Daily focus：Xiaomi Group (1810)
3Q25 revenue reaches RMB 113bn, with a gross margin of 22.9%, and smartphone shipments are expected to reach 170mn units. The IoT segment has a gross margin of 23.9%, and the Internet segment 76.9%. Annual electric vehicle deliveries are expected to reach 400,000 units, and annual air conditioner production capacity will reach 7mn units. All segments are experiencing strong growth. The company is increasing its investment in smart home and automotive technology R&D, focusing on high-end models and consumer upgrades, and will continue to expand its global market share and consolidate its brand competitiveness.
Market Focuses on Nvidia's Earnings Report
Nvidia will release its third-quarter earnings report after the market closes today, a move that has become the focus of global market attention. However, the recent continuous correction in tech stocks reflects investors' deep concerns about the valuation of the AI industry. Four consecutive days of decline in US stocks and Bitcoin falling below $90,000 all suggest a decline in market risk appetite. From a macro perspective, the core issue of this round of correction lies in the realism of the return on investment in AI infrastructure: can the capital expenditure on hyperscale data centers translate into substantial commercial profits? At the same time, the uncertainty surrounding the Fed's interest rate cut expectations has exacerbated market volatility, leading institutional investors to increase their risk management efforts regarding highly valued tech stocks. In contrast, the Chinese stock market is also under pressure, with the Hang Seng Index falling below 26,000, reflecting the spillover effects of global liquidity constraints.
Hong Kong Stock Connect saw a net inflow of HK$7.46 billion on Tuesday, with Alibaba (9988) seeing the largest net inflow at HK$3.3 billion, followed by XPeng Motors (9868). On the other hand, CNOOC (883) recorded the largest net outflow at HK$360 million, followed by Tencent Holdings (700).
Hong Kong stocks fell significantly throughout the day, dragged down by weak overseas markets and disappointing individual earnings. The Hang Seng Index opened 212 points lower and continued to decline, closing down 454 points or 1.72% at 25,930; the Hang Seng China Enterprises Index fell 153 points or 1.65% to 9,174; and the Hang Seng Tech Index fell 111 points or 1.93% to 5,645. Total market turnover was HK$242.1 billion. XPeng Motors (9868), which plunged over 10% after announcing fourth-quarter revenue guidance of RMB 21.5 billion to RMB 23 billion, below market expectations of RMB 26 billion. China Hongqiao (1378) raised HK$11.7 billion through a 9.6% discount share placement, with its share price falling 5.9%.
Source: KGI Investment Products and Solutions Department
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.
The AI Big four spent $230bn in capex. AI applications are driving demand for data centers and energy facilities, boosting jobs and productivity, as well as supporting U.S. GDP growth…