Zhitong Finance's investment strategy for Hong Kong stocks in October and the top ten gold stocks
It's been another difficult month, and worse than expected. I mentioned last month: “Entering September, the overall feeling is in HARD mode because there is so much uncertainty.” Hong Kong stocks almost fell unilaterally in September, with operating space of 24275.56-25791.38 points.
Judging from the pace, the point mentioned was: “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.” This is almost the case. In the end, the Federal Reserve raised interest rates in a hawkish interest rate meeting, causing the market to continue to weaken, and after the rate hike, sentiment was stimulated by the first meeting between China and the US dollar, which rebounded continuously for several days. However, at the end of the month, it bottomed out again.
Against the backdrop of the Federal Reserve's interest rate hike, many industry trends are not ideal. Only a few industries are showing strong performance. For example, bank stocks are very steady, and the four major state-owned banks plus China CITIC Bank (00998) have all reached record highs. The most outstanding performance is undoubtedly the pharmaceutical category, mainly the catalysis of various BD, clinical data, and policies. Representative varieties include AI pharmaceutical leader Zhitong September Goldstock Insili Intelligence (03696), CXO Kingsley Biotech (01548), etc.; there is also the agricultural and animal husbandry industry, which is relatively stable due to the El Niño incident. Judging from the incident, the adjustment of the Hong Kong Stock Connect list in September triggered a round of major hype. The continued southbound increase in the amount of new tenders formed a liquidity premium. Many varieties were hyped up. The representative one was Yingxing Holdings (01440); another example was Yingxing Holdings (01440); there was also a meeting with the head of state of the country where the tariff reduction concept stock Good Boy International (01086) doubled the market. There is basically no action in the technology direction. On the application side, because Meta launched Muse, an independent AI agent application, catalyzed the sharp rise and doubling of retail AGENT concept stocks (02586), while the hardware side is the core product Lenovo Holdings (03396), which is a strong trend. Others include “new energy+AI+computing power” Zhonghuan New Energy (01735).
Looking ahead to the trend of Hong Kong stocks in October, it should be said that it will be better than September, but for the most part it also fluctuates in a box, making it difficult to break out of the trending market.
The biggest variable in the market was the Federal Reserve's interest rate meeting in October. According to the situation in September, the Fed raised interest rates by 25 basis points to 3.75%-4.00%. The bitmap shows that there may still be one rate hike during the year. So whether 10 will raise interest rates is quite critical, because this involves entering a cycle of interest rate hikes rather than a preventative rate hike. The good news is that official data released on Wednesday showed that the US core PCE price index rose 3.0% year on year in August, lower than market expectations of 3.3%. The previous value was 3.3%; it rose 0.2% month-on-month, and is expected to be 0.3%. The overall PCE price index rose 3.4% year on year, was expected to be 3.7%, and rose 0.3% month on month, in line with expectations. Meanwhile, US consumer spending continued to be strong. After adjusting for inflation, personal consumption spending increased 0.6% month-on-month in August, the biggest increase since March 2025. After the data was released, traders lowered their bets on the Federal Reserve's interest rate hike in October. If interest rates are not raised in October, market sentiment will improve markedly.
Of course, the most important thing here also depends on international oil prices. If oil prices continue to decline steadily, it is impossible to raise interest rates. However, oil prices depend on the Middle East war situation, and the game between the US and Iran is the key. The current US midterm elections are the highlight. Trump is unlikely to launch a fierce attack; it is more likely that negotiations will go hand in hand with various sanctions. Iran will also take advantage of this opportunity to drastically increase the price of negotiations. If the two sides can't find a balance, it's probably still all sorts of arguments. The reason why Trump is relatively tough this time is that there was a consensus at the September summit: Iran does not own nuclear weapons, and charges are prohibited on international waterways. This is equivalent to drawing a red line. On the other hand, some foreign investment banks revealed that Middle East crude oil exports may be close to pre-war levels. The war is not over yet, but US military escorts, local fleet transfers, and detours of Saudi oil pipelines have clearly eased supply pressure. What's more, the chaos in the Middle East is also an excellent opportunity for American oil to aggressively sell oil and increase its market share.
The meeting between the heads of state has indeed played a leading role in the Sino-US relationship. An 8-point agreement was reached this time. For us, the core is to establish a mechanism such as a trade council, reach a 30 billion US dollar reciprocal tax reduction arrangement, and extend the trade truce for 60 days. In the future, China and the US will continue to hold talks, focusing on the 30 billion US dollar commodity list, the extent and time of entry into force, whether the two sides can achieve new economic and trade results after the extension of the phased economic and trade arrangements, and whether the 301 investigation and 232 measures being carried out by the US will bring about new tariff adjustments. However, various games will continue, especially in the high-tech sector. Overall, there is a situation of competition, cooperation, and control.
