Hong Kong Stock Afternoon Review | All three major indices rose, with the Tech Index up 1.18%; large financials and Photovoltaic Power stocks climbed, GF SEC rose over 6%, GCL TECH increased nearly 6%.
Most Network Technology stocks rose, XIAOMI-W increased by 2.25%, NTES-S rose by 2.15%; lithium battery stocks all climbed, China Graphite rose by 40.30%, Tianqi Lithium Corporation increased by 3.86%; Nonferrous Metals stocks all rose, Jl Mag Rare-Earth rose by 6.96%, CHINAHONGQIAO rose by 4.47%.
YADEA (01585.HK): Policy-driven economic improvement, expected recovery in leading profitability.
With the old-for-new policy and the implementation of the new national standard, the Industry demand is expected to return to a rapid growth Range. It is estimated that the Industry sales will reach 56/61.75 million vehicles in 2025/2026, with a year-on-year increase of +12%/+10%, and the future steady state demand in the Industry is close to 6.
Express News | Guosheng Securities: Assigned an initial buy rating to YADEA.
CICC: The abundance of funds in the Hong Kong stock market and the scarcity of Assets.
CICC believes that the "abundance of funds" due to excessive liquidity and the "lack of assets" with limited returns will inevitably lead to overall Index trends being difficult to find, resulting in range-bound fluctuations, while structural market trends will flourish. Currently, the overall macro and market environment in China still needs repair but has structural highlights that are more favorable for Hong Kong stocks. This is because whether it is providing stable returns through dividends, or representing the mainline of structural opportunities such as new consumption, AI Technology, or even innovative drugs, Hong Kong stocks have a greater advantage, which also explains the outperformance of the Hong Kong stock market.
Citigroup has initiated a 90-day upward catalyst observation on Yadea (01585.HK), expecting net profit to increase by more than 50% in the first half of the year.
Citi released a research report and began a 90-day upward catalytic observation of YADEA (01585.HK), expecting its wholesale volume of electric bicycles in the first half of 2025 to reach 8.7 million to 8.8 million units, in line with market expectations, estimating that the wholesale volume in the first five months is close to 7 million units. To reflect better economies of scale, improved product mix, streamlined product lines, and increased operational efficiency, the bank estimated the net profit per unit in the first half to be 180 to 185 yuan (hereinafter the same), leading to the company's net profit in the first half reaching 1.57 billion to 1.63 billion yuan, an increase of 52% to 58% year-on-year. The bank anticipates national support for the manufacturing of electric two-wheelers.
Hong Kong stock market midday review | All three major indices are up, with the Tech Index rising by 1%; nuclear power and pharmaceutical stocks are strong, with CGN MINING soaring over 24% and INNOVENT BIO rising over 15%.
Network Technology stocks rose significantly, with MEITUAN-W increasing by 4.10% and XIAOMI-W by 1.69%; Securities and Brokerage stocks enjoyed a broad increase, with HOLLY FUTURES rising by 9.09% and Everbright by 8.88%; Biotechnology stocks also saw upward movement, with ZAI LAB up by 10.97% and TIGERMED by 9.25%.
Hong Kong Market Quick View | All three major Indexes rise, the Hang Seng Index up more than 1.5%; tech and bank stocks are climbing, Xiaomi rises over 3%, China CITIC Bank Corporation rises over 5%.
Network Technology stocks rose together, XIAOMI-W increased by 3.10%, NTES-S rose by 2.39%; Autos stocks surged, LI Auto-W gained 5.82%, BYD shares rose by 3.94%; bank stocks strengthened, China CITIC Bank Corporation rose by 5.47%, China Construction Bank Corporation increased by 3.47%.
Hong Kong Stock Afternoon Review | All three major Indices rose, with the Hang Seng Index up more than 1%; major financials and Gold stocks performed well, Everbright rose more than 5%, and Lao Pu Gold increased over 6% to reach a new high.
Network Technology stocks rose, KUAISHOU-W fell by 2.67%, NTES-S increased by 1.97%; banking stocks all rose, China CITIC Bank Corporation rose by 4.73%, Industrial And Commercial Bank Of China increased by 3.02%; gold stocks generally went up, TONGGUAN GOLD fell by 7.05%, CHI SILVER GP rose by 6.25%;
Hong Kong market quick look | The three major stock indices closed lower, with the Hang Seng Index down 0.53% and the tech index down 0.15%; alcohol beverage and restaurant stocks rose; Kuaishou rose nearly 6% after earnings, and ALI PICTURES rose over 11
Network Technology stocks showed mixed results, KUAISHOU-W rose by 5.95%, NTES-S increased by 2.81%; most semiconductor stocks declined, BEKE fell by 5.78%, Semiconductor Manufacturing International Corporation dropped by 2.51%; automotive stocks decreased, Great Wall Motor rose by 5.21%, BYD shares fell by 2.68%.
Hong Kong Stock Midday Review | All three major Indexes fell, with the Technology Index down 0.38%; nuclear power stocks performed excellently, with CNNC INT'L rising over 7%; Network Technology stocks displayed mixed trends, with Kuaishou rising over 5%
The performance of Network Technology stocks varies, with KUAISHOU-W rising 5.03% and NTES-S increasing by 2.81%; Autos stocks generally decline, with YADEA falling 2.24% and BYD Company dropping 2.20%; Semiconductor stocks generally decrease, with BEKER falling 4.78% and Semiconductor Manufacturing International Corporation declining by 2.15%.
[Brokerage Focus] Zheshang maintains a "Buy" rating on YADEA (01585). Institutions point to multiple Bullish factors driving the company to sustain high-quality growth.
