Daily focus：Horizon Robotics (9660)
Horizon Robotics a leading provider of Advanced Driver Assistance Systems (ADAS) and autonomous driving solutions in China, has recently demonstrated strong growth momentum. Market forecasts predict a CAGR of over 50% in revenue between 2024 and 2028, indicating a high-speed growth trajectory. Although the company is currently operating at a loss, it expects the losses to gradually narrow with the expansion of economies of scale and anticipates achieving profitability by 2028. The company currently holds over 40% market share in the high-speed NOA market, solidifying its industry leadership.
US tech stocks continued their pullback
The significant pullback in US tech stocks last Friday revealed the most fundamental macroeconomic contradiction in the market: the gap between "high growth in AI capital expenditure" and "tolerance for high stock valuations" is widening. Despite the Federal Reserve's expected interest rate cut to release liquidity, weak earnings guidance from Oracle and Broadcom has led investors to question whether AI monetization capabilities can support the current high premiums. This means that simple easing on the "denominator" side (interest rate cuts) is no longer sufficient to indiscriminately boost tech stocks; market funds are rapidly flowing from crowded tech giants to value sectors that are less sensitive to interest rates. If US Treasury yields do not fall significantly in the coming weeks, this style shift of "valuation killing" may continue, and investors need to be wary of the risk of market volatility after the marginal effect of liquidity improvement diminishes.
Hong Kong Stock Connect saw a net inflow of HK$5.3 billion on Friday, with Meituan (3690) experiencing the largest net inflow at HK$2.48 billion, followed by Xiaomi Group (1810). On the other hand, Alibaba (9988) recorded the largest net outflow at HK$3.37 billion, followed by Tencent Holdings (700).
China's November economic data all fell short of consensus. Hong Kong stock market followed the trend and declined this morning following external fluctuations. The HSI opened 258 points lower and fluctuated in the morning, closing down 240 points or 0.9% at 25,736; the HSCEI fell 109 points or 1.2% to 8,970; and the HSTECH dropped 100 points or 1.8% to 5,537. Total turnover for the morning was HK$108.24bn. HSBC (0005) plans to privatize Hang Seng Bank (0011) at a price of HK$155 per share, with a vote scheduled for the 8th of next month. HSBC fell 1.1%, while Hang Seng rose 0.3%. Pharmaceutical stocks were under pressure, with Innovent Biologics (1801), Rongchang (9995) and Akeso (9926) falling 4.9% to 5.5%, while BeiGene (6160) and Hansoh (3692) fell 6.8% and 7.6% respectively.
Source: KGI Investment Products and Solutions Department
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