Zhitong Hong Kong Stock Exchange Unravels | The sharp decline in the Ningde Era (03750) affects sentiment, and the rebound in technology is supported by performance

[Anatomy Dashboard]

Under this market situation, Hong Kong stocks are still significantly higher than 1%, which clearly means they are about to be destroyed. The opening was the highest point, then fell all the way down, closing down 0.90%.

Israel is about to face a general election, and Netanyahu will face a difficult re-election battle on October 27. In order to be re-elected, the war will definitely not be stopped; otherwise, it will lose value; it can only continue to be tough. Its statement is seeking to restart large-scale military operations against Iran. The military has prepared a multi-day bombing plan, and the intensity of the attack may exceed the joint operation between the US and Israel in February this year. Trump is also about to face the midterm elections. His polls have reached the lowest of 31%. He and Neta are bad brothers. No one can afford to lose; if they lose, there will be big problems. The two can only keep warm. Trump publicly stood up for Netanyahu on TruthSocial on Sunday, warning that “if Israel picks the wrong leader, that is, chooses anyone other than Bibi (Netanyahu),” the US will have to face Iran alone. Right now, for the sake of the election, they can only maintain their tough stance. Arguably, no action will be taken, and the overall performance of US stocks is not that bad. But it's hard to say enough about the domestic stock market.

Today's sentiment was influenced by the Ningde era (03750), which plummeted by more than 11%. Looking at performance, the company's net profit for the third quarter fell to 14.54%, down 5.77 percentage points from month to month, and gross margin fell to 20.69% in a single quarter, falling 2.46 percentage points from month to month. The company said that the phased pressure on the profit side was mainly affected by a combination of short-term factors such as changes in consumption tax (recovery) and export tax rebates, inventory impairment, and product structure fluctuations. However, the fourth quarter was originally the traditional peak production season, and the initial production schedule fell short of the market's previous optimistic estimates. Speaking of the reasons for the decline, the decline in performance is only one of them. Objectively, taxes and overseas costs are squeezing all aspects, but in the context of the automobile industry, it is inevitable. Looking at all car companies, no one makes much money. Only Ningde has the highest profit, which is clearly unsustainable. Going to Ningde is a major trend. Furthermore, its energy storage business did not meet expectations. Originally, it was expected that energy storage would take over the growth, but the performance was not strong enough, making it difficult to form a hedge. In the future, only when the general environment improves and solid state batteries form a breakthrough will there be an opportunity. Furthermore, there was another problem in the interrogation sector. An accident broke out today, and a fire broke out. There are also people who question the battery. Anyway, it's all negative news, causing the entire lithium battery to be pulled out of the water. As a representative of blue chips, Ningde's sharp decline also had an impact on other individual stocks. For example, Tencent (00700) fell more than 4% today.

The technology sector was saved by SpaceX. In the third quarter, SpaceX's AI revenue increased more than 9 times over the same period last year, reaching 7.56 billion US dollars, becoming the company's largest source of revenue for the first time. Its AI revenue mainly comes from leasing data center capacity to developers such as Anthropic, Google, and Reflection. Target model Guangdong-Hong Kong Bay Intelligent Computing (01396): As of mid-2026, orders for planned computing power technology services exceeded 37 billion yuan, of which the delivered and stable billing scale exceeded 20 billion yuan; more than 95% of the new orders signed this year were about three to five years long, and more than 95% included advance payments, an increase of more than 3%. The performance of ultra-microcomputers also greatly exceeded market expectations. According to preliminary data, for the third quarter ending September 30, the company's revenue was 18.5 billion to 19.5 billion US dollars, far exceeding the average analysts' expectations of 15.2 billion US dollars, and far higher than the company's previous revenue forecast of 14.5 billion to 15.5 billion US dollars. The target company Lenovo Group (00992) has signed long-term supply agreements (LTAs) with storage manufacturers to cope with tight global memory chip supply and rising cost pressure, and improve the stability of component procurement in 2027. The agency expects the company's strong performance in the second quarter of fiscal year 2027, up nearly 3% today.

In addition, the sharp rise of Samsung Electronics and SK Hynix after the opening of the Korean stock market was also a stimulus point. More technology stocks followed the performance line. Lanqi Technology (06809) announced Yingxi. It is expected to record profit of 1.2 billion to 1.3 billion yuan in the third quarter ending September 30, 2026, up 153.6% to 174.7% year on year; revenue was about 2,079 billion yuan, up about 46% year on year. Management expects demand for interconnect chips to increase further in the fourth quarter. Foreign investment is also increasing. J.P. Morgan Chase's shareholding ratio in Lanqi Technology (06809) rose from 7.06% to 7.35% on October 15, up nearly 9% today.

On October 20, the Jiangsu Provincial Government issued the “Jiangsu Provincial Physical AI and World Model High Quality Data Set Construction Action Plan (2026-2028)”, which mentions carrying out key technical research on physical AI and world model data. Morgan Stanley predicts that in the next ten years, physical AI may drive global GDP growth 8-10 times and change the global manufacturing landscape.

The AI+ direction continues to ferment. White Pigeon Online (02672), the “first company for full-scenario AI risk control applications”, encapsulates risk identification, pricing, early warning, and disposal capabilities into a standardized model service (MaaS), and enterprises use and pay as needed. From January to August 2026, MaaS service revenue was about 47.4 million yuan, compared to about 7 million yuan in the same period last year, and the number of calls exceeded 7.5 million. Revenue is still in its early stages, but the growth curve is steep, indicating that this path has already been completed, rising by nearly 11% today; a large number of models of Creative 3D (03388) Creative Cloud have been adapted, and AI modeling tools such as CubeMe and SnapForm support uploading images to generate printable 3D models. The company's multi-color 3D printer, SparkXi8, began pre-sale in China. The price was 2509 yuan. After the Double Eleven platform voucher was superimposed, the price was as low as 2199 yuan. The model previously surpassed 4.63 million US dollars in overseas crowdfunding at Indiegogo, with over 10,000 supporters, breaking many records in the platform's 3D printing category. Industry analysis indicates that the company will launch new products intensively in the second half of the year, which is expected to broaden the mass consumer market.