Jinwu Financial News | Zheshang issued a Research Report indicating that YADEA (01585) is investing in the construction of a factory in Mexico, equipped with YADEA's self-developed advanced technology, including long-range systems and Asia Vets safety systems. The local government in Mexico participated in hosting the launch meeting for the first vehicle off the assembly line. Zhang Liang, General Manager of YADEA's North America market, stated: "Mexico is not only a key production center but also the launch platform for the Institutions' broader regional Global Strategy. The Institutions are fully confident in the strength and potential of the Mexican and the entire Latin American market." The Institutions indicated that the company is a leading brand in the electric two-wheeler sector and expects revenue to reach 41 from 2025 to 2027.
"UBS Group: Yadea (01585.HK) has delayed the launch of its high-end sub-brand and lowered the Target Price to 18 yuan."
UBS Group published a research report stating that in the first half of the year, they participated in several investor meetings of YADEA (01585.HK), finding that overseas investors were more concerned about the company's positioning in the current round of vehicle standard upgrades, while domestic investors paid more attention to its sales momentum in the second quarter and how the company responds to competitors such as NINE Company and Zhejiang CFMOTO Power in the high-end market. UBS Group pointed out that YADEA still maintains its full-year sales target of 16.5 million to 17 million units, but management revealed that after May, due to a high base, retail sales year-on-year growth is expected to slow down, in addition to the positive impact brought by the trade-in policy.
Bank of America Securities has lowered the Target Price for YADEA (01585.HK) to 17 yuan, with sales in the first five months of this year slightly below expectations.
Bank of America Securities released a report stating that multiple channel surveys indicate that YADEA (01585.HK) achieved a wholesale volume of 7.1 million to 7.2 million units in the first five months of 2025, which is an approximate 10% growth compared to the first five months of 2023, but slightly lower than its sales target of 9 million units for the first half of 2025. The main reasons include: (1) Poor weather conditions in southern China in April; (2) YADEA may provide Dealers with more flexibility for inventory replenishment in June. The firm currently estimates that YADEA will achieve sales of 8.8 million units in the first half of 2025 and 8.2 million units in the second half.
Hong Kong Stock Market Afternoon Review | All three major indices fell, with the Tech Index down 0.58%; new consumption and CNI Biomedicine Index stocks rose, with Mixue Bingcheng and POP MART reaching new highs, while CSPC PHARMA rose over 4%.
Network Technology stocks showed mixed results, with JD-SW falling by 3.16% and NTES-S increasing by 2.17%; Lithium Battery stocks mostly declined, with BYD Co. down by 3.62% and BYD Electronic down by 1.85%; Alcoholic beverage stocks rose across the board, with TSINGTAO BREW up by 4.43% and PALINDA GROUP up by 4.00%.
YADEA (01585.HK): The establishment of the factory in Mexico marks a new phase of globalization.
Event: Yadea invests in building a factory in Mexico, equipped with advanced technology independently developed by Yadea, including a long-lasting power system and Asia Vets safety system. The local government in Mexico participated in hosting the first vehicle offline meeting. Zhang Liang, General Manager of Yadea's North America market, stated:
Market overview | All three major indices rose, with the Hang Seng Index closing up 0.62%; Gold and pharmaceutical stocks strengthened; POP MART surged nearly 4% to set a new historical high, while MEITU rose nearly 19%.
Network Technology stocks and Gold stocks strengthened, POP MART, POP MART, and BYD reached new historical highs, MEITU rose nearly 19 %.
Hong Kong Stock Market Midday Review | All three major indices fell, with the Tech Index down 0.62%; Autos and toy Concept stocks rose against the trend, with BYD shares up over 3% and Bruker rising over 6%.
Most Network Technology stocks fell, with JD-SW down 3.60% and NTES-S up 1.81%; many Golden Industrial Concept stocks declined, with Chifeng Jilong Gold Mining down 4.02% and TONGGUAN GOLD down 3.82%; Autos stocks rose, with BYD Company up 3.52% and Geely Auto up 2.40%.
Hong Kong stock mid-term review | The three major indices all rose, with the Hang Seng Index up 1.43%; internet technology and shipping stocks performed well, with Tencent Music and COSCO SHIPPING Development both rising over 12%.
Network Technology stocks are rising, Baidu is up 2.81%, and JD-SW is up 2.70%; Shipping and Ports stocks are also up, COSCO SHIPPING Development is up 12.37%, and PACIFIC BASIN is up 6.67%; Insurance stocks are performing well, CHINA TAIPING is up 6.19%, and China Pacific Insurance is up 4.15%.
Quick look at the Hong Kong market | All three major Indexes fell, with the Hang Seng Index down 1.87%, ending an 8-day rising streak, Network Technology stocks corrected, with Meituan down nearly 5%; Autos stocks were sluggish, with NIO down over 5%.
Network Technology stocks fell broadly, with MEITUAN-W down 4.91% and KUAISHOU-W down 4.62%; Lithium Battery stocks declined overall, with BYD Electronics down 7.11% and BYD Company down 4.76%; Autos stocks also dropped, with XPeng Inc. down 5.35% and NIO Inc. down 5.17%.
Hong Kong Stock Market Midday Review | All three major Indexes fell, with the Tech Index down 2.99%; Network Technology stocks corrected, with Xiaomi and Meituan dropping over 4%; Apple Supplier stocks weakened, with BYD Electronics falling nearly 6%.
Network technology stocks corrected, XIAOMI-W fell by 4.25%, MEITUAN-W dropped by 4.08%; semiconductor stocks weakened, Semiconductor Manufacturing International Corporation fell by 4.27%, HUA HONG SEMI decreased by 3.94%; Lithium battery stocks saw many downtrends, BYD Electronics fell by 5.67%, BYD Company limited dropped by 3.18%.