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UOB Kay Hian Adds TENCENT, INNOVENT BIO, Others to Buy List, Maintains Positive View on TMT, IT Hardware
2026-09-03 13:57:32
Chinese stocks consolidated in August, with the HSI and MSCI China Index shrinking 1.2% and 0.4% MoM respectively, broadly holding onto July gains, UOB Kay Hian said in a report. The broker did not expect Chinese President Xi Jinping's visit to the US on September 24 to bring major catalysts, but stayed upbeat on TMT (tech, media and telecom) and IT hardware fundamentals, favoring companies benefiting from AI-related capex, as well as localization of semiconductors and advanced manufacturing equipment.

The broker added HAN'S LASER (002008.SZ), NAURA (002371.SZ), INNOVENT BIO (01801.HK) and TENCENT (00700.HK) to its Buy list; locked in profits on BEONE MEDICINES (06160.HK); and cut losses on EVE ENERGY (300014.SZ), HESAI-W (02525.HK) and TRIP.COM-S (09961.HK).

It maintained Buy ratings on BABA-W (09988.HK), ASMPT (00522.HK), BYD COMPANY (01211.HK), COWELL (01415.HK), FOXCONN INDUSTRIAL INTERNET (601138.SH), NTES (09999.HK) and SHUANGHUAN DRIVELINE (002472.SZ), with target prices shown in the table below.

The broker added TENCENT (00700.HK) on expectations of AI-driven revenue and efficiency improvements, stronger advertising on WeChat Channels, game license approvals, and expansion of the Hunyuan ecosystem, with a TP of HKD608. It added INNOVENT BIO (01801.HK) due to strong revenue and profit growth, smooth R&D progress, continued launches of new products, and expanding global partnerships, with a TP of HKD132.

UOB Kay Hian's Greater China core recommendation list is as follows:

Stocks|Ratings|TPs
BABA-W (09988.HK)|Buy|HKD188
ASMPT (00522.HK)|Buy|HKD211
BYD COMPANY (01211.HK)|Buy|HKD150
COWELL (01415.HK)|Buy|HKD48
FOXCONN INDUSTRIAL INTERNET (601138.SH)|Buy|RMB89.5

HAN'S LASER (002008.SZ)|Buy|RMB153.2
INNOVENT BIO (01801.HK)|Buy|HKD132
NAURA (002371.SZ)|Buy|RMB930
NTES (09999.HK)|Buy|HKD252
SHUANGHUAN DRIVELINE (002472.SZ)|Buy|RMB50

TENCENT (00700.HK)|Buy|HKD608
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