[Anatomy Board]

Hong Kong stocks continued to fall today. The short-term moving average all fell below, and the picture became difficult to see. There is no particular downside to this situation. In summary, the recent wave of increases will take time to digest, and at the end of the month, funds will need to be redeployed.

Yesterday, Xinhua News Agency was still talking about “growing patient capital”: not disrupted by short-term market fluctuations, and based on the long term. Today, let's take a look at the state of A-shares. They rotate 13 waves of profit opportunities in almost every direction. The trading volume is only 700 billion dollars. The result is that they roll to death, harvest first, then harvest directly by quantifying and tiling. There is a famous tourist who also learned how to quantify, lay them flat and close the entire line of duvet covers. Compared to the price of electric fans, some people have concluded that the increase in electricity is due to the “cost of electricity.”

There is no electric fan market in the Hong Kong stock market, because they simply can't play with it. Even if it's over 100 billion dollars, it's not a strong point of the Hong Kong stock market. The characteristic of Hong Kong stocks is basically that they do enough in a wave; once they reach a position, they start crashing the market. The consistency is quite strong.

Of course, rotation is an eternal theme. Today it's the turn of new energy, which is getting hot quite fast. In the morning, the market was discussing supply-side reforms for new energy sources. According to reports, at a major conference held recently, the supply side sent a major signal. On the one hand, we are reminded not to see an uneven boom in investment in the new energy industry. On the other hand, the new energy industry should not be the only focus, because the transformation of traditional industries can also develop “new productivity.” Support for the “three new” products — electric vehicles, lithium-ion batteries, and solar panels must “adapt” to local conditions.

This statement is actually not new. I remember when Yellen first visited, she talked about the problem of overcapacity. Afterwards, there was news about supply-side reforms, but at a time when there was nothing to speculate on at this point, it received a response from the market. This is the resonance of time nodes.

In addition, Su Yingying, co-head of the Hong Kong Stock Exchange (00388) market, said that the listing of green bonds is being promoted, and the Hong Kong Stock Exchange launched an international carbon trading platform in 2022. Currently, many participants in the carbon trading platform are clean energy developers. This is also considered an aid to photovoltaics. GCL Technology (03800), Xinte Energy (01799), and Follett Glass (06865) all performed well, with increases of 4 points. The future depends on how policies drive supply-side reforms and whether industry fundamentals are improving.

Recently, the strongest photovoltaic performance is Zhonghuan New Energy (01735). The main stimulating factor is that the company recently signed a series of development agreements. On May 25, the company signed a cooperation framework agreement with Sunshine New Energy, which is affiliated with Sunshine Power, and the two sides plan to develop projects of no less than 500,000 kilowatts in Huainan City and Tongcheng City; on May 20, Zhonghuan New Energy announced that it has signed a cooperative framework agreement with Datang Anhui. The two sides plan to carry out comprehensive, sustainable and in-depth cooperation on new energy project development, construction and industrial support in Anhui Province. On April 12, Zhonghuan Mathematics (Jiangsu) Intelligent Technology Co., Ltd., a subsidiary of Zhonghuan Renewable Energy, signed a strategic cooperation agreement for the new energy industry with Baolixin New Energy Development Co., Ltd., a subsidiary of Baosheng Co., Ltd.

Today, BYD has become the focus of market attention. The company held the fifth-generation DM technology launch and the launch conference for the Qin L DM-i and Seal 06 DM-i last night. The company officially unveiled the fifth-generation DM technology, which continues to refresh and reduce automobile fuel consumption. Officials say this technology will “create an era of fuel consumption 2.” According to BYD, the fifth-generation DM technology has the highest engine thermal efficiency of 46.06% in the world, the world's lowest power loss of 2.9 L per 100 kilometers, and the world's longest comprehensive battery life of 2,100 kilometers.

The Qin L DM-i and SEAL 06 DM-i will be the first to be equipped with fifth-generation DM technology and officially launched last night. The average price of each car is less than RMB 100,000. Compared to other car companies' advanced technology, the most cost-effective one is actually mileage anxiety. If the hybrid can actually reach a maximum length of 2,100 kilometers, then it can run long distances for less than 100,000. This selling point directly strangles the low-end market, and sales are naturally optimistic. Today, A-shares were close to rising or stopping during the intraday period, and the Hong Kong stock BYD shares (01211) rose more than 5 points.

In the afternoon, new news came out. According to China Daily, China may invest about 6 billion yuan in all-solid-state battery research and development, including six companies including Ningde Era, BYD, FAW, SAIC, Weilan New Energy, and Geely, which may receive basic research and development support from the government. A number of people familiar with the matter confirmed that this project, which is unprecedented in the industry, is being led by relevant government ministries and departments to encourage enterprises in a position to do so to carry out research and development on all-solid-state battery-related technology.

According to reports, after going through strict screening, the project was finally divided into seven major projects, focusing on different technical routes such as polymers and sulfides. A relevant person from the six industrial chain companies listed above confirmed the news: “We have indeed heard of this project before, but we have no specific information.” This kind of news can be viewed as a reference to the trend after the third phase of the Semiconductor Fund.

I have to say that Ganfeng Lithium (01772) reacted quickly to the news. It said on the interactive platform on May 29 that the company has now initially achieved mass production of the first-generation solid-liquid hybrid battery, with an energy density of 240 to 270 Wh/kg. It can be tested for acupuncture safety performance, and the number of cycles can reach more than 2,000 times. The second-generation solid-liquid hybrid battery is currently in the development stage. The energy density can reach 400 Wh/kg or more, and can be sustained through acupuncture tests. Discharges above 5C. Currently, the company is focusing on research on issues such as increasing cycle times and high power input. Let's see if the market will accept it tomorrow.