The 2026 European Society of Medical Oncology (ESMO) Annual Meeting will be held in Madrid, Spain from October 23 to 27. Time is getting closer. Capital is most interested in the three things mentioned yesterday by Lepu Biotech (02157) Clarity-gastric01 (CMG901): the 3L+ population OS common main end point reached, the overall OS key secondary end point reached, and the overall PFS did not reach the statistics remarkable. The market is most concerned about expression stratification. This time, the definition of CLDN18.2 positive was extended to an expression ratio of at least 25%, covering about 60% of patients. If OS benefits are concentrated only above a certain expression threshold, or within a certain treatment line, then the stability of this “OS-driven” approval path depends on whether the stratified data is clean. The market is relatively positive about this, rising more than 7% again today.

The robot concept that strengthened yesterday only continues in the direction of the robot brain. Xiangong Intelligence (06106): In 2025, robot brain core carriers, robot controllers ranked first in sales in the world and China, with a global/Chinese market share of 24.8%/45.2%, respectively. In the first half of this year, Xiangong shipped more than 8,000 intelligent robot brains, up 80% +; revenue during the period was 264 million yuan, up 67.5% year on year; comprehensive gross margin increased 1.2 pct to 46.6%, corresponding gross profit of about 123 million yuan, an increase of about 72% year on year. Today, it has risen again by more than 16%.

[Section Focus]

The production capacity data for the first three quarters recently released by the National Bureau of Statistics may be the trigger for detonating the aquaculture sector. At the end of the third quarter, 425.33 million pigs were kept nationwide, a year-on-year decrease of 11.47 million heads; of these, 3.62 million sows were kept, a year-on-year decrease of 4.33 million heads and a decrease of 10.7%. The decline was 4.2 percentage points higher than at the end of the second quarter, which is equivalent to 96.0% of the normal number of 37.5 million heads held. According to industry analysis, this means that breeding sows fell below the regulatory target line for the first time after many cycles, and basic production capacity entered a contraction range. In September, the average price of pigs nationwide was 10.49 yuan/kg. The industry's cumulative loss period has reached 1 year. Pressure on the capital chain continues to accumulate, and sow production capacity is expected to continue to decline. Currently, sector valuations are at a historically low level, and we are optimistic about future pig cycle reversal opportunities.

Main varieties: Dekang Agriculture and Animal Husbandry (02419), Muyuan Co., Ltd. (02714).

[Individual Stock Mining]

Tuopu CNC (07688): Space orders to acquire shares in precision machine tools explode, showing impressive growth

On October 20, the company issued an announcement stating that it plans to acquire no less than 70% of the target company's shares. The target company's products are widely used in 3C precision structural parts, AI liquid cooling plates, optical module structural components, precision joints for humanoid robots, and new energy vehicle parts. The company's revenue for the first half of 2026 was 166 million yuan, -62.6% year-on-year; net loss to mother was 57.87 million yuan. Gross margin continued to rise: the comprehensive gross profit margin for the first half of 2026 was 46.6%, up 3.7 pcts year on year.

Comment: This acquisition will complement product lines, quickly enter high-growth fields, and unleash synergy effects in R&D, supply chain, manufacturing and after-sales sales, and accelerate the domestic replacement process of core industrial mother machine equipment. The company is a leading parent engine in the commercial aerospace industry. It ranks first in the domestic aerospace five-axis CNC machine tool market, with a market share of 10%. It is the only carbon fiber composite five-axis gantry machine with fully moving parts in the world. It is lightweight, has strong thermal stability, maintains good accuracy, and has a repeated positioning accuracy of 0.004 mm. The processing efficiency is 30%-50% higher than that of traditional steel structure gantries. Self-developed RoCOS CNC system, heavy-duty spindle, friction stir welding, automatic drilling and riveting process. The localization rate of general machine tools is 98%, and the complete space production line plan is autonomous and controllable, breaking overseas embargoes and blockades. 5-meter friction stir welding production line: friction stir welding on both sides of 50mm thick aluminum alloy. The weld strength has reached 90% of the base material, the cost of a single part of arrow body manufacturing has been reduced by 50%, and the efficiency has been doubled. It has already landed on private fire arrow customers.

In terms of business segments, the revenue of aerospace intelligent manufacturing equipment was 127 million yuan. The revenue of five-axis machine tools in the compact general market was 0.17 million yuan, an increase of 137.4% over the same period last year. The company attributed the reason to the increase in customer awareness due to early marketing and marketing investment. The revenue of large-size carbon fiber composite five-axis machines was 20 million yuan, an increase of 5.2% over the same period last year of 19 million yuan.

Space orders broke out, and new contracts were signed in the first half of 2026:470 million yuan, +115.6% year on year; of these, space orders were 404 million yuan, accounting for more than 85% of new signings. Almost all of the increase came from commercial rocket customers, focusing on gradually confirming revenue from the second half of 2026 to 2027. The company's overall competitiveness in the domestic high-end CNC machine tool industry accelerates the domestic replacement process of core industrial mother machine equipment. Tuopu CNC's acquisition increased the layout of high-end CNC machine tools, made up for the shortcomings of general high-speed precision machine tools, and quickly entered the AI hardware industry chain.