As for China and the EU, trade negotiations have been ongoing this summer as Europe hopes to reduce its record trade deficit with China by October. China's Ministry of Commerce warned that if Europe imposes restrictions on Chinese companies, it will take retaliatory measures. Europe itself has become America's blood treasure. Even the US knows about cooperation, but I didn't expect Europe to figure out the direction yet.
The 10-year US Treasury yield once hit 5.29%, and long-term interest rates suppressing US stocks are what investors are most concerned about. However, Xiaoma is boosting confidence: pointing out that the team judged that the market environment is improving marginally: bond yields are gradually finding a support range, and international oil prices are expected to fluctuate downward. The core logic underpinning its overall growth is as follows. Macro fundamentals: The newly disclosed initial PMI value shows that the resilience of the US economy's expansion exceeds market pricing expectations, and is expected to inject momentum into corporate recruitment, terminal consumption, and profit growth. The earnings per share growth rate of the S&P 500 index has always been highly tied to nominal GDP rather than actual GDP. Current economic fundamentals mean that previous profit expectations are clearly too pessimistic; consumption is showing resilience: although the market continues to worry that high inflation and a tight interest rate environment will erode residents' purchasing power, actual consumer spending data frequently exceeds expectations, which not only supports the economy, but also refutes the “K-type differentiation” economic hypothesis. Currently, the US labor market is improving and driving consumer performance to further improve.
The domestic manufacturing PMI rose 0.3 percentage points to 50.1 in September. It returned to the boom and bust line after a lapse of two months, and the recovery was slightly weaker than seasonal. However, domestic demand is sluggish, and domestic economic trends will rely more on policy support. The National Standing Committee “introduced a number of pragmatic and effective incremental policies” began to be gradually implemented. On September 29, the Ministry of Finance, the Central Bank, and the General Administration of Financial Supervision jointly announced interest rate discount policies for residents' home purchase loans. The policy mainly favors low-tier cities and newcomer buyers, and has had a certain stimulating effect on the real estate industry. Meanwhile, the central bank lowered interest rates on mortgage supplementary loans (PSL) and expanded its support — interest rates on one-year PSL loans fell from 1.75% to 1.5%. In addition, the central bank included the construction of “six networks” such as water grids, new power grids, computing power networks, next-generation communication networks, urban underground pipelines, and logistics networks in PSL support areas. Follow-up focus on early October: The National Bureau of Statistics announced real estate sales for September, sales of top 100 housing enterprises, and housing prices in 70 cities. If sales pick up, the domestic housing market will continue, falling short of expectations and can easily kill expectations. Mid-October: September social finance, credit, CPI/PPI, and GDP data for the third quarter. Social finance has strengthened, and the risk appetite of the entire market has been enhanced.
Overseas long-term capital is still underallocated to Chinese stocks, and incremental capital is limited; mainly hedge funds and ETFs do swing trading with passive funds. The net inflow of capital to the south accelerated to HK$55.2 billion in September, increasing the pricing power for Hong Kong stocks and enhancing the ability of the Hong Kong stock market to withstand external disturbances.
In summary, the Hang Seng Index is expected to fluctuate between 24,000-26,000 in October, and exceeding the upper and lower limits will require strong external factors to drive.
October 2026 Investment Strategy: Defense-Based, Seizing Impulse Opportunities
Zhitong Finance's gold stocks significantly outperformed the market in September. The biggest increase in the Hang Seng Index was 0.9% in the same period in September; the top ten gold stocks had the biggest increase of 11.2% in September. The biggest monthly gains of the top ten gold stocks are as follows: Insili Intelligence (03696) rose 49.1%, Jiantao Laminate (01888) rose 14.7%, Maifushi (02556) rose 12.3%, Huiju Technology (01729) rose 11.5%, China Nonferrous Mining (01258) rose 7.8%, Smart Spectrum (02513) rose 5.7%, First Tractor (00038) rose 5.4%, Shougang Resources (00639) rose 2.5%, Ruisheng Technology (02018) 1.5% (03908) up 1.4 %.
It is true that the market is falling unilaterally is also quite difficult to do. Last month, it also weighed down on a variety with a large increase, so the overall profit is quite OK.
In the context of the volatile market in October, capital choices will tend to be more steady. This will also make it even more difficult because the National Day will not be supported by southbound funding for a period of time. Judging from the favorable factors, it is basically pinned on the Fed not raising interest rates, yet domestic policy incentives have already come out at the end of September, and it is unlikely that anything new will come out in October. Other, of course, there are negotiations between the US and Iran, such as reaching results. However, they are all unpredictable situations, so I don't dare to gamble heavily with any long-term capital; there are more varieties that weigh on defensive properties. Short-term capital, on the other hand, will enter the market to hype up under various events or unexpected advantages. Therefore, October's strategy is: defense-based, seize the opportunity to seize the pulse.
