Today's Headlines

Two departments: Encourage the replacement of small-capacity wind turbines with industry mainstream models that have large single-machine capacity and advanced technology.

Two departments issued a notice on the implementation plan for large-scale equipment renewal in the key areas of energy. The notice mentioned that according to the requirements of the "Management Measures for the Transformation and Upgrading and Retirement of Wind Power Plants", it encourages the transformation and upgrading of wind power plants that have been connected to the grid for more than 15 years or have a single-unit capacity of less than 1.5 megawatts. Encourage the replacement of small-capacity wind turbines with industry mainstream models that have large single-machine capacity and advanced technology, support the application of green low-carbon materials, new high-tower technology, land-saving technology, high-efficiency and intelligent wind turbine units, increase the power generation per unit of land area, improve the level of equipment and facility renovation and utilization, and enhance the quality and efficiency of wind energy, land, and power grid resources. Promote the establishment of comprehensive information monitoring for the entire process of transformation and upgrading and retirement projects of wind power plants. Encourage power generation enterprises, equipment manufacturing enterprises, and research institutions to carry out research on new technologies, new standards, and new scenarios, establish a sound wind power recycling industrial chain system, and cultivate and develop new forms of wind power recycling industry. The wind power equipment companies involved are Goldwind Science & Technology (02208) and C Transmission (00658).

【Outlook】

Overnight, the three major US stock indexes collectively rose.

Overnight, the US stock market closed with the Dow rising 55.52 points, or 0.14%, to 40,890.49 points; the Nasdaq rose 102.05 points, or 0.57%, to 17,918.99 points; and the S&P 500 index rose 23.73 points, or 0.42%, to 5,620.85 points. Nvidia (NVDA.US) rose nearly 1%, while Apple (AAPL.OUS) edged down. The Nasdaq Golden Dragon Index closed up 2.4%, and Alibaba (BABA.US) rose 3%. The minutes of the Federal Reserve meeting showed that policymakers strongly lean towards an interest rate cut in September. The Hang Seng Index ADR rose and closed at 17,504.29 points, up 113.28 points or 0.65% compared to the close of the Hong Kong market.

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NDRC: Promoting the renovation and technological transformation of thermal power equipment

NDRC issued the Implementation Plan for Large-scale Equipment Renovation in Key Energy Areas, pointing out the promotion of the renovation and technological transformation of thermal power equipment, continuously promoting the 'Three Reform Linkage' of energy-saving renovation, heating renovation, and flexibility renovation, further reducing the energy consumption of coal-fired generating units, and enhancing the units' flexible regulation capability. Promote the application of coal-fired and biomass coupled power generation technology demonstrations, support the low-carbon development of coal-fired power generation. Coordinate and optimize the structure of existing units, eliminate a batch of obsolete coal-fired generating units, and convert a batch of qualified shutdown units into emergency standby power sources. Appropriately relax the service requirements for the elimination and shutdown of coal-fired units located in urban built-up areas with demands for relocation to suburban areas. Based on unit safety and reliability, vigorously promote equipment safety updates and transformations. Accelerate the digital design and construction of thermal power generation and intelligent upgrades, and build intelligent power plants with smart sensing, intelligent diagnosis, intelligent control, and intelligent operation.

NDRC: Steadily promote the renovation and transformation of hydropower equipment

NDRC issued the Implementation Plan for Large-scale Equipment Renovation in Key Energy Areas, pointing out the steady promotion of the renovation and transformation of hydropower equipment, studying the improvement of flexibility and wide-load operation capabilities of hydropower generating units, exploring the potential of hydropower resources, improving the operational efficiency of old units, increasing the stable operation capabilities of units, and better adapting to the operational needs of new power systems. For hydropower projects where there is demand in the power system, conditions at the station, and guaranteed factors, the study promotes unit renovation and transformation. Promote the construction of basin-level centralized control for hydropower, carry out research on smart hydropower-related technologies, and gradually promote the intelligent operation of equipment and products. Involving HKEX Dongfang Electric Corporation (01072).

Two departments: Encouraging the overall transformation of old substations and transmission lines.

The General Office of the National Development and Reform Commission and the Comprehensive Department of the National Energy Administration issued the Implementation Plan for Large-scale Equipment Renovation in Key Energy Areas, encouraging the overall transformation of old substations and transmission lines, accelerating the replacement of transformers, high-voltage switches, reactive power compensation, protection and control equipment with long operating years and not meeting operational requirements, improving the safety capability of power grid operations. Keyly promote the transformation and renovation of transmission and transformation equipment in areas with high altitudes, high seismic intensities, repeated ice disasters, cold areas, frequent typhoon areas, frequent waterlogging areas, and frequent forest fire areas, enhancing the disaster resistance and disaster prevention capabilities of power grid equipment. Moderately advance the construction of distribution networks, enhance the carrying capacity of distribution networks, meet the development needs of distributed new energy and electric vehicle charging infrastructure. Keyly promote the capacity increase of old residential area distribution transformers, line and smart meter transformation. Play a guiding role in investment from the central budget, actively promote the consolidation and upgrading of rural power grids. Promote the research and development and application of advanced technologies such as flexible DC transmission, AC-DC hybrid power grids, low-frequency transmission, and intelligent scheduling, accelerate the digