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 continued their downward trend today, marking their fourth consecutive day of losses. The HSI opened 24 points higher and rose as much as 115 points before turning negative again, closing down 117 points or 0.5% at 25,812; the HSCEI fell 32 points or 0.4% to 9,142; and the HSTECH dropped 55 points or 1% to 5,590. Total turnover was HK$112.6bn. Baidu (9888) disclosed its AI business revenue in its quarterly results, while the market continued to focus on its advertising revenue, causing its share price to fall 0.8%. Xiaomi (1810) saw its last quarter's EBIT fall short of some brokerage expectations and its target price was lowered, resulting in a 4.3% drop in its share price.
Source: KGI Investment Products and Solutions Department
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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…