In defense, medicine is still the highlight. On the policy side, the “Fifteenth Five-Year Plan for the Development of the Pharmaceutical Industry” was introduced. The core total target (until 2030) is the pharmaceutical industry's revenue of at least 3.5 trillion yuan, the average annual growth rate of the innovative drug industry is at least 20%, and FIC (First Innovative Drug) accounts for more than 25% of the world. Key tracks: cell/gene therapy, novel antibodies, nucleic acid drugs, radiopharmaceuticals, rare disease drugs, pediatric drugs, untreatable target drugs. AI is used for target discovery, molecular design, clinical testing, production quality control; cultivating AI pharmaceutical implementation scenarios. There is also event catalysis: October 23-27, ESMO European Oncology Congress (Madrid). Many innovative drug companies in the Hong Kong stock market disclose clinical data. If positive data leads to a sharp rise in individual stocks, clinical failure will retract sharply. This is the most important catalytic window for the Biotech sector, and the market will speculate ahead of time. The port category is also a type of defense. Combined with the APEC meeting being held in mid-November, it is expected that there will be an opportunity.
In the direction of the pulse, China and the US have reached a “30 billion US dollar” reciprocal tax reduction arrangement. Among them, the goods imported by the US from China mainly include consumer goods such as small household appliances, toys, holiday decorations, and child car seats. The full list of products, the exact tax reduction range, and effective time have not yet been announced. This piece is likely to cause market hype after publication.
The APEC meeting is held in mid-November, but the market is generally ahead of schedule
If interest rates are not raised, then the gold and non-ferrous categories should have an opportunity, plus they themselves are fully adjusted. Nonferrous chose nickel because of the A+H stock variety, and IPOs will be linked when they are listed in A.
The direction of technology basically does not take into account the direction of hardware. Because the market has clear differences in this area, American artificial intelligence companies are “investing huge sums of money,” but it is questionable whether the revenue of these companies can support such huge expenses. However, the application side is worth paying attention to, such as AI skits, AI movies, etc., and it is expected that there will be quite a bit of catalysis.
Fundamental improvements mainly include low-energy urban real estate stocks benefiting from interest rate discount policies, heavy trucks related to construction machinery, wind energy from Europe's energy transition, etc.
Specific varieties:
Medicine: Baiosetu (02315), Hehuang Pharmaceutical (00013)
Nickel Industry: Liqin Resources (02245)
Gold: Chifeng Gold (06693)
Wind energy: Daikin Heavy Industries (01081)
Consumption: Anker Innovation (00668)
Film & TV: Confucian China (00136)
Heavy truck: Sinotruk (03808)
Real Estate: China Overseas Hongyang (00081)
Port: COSCO SHIPPING PORT (01199)
The detailed list is as follows:
1. Baiosetu (02315)
In the first half of 2026, the company achieved operating income of 941 million yuan, up 51.60% year on year, net profit of 241 million yuan, up 402.29% year on year, net profit after deducting 197 million yuan, up 591.53% year on year; in addition, revenue for the second quarter of 2026 was 508 million yuan, up 36.79% year on year, net profit to mother was 137 million yuan, up 123.79% year on year, and net profit after deducting net profit of 107 million yuan, up 156.12% year on year. In the first half of 2026, the preclinical product and service business centered on innovative animal model sales achieved operating income of 723 million yuan, a year-on-year increase of 57.94%, gross margin of 75.22%, of which the model animal business achieved revenue of 446 million yuan, a year-on-year increase of 62.44%, and a gross margin of 82.30%; the antibody discovery business achieved revenue of 218 million yuan, an increase of 33.77% year-on-year, and gross margin of 92.82%. As of 2026H1, the company has signed more than 455 drug cooperative development/licensing/transfer agreements, of which 2026 More than 105 new agreements were signed in the first half of the year. Currently, more than 10 candidate molecules have been successfully advanced to the clinical trial stage, and RenMice platform authorized development cooperation has been reached with partners including a number of MNC partners. At present, the company has developed deep technical advantages in the field of innovative animal model development and antibody drug discovery. As of 2026H1, the company has developed about 5,670 gene-edited animals and cell models within the company, including more than 2,300 target humanized mice, and has completed more than 10,700 drug evaluation projects for about 1,500 partners around the world. In addition, the company continues to upgrade the Thousand Mouse Antibody Program. At present, it has completed evaluation and research on about 1,200 targets and has basically developed antibodies for all targets, forming a “shelf” with over one million antibodies and epitope-rich antibody molecular sequences. The company officially released RenSuperWorkstation, a next-generation AI-driven antibody discovery platform in May 2026, and successfully built a three-drive architecture of “real antibody sequence library+AI+ automated intelligent manufacturing platform”.
2. Hehuang Pharmaceutical (00013)
The company is an innovative pharmaceutical company founded in 2000, focusing on the field of oncology and immune diseases, and building an integrated platform from R&D to commercialization. The company has commercialized a number of products in China, and the core product fruquintinib has also successfully landed in mainstream global markets such as the US, Europe, and Japan, marking a continuous improvement in the global ability to implement its innovative achievements and its international competitiveness. Fruquintinib is about to reach an inflection point, and sales are expected to return to the upward channel. 1) The drug's mature indication for third-line colorectal cancer (3LCRC) has broken out of a phased trough, and sales have rebounded steadily. 26H1 sales of this product were approximately US$61 million (+41% year over year). 2) 3L+CRC's overseas sales volume was US$185 million, of which 26H1 markets outside the US increased 70% year over year. 3) Domestic second-line endometrial cancer (2LEMC) was approved in 24, covered by medical insurance in 25, and second-line renal cell carcinoma (2LRCC) was also listed on 26H1. This will jointly open up medium- to long-term growth space for furoquintinib and drive the drug's domestic and overseas sales performance back to a rapid upward channel. New indications for sevolitinib are being marketed at an accelerated pace, and global sales can be expected. Although there was phased pressure on sales of the 1/2-line MET exon 14-jump mutation in the first half of '25, the subsequent growth momentum was clearly determined: 1) Domestically, with the 2LEGFR mutation/MET expansion in '26, new indications are expected to be included in medical insurance, once again driving domestic sales to achieve restorative growth. 2) Overseas, along with the positive top-line results of SAFFRON Study Phase III, it is expected that this indication will be submitted for NDA at 26H2, which will further promote the commercialization of sevolitinib on a global scale. 3) The 3L treatment for gastric cancer with MET amplification was also approved for marketing in 26H1. Additionally, 1L treatment of non-small cell lung cancer (SANOVO) with MET overexpressed positive EGFR mutations is also expected to read registered clinical data at 26H2. Subsequent marketing of these indications is expected to further expand the domestic and international sales space of sevotinib. Innovative technology ATTC opens up space for upward flexibility, and solepinib submitted an NDA in '26. 1) The ADC drug development platform ATTC uses antibody-conjugated small molecules. Currently, two molecules (PI3K/PIKK-conjugated HER2 and EGFR) have entered the global Phase I clinical trial, and the third model is expected to enter the global Phase I clinical trial. The platform has a unique mechanism, strong scarcity, and the company is progressing rapidly, and has great potential to go overseas. 2) Solepinib completed marketing submission (NDA) for both indications at 26H1 and is expected to be approved for marketing in '27.
3. Hard work resources (02245)
In 2025, the company achieved revenue of 40.24 billion yuan, +37.7% year on year, net profit of 2.86 billion yuan, +61.2% year on year; 25H2 revenue of 22.09 billion yuan, +21.7% month-on-month, net profit of 1.43 billion yuan, flat month-on-month; plans to pay 0.6 yuan (tax included) per share in 2025, with a total cash dividend of 930 million yuan, a dividend rate of 32.6%, corresponding to the closing price on April 2. In 2025, the company officially launched the wet slag recycling demonstration project and the MHP refining project, completed project feasibility studies, supervision and filing, and ensured that the project progressed as scheduled. Core highlights: 1) Long-term agreements are signed to guarantee the supply of nickel ore, and the mineral price advantage is remarkable. The company's Indonesian nickel smelting project is provided by a partner. The two sides signed a 20-year agreement to guarantee the supply of nickel ore. The price of nickel ore uses the guide price set by the Indonesian government, and the cost advantage of nickel ore raw materials is outstanding; 2) Indonesia plans 400,000 tons of nickel production capacity, which is highly flexible. The company and partners plan to produce 120,000 tons of wet nickel and 280,000 tons of pyrotechnic nickel in Indonesia. The 6 Pyro Nickel production lines will be produced as scheduled in 2025, and the remaining production lines are planned to be put into operation in 26 years, with a large increase in production capacity; 3) Nickel-cobalt resonates, and growth can be expected. Congo, the world's largest supplier of cobalt raw materials, has a firm attitude of raising the price. An export quota system has been implemented. Cobalt supply has shrunk sharply, the industry's supply and demand pattern has been reversed, and the cobalt price center has moved upward. Indonesia tends towards resource nationalism, and nickel ore quotas are expected to shrink to support the rise in nickel prices. The company's wet nickel production capacity is located in Indonesia, and sales are not affected by restrictions on Congolese gold exports. It is expected to benefit from rising nickel and cobalt prices, and the company's growth is remarkable. In summary, the company's nickel ore raw materials have a cost advantage, high production capacity flexibility. Congolese gold has drastically shrunk the supply of cobalt, and the cobalt price center has clearly moved upward. Indonesia plans to reduce nickel ore quotas. Nickel-cobalt resonates, and the company's growth is strong.
4. Chifeng Gold (06693)
The company released its 2026 semi-annual report. During the reporting period, it achieved operating income of 7.018 billion yuan, +33.11%; net profit to mother of 1,732 billion yuan, +56.50% year over year; basic earnings per share of 0.92 yuan, +46.03% year over year; and net cash flow from operating activities of 1,880 billion yuan, +16.60% year over year. 2026H1's own income was 6.178 billion yuan, +30.16% year over year, gross profit margin 61.63%, +7.11 pct year on year. The average sales price of self-produced cash was 1008.52 yuan/gram, +44.08% year over year. The sharp rise in sales prices was the main source of revenue growth. 2026H1 produced 6149.24 kg of self-produced gold, -8.96% year over year, and sales volume of 6125.63 kg, -9.45% year over year, mainly due to technical improvement construction and sulfuric acid supply restrictions at the Saipan mine in Laos, production was below budget. The decline in production was hedged by rising gold prices, and self-produced gold revenue is still growing positively; medium-term increases are expected to come from the ADK slope in Ghana (which is expected to contribute 180,000 tons of ore in the second half of the year) and domestic mine expansion projects. The operating cost per unit of 2026H1 mineral gold is 383.44 yuan/gram.
This is an increase of about 20.18% over 319.06 yuan/gram in the same period last year, and the overall cost increase was significant. The main reason: First, tax increases. The rise in gold prices led to a year-on-year increase in resource tax, equity and sustainable development tax. In April 2026, Ghana adjusted the resource tax from 5% to a 5%-12% tiered tax rate, further increasing unit costs; second, technical reforms and large-scale maintenance of some mines affected gold production. With the completion of the company's technical improvements and maintenance, the company's 26H2 production is expected to resume, and costs are expected to drop. On March 22, 2026, Ms. Li Jinyang, the controlling shareholder and actual controller of the company, and Zhejiang Hanfeng Venture Capital Partnership (Limited Partnership) and Zijin Gold (Group) Co., Ltd. signed the “Share Transfer Agreement on Chifeng Geelong Gold Mining Co., Ltd.”. Ms. Li Jinyang and her co-actors intend to transfer all of their total 241,925,746 unrestricted tradable shares to Zijin Gold; on March 22, 2026, with the approval of the 6th meeting of the 9th board of directors of the company, the company signed a “Strategic Investment Agreement” with Zijin Gold. It is proposed to issue 310,902,731 H-shares common shares to Zijin Gold. After the above transaction is completed, Zijin Gold will become the controlling shareholder of the company. After Zijin takes over, the company's operating capacity is expected to improve further.
5. Daikin Heavy Industries (01081)
In the first half of 2026, Daikin Heavy Industries achieved operating income of 3.253 billion yuan, a year-on-year increase of 14.48%; net profit to mother of 601 million yuan, up 9.89% year on year; net profit after deducting non-return to mother of 589 million yuan, an increase of 4.57% year on year. In terms of profitability, the company's comprehensive gross margin reached 37.53%, up 9.36 percentage points from 28.17% in the same period last year; net profit to mother (net profit/operating income) was 18.46%, down 0.77 percentage points from 19.24% in the same period last year. By business, the gross profit margin of wind power equipment products was 35.90%, up 10.37 percentage points from the previous year; the gross profit margin of the export business was 39.36%, up 8.67 percentage points from the previous year. The improvement in the gross margin of wind power equipment and export business reflects the profit contribution of high-end offshore delivery and provides operating support for the company to further expand overseas markets. The company's export revenue in the first half of the year was 2,675 billion yuan, up 19.25% year on year, accounting for 82.25% of total revenue. The export offshore delivery volume was nearly 120,000 tons, a record high for the same period. The main supply of wind power single-pile foundations and a small number of sea-towers was supplied from the Penglai base to the European market. Among them, all single pile foundations used the DAP destination delivery model. During the reporting period, the Caofeidian Offshore Engineering Base was officially put into operation and completed the first batch of single pile manufacturing for export offshore wind power, with an annual production capacity of about 400,000 tons. It can support products such as oversized single piles, floating foundations, and conduit frames required for 15-25MW large fans. The base is equipped with a 100,000-ton special deep-water terminal to promote the connection between production, painting and shipping. The accumulation of deliveries at the Penglai base cooperates with Caofeidian's new production capacity, which is expected to enhance the company's supply capacity for large-scale offshore products and delivery capacity for overseas projects.
KINGONE has completed two European single-pile transport voyages, the second ship of the same type, KINGTWO, has been delivered, and the third KINGTHREE is scheduled to be delivered in September 2026. The company plans to fully put three KING series ships into operation within the year. In terms of ship design and construction, the company has signed a total of 24 new ship manufacturing orders, with a total contract amount of about 12 billion yuan. The delivery period is 2027-2030. The ship types cover large bulk carriers, deck carriers, unpowered semi-submersible barges and multi-purpose heavy gondolas. At the same time, the company has set up 4 home port terminals in Germany, Spain, Denmark, etc., and some overseas offshore projects already include home port services. The collaborative promotion of its own transport fleet, shipbuilding and overseas home port layout is expected to broaden the scope of services and promote the company's upgrading from an equipment supplier to an integrated manufacturing, transportation and delivery service provider.
6. Anke Innovation (00668)
2026H1 achieved revenue of 16.61 billion yuan, +29.1% year over year; net profit to mother of 1.70 billion yuan, +45.9% year over year; net profit after deducting non-return to mother of 1.44 billion yuan, +49.7% year over year. Among them, Q2 revenue was +30.9% year-on-year, revenue accelerated month-on-month; net profit after deducting non-return to mother was +71% year-on-year. 26Q2's gross profit margin was 55%, +9pct year on year; net profit margin after deducting non-return to mother was 9.9%, +2.3 pct year over year. The gross margin exceeded market expectations. The main reason for the judgment was that IEEPA tariff refunds reduced operating costs, combined with product structure optimization, increased share of high-margin new products, and scale effects. In addition, the 2026Q2 company's rate was +2.6 pct year over year, with the total sales & management rate being -0.8 pct year over year, while the R&D rate was +2.5 pct year over year, or mainly due to accelerated iteration of energy storage products, continued investment in new businesses such as AI, and financial rate +0.9 pct year over year, mainly due to exchange losses, increased interest costs on convertible bonds, and increased handling fees due to expansion of business scale. According to financial reports, 2026H1's revenue from charging and energy storage/smart innovation/smart video was +31%/+25%, respectively; in the subregion, North America/Europe revenue was +33%/+29%, and the global layout progressed in depth; by channel, Amazon's revenue was +20% year over year, accounting for 46%, and other third party platforms/official websites/offline revenue were +96%/+39%/+25%, respectively, and channel diversification continued to advance. Rechargeable energy storage is still the most anticipated increase, and it is expected that it will continue to benefit from high electricity prices, subsidies and independent energy demand from overseas: among them, the UK market liberalized plug-and-play photovoltaics and continued to expand; Australia's OSW cooperated to open up household storage channels; the gradual expansion of US household storage; and the multi-regional growth logic is being implemented at an accelerated pace. Looking ahead to H2 and the medium to long term, energy storage+AI hardware two-wheel drive, growth certainty is expected to increase. (1) Charging energy storage: In the small charging category, the 2026H2 revenue growth rate is expected to be fixed (2025H2 may be dragged down by supply chain switches and phased disruptions), and downstream demand and product upgrade logic are continuously verified; in the medium and large charging category, the company releases new products such as SolarBankMaxAC and Solarbank4E5000Pro, which are compounded by regional expansion and channel deepening, and demand and shipment are expected to accelerate. (2) Intelligent innovation category: IFA released Mindbase home local AI hub, and AI enhances security and other product experiences. (3) Smart video category: The company launched a device equipped with thus? There are many new headsets with AI audio chips. AI continues to be empowered and continues to consolidate the growth potential and market share of the category.
