GO
| HSI1 | 24,040.34 | +68.05 | 98.10B |
| HSCEI1 | 8,051.67 | +21.13 | 24.86B |
| Back Zoom + Zoom - Block Traded | |
|
2026-09-30 17:27:58 Citi published a research report on China's telecommunications and AI infrastructure sectors, stating that the bank met with investors in Hong Kong and Singapore over the past two weeks. Key investor focuses included stocks with changing narratives, updates on AI optics (pluggable, CPO/NPO) and risks related to oversupply and the Federal Communications Commission (FCC), PCB supply chain landscape and specification upgrade trends, as well as expectations for 3Q26 results. Investor interest in consumer electronics and software remained limited. The bank said investors favor WUS CIRCUIT (002463.SZ) in the PCB (printed circuit board) segment, LENOVO GROUP (00992.HK) in AI servers, ZJ INNOLIGHT (03308.HK) in optics, while LUXSHARE ICT (02475.HK) is viewed as a risk-reward option, and ASMPT (0522.HK) in advanced packaging. XIAOMI-W (1810.HK) and LONGCHEER (09611.HK) are more favored consumer recovery plays, supported by already low expectations and potential reversal in memory prices/AI trade unwinding. Investors remain cautious on VGT (02476.HK) and DELTON (01989.HK) due to customer certification and execution risks. MONTAGE TECH (06809.HK) would require stronger product catalysts to achieve meaningful re-rating. In AI optics, ZJ INNOLIGHT (03308.HK) remains the most discussed optics stock. Investors generally prefer holding positions rather than aggressively increasing exposure, with guidance updates and conversion of 1.6 trillion orders becoming the next major catalysts. In AI servers, LENOVO GROUP (00992.HK) is among the most positively discussed large-cap stocks, with expectations for relatively resilient 3Q26 results supported by strong AI server orders and further margin improvement in its Infrastructure Solutions Group. The AI PCB narrative has shifted from a pure capacity expansion story to technological barriers and customer quality, with WUS CIRCUIT (002463.SZ) remaining one of the sector's highest-conviction names. In semiconductors, the key theme is a super cycle in domestic advanced packaging capital expenditure, with ASMPT (0522.HK) being a preferred beneficiary in advanced packaging equipment. Consumer electronics lack clear near-term upside catalysts, and investors are generally waiting for clear signals of a reversal in memory prices. XIAOMI-W (1810.HK) may see earnings bottom out in 3Q26, with valuation support at lower share price levels, though investors prefer to wait for results first. Most investors still view IT services and software as short positions, but the bank has turned slightly positive as the sector appears to have bottomed after years of adjustment, while revenue growth at some companies has stabilized or seen mild recovery. CHINA SOFTWARE INT'L (0354.HK), KINGDEE INT'L (00268.HK) and THUNDER (300496.SZ) received varying degrees of discussion. (da/u)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |