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).
Hong Kong stocks fluctuated throughout the day following the US interest rate cut. The Hang Seng Index opened 169 points higher but gradually narrowed its gains, closing down 10 points or 0.04% at 25,530; the Hang Seng China Enterprises Index fell 20 points or 0.23% to 8,934; and the Hang Seng Tech Index dropped 46 points or 0.83% to 5,534. Total market turnover was HK$182.4 billion. HSBC (5) rose 2.06% to HK$114; Alibaba Health (241) fell 3.95% to HK$5.11. ZTE Corporation (763) plunged 13.08% to HK$27.5 due to communication with the US Department of Justice regarding compliance with the Foreign Corrupt Practices Act. Among technology stocks, Meituan (3690) rose 1.5% to HK$101.5.
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…