[ET Net News Agency, 13 August 2024] The Hang Seng Index was at 17128 in the morning
session, up 17 points or 0.1%, with main board turnover exceeding HKD 37.5 billion. The
Hang Seng China Enterprises Index was at 6,035, up 5 points or less than 0.1%. The Hang
Seng Tech Index was at 3,417, down 12 points or 0.4%.
The three largest traded stocks on the Hang Seng Index were Tencent (00700), Meituan
(03690) and Alibaba (09988); Tencent reported HKD 378.6, up HKD 3.6 or 1%, with a turnover
of HKD 2.477 billion; Meituan reported HKD 102.4, down HKD 1.6 or 1.5%, with a turnover of
HKD 1.472 billion; Alibaba reported HKD 78.4, down HKD 0.05 or less than 0.1%, with a
turnover of HKD 1.053 billion. The three largest traded stocks on the Hang Seng China
Enterprises Index are Tencent, Meituan and Alibaba. The three largest traded stocks on the
Hang Seng Tech Index are Tencent, Meituan and Alibaba.

"Lee Wai Kit: looking forward to continued cooling of US inflation, Hong Kong stocks are
preferred"

Hong Kong stocks maintained low trading volume from the previous day, with the Hang Seng
Index trading within a narrow range of 17,100 for half a day. Lee Wai Kit, a director of
the brokerage department at Huasheng Securities, told ET Net News Agency that Hong Kong
stocks are in a stage of repeated consolidation. At the same time, investors are waiting
to see the results of heavyweight stocks Tencent (00700) and Alibaba (09988), which
shrinks the market's trading volume. He pointed out that the market is also waiting to see
the U.S. inflation data released this week. If the increase is as stable as market
expectations, it will provide more support for interest rate cut expectations. At present,
the market's view of the market outlook is positive. He expects the Hang Seng Index to
initially remain in the downward channel between 16,300 and 17,400. A breakthrough will
require blockbuster performance that is significantly better than expected.

"Investors can consider buying Q Tech when it falls to HKD 4.2"

Q Tech (01478) announced its interim results for the year at noon yesterday. Net profit
increased 4.54 times year-on-year to RMB 115 million, and revenue increased 40% to RMB
7.675 billion. The target price of Q Tech was raised after the results announcement. Bank
of China International pointed out that Q Tech performed well in the first half of the
year and was optimistic that the company's overseas customer base in the fields of
smartphones, Internet of Things, automobiles and even XR is expected to expand, and the
target price was significantly raised by 58% to HKD 5.7, and the rating was raised from
"hold" to "buy".
Q Tech's stock price gradually climbed during the day, with the half-day increase
expanding to about 13%, and up to nearly 15%. Lee Wai Kit said that although Q Tech's
strong performance growth was mainly due to a low base, the overall performance was
outstanding, raising market expectations for its future price. However, the current stock
price is rising sharply, and it is expected that there will be profit consolidation
pressure in the short term. It is expected that the support below HKD 4 will be strong,
and investors can start deployment below HKD 4.2.
Apple will hold an event next month. Lee Wai Kit pointed out that although Apple is not
a major customer of Q Tech, it is expected that driven by the AI boom this year, global
mobile phone upgrades will accelerate, which will also benefit Q Tech's performance. In
the short term, Q Tech is expected to take advantage of this opportunity to return to the
high of HKD 5, but further breakthroughs will need to be driven by the recovery of the
Hong Kong stock market.