinchang, and the copper wire business contributed HK$2.89 billion in revenue (zero in the same period last year); 2) server business revenue +68% YoY; 3) MPO-led data center business revenue of +23% YoY in the wire components division. The high profit side growth was driven by two factors: 1) the high growth in MPO and server businesses led to an increase in main profit; 2) the profit margin of the joint venture company Leoni Cable improved significantly, contributing to investment income of HK$165 million, compared to a loss of HK$500,000 in the same period last year. The year-on-year decline in gross margin was mainly due to an increase in the share of revenue from the copper wire business with low profit margins.

By business: 1) Wire component division: G customer computing power is booming, driving a sharp rise in MPO revenue and profit, which is a major contribution to performance growth. Revenue of HK$2.08 billion, or 21% year over year, accounting for 21% of total revenue; operating profit of HK$510 million, +44% year over year, operating margin 24.6%, +4pcts year over year. The increase in performance mainly comes from the Data Center Division, which is still the largest sector within the sector, accounting for 11.5% of total revenue, with revenue of HK$1.16 billion, +23% over the same period last year. The judgment is mainly due to the high demand for MPO from G customers, which has led to a marked increase in orders and full Q2 production capacity since April. At the same time, mass production of dual-density MPO and multi-core optical fiber panels has been achieved, further boosting ASP and profit margins. The rest of the telecommunications/medical/industrial/automotive revenue accounted for 3%/5%/0.2%/2%, and revenue +8%/+19%/-6%/+60% year-on-year.

2) Digital Cable Division: Improved revenue but limited profit contribution. Revenue of HK$780 million, +37% YoY, accounting for 7.8%, and operating margin 1.9%. The increase was mainly due to the restoration of the network cable business and the release of high-speed copper cables in the AI-driven specialty line division, but it did not contribute much to the company's overall profit.

3) Server sector: Domestic CSP capital expenditure boosts both volume and profit. Revenue of HK$4.31 billion, or +68.3% year over year, accounting for 43%, operating profit of HK$230 million, operating margin of 5.2%, +3.1 pcts year over year. The judgment was mainly due to domestic CSP customers speeding up computing power construction. The order volume increased sharply in Q2, which led to a marked increase in server revenue and profit.

4) Copper wire division: De Jinchang added additional contributions. Revenue of HK$2.89 billion, accounting for 29%, operating profit of HK$100 million, and operating margin of 3.4%, was mainly due to the completion of the acquisition by Tak Chin Cheong at the end of '25. Looking ahead to 26H2-27, the computing power sector will present “main business cashing+new product card slot” two-wheel drive: on the one hand, MPO's main business is highly realized and continues to benefit from strong demand from G customers, breakthroughs from new overseas customers and accelerated production capacity expansion; on the other hand, the company is deeply involved in new computing power product lines for North American customers, which are about to be launched, including ShuffleBox in the CPO field, 800V data center power lines, etc. Furthermore, the results of the integration of Leoni's automotive business have exceeded expectations, and the medical sector has experienced heavy snowfall.

3. McFTSE (02556)

The company achieved revenue of 1,960 billion yuan, an increase of 111.2% year on year; achieved adjusted net profit of 213 million yuan, an increase of 150.9% year on year; achieved operating cash flow of 50 billion yuan, which was a sharp correction year on year, showing the company's ability to make blood by itself in the AI application business. The company's 2026H1AI application business achieved revenue of 1,128 billion yuan, an increase of 123.7% over the previous year. The company's rapid revenue growth was mainly driven by KA customers. The number of KA customers increased 118.2% year on year, and ARPU increased 40.8% year on year. Together, KA customer revenue increased 207.2% year over year, accounting for 69.1% of the AI application business revenue. The company has successively launched products such as the AI-AgentForce3.0 intelligent platform, KnowForceAI enterprise-level knowledge center, and GenAIOS, marking that the company has completed the transformation to an AI application platform. The company uses intelligence as the core to meet the needs of various scenarios such as enterprise marketing, sales, customer service, business analysis, and sparring. Scenario tokens account for double digits in revenue, achieving a leap from functional delivery to value delivery, further promoting the commercialization of the company's AI applications.

The company has now completed the construction of a complete capability system for the computing power layer, model layer, AI native platform layer, and application layer. Increased scenario token penetration is expected to help the company maintain strong growth in AI application revenue. The company's profit side greatly exceeded expectations, mainly due to (1) the company's high-margin AI application business revenue share continues to increase. It is expected that with model capability optimization and accelerated iteration of vertical models, the company's AI application token pricing space is expected to gradually improve the gross profit level of the company's AI application business; (2) the total labor efficiency of the company's 2026H1 increased by 85.6% year over year, and the total number of employees increased 13.8% to 1,893 people. While maintaining a continuous increase in R&D investment, the company empowers sales, customer service, R&D and internal management through AI tools Process, the company's sales/management/R&D rates were 11.4%/4.6%/16.6%, respectively. The year-on-year change was -5.6/-5.6/+7.5pct. AI technology greatly improved the company's operating efficiency. Looking ahead, the company will deepen the Token economy model and continue to improve the AI native platform construction, and profitability is expected to further improve. In summary, the company already has a full-stack AI layout, and scenario tokens drive the company's AI commercialization acceleration and rapid profit release.

4. Intellectual Spectrum (02513)

Smart Spectrum released the next generation flagship model GLM-5.3. The base is consistent with GLM-5.2, but the capacity transition was achieved through expanded training scale. The scale of the long-range task training environment has increased tens of times before, and the complexity and diversity of the training environment has been further increased. The programming experience is 50% higher than the previous generation, and it ranks first in open source models in public benchmarks such as TerminalBench 3.0; at the same time, strong cybersecurity capabilities have emerged, and its performance in tasks such as white box code review and vulnerability discovery is close to Mythos 5. In the AA Composite Intelligence Index, GLM-5.3 and KMiK3 rank first in open source, but they are more efficient at completing a single task.

In terms of price, the input and output price for each million tokens is 8/28 yuan, which is consistent with GLM-5.2. The core changes in GLM-5.3 focus on the post-training stage. The company further expanded the training tasks from relatively independent programming questions to complete professional work units for real experts. The environment covers a wider range of production-level workflows, and task design is closer to how engineering and research work is actually carried out. After GLM-5.3 verifies the model, training scaling still has a lot of room, and the number of actual environments and task complexity are expected to become important grippers for improving agent capabilities in the future.

As the real task environment continues to expand, GLM-5.3 has emerged with strong network security capabilities. CyberGym scored 84.5% in the white-box vulnerability discovery assessment, higher than Mythos5's 83.8% and GPT-5.6sol's 83.6%; in ExploitBench, which tests deep reasoning ability, GLM-5.3 scored 54.4%, more than double that of GLM-5.2. On ExploitGym, which completed exploiting tasks within a limited time, G completed 105 tasks within 2 hours of LM-5.3 and 130 within 6 hours, which is a significant improvement over GLM-5.2 completing 29 and 39 tasks, respectively. GLM-5.3 has fully launched GLMcodingPlan and zCode. zCode is deeply adapted around GLM-5.3, and can continuously preserve targets, files, terminal results, browser context, Git status, etc. in the same task, and build a complete workflow. As the long-term execution capability of models improves, the competitive focus of Agent products will shift from single-round coding capabilities to “model+harness+tools+context management” system capabilities. zCode is expected to become an important product entry point for intelligent spectrum to undertake model capabilities and drive user usage growth.

In summary, I am optimistic about the iteration of the Smart Spectrum GLM series model, combined with zCode, which is expected to further accelerate the growth of ARR.

5. Ruisheng Technology (02018)

The company's 2026H1 gross profit reached 3.24 billion yuan, a year-on-year increase of 17.8%, and gross margin reached 22.4%, an increase of 1.7 pct over the same period last year. The company 2026H1 recorded a net profit of about 90 billion yuan, an increase of 2.9% over the previous year; after deducting fair value profit and loss, etc., non-net profit of about 850 million yuan, an increase of 37.4% over the previous year.

At various business levels, Ruisheng Technology's 2026H1 acoustics and electromagnetic transmission revenue is about 6.012 billion yuan, gross margin of about 28.6%; precision structural parts and cooling revenue is about 3.25 billion yuan, gross profit margin of 23.1%; optical revenue is about 2.05 billion yuan, gross profit margin of 10.2%; sensor and semiconductor revenue is about 860 million yuan, gross margin of about 14.6%; vehicle acoustics revenue is about 2.24 billion yuan, gross margin of about 20.1%. End side: Diversified business capabilities, actively developing new products.

In the field of end-side hardware, Ruisheng Technology has: 1) Diversified business capabilities: actively explore high-end processes for sensing, transmission, heat dissipation, etc., and actively expand its share and improve performance levels. 2) Ability to actively explore new downstream areas: Relying on excellent structural components and motor strength, the company lays out products such as dexterous hands and hollow cup motors in the field of robotics, which is expected to help leading customers in the industry take the lead in industrial and commercial scenarios. Cooling: Help upgrade consumer electronics cooling and develop the AI computing power liquid cooling market. 1) In terms of consumer electronics cooling, Ruisheng Technology has a stable position as the leading consumer electronics cooling leader. The company shipped more than 140 million VC heat plates in 2025, which is a significant increase; the company expects 180 million units by 2026. 2) The company is actively developing optical communication heat dissipation, and is focusing on promoting advanced heat dissipation technology represented by forged housings, high-performance VC, and liquid cooling plates to promote and send samples to many leading optical communication manufacturers. 3) In terms of data center liquid cooling, Ruisheng Technology previously reached a holding acquisition agreement with Yuandi Technology.

The company has completed large-scale delivery of CDU, liquid cold plates, UQD and other products. Customers include: leading global AI infrastructure, leading domestic ODM, leading Internet, and ASIC companies in the US. Ruisheng Technology will accelerate the expansion of the scenario from terminal cooling to AI infrastructure cooling. Optical communication: WLG technology enters optical communication. While actively exploring diversified expansion of optical business such as lens/module business, the company is also actively exploring the field of optical communication. Ruisheng Technology's WLG wafer-level glass molding technology has the advantages of high accuracy, good consistency, and large-scale mass production, which lays a solid foundation for the company to later implement high-precision microlens arrays and optical fiber V-slots.

6. Insilicon Smart (03696)

Founded in 2014, Insilicon Intelligence is a pioneering global biotech company driven by generative artificial intelligence, using its proprietary Pharma.ai platform and advanced automated laboratories to accelerate drug discovery and drive innovation in life sciences. By integrating artificial intelligence and automation technology, Insilicon Intelligence is providing innovative drug solutions for unmet disease fields such as fibrosis, oncology, immunology, pain, obesity, and metabolic disorders. The company's revenue grew from $30.147 million to $56.239 million in 2022. In 2026, H1's revenue is expected to reach US$1025-106.5 million, a significant year-on-year increase of 272.7% to 287.3%. Continuing the high growth trend, the net profit to mother is expected to be US$33.5 million to US$33.5 million. As the pace of subsequent external licensing cooperation accelerates and milestone revenue continues to be implemented, performance is expected to be further released. According to Frost & Sullivan's estimates, the global AI-enabled drug development cost market is expected to increase from $11.9 billion in 2023 to $74.6 billion in 2032, with a CAGR of 22.6%. Compared with traditional development, AI drug discovery can greatly shorten the development cycle, reduce the risk of failure, and greatly reduce time costs. Since 2019, with leading business models and model capabilities, Insili Intelligence has reached a total of 21 AI drug development-related collaborations with more than 10 companies/organizations including Prudential Pharmaceuticals, Takeda Pharmaceuticals, Eli Lilly Pharmaceuticals, and Google, and has disclosed a total of over 10 billion US dollars.

Insili intelligently progresses more than 30 core drug candidate pipelines in an orderly manner, and the pace of clinical development is clear. In 2026, the inhaled dosage form Rentosertib was approved by the Chinese IND for idiopathic pulmonary fibrosis; the NLRP3 target drug ISM8969 completed its first phase I clinical trial in Australia. The company expects to achieve a number of key clinical milestones in the second half of 2026: ertib's domestic phase III clinical launch and completion; for example, TE drug A drug D inhibitor ISM6331 read initial phase I safety, efficacy, and biomarker data and completed final dose escalation; ISM8969 received IND approval in China; and the MAT2A inhibitor ISM3412 completed the last phase I dose escalation. In summary, Insili Intelligence is a leading company in the field of AI pharmaceuticals, and has a strong closed loop of model verification and delivery in the AI4S pharmaceutical field. The company has made continuous breakthroughs in global business development, artificial intelligence platform construction, and self-research pipeline development, and has gradually transformed into revenue growth and profit improvement.

7. CICC (03908)

1H26 achieved total operating income of 19.302 billion yuan (yoy +50.47%); net profit attributable to shareholders of the parent company was 8.199 billion yuan (yoy +89.35%), and the annualized ROE was 12.81% (yoy+5.41pct). Among them, 2Q26 achieved total revenue of 10.477 billion yuan (yoy +47.42%, qoq +18.72%) and net profit of 4.622 billion yuan (yoy +101.98%, qoq +29.19%) in a single quarter.

The retail chassis has been activated, and the share of brokerage business and finance has been rising steadily. 1) Brokerage business: The average daily turnover (ADT) of A-shares in the 1H26 market reached 2,773.3 billion yuan (yoy +96.90%). Extremely active market trading led to a high increase in the company's brokerage business. 1H26 achieved net revenue from handling fees and commissions of 9.30 billion yuan (yoy +50.98%), of which net income from securities brokerage business fees and commissions was 4,020 billion yuan (yoy +54.38%). 2) Credit business: At the end of the period, the company's financing volume reached 807.74 billion yuan (yoy +77.11%), and the total market balance rose to 30,20.396 billion yuan (yoy +63.22%), and the market share of the two finance loans increased steadily to 2.66% (yoy+0.21pct); 1H26 achieved net interest income of 207 million yuan, of which interest income was 5.346 billion yuan (yoy +6.09%).

The profitability of public funds has soared, and their position as a ballast stone for asset management has stabilized. Benefiting from the structural recovery of the equity market and the expansion of the public fund industry, 1H26 achieved net income from asset management fees and commissions of 836 million yuan (yoy +22.94%). As its core public offering layout, CICC Fund's non-commodity management scale reached 107.834 billion yuan (yoy +19.16%); 1H26 achieved net profit of 107 million yuan (yoy +101.52%), and its profitability doubled, continuing to provide strong momentum for the company's large asset management chassis. Domestic underwriting has increased significantly, and the advantages of cross-border investment banking have continued to be consolidated.

1H26 achieved net income from investment banking fees and commissions of 2,931 billion yuan (yoy +75.73%). 1) Domestic underwriting: In terms of equity, according to Wind Caliber, 1H26 completed the IPO lead underwriting capital raised 20.51 billion yuan (yoy +1412.84%) and underwrote 11 companies (yoy +450.00%); refinancing raised 25.55 billion yuan (yoy -70.31%), and underwrote 16 companies (yoy +77.78%). In terms of fixed income, the underwriting amount of corporate bonds+corporate bonds reached 1150.7 billion yuan (yoy +6.50%), and the underwriting volume was 408 units (yoy +1.49%). 2) Overseas underwriting: Relying on leading cross-border linkage capabilities, the company's overseas equity underwriting amount reached HK$52.29 billion (yoy +185.69%), and the number of underwriters was 36 (yoy +80.00%), and the leading position in cross-border investment banks continued to be prominent. The company actively promoted the share exchange and absorption of Dongxing Securities and Cinda Securities. The relevant plan was reviewed and approved by the company's first extraordinary shareholders' meeting and class shareholders' meeting in June 2026, and was successfully reviewed by the Shanghai Stock Exchange and Securities Regulatory Commission, and successfully passed the merger, acquisition and restructuring review committee of the Shanghai Stock Exchange on August 27, and the major asset restructuring has steadily moved into a new stage.

In summary, CICC's performance in the first half of 2026 was impressive. Net profit nearly doubled, wealth management, brokerage and investment banking businesses blossomed, and its leading position at home and abroad continued to be consolidated. Along with the steady progress of major asset restructuring, the company is expected to further develop the comprehensive competitive advantages of first-class investment banks and achieve long-term high-quality development.

