Zhitong Hong Kong Stocks Early Knowledge | Powell reiterates that there is no need to rush to adjust interest rates, eleven departments promote the improvement of concentration in copper mining and smelting sectors

[Today's Headlines]

Eleven Departments: Cultivating World-Class Large Copper Enterprise Groups to Enhance the Concentration of Copper Mining, Selection, and Smelting Sectors

Recently, the Ministry of Industry and Information Technology and 10 other departments jointly issued the "Implementation Plan for High-Quality Development of the Copper Industry." The "Implementation Plan" proposes three measures. First, promote the orderly development of copper smelting. Newly renovated and expanded copper smelting projects should implement according to the benchmark levels of the "Energy Efficiency Benchmark Levels and Baseline Levels in Key Industrial Sectors," encouraging new renovation and expansion projects to be built at a high level in accordance with the copper smelting industry standards. New copper smelting projects should, in principle, be matched with a corresponding proportion of equity copper concentrate production capacity.

Second, optimize the industrial layout. Guide capacity to orderly transfer to regions with resource and energy advantages and environmental carrying capacity, promote the exit of inefficient capacity, and no new copper smelting capacity will be added in key areas for air pollution prevention and control. Encourage the coupling development of copper smelting with industries such as chemicals and building materials to achieve local transformation of by-products like sulfur. Support the cultivation of advanced manufacturing clusters in the deep processing industry of copper.

Third, cultivate quality enterprises. Cultivate world-class large copper enterprise groups, enhance the concentration of copper mining, selection, and smelting sectors, and focus on cultivating "specialized, refined, distinctive, and innovative" and "single champion" enterprises in the copper industry around the demand in key fields such as new energy and electronic information, creating a batch of high-tech enterprises with international competitiveness.

[Market Outlook]

Federal Reserve Chairman Powell Reiterates No Urgency to Adjust Interest Rates

Overnight, the Dow Jones Industrial Average rose 123.24 points, an increase of 0.28%, closing at 44,593.65 points; the Nasdaq fell 70.41 points, a decrease of 0.36%, closing at 19,643.86 points; the S&P 500 index rose 2.06 points, an increase of 0.03%, closing at 6,068.50 points. Tesla (TSLA.US) closed down 6.34%, marking the largest single-day decline since December 18, 2024.

Federal Reserve Chairman Powell reiterated that there is no urgency to adjust interest rates. The market is awaiting the latest Consumer Price Index (CPI) report on Wednesday. Most popular Chinese concept stocks fell, with the Nasdaq Golden Dragon China Index closing down 1.66%. Nio and XPeng fell nearly 7%, Li Auto and Baidu fell nearly 5%, and Bilibili and Trip.com fell nearly 4%. The Hang Seng Index ADR rose, closing at 21,459.65, up 164.79 points or 0.77% compared to the Hong Kong closing.

[Hot Topics Ahead]

Hong Kong General Chamber of Commerce: Proposing to Relax the Threshold for Qualified Investors in the "Southbound Trading"

According to the Hong Kong Radio website, the Hong Kong General Chamber of Commerce proposed to expand the cross-border wealth management connect plan to other major cities in mainland China and broaden the range of products. Regarding the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, it is suggested to relax the threshold for qualified investors in the "Southbound Trading" and exempt mainland individual investors from the 20% tax on purchasing Hong Kong stocks through the Shanghai-Hong Kong Stock Connect.

Huawei Set to Appear at the 2025 World Mobile Communications Conference

On February 11, Huawei Executive Director, Vice Chairman, and Rotating Chairman Meng Wanzhou issued an invitation letter to warm up for Huawei's upcoming appearance at the 2025 World Mobile Communications Conference. As a major exhibitor at the conference, Huawei will showcase significant products and solutions this year and will host and participate in multiple themed forums. The 2025 MWC will be held from March 3 to 6 in Barcelona, Spain, and this year's conference will discuss and exchange on hot topics such as 5G evolution, the integration of artificial intelligence and communication, innovative applications of the Internet of Things, cybersecurity, and sustainable development China Successfully Launches Satellite Internet Low Earth Orbit Satellites

On February 11, 2025, at 17:30 Beijing time, China successfully launched the Satellite Internet Low Earth Orbit Group 02 satellites using the Long March 8 modified rocket at the Wenchang Space Launch Site. The satellites successfully entered their designated orbits, and the launch mission was a complete success. This mission marks the 559th flight of the Long March series of launch vehicles.

CATL Submits Prospectus to Hong Kong Stock Exchange to Expand Leading Advantage with A+H Layout

On February 11, CATL officially submitted its application for the issuance of overseas listed foreign shares and listing on the main board of the Hong Kong Stock Exchange. The funds raised from this Hong Kong listing will be primarily used for overseas capacity expansion, international business development, and supplementing overseas working capital, providing financial support for the company's long-term internationalization strategy. On the evening of February 11, CATL informed reporters that in the first three quarters of 2024, approximately 30% of CATL's revenue came from overseas, having established multiple battery factories overseas to meet the "nearby supply" needs of overseas OEMs. In recent years, CATL has been continuously increasing its overseas business layout. In December 2024, CATL announced a partnership with global automotive manufacturer Stellantis to establish a joint venture in Spain. This factory is CATL's third major battery production base in Europe.

China Passenger Car Association: BYD Exported 66,336 Vehicles in January, Tesla China Exported 29,535 Vehicles

The China Passenger Car Association released data showing that in January, the export of new energy passenger vehicles reached 139,000 units, a year-on-year increase of 29.4% and a month-on-month increase of 13.9%. The outstanding companies in terms of manufacturer exports in January include: BYD Auto, Tesla China, Chery Automobile, Changan Automobile, Dongfeng Motor, Geely Automobile, SAIC-GM-Wuling, Great Wall Motors, SAIC Passenger Cars, Volvo Asia-Pacific, Polestar, Leapmotor, and XPeng.

SMIC (00981) Reports Shareholder Profit of $493 Million for 2024, Down 45.4% Year-on-Year

According to Zhitong Finance APP, SMIC (00981) released its unaudited performance for the three months ending December 31, 2024, reporting sales revenue of $2.207 billion for the fourth quarter of 2024, compared to $2.171 billion in the third quarter of 2024 and $1.678 billion in the fourth quarter of 2023. The unaudited annual profit attributable to shareholders for 2024 was $493 million, a decrease of 45.4% compared to $903 million for the entire year of 2023, mainly due to a decline in investment income and financial income this year.

SMIC's management stated that the guidance for the first quarter of 2025 is a sales revenue growth of 6-8% quarter-on-quarter, with a gross margin expected to be between 19% and 21%. Additionally, assuming no significant changes in the external environment, the company's guidance for 2025 is that sales revenue growth will exceed the average of comparable peers, with capital expenditures remaining roughly flat compared to the previous year.

JD Logistics (02618) Plans to Recruit 30,000 People in the First Half of 2025

JD Logistics plans to recruit 30,000 people in the first half of 2025, covering nearly a hundred types of positions. In addition to recruiting frontline managers, reserve management talent, couriers, and other personnel, it will also focus on technical, international business, solutions, product, logistics planning, and sales roles Tencent (00700) Finnish mobile game subsidiary Supercell's sales increased by 77%

Despite the unfavorable conditions in the mobile gaming market, Finnish video game company Supercell Oy has generated substantial revenue for its parent company Tencent Holdings. Supercell is known for popular games such as "Brawl Stars" and "Clash of Clans." On Tuesday, Supercell announced that its six games are expected to generate nearly $3 billion in sales revenue in 2024, a year-on-year increase of 77%. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a roughly equivalent growth, reaching over $900 million. According to Finnish law, the company is required to publish its performance annually.

China Tianhua Chemical (00362): Heilongjiang Longjiang will actively and comprehensively resume production

According to Zhitong Finance APP, China Tianhua Chemical (00362) announced that its subsidiary Heilongjiang Longjiang Chemical Co., Ltd. (Heilongjiang Longjiang) will actively and comprehensively resume production. This decision comes as the company considers that the sales price of calcium carbide has begun to stabilize, and there are signs of market recovery. The company remains cautiously optimistic about the future of bulk commodities, coupled with the local government's new round of policy support and the easing of bank lending, which will allow Heilongjiang Longjiang to obtain loans for working capital. If production is fully resumed, Heilongjiang Longjiang could achieve an output value exceeding 300 million yuan.

[Stock Highlights]

Suteng Juchuang (02498): Benefits from BYD's Tian Shen Eye LiDAR increment

According to the latest press conference by BYD Intelligent Driving, the Tian Shen Eye A, B, and C intelligent driving solutions are configured for high-end, mid-range, and low-end paths within the BYD brand vehicle system. The Tian Shen Eye A is equipped with a 600 TOPS computing platform, 3 LiDARs, 5 millimeter-wave radars, 12 ultrasonic radars, and multiple cameras; the Tian Shen Eye B is equipped with a 300 TOPS computing platform, 1-2 LiDARs, 5 millimeter-wave radars, and 12 ultrasonic radars. The Tian Shen Eye C is configured with around 100 TOPS computing power, using 5 millimeter-wave radars and 12 cameras. Since high-end models from BYD have already widely adopted advanced intelligent driving systems, the beneficiaries of this press conference are primarily the suppliers of models covered by the Tian Shen Eye B and C.

According to calculations by Founder Securities, BYD's expected vehicle sales will reach 5 million units by 2025, with the Tian Shen Eye B and C solutions expected to be equipped in approximately 700,000 and 2.51 million units, respectively. The institution also pointed out that based on the situation in the first three quarters of last year, the LiDAR configuration rate in the BYD system was less than 1%, and the intelligent driving domain control was less than 3%.

If we roughly estimate based on this data, the Tian Shen Eye B and C solutions are expected to increase the LiDAR configuration rate in BYD series vehicles to 14%, and the intelligent driving domain control is expected to achieve over 70% coverage. Analysts believe that due to the lower unit price of Suteng Juchuang's LiDAR, it is more likely to capture a higher share in BYD's mass-market models compared to Hesai.

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