Market Wrap | Q3 Close! The Tech Index surged approximately 22% in a single quarter; tech stocks rose, with Kuaishou gaining over 7%; semiconductor and robotics stocks performed strongly, with Hua Hong Semiconductor up nearly 11% and Ubtech Robotics risin

According to Futu News on September 30, the three major Hong Kong stock indexes rose collectively, $Hang Seng Index (800000.HK)$ up 0.87%, with a cumulative increase of 11.56% in the third quarter, $Hang Seng TECH Index (800700.HK)$ up 2.24%, with a cumulative increase of 21.93% in the third quarter, $Hang Seng China Enterprises Index (800100.HK)$ up 1.07%, with a cumulative increase of 10.11% in the third quarter.

At the close of trading, 1,413 Hong Kong stocks were up, 868 were down, and 908 remained unchanged.    

The specific sector performance is as follows:

In terms of sectors, technology and internet stocks rose collectively: Kuaishou-W surged 7.22%, Bilibili-W climbed 6.65%, SenseTime-W gained 5.47%, Alibaba-W rose 2.08%, Meituan-W increased by 1.65%, JD.com-SW advanced 1.39%, Baidu Group-SW was up 1.29%, Xiaomi Group-W rose 0.84%, and Tencent Holdings gained 0.45%.

Semiconductor stocks rose, with Hua Hong Semiconductor up 10.96%, Shanghai Fudan up 6.50%, CEC Huada Technology up 5.06%, SMIC up 3.99%, Solomon Systech up 1.72%, Ingdan Innovation up 1.10%, Innoscience up 0.98%, and FORTIOR up 0.81%.

Apple concept stocks performed strongly, with VST ECS up 9.03%, Q Technology up 7.36%, Sunny Optical up 5.60%, Lens Technology up 4.64%, BYD Electronics up 3.87%, Cowell E&A up 3.28%, Foxconn Interconnect Technology up 3.07%, and AAC Technologies up 2.79%.

Biotechnology stocks rose, with Wuxi Apptec up 8.11%, Zai Lab up 7.15%, XtalPi Holdings up 5.96%, BeiGene up 4.69%, Akeso up 4.67%, RemeGen up 4.64%, and Wuxi Bio up 3.48%.

Lithium battery stocks performed notably well, with Ganfeng Lithium up 8.66%, CALB up 5.66%, Tianqi Lithium up 5.49%, CATL up 4.48%, Zenergy up 3.97%, BYD Electronics up 3.87%, Tianneng Power up 3.50%, and BYD Co., Ltd. up 1.47%.

Pharmaceutical stocks rose, with WuXi AppTec up 5.80%, Hengrui Pharma up 4.72%, Innovent Bio up 2.99%, Hutchison China MediTech up 2.11%, and Hansoh Pharma up 1.75%.

In individual stocks,$VOBILE GROUP (03738.HK)$The stock surged over 7% after the company completed the issuance of a HKD 1.6 billion bond to further invest in AIGC and RWA-related businesses.

$SH ELECTRIC (02727.HK)$The stock rose over 5% as analysts recommended monitoring the company’s breakthroughs in emerging industries such as robotics and nuclear fusion.

$SANHUA (02050.HK)$Up over 6%, Tesla is striving to scale up its humanoid robot operations, with plans to launch the third generation by the end of 2025 and commence mass production in 2026. Elon Musk anticipates an annual production of 1 million units before 2030.

$KUAISHOU-W (01024.HK)$Up over 7%, share price hits a more than three-year high as KeLing 2.5 Turbo has recently been launched.

$HENGRUI PHARMA (01276.HK)$Up over 4%, multiple drug candidates have been approved for clinical trials, and a recent licensing collaboration has been reached with Glenmark.

$VSTECS (00856.HK)$Up over 9%, the company is expanding into emerging business areas such as cloud computing, AI, and embodied intelligence.

$GEELY AUTO (00175.HK)$Up nearly 5%, Zeekr 9X received over 10,000 pre-orders within 13 minutes of its launch.

$YOFC (06869.HK)$Dropped 6%, the original co-largest shareholder liquidated holdings; Morgan Stanley previously indicated that the stock price had fully reflected industry positives.

$XTALPI (02228.HK)$Rose nearly 6%, driven by accelerating commercialization of AI pharmaceuticals; institutions are optimistic about the company’s business model.

$MOBVISTA (01860.HK)$Surged over 10%, with overseas AI leader AppLovin’s share price hitting a new high; institutions are positive on its AI application strategy.

Top 10 Turnover Today

Southbound Stock Connect Funds

In terms of Stock Connect, today’s southbound trading under Hong Kong Stock Connect recorded a net inflow of HKD 15.48 billion.

Institutional Views

Goldman Sachs issued a report stating its positive outlook on $HUA HONG SEMI (01347.HK)$ given the company’s gradual shift towards 40nm/28nm processes and capacity expansion. With rising demand from domestic fabless clients and more comprehensive product offerings from local equipment companies, the bank believes Hua Hong has sustained upside potential. The firm raised its target price for Hua Hong Semiconductor by 13% to HKD 87, equivalent to a projected 2028 P/E ratio of 51.5x (previously 45.7x), while maintaining an average annual earnings per share growth rate forecast of approximately 31% for 2028 to 2029. This adjustment reflects the latest market correlation regression analysis and indicates continued revaluation of China-based semiconductor companies.

JPMorgan issued a report stating that $UBTECH ROBOTICS (09880.HK)$ The stock price has surged 71% since July, compared to an 11% increase in the Hang Seng Index over the same period, driven by three major orders that have rapidly enhanced its image as a commercial leader in the industry. The bank noted that the company’s recent contracts include a record-breaking RMB 250 million Walker S2 deal and a RMB 30 million Miracle logistics automation order, bringing the total contract value year-to-date to RMB 430 million, surpassing both its shipment targets and the bank’s full-year division estimates. The momentum for Ubtech Robotics was further strengthened at this year’s Industry Expo, where supplier Leader Drive emphasized Ubtech’s operational readiness and industry leadership. Market feedback highlighted strong government support and accelerating adoption in factory and logistics scenarios. Against the backdrop of strong execution and positive industry dynamics, the bank raised its target price for Ubtech Robotics from HKD 159 to HKD 178, reflecting a more optimistic outlook on the company’s growth trajectory and contract momentum, with a rating of ‘Overweight’.

Citi issued a report, revising $MMG (01208.HK)$ The target price has been raised from HKD 5.7 to HKD 7.2 to reflect updated mineral resource estimates, rising copper prices, and a downward revision of C1 cost guidance assumptions for the Las Bambas project. The stock is rated ‘Buy,’ and a 90-day positive catalyst watch has been initiated. Citi expects the C1 cost guidance for the company’s Las Bambas project to be lowered, supported by strong gold and copper prices as well as sustained stable output from Las Bambas. The bank also anticipates that rising copper prices will benefit the company, given its high sensitivity of net profit to copper price fluctuations.

Editor/KOKO