8. Shougang Resources (00639)

The company announced results for the first half of the year: revenue of HK$3.24 billion, +54% year over year; net profit to mother of HK$589 million, up 61% of the previously anticipated net profit of HK$967 million for the full year, mainly due to the production/sales volume of self-produced coking coal of 195/1.96 million tons, +27%/+26% year-on-year. The company 1H26 achieved 2.79 million tons of raw coking coal production, +6% over the same period, an increase of 150,000 tons; the production of fine coking coal was 1.95 million tons, +27% over the same period; based on the two estimates, the elution rate may increase by more than 10 pcts. The company believes that it mainly benefits from the increase in the production ratio of medium-sulfur coking coal and the decrease in the proportion of coal gangue. The company's 1H26 coking coal achieved an average average price of 1,237 yuan/ton, an increase of 170 yuan/ton compared to +16% (between +17% and high sulphur coking coal in Liulin). The company's 1H26 coking coal unit production cost was 385 yuan/ton, +17% over the same period, an increase of 57 yuan/ton; the unit processing fee for fine coking coal was 47 yuan/ton, +7% over the same period, an increase of 3 yuan/ton. Considering the increase in the washing out rate, it is estimated that the unit cost of the company's coking coal is -3% compared to the same period, a reduction of 20 yuan/ton. Average prices increased and costs decreased. The company's gross margin of 1H26 after deducting the coal trading business reached 44%, +4.2pct over the same period last year.

Against the backdrop of stricter domestic safety supervision, the country's coking coal supply contracted markedly. 26H1 national/Shanxi coking coal production fell 4%/7% year on year, respectively, and fell 10%/23% year on year in June; as of August 12, production capacity of 71.9 million tons in Shanxi was still in a state of discontinuation, and production of resumed coal mines decreased by an average of 34% compared to before production was stopped. Factors such as the shutdown of hidden work surfaces, removal of outsourcers, and frequent supervision and inspection have placed medium- and long-term restrictions on production organizations. On the other hand, China's 26H1 coking coal imports account for 60.7%, but if Mongolia's fuel shortage continues, it will directly restrict Mongolian coal production and drive up import costs. As of August 21, Jinquan Mongolia is 5 #精煤1595 yuan/ton, +2.2% week over week, and +38.9% year over year. The contraction in domestic production combined with rising import costs of Mongolian coal is expected to maintain a high level of operation at the H2 coking coal price center. The company 1H26 plans to pay an interim dividend of HK10 cents per share, an increase of 4 HK cents over the previous year, with a dividend payout ratio of 86% (40%/53%/76% for 1H23/1H24/1H25, respectively), continuing the high-ratio dividend strategy, which is highly attractive. After performance fluctuations brought about by the conversion of coal from one group to the next in 2025, the company has consistently provided stable returns to shareholders, highlighting the value of dividend allocation.

9. China Nonferrous Mining (01258)

26H1 achieved revenue of US$2,261 million (of which wet method was 867 million and fire method was 1,394 million), an increase of 29.09% year over year; net profit to mother was US$434 million, an increase of 64.68% year over year. 2026H1's basic earnings per share were approximately HK$0.87, up 64.6% year over year. Net profit from 2026H1 rose 64.68% year on year, mainly due to rising copper and sulfuric acid prices.

1) Unit price: 2026H1, crude copper and anode copper sales unit price was 1,1932 US dollars/ton, up 36.0% year on year; cathode copper sales unit price was 11993 US dollars/ton, up 38.3% year on year; sales unit price of sulfuric acid was 370 US dollars/ton, up 64.4% year on year. The sharp rise in core product prices led to gross profit growth of about US$959 million, an increase of 68.12% year over year. 2) Production volume: 2026H1 Company 94 thousand tons of crude copper and anode copper (-15.8% year-on-year), mainly due to the unplanned suspension of production in the African mining industry during the Spring Festival for 9 days, Luanxia mineral processing maintenance, insufficient supply of Champixi concentrate reduced load, and Lualaba maintenance for 57 days. Cathode copper is 74,000 tons (+2.1% year over year). The increase is mainly due to improvements in Mabend electricity, the resumption of wet production in Humbisi, and an increase in processing capacity in Gangbov. 469,000 tons of sulfuric acid (-12.9% YoY), 4694 tons of liquid sulfur dioxide (+220.2% YoY), and 91,000 tons of outer-processed copper (-11.8% YoY).

