Understanding the Market | Apple concept stocks rise across the board, COWELL up over 5%, SUNNY OPTICAL up over 4%
Apple concept stocks rose across the board, with COWELL up 5.17% to HKD 23.4, SUNNY OPTICAL up 4.43% to HKD 68.4, and BYD ELECTRONIC up 3.56% to HKD 33.45. The market is focused on the China-U.S. economic and trade dialogue and changes in tariff policies. Xinda Securities believes that if tariff policies stabilize, industry valuations are expected to recover. Apple released its second fiscal quarter financial report for fiscal year 2025, with revenue and profit exceeding expectations, and the board approved a USD 100 billion stock repurchase plan, but revenue from Greater China fell short of expectations
According to Zhitong Finance APP, Apple concept stocks have risen across the board. As of the time of writing, COWELL (01415) rose 5.17% to HKD 23.4; SUNNY OPTICAL (02382) rose 4.43% to HKD 68.4; BYD ELECTRONIC (00285) rose 3.56% to HKD 33.45; Q Technology (01478) rose 3.54% to HKD 6.73; AAC Technologies (02018) rose 2.835% to HKD 38.2.
On the news front, on May 2, a spokesperson for the Ministry of Commerce stated regarding the China-U.S. economic and trade dialogue that China has noted the repeated statements from U.S. senior officials expressing a willingness to negotiate on tariff issues. At the same time, the U.S. has recently actively conveyed information to China through relevant parties, hoping to engage in talks. In response, China is currently conducting an assessment. Recently, Cinda Securities pointed out that since the announcement of the tariff policy, high-quality domestic consumer electronics stocks have significantly corrected, and their valuations have shown considerable room for improvement. Furthermore, the possibility of continued deterioration of the tariff policy is also diminishing, but it is still necessary to observe changes in tariff policies in Vietnam, India, Singapore, Mexico, and other regions. Overall, the firm believes that if tariffs do not develop irrationally in the future, there is a high possibility of overall valuation recovery in the industry.
In addition, Apple released its Q2 results for the fiscal year 2025. The financial report shows that in the second quarter ending March 31, Apple's revenue and profit performance exceeded Wall Street expectations. At the same time, Apple's board of directors approved a USD 100 billion stock repurchase plan. However, revenue from the Greater China region fell short of expectations, and tariffs will increase costs. Cook stated that most iPhones sold in the U.S. this quarter will come from India, while most iPads, Macs, and Apple Watches will come from Vietnam. The vast majority of Apple products aimed at markets outside the U.S. will still come from China
