On 18th Tuesday, Hong Kong Hang Seng Index closed at 17915, down 20 points or 0.1%. The market turnover was 92.342 billion yuan for the whole day. The national index fell slightly by 5 points to 6368, while the science and technology index fell by 12 points or 0.3% to 3697. Mobile phone stocks continued to rise. AAC Technologies (02018) rose 2.5% for the ninth consecutive day; Sunwoda (02382) rose by 3.8%, the largest blue chip gain; and railway infrastructure stocks rose across the board. China Railway (00390) rose 1.2%; China Railway Construction (01186) rose 2.2%;
On Tuesday 18th, the Dow Jones Industrial Average closed at 38834 points, up 56 points or 0.15%. The S&P 500 rose by 0.25% to 5487 points, while the Nasdaq rebounded by 0.03% to 17862 points. The Golden Dragon Index, which reflects the performance of Chinese concept stocks, fell by 0.41%. European stocks rose, with the UK, France and Germany up 0.6%, 0.76% and 0.35% respectively. Among heavyweight stocks, Nvidia rose 3.5% to a new high of $135.58, with a market value of over $3.33 trillion, surpassing Microsoft to become the world's market value leader for the first time, and reaching a high of $136.33 during the day. According to data from the analysis company Washington Service, excluding the impact of stock splits, internal personnel of Nvidia have sold about 770,000 shares of Nvidia, worth more than $700 million, since the beginning of this year. Apple slipped 1.1% and Meta gave back 1.4%. Some Asia-Pacific stock markets this morning (19th) saw individual gains, with the Nikkei 225 index currently at 38707 points, up 225 points or 0.59%, and the South Korean composite index currently at 2791 points, up 27 points or 0.99%. Hong Kong stocks remained weak and may have to search for a bottom again.
Market Focus: Lenovo Group (00992)
In the field of artificial intelligence, breakthroughs have been made recently. Lenovo Group (992) has released a new full-stack computational infrastructure product, the Lenovo QauntumThink WR5220G5, which is the first to be equipped with Intel Xeon 6 energy-efficient core processors, to accelerate the construction of the AI 2.0 era. The group recorded a strong recovery in performance for the fourth quarter of 2024, with revenue of 13.8 billion yuan (USD, the same below), an increase of 9.5% year-on-year. The Intelligent Devices Group (IDG), Infrastructure Solutions Group (ISG) and Solution Service Business Group (SSG) achieved revenues of 10.5 billion yuan, 2.5 billion yuan and 1.8 billion yuan respectively, an increase of 7%, 15% and 10% year-on-year. The gross margin rate for the fourth quarter reached 17.6%, up 0.6% year-on-year. The six AI-enabled AIPC versions launched by the group in April have been sold through all channels in China, and the IDG's intelligent device business is expected to recover in the first quarter of 2024, with market share in PCs and smartphones expected to rise, as two MicroSoft Copilot+PCs released jointly with Qualcomm were launched on May 21.
Target price $13, stop loss price $9.4.
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.