Shangtang Technology (00020) officially released the 5.0 Cantonese version of “SenseNova” (SenseNova) and a series of “Nisshin” Cantonese large model products. Feng Yu, general manager of Shangtang's Hong Kong business, said that there is still no big model in the market that can conquer the Cantonese market, so it is hoped that the Nisshin 5.0 Cantonese version can gain market leadership in Hong Kong. Currently, Shang Tang intends to develop business in multi-lingual Southeast Asian countries such as Singapore, Thailand, and Malaysia, but the details still depend on demand. Currently, Shang Tang's total computing power is planned to be 12,000 Petaflops. In addition to networking computing power and cooperating with supercomputing centers with partners such as Science Park Corporation and Cyberport, it is also possible to increase computing power through the construction of an artificial intelligence computing center (AIDC) in Hong Kong.

As a banner for local high-tech enterprises in Hong Kong, the price is really quite embarrassing. For a long time, the market has been very quiet about Shangtang, so there is no specific development here. However, the author believes that all the negative factors are already included in the stock price. Nvidia has taken the lead on the hardware side, and I believe there will definitely be a breakthrough on the application side as well. Although the current big model is very popular, and the most advanced is still in the US, as far as the Chinese version is concerned, the big Chinese model is unique, especially the big model in Cantonese. Shang Tang has a unique advantage and can open up markets in Hong Kong and Southeast Asia, which is enough. In addition, it also has the advantage of computing power, which can also make money. Shang Tang (00020) is expected to bring about a revaluation and is up 4.58% today.

In the adjustment phase, there wasn't much excitement in the market. Most of the capital was still dominated by strong groups. For example, yesterday's sector focused on coal, which is still rising today. Port coal prices have shown signs of a year-on-year correction for the first time during the year. As of May 24, coal prices in Qingang continued to rise to 884 yuan/ton, up 2.8% and 3.1%, respectively.

[Sector Focus]

After the central bank introduced a new mortgage policy on May 17, more regions, including the three major first-tier cities of Shanghai, Guangzhou, and Shenzhen, took steps to adjust housing credit policies.

On May 28, Guangzhou adjusted and optimized differentiated housing credit policies. For households with loans to buy their first commercial home, the minimum down payment ratio for commercial personal housing loans was adjusted to not less than 15%, and the lower interest rate limit was abolished. For households with a loan to buy a second commercial home, the minimum down payment ratio for commercial personal housing loans was adjusted to no less than 25%, and the lower interest rate limit was abolished.

On the evening of May 28, Shenzhen followed up. Since May 29, Shenzhen has lowered the minimum down payment ratio and lower interest rate limit for personal housing loans. The minimum down payment ratio for personal housing loans for the first home was adjusted from 30% to 20%, and the minimum down payment ratio for personal housing loans for two housing units was adjusted from 40% to 30%. The lower interest rate limit for commercial personal housing loans for the first housing unit was adjusted from the original LPR-10BP to LPR-45BP, and the lower interest rate limit for commercial personal housing loans for the second housing unit was adjusted from the original LPR+30BP to LPR-5BP.

The overall view on real estate is that the country has taken various measures to stabilize it, but this is a systematic project, and it is difficult to completely reverse it through a few measures and proceed step by step in an orderly manner. If the stock side is adjusted to a certain position, someone will go to the bottom. Focus on policy-sensitive housing enterprises in first-tier cities, such as Guangzhou's Yuexiu Real Estate (00123), Zhuguang Holdings (01176), and Longhu Group (00960).

[Individual Stock Nuggets]

Zhongxu Future (09890): Big IP Strategy and Steady Layout “Xuliang Xinghai” Promotes AI Smart Marketing

In 2023, the company achieved annual revenue of 6.515 billion yuan, net profit of 273 million yuan, adjusted net profit of 542 million yuan, and gross margin of 70.2%. In 2023, the gross margin of game products operated by Zhongxu Future's self-operating model was 92.3%, which remained stable; the gross margin of game products operated under the intermodal transport model increased from 16.3% in 2022 to 24.5% in 2023.

Comment: The company includes the well-known “Playful Games” brand, operates more than 350 game products, and has a total of 489 million registered users. Beginning in 2023, on the basis of stabilizing its leading position in the distribution of legendary IPs, the company will promote the layout of many new big IP game categories in an orderly manner, such as Miracle, Dora Dora, and Laughing Jianghu. The first Doulo World Team Battle MMO mobile game “Doulo Continent: Shrek Academy” was jointly released by the company and China Mobile Games. On the day of its launch, it landed at the top of the App Store free list and the TapTap Hot List.

In terms of globalization, Zhongxu Future uses its overseas platform to play games (overseas). Currently, it has distributed and operated dozens of multi-language games in markets such as China, Hong Kong, Macao, Taiwan, Europe, America, Japan, South Korea, Southeast Asia, etc., and has an additional 11 product reserves. Launched in Vietnam in July 2023, “MU: Infinite Golden Egg” topped the Vietnam Apple and Google free and best-selling lists on the day it went live. In December 2023, the new game “WuKong M: To The West” was selected as the 9th place in data.ai's overseas market newly released game download ranking.

The “Xuliang Xinghai” technology system developed by the company has been deeply integrated with AI technology to promote the continuous expansion of AI smart marketing. The “Xuliang Xinghai” technology system consists of the launch effect analysis system “River Map” and the intelligent delivery system “Luoshu”. Since the platform was put into use, it has accumulated 100 billion machine learning training sets.