7. Chinese Confucianism（00136）
Previously, China Ruyi announced interim results for the six months ended June 30, 2026. The group obtained revenue of 1,183 million yuan; adjusted net profit of 952 million yuan; and basic profit of 0.05 yuan per share. In the first half of 2026, the Group anchored medium- to long-term development plans, concentrated on improving quality and efficiency, and establishing a foundation for sustainable management. Performance adjustments during the reporting period were mainly affected by the project cycle and strategic investment: on the one hand, revenue recognition from the Group's film, television and game business was affected by the project production, distribution and launch cycle. Some key projects were still in the production, distribution or pre-launch stage during the reporting period. Relevant investment and part of the costs were incurred during the reporting period, and revenue and profit contributions are expected to be reflected in the second half of the year. On the other hand, the Group continues to increase its strategic investment in leading quality content, AI technology research and development, the world's top IP reserves, and industrial chain integration. Relevant investments have not been fully converted into revenue contributions during this reporting period. As of the reporting date, “Eight Immortals!” “Welcome to Dragon Restaurant” has been screened and achieved good market performance. “The Master of the Immortal Realm” has been officially launched, and other key film, television and game projects are progressing according to plan. During the reporting period, the Group was based on the main business development plan, and the preferential layout was high-quality enterprises that can be deeply linked to the Group's existing business to help improve the quality and efficiency of the core business and broaden growth boundaries. The Group's strategic investment layout for “Ruyi Film & Entertainment Co., Ltd.” (formerly Wanda Film, hereinafter referred to as “Ruyi Film”) has entered a stage of deep integration and brand renewal, which has integrated the entire industry chain from content creation and production to terminal screening. Ruyi Film continues to deepen its “super scene+super IP” strategy, deeply linking its own film and television production and game resources with Ruyi Film's national theater network, significantly improving the efficiency of converting high-quality content into commercial value, and continuously expanding the influence and life cycle of IP. In order to seize the strategic opportunity of “AI+ content”, the Group strategically invested in Aishi Technology, a leading global AI video company, to build a “technology+industry” two-way enabling system. The two sides will promote collaborative implementation from multiple dimensions: at the strategic level, the Aishi Technology core team will help the Group's intelligent transformation; at the technical application level, focus on the in-depth application of AI in the fields of film and television special effects, promotion, and game scene optimization to improve efficiency and content quality; at the level of innovation and expansion, relying on the Group's rich IP resources combined with AI technology to jointly develop multi-modal agents to explore the next generation of interactive content forms.
8. Sinotruk (03808)
26H1's revenue and return to mother were 70.841 billion yuan and 4.325 billion yuan respectively, +39.2% and +26.2% year-on-year respectively. On the revenue side, the main heavy truck business has risen sharply, benefiting from domestic sales+export two-wheel drive. The 26H1 heavy truck, light truck and other financial divisions recorded revenue of 64.80 billion yuan, 7.556 billion yuan, and 515 million yuan respectively, with a year-on-year increase of +44.5%, +4.2%, and +50.3%, respectively, driving total revenue of +39.2%, +0.3%. In terms of heavy trucks, 26H1 sold 193,600 heavy trucks, +41.8% year-on-year, with a comprehensive ASP of about 334,600 yuan/vehicle, or +1.9% year-on-year. By region, H1 exports and domestic sales were 108,400 units and 85,300 units, respectively, +57.1% and +26.3% year over year. Export ASP and domestic ASP sales were 285,300 yuan/vehicle and 397,300 yuan/vehicle respectively, -1.9% and +8.3% year-on-year respectively. Exports continued to be driven by demand for mining and infrastructure in Africa, Southeast Asia and other regions, and the company's growth rate was about 14 pct faster than the industry (+43.0%), while the average price remained stable. Domestic transformation to new energy accelerated. 26H1 NEV's sales volume reached 22,200 units, +135% over the same period. For the first time, it ranked first in the country, and its overall domestic sales market share also remained in the top two; the share of new energy sources increased while boosting domestic ASP. In terms of light trucks and others, 26H1 light truck revenue was about 6.649 billion yuan (accounting for about 88% of division revenue), -2.5% year over year; of these, sales volume was 62,600 units, -0.3% year over year, and ASP was about 106,200 yuan/vehicle, or -2.1% year over year. On the profit side, heavy truck exports are the core of profit growth, and light trucks continue to reduce losses. 26H1's operating profit and return to mother were 5,079 billion yuan and 4.325 billion yuan respectively, +23.3% and +26.2% year-on-year respectively. The company plans to distribute a discovery dividend of RMB 1.02 per share (equivalent to HK$1.18 per share), totaling RMB 2,816 million. The corresponding dividend ratio is about 65%, an increase of about 9 pcts over the full year of '25. If the dividend ratio remains unchanged throughout the year, the current dividend rate exceeds 5%. According to China Automobile Association data, from January to August 2026, Sinotruk Group sold a total of 248,700 heavy trucks, +26.2% year-on-year, of which domestic sales and exports were 107,400 units and 141,400 units, respectively, +6.4% and +46.9% year-on-year; the group's consolidated, domestic sales and export market shares were 29.9%, 47.6%, and 20.1%, respectively, +2.4pct, +1.7pct, and +0.2pct, respectively. As China's heavy truck sales champion and leading car company with an export market share of nearly 50%, the company will benefit from the domestic and foreign demand resonance of the five replacement cycles plus four subsidy policies at the industry level and the expansion of the African and Southeast Asian markets. With its own overseas competitiveness, exports will continue to outperform the industry, which is expected to continue to unleash profit elasticity; replacement demand drives the domestic cycle upward, compounded by Sinotruk's own smooth transformation of new energy. The basic domestic sales market is stable, and profits are expected to gradually improve in the medium to long term.
