Zhitong Hong Kong Stock Early Knowledge | DeepSeek raises API prices, Dongfeng Group responds to news of two central enterprises restructuring

【Today's Headlines】

Over the weekend, DeepSeek raised API prices

With the end of the promotional period, API prices have been raised as scheduled. On December 26, 2024, the first version of DeepSeek-V3 will be launched and open-sourced simultaneously, with the model API service priced at 0.5 yuan per million input tokens (cache hit) / 2 yuan (cache miss), and 8 yuan per million output tokens. However, DeepSeek has set a promotional price experience period of up to 45 days for the new model, during which, until February 8, 2025, the API price will be 0.1 yuan per million input tokens (cache hit) / 1 yuan (cache miss), and 2 yuan per million output tokens. Now that the promotional period has ended, API prices have been raised as scheduled.

The pressure of price competition in the public cloud has decreased, and the decline in API cost-effectiveness is beneficial for enterprises' localized deployment. Due to the high cost-effectiveness of DeepSeek-V3's promotional price compared to cloud vendors, the pressure of price competition among cloud vendors has significantly decreased after the price restoration. Additionally, since the API prices have increased by 2-4 times compared to the promotional period, some enterprises may prefer localized deployment, which is beneficial for the demand for computing power and disaster recovery backup on the enterprise side.

DeepSeek has raised API prices as scheduled, benefiting cloud vendors and enterprises' localized deployment. This involves the three major telecommunications operators in Hong Kong, as well as large internet companies such as Kingsoft Cloud, Baidu Cloud, Alibaba Cloud, Tencent Cloud, and JD Cloud.

【Market Outlook】

High dividend strategy in Hong Kong stocks remains attractive

Last Friday, the Dow Jones Industrial Average fell by 444.23 points, a decrease of 0.99%, closing at 44,303.40 points; the Nasdaq fell by 268.59 points, a decrease of 1.36%, closing at 19,523.40 points; the S&P 500 index fell by 57.58 points, a decrease of 0.95%, closing at 6,025.99 points. The Dow Jones fell a total of 0.54% last week, the S&P 500 index fell by 0.24%, and the Nasdaq fell by 0.53%. Tesla (TSLA.US) fell 11% over the week, marking its largest decline since October last year.

The China Golden Dragon Index rose against the trend, closing up 1.34%. Chinese concept stocks generally rose, with Alibaba (BABA.US) up 3.12%, Pinduoduo (PDD.US) up 1.38%, and JD (JD.US) up 0.4%. The Hang Seng Index ADR fell, closing at 21,127.69, down 5.85 points or 0.03% compared to the Hong Kong closing.

A report from Galaxy Securities pointed out that in the short term, the enthusiasm for DeepSeek and better-than-expected consumption data during the Spring Festival have made investor sentiment more optimistic, driving up the valuation of Hong Kong stocks. In the medium to long term, the performance of Hong Kong stocks will still depend on the fundamentals. With the development of new productive forces and the implementation of domestic consumption-promoting policies, the earnings of Hong Kong-listed companies are expected to remain stable with an increase. Overall, looking ahead, Hong Kong stocks are expected to experience a volatile upward trend. In terms of allocation, first, the technology sector still has high investment opportunities. Second, under the stimulus of domestic policies to expand domestic demand and stabilize consumption, Hong Kong consumer stocks with relatively low current valuation levels are expected to rise. Third, amid uncertainties overseas, the high dividend strategy in Hong Kong stocks remains attractive, especially for central enterprises with active market value management and high dividend targets 【Hot Topics Preview】

Two Departments: The electricity generated by new energy projects will generally enter the electricity market, and the on-grid electricity price will be formed through market transactions

According to Zhitong Finance APP, on February 9, the National Development and Reform Commission and the National Energy Administration issued a notice titled "Deepening the Market-oriented Reform of On-grid Electricity Prices for New Energy and Promoting High-quality Development of New Energy." The notice proposed to promote the participation of on-grid electricity from new energy in market transactions. The electricity generated by new energy projects (wind power, solar power) will generally enter the electricity market, and the on-grid electricity price will be formed through market transactions. New energy projects can report volume and price to participate in transactions or accept prices formed by the market. For new energy electricity participating in inter-provincial and inter-regional transactions, the on-grid electricity price and transaction mechanism will be implemented according to relevant policies for inter-provincial and inter-regional power delivery.

It mentioned the establishment of a price settlement mechanism for the sustainable development of new energy. After new energy participates in electricity market transactions, a price difference settlement mechanism will be established outside the market, with the electricity price level, volume scale, execution period, etc., included in the mechanism clarified by provincial price authorities in conjunction with provincial energy authorities and electricity operation authorities. For the electricity included in the mechanism, the part where the average market transaction price is lower or higher than the mechanism electricity price will be settled by the grid enterprises according to regulations, and the settlement fees will be included in the local system operating costs.

China's Central Bank Increases Gold Holdings for Three Consecutive Months

As of the end of January, China's foreign exchange reserves stood at USD 3.209 trillion, an increase of USD 6.679 billion month-on-month; China's gold reserves reached 73.45 million ounces, an increase of 160,000 ounces month-on-month, marking the third consecutive month of gold accumulation. On February 7, to broaden the investment channels for insurance funds, optimize the asset allocation structure of insurance, and promote insurance companies to enhance asset-liability management levels, the Financial Regulatory Administration issued a notice on "Carrying out Pilot Projects for Insurance Fund Investment in Gold," which will commence from the date of publication.

