Kingston Financial News | Hang Seng Index closed at 17936 on Monday (17th), down slightly by 5 points or 0.03%. Total turnover for the day was HKD 96.3 billion. HSI's China Enterprise Index fell 0.02% to 6373, while the Hang Seng Technology Index rose slightly by 0.05% to end at 3709. Energy stocks performed weakly, with PetroChina (00857) falling by 1.7%, and CNOOC (00883) falling by 0.9%. New World Development (02688) suffered a significant drop of 3.5%, which dragged down the blue-chip stocks. Mainland real estate stocks, on the other hand, took a hit as the price decline in 70 cities in China expanded in May. China Overseas (00688) fell by 1.5%, while China Vanke (02202) plunged by 4.2%.

On Monday (17th), Dow Jones closed at 38,778 points, up 188 points or 0.49%; S&P 500 index rose 0.77% to 5,473 points; Nasdaq, which is dominated by technology stocks, rebounded by 0.95% to 17,857 points. The Golden Dragon Index, which reflects the performance of Chinese concept stocks, fell slightly by 0.05%. In October, Apple announced that the new generation of smart watches will have larger and thinner screens, sending its stock price up by 2%, making it the largest gainer among Dow's components. Another heavyweight stock, Tesla, rose by 5.3%; Intel rebounded by 1.7%; and electronic product retailer BestBuy was upgraded by UBS to a "buy" rating, sending its stock price up by 4.6%. Some Asia-Pacific stock markets were mixed this morning (18th), with Nikkei 225 index currently up 307 points or 0.81% to 38,409 points and Korea Composite Index currently up 25 points or 0.94% to 2,769 points. Hong Kong stocks hesitated around the 18,000-point level.

Market Focus: Q Tech (01478)

Q Tech announced its Q1 2024 operating figures. The company's mobile/non-mobile CCM shipments increased by 23% and 179% year-on-year, respectively, mainly due to inventory restocking, customer project cycles, and successful autos/Internet of Things orders. In Q1 2024, mobile CCM shipments increased by 23% year-on-year, with high-end CCM combinations of over 32 million accounting for 45% (compared to 42% in 2023 fiscal year). For non-mobile CCM, driven by demand for autos/Internet of Things CCM, shipments in Q1 2024 increased by 179% year-on-year. The company has a good market share in both mobile and non-mobile fields, and its business development is expected to seize opportunities. In recent years, consumers have attached greater importance to the camera performance of smartphones, and smart phone brands have focused on improving their camera functionalities. With the increasing number of models equipped with periscope cameras, high-magnification optical stabilization, variable apertures, large-size high-pixel camera modules, and other high-end camera module features, Q Tech, the leader in phone camera modules, will benefit.

Target price $4.9, stop loss price $3.5.

The author is the chairman of the Hong Kong Stock Analysts Association and he does not hold the above-mentioned stocks.
Author: Dr. Tang Shengxing, Chairman of the Hong Kong Stock Analysts Association.