9. China Overseas Hongyang Group (00081)
2026H1, the company's revenue was 14.1 billion yuan, -3% year on year; net profit to mother was 330 million yuan, +15% year on year; net profit to mother accounted for 91% of total net profit, up 17 pcts year on year. With 2026H1, the company achieved a net interest rate of 2.3%, an increase of 0.4 pct over the previous year; the sales rate increased by 0.1 pct to 4.0% year on year, and the management rate remained stable at 2.0%; gross margin increased 2.5 pct to 11.8% year on year, maintaining a contrarian recovery trend, mainly benefiting from the gradual entry of high-margin projects obtained after 2022 into the settlement period. 2026H1, the company completed full-caliber contract sales of 19.1 billion yuan, +15% year over year, ranking 18th in the industry, and continued to rise; of these, equity sales were 16.5 billion yuan, accounting for 86%, ranking 14th in the industry; sales area was 1.65 million square meters, +12% year over year; average sales price was 11,619 yuan/㎡, +3% year over year, of which the average residential sales price was 12,725 yuan/㎡. With its operational strength, brand reputation and product strength, the company's sales volume in 18 cities ranked in the top 3 in the region, with a market share of more than 20% of full-caliber sales in 8 cities; the company's overall market share in 40 full-caliber cities was 9.6%, continuing to increase from 7.9% in 2025. 2026H1 2026H1, the average delivery area of the company's suites is 192 square meters, +13% over the same period, fully meeting the needs of the city where it is located to improve the customer base. 2026H1, the company added a land storage area of 480,000 square meters, -64%; the total land acquisition price was 2.1 billion yuan, -66% of which the equity land price accounted for 100%; the investment intensity calculated based on the land acquisition amount/sales amount was 11%; and the real estate ratio calculated based on the average sales price/new land storage floor price for the current year was 2.7, leaving a reasonable profit margin. By the end of 2026H1, the company's total land storage area was 11.43 million square meters, -16% compared to the same period. Excluding 8.65 million square meters after sale, the coverage rate was 2.6 times that of the sales scale, which is still quite abundant; the total land storage equity ratio was 86%, which remained relatively high. With 2026H1, the company achieved sales repayment of 18 billion yuan, with a repayment rate of 94%; revenue from commercial property operations (including non-consolidated projects) of 270 million yuan, +11% compared with the same period last year, contributing to steady operation; net cash flow from operating activities of 6 billion yuan continued to be positive. By the end of 2026H1, the company's monetary capital was 31 billion yuan, accounting for 27% of total assets; the short-term cash debt ratio was 3.6, the balance ratio excluding advance receipts was 60%, and the net debt ratio was 19%, all of which continued to improve. 2026H1, the company's weighted average financing cost was 3.3%, down 0.2 pct year on year, keeping the industry low.
10. COSCO SHIPPING PORT (01199)
Previously, the company announced 1H26 results: revenue of US$905 million, +12.3% YoY net profit of US$234 million, +28.5% YoY; 2Q26 achieved revenue of US$484 million, +14.1% YoY, +15.1% YoY, realized gross profit of US$132 million, +16.4% YoY, +23.8% YoY, and realized net profit of US$148 million YoY, +51% YoY, and +73% YoY. The company's 2Q26 performance was better than expected, mainly because the company confirmed one-time return revenue of US$54 million in the second quarter. 1H26's main control terminal and single box revenue growth led to an increase in gross profit. The gross margin of domestic holding terminals improved markedly, and the mid-term dividend per share increased year-on-year due to profit growth. In the first half of the year, the company's equity throughput increased 7.0% year-on-year. Among them, Bohai Rim, Yangtze River Delta and overseas terminals grew significantly, +6.2%, and 12.4%, respectively. 1H26's main control terminal revenue increased year-on-year. Domestic and European main control terminals were +3.2% and 2.1%, respectively, mainly benefiting from rate increases and container volume structure optimization. The gross margin of the main control terminal in China was +2.3 ppts year on year. Among them, the gross margin of the Tianjin Container Terminal was +7.9 ppts year on year, showing impressive performance. The gross margin of overseas holding terminals was -3.7 ppts year on year, mainly because Qiankai Wharf is still climbing in production capacity. The company's mid-term dividend remained unchanged at 40%, with a dividend of 2.36 cents per share, +22.4% over the same period last year. The company is expected to fully benefit from the increase in domestic coastal container throughput, and is optimistic about the long-term growth space brought by the company's overseas business with the release of production and rate increases. Since this year, benefiting from increased trade in AI-related products and the acceleration of exports of high-end manufacturing products such as China's “new three”, domestic coastal port container throughput has maintained relatively rapid growth, and this trend is expected to continue. Overseas, with factors such as the release of production at Peru's Qiankai Terminal and the increase in main control terminal rates with obvious overseas location advantages, overseas business is expected to maintain rapid long-term growth.
By 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