Tax Collection Postponed: The White House Restores Tax-exempt Status for Small Packages from China

U.S. President Trump signed a latest executive order on Friday, temporarily allowing low-cost product packages from China to enter the U.S. duty-free. This latest executive order temporarily overturns some provisions of his decision to impose tariffs on China made the previous Saturday (February 1). According to the new executive order announced by the White House on Friday, "minimum" tariff exemptions will continue to apply to goods from China until the Department of Commerce "establishes a sufficient system to comprehensively and swiftly process and collect tariff revenues."

Ministry of Industry and Information Technology: Three Basic Telecom Enterprises Fully Access DeepSeek Open-source Large Model

The Bureau of Operation Monitoring and Coordination of the Ministry of Industry and Information Technology released information regarding communication services during the 2025 Spring Festival. All three basic telecom enterprises have fully accessed the DeepSeek open-source large model, achieving application in multiple scenarios and products, providing exclusive computing power solutions and supporting environments for the popular DeepSeek-R1 model, assisting in the performance release of domestic large models.

The Number of Applicants for New Purchase Subsidies for Mobile Phones and Other Digital Products Exceeds 20 Million Nationwide

The Ministry of Commerce's national data platform for the replacement of old home appliances and the purchase of new mobile phones and other digital products shows that from 00:00 on January 20 to 24:00 on February 8, 20.092 million consumers applied for subsidies for the purchase of 25.414 million mobile phones and other digital products Meitu Inc. (01357): Net profit expected to grow by 52% to 60% in 2024

Meitu Inc. announced on the Hong Kong Stock Exchange that, based on the group's existing information and the board's preliminary assessment of the unaudited consolidated management accounts for the year ending December 31, 2024, the adjusted net profit attributable to equity holders of the parent company for the 2024 fiscal year is expected to achieve a year-on-year growth of approximately 52% to 60% compared to the same period last year, according to non-International Financial Reporting Standards. This is mainly due to the rapid growth in revenue from AI technology-driven imaging and design product businesses, which have high gross margins and are continuously expanding their share of overall revenue, driving double growth in overall gross profit and gross margin year-on-year.

Zhixing Automotive Technology (01274) plans to place up to 11.1902 million shares, netting approximately HKD 228 million

Zhixing Automotive Technology (01274) announced that on February 8, 2025, the company plans to place a total of up to 11.1902 million shares, accounting for approximately 4.63% of the enlarged issued share capital of the company, with a placement price of HKD 20.88 per share.

Changan Minsheng Logistics (01292): Controlling shareholder China Ordnance Equipment Group plans restructuring

Changan Minsheng Logistics (01292) announced that on February 9, 2025, the company received a notification from its indirect controlling shareholder China Ordnance Equipment Group Co., Ltd. (Ordnance Equipment Group) that it is planning a restructuring with other state-owned central enterprises. The restructuring may lead to a change in the company's controlling shareholder, but will not result in a change in the actual controller. The arrangements are still subject to procedures and require approval from relevant authorities. The restructuring will not have a significant impact on the company's normal production and operational activities.

Aikang Medical (01789) issues profit warning, expects annual net profit attributable to shareholders to increase by over 50% year-on-year

According to Zhitong Finance APP, Aikang Medical (01789) announced that compared to the net profit attributable to shareholders for the year ending December 31, 2023, the board expects the net profit attributable to shareholders for the year ending December 31, 2024, to achieve a significant increase of over 50% (FY 2023: RMB 182 million). The increase in profit is mainly due to: the acceleration of import substitution driven by the national volume-based procurement policy, which has led to a continuous increase in the surgical demand for the group's products and an increase in the group's product revenue; and effective cost control measures implemented by the group, resulting in relatively stable operating costs and administrative expenses.

[Stock Highlights]

Dongfeng Group (00489) responds to news of two central enterprises restructuring

According to Zhitong Finance APP, Dongfeng Motor Group Co., Ltd. (00489) announced that on February 9, 2025, the company received a notification from its controlling shareholder Dongfeng Motor Group Co., Ltd. (hereinafter referred to as "Dongfeng Company") that it is planning a restructuring with other state-owned central enterprises. This restructuring may lead to a change in the company's controlling shareholder, but will not result in a change in the actual controller. The arrangements are still subject to procedures and require approval from relevant authorities. This restructuring will not have a significant impact on the company's normal production and operational activities In this regard, some believe that Dongfeng Group and Changan Automobile may jointly restructure. A relevant person from Dongfeng Group responded, "The current announcement content is the standard, and we are still in the planning stage." Industry insiders believe that the restructuring of the two central enterprises, the Equipment Development Group and Dongfeng Company, may enter a substantive stage. "The restructuring of state-owned central enterprises is all about becoming bigger and stronger. The key is whether the restructuring can achieve 1+1>2 and whether resource integration can enhance competitiveness," said the aforementioned industry insider.

[Disclaimer] This VIP information product is for communication and discussion purposes only and does not constitute any investment advice. Unauthorized reproduction is strictly prohibited. For more quality information and data products, please log in to the Zhitong Finance APP for inquiries.