Zhitong Hong Kong Stock Analysis | New scenarios once again stimulate technology giants to strengthen, will Evergrande Property bring a turning point?

[Market Analysis]

Hong Kong stocks continue to lead, while A-shares have seen adjustments. The Hang Seng Index opened significantly higher today, maintaining high-level fluctuations throughout the day, closing up 1.16%.

Yesterday, U.S. inflation data was released, showing that the August CPI rose 0.4% from the previous month and 2.9% year-on-year, both the largest increases since January. The core CPI for August, excluding the volatile food and energy components, increased by 0.3% from the previous month and 3.1% year-on-year, consistent with the July increases. This data is fairly standard, creating suspense for a 50 basis point rate cut next week, but a 25 basis point cut seems certain, as another report indicated that the number of first-time unemployment claims in the week ending September 6 rose by 27,000, seasonally adjusted to 263,000, the highest since October 2021. Therefore, investing in non-ferrous metals is reasonable; the industry itself is affected by policy restrictions, resource bottlenecks, rising costs, and long construction cycles, which have limited global non-ferrous metal capacity expansion. Related aluminum companies: China Aluminum (02600) and China Hongqiao (01378) both rose over 6%; copper companies: China Nonferrous Mining (01258) and Minmetals Resources (01208), mentioned in yesterday's stock picking, both rose over 5%. This is the expectation driving stock trading.

Yesterday, the so-called "negative news" regarding innovative drugs was indeed a case of misjudgment, and many varieties rebounded today. Additionally, according to media reports on September 12, the U.S. Congress website indicated that President Trump withdrew the nomination of Landon Heid as Assistant Secretary of Commerce for Export Administration on the 10th. His removal as a hardliner shows that the White House is moving towards a "dovish" easing line, which also alleviates pressure on the pharmaceutical sector from yesterday.

Domestically, support for innovative drugs is also accelerating. This morning, the National Medical Products Administration officially released an announcement on optimizing the review and approval of clinical trials for innovative drugs, mentioning that to further support clinical value-oriented innovative drug development and improve the quality and efficiency of clinical research, clinical trial applications for innovative drugs that meet the requirements will be reviewed and approved within 30 working days after acceptance.

The pharmaceutical rebound is particularly strong for the newly included Hong Kong Stock Connect stocks mentioned yesterday, such as Drug Innovation (02617), whose core product, Tengrastim (TT-00420), received clinical implied approval from the National Medical Products Administration of China on September 10. It is the world's first and only FGFR inhibitor to enter the registration clinical stage for the treatment of patients with recurrent or refractory cholangiocarcinoma. This product is gradually paving the way for globalization. Today, it surged over 77%. Other stocks like Zhaoyan New Drug (06127) and Innovent Biologics (09969) both rose over 13%. CanSino Biologics (09926) reported good performance in the updated data of its globally first PD-1/VEGF dual antibody, Ivorimab, from the global multi-center Phase III clinical HARMONi study, rising over 5% today. WuXi AppTec (02268) also returned to an upward channel.

AI is emerging in new scenarios. According to reports from Global Times and other media, Albanian Prime Minister Edi Rama announced a new cabinet list on the 11th local time, which includes the appointment of an artificial intelligence named "Diera" as the Minister of Public Procurement The bidding decision-making power will gradually be transferred from various departments to "Diela," which will review every bidding contract signed between the government and private companies and objectively assess the merits of each contract. Rama emphasized that "Diela" will help Albania "become a country with 100% corruption-free public bidding." This is quite interesting and provides a significant stimulus for related large models. On September 29, SenseTime (00020) surged over 7%, while Baidu Group-SW (09888) outperformed DeepSeek R1-0528 in several authoritative benchmark evaluations, with its Wenxin large model X1.1 showing a leading advantage in certain tasks. Today, it rose over 8%. Alibaba-W (09988) announced the pricing of USD 3.2 billion zero-interest convertible preferred notes, with an initial conversion price of USD 193.15 per American depositary share. The financing has gained popularity, with continuous major actions, and today it continued to rise over 5%. Tencent (00700) has steadily maintained an upward trend.

The robotics sector mentioned yesterday also has new scenarios. Media reports state that the "Superstar Dog," co-created by Superstar Legend and Yushu Technology, will make its public debut during the float parade at the Shanghai Tourism Festival opening ceremony on September 13. This represents a win-win situation, with Superstar Legend (06683) rising over 13% and UBTECH (09880) increasing nearly 3%.

Entering September, Robotaxi is becoming the focus of competition among major players. On September 4, Tesla announced that its Robotaxi application has been opened to the public; on September 10, Amazon's autonomous driving company Zoox launched Robotaxi services in Las Vegas; on September 11, WeRide announced that its autonomous minibus Robobus has landed in Leuven, Belgium. Recently, the mainland travel platform Hello launched its first Robotaxi model HR1, aiming to deploy over 50,000 units by 2027. Hello has signed strategic agreements with Dongfeng (00489) subsidiary Qichen Automobile, Alibaba (09988) subsidiary Alibaba Cloud, Horizon Robotics (09660), and Hesai Technology (02525), catalyzing the rapid rise of related stocks, with SOTY (02498) increasing nearly 4%.

Real estate stocks also performed collectively today. After Shenzhen introduced new housing policies on September 5, many banks in Shenzhen responded by no longer distinguishing between first and second homes, allowing eligible second-home loan rates to be lowered. On the evening of September 11, Evergrande Property announced that the liquidators of its controlling shareholder China Evergrande Group and CEG Holdings are advancing the sale of Evergrande Property shares, and it announced that trading will resume today (September 12). According to the liquidators' plan, selected interested parties will be invited to submit final proposals and negotiate transaction terms around November this year, aiming to reach a binding agreement. Media reports yesterday cited informed sources revealing that Evergrande's liquidators have received non-binding offers for Evergrande Property, reportedly including expressions of interest from state-owned enterprises such as China Overseas Group and China Resources Group. Evergrande Property (06666) is highly likely to find a buyer, surging over 20% today, while other stocks like Sunac China (01918) and Oceanwide Holdings (03377) rose over 8%. Stocks on an upward trend such as China Overseas (00081), Shimao Group (00813), and Vanke (02202) are also worth paying attention to This morning, the State Council Information Office held a series of themed press conferences on "High-Quality Completion of the 14th Five-Year Plan," during which it was pointed out that China is one of the safest countries in the world. Recently, our third aircraft carrier, the Fujian, passed through the Taiwan Strait to conduct scientific research and training missions in relevant waters of the South China Sea. There is no such thing as months of tranquility; it all relies on strong national defense capabilities. The military-industrial company China Shipbuilding Defense (00317) mentioned yesterday rose over 4% again.

In September, Zhituo Jin Gu's Skyworth Group (00751) surged over 14% again in the afternoon trading session, following a major increase a few days ago primarily due to rumors of privatization. At that time, the company stated that there were currently no plans for privatization. Today, it was pulled up again, and the trading volume was even larger than the last time, indicating there might be some story behind it, warranting continued attention.

【Sector Focus】

According to the Maoyan Professional Edition release calendar, as of now, a total of 10 films are scheduled for release during the 2025 National Day holiday, including: "Volunteers: Blood and Peace," "Assassination Novelist 2," "Panda Plan 2," "Life of Stray Dogs," "Piggy Hero: The Counterattack of an Old Pig," "Wind, Forest, Fire, Mountain," "The Starry Sky of the Three Kingdoms Part 1," "Red Boy: The King of Flame Mountain," "Dead End," and "Crazy Computer City."

Hong Kong stock Maoyan Entertainment (01896) directly participated in the production and distribution of several films, including "Assassination Novelist 2," "Panda Plan 2," "Life of Stray Dogs," and "Wind, Forest, Fire, Mountain," benefiting the most; while Damai Entertainment (01060) mainly benefits through its ticketing platform and participation in some films.

【Stock Picking】

Zhaojin Mining (01818): Gold Continues to Maintain an Upward Trend, Mining Capacity Increases

The company achieved revenue of 6.973 billion yuan in H1 2025 (yoy +50.69%), with a net profit of 1.777 billion yuan (yoy +144.58%), and a net profit attributable to shareholders of 1.440 billion yuan (yoy +160.44%). In Q2, the net profit attributable to shareholders was 781 million yuan (yoy +135.5%, qoq +18.4%).

Commentary: The company's performance in H1 2025 was outstanding year-on-year mainly due to the rise in gold prices. In H1 2025, the total gold production was approximately 14.3 tons, up 8.42% year-on-year; of which, mined gold was about 10.2 tons, up 13.77% year-on-year, and refined gold was about 4.1 tons. In the first half of the year, the Ruihai project accelerated infrastructure construction, successfully conducting a one-time water trial run for the 12,000 tons/day ore dressing system, initially establishing industrial production capacity. Meanwhile, key projects such as deep development of the Xiadian gold mine and other backbone mines are progressing simultaneously, providing strong support for the continuous release of the group's capacity. Gold production is accelerating. Additionally, overseas gold sales amounted to 1.5 tons, indicating that the Abuja gold mine is steadily increasing production, with personal estimates of 3-4 tons of mined gold production within the year. Furthermore, the company established a special exploration fund of over 100 million yuan in the first half of the year, focusing on several key exploration areas in major mineralization belts globally, adding 25 tons of new gold metal. Interest rate cuts are expected to drive down real interest rates, which is favorable for gold. In summary, if the Federal Reserve's interest rate cuts materialize, it is expected to drive down U.S. real interest rates, which is favorable for gold. In the medium to long term, the upward trend of gold may continue, and the company's ongoing projects are progressing steadily