Furthermore, due to lack of export quotas for cobalt from the Democratic Republic of the Congo (DRC) and insufficient storage, Huaxin Wet Method stopped production in March, and the grade of Gangbov cobalt declined. 26H1's cobalt hydroxide production was only 115 tons (-76.1% year over year). 3) Costs: 2026H1's sales cost was US$1.32 billion, up 10.3% year on year. Among them, due to rising copper prices, the cost of purchased copper concentrate rose year on year, and the sales cost per ton of crude copper and anode copper increased to 8888 US dollars/ton (+24.8% year over year); sales cost per ton of cathode copper was 4964 US dollars/ton (+5.6% year over year), mainly due to rising costs of outsourced mining; sales cost per ton of sulfuric acid sales was 68 US dollars/ton (-19.1% year over year). Dividends: The company plans to pay a dividend of HK$0.087154 per share, which will be paid on September 17, 2026. Core highlights: 1) Endogenous growth: The projects under construction of the company's subsidiaries Zhongse Africa Mining, Chambi Copper Smelting, Zhongse Luanxia, Humbisi Hydrometallurgy, and Gangbov Mining are progressing smoothly, and endogenous growth continues to empower the company. 2) High dividends: Adhere to the high-ratio dividend policy, effectively give back to all shareholders, and stabilize market reputation and investment confidence.

10. First Tractor Co., Ltd. (00038)

In 26H1, the company achieved total operating revenue/net profit attributable to mother/ net profit of 79/78/ 850 million yuan, +14%/+2%/+23% year-on-year; in 26Q2, the company achieved total operating revenue/net profit attributable to mother/ net profit after deduction of 32/2.2/290 million yuan, +36%/-8%/+78% year-on-year. 26H1's comprehensive gross profit margin was 16.6%, +0.6pct year on year; the period expense ratio was 5.6%, -0.7pct year on year. The growth rate of net profit attributable to mother (+2%) was significantly lower than the growth rate of non-net profit (+23%), mainly dragged down by non-recurring profit and loss: the fair value of transactional financial assets held by the company declined from the beginning of the year, with fair value change earnings of -96 million yuan (year-on-year decrease of 150 million yuan); other income was 68 million yuan, a decrease of 70 million yuan year-on-year, mainly due to subsidiaries' confirmation of debt restructuring income in the same period last year and the reduction in the deduction amount for advanced manufacturing in the current period.

26H1, the company's net cash flow from operating activities was 1.06 billion yuan, +167% year-on-year, mainly due to increased sales volume of leading products and increased sales repayments. 26H1, agricultural machinery business revenue was 6.95 billion yuan, +11% year-on-year, accounting for 88% of total revenue; sales volume of tractor products was 501,000 units, +17.1% year over year, higher than the industry growth rate of 11.6 pct, and market share increased 2.8 pct year on year. The company is deeply involved in major customer strategies, focusing on core operation scenarios in paddy fields, dry fields, cash crops, and hilly mountains to accelerate the construction of a complete product portfolio of “host+agricultural tools” integrated into Dongfanghong agricultural equipment; a variety of high-horsepower high-end intelligent and new energy tractors have completed spring farming tests, and a series of hilly mountain products and paddy field products have been matured and shaped, and the shortcomings in the product lineage have been effectively completed.

In terms of international business, 26H1 focuses on South America, Central Asia and other regions, promoting the localization and upgrading of overseas assembly plants, and launching special model products that meet specialty planting scenarios such as coffee, forest fruit, and tobacco; 26H1's tractor export sales volume was 8006 units, +47% over the same period. The American and Asian markets grew significantly, and gradually achieved breakthroughs in some emerging markets. 26H1, the power machinery business revenue was 940 million yuan, +45% year-on-year, accounting for 12% of total revenue; diesel engine products sold 112,600 units, of which 65,500 units were exported, and the share of export sales increased by 5.1 pct. The company has developed nearly 500 variants for external mainframe manufacturers. The market competitiveness of non-road diesel engine products in the small to medium power range has been further enhanced, and the market share has steadily increased, and many breakthroughs have been achieved in supporting markets such as machinery, construction machinery, and ship power units. In summary, 26H1, the main agricultural machinery business of Yituo Co., Ltd. achieved steady growth. The sales growth rate significantly outperformed the industry. Export sales achieved rapid growth, and some emerging markets gradually achieved breakthroughs; power machinery revenue increased rapidly, and market share increased steadily. Two-wheel drive, the two main businesses, drove the company's revenue and profit to achieve relatively rapid growth. Excluding changes in fair value and non-recurring profit and loss factors such as other income, the company's actual net operating profit was higher than apparent.

Text/ Wan Yongqiang (Director of Zhitong Finance Research Center)

Disclaimer: The stock in this article is for shareholder discussion only and must not constitute investment advice. The stock market is risky, so you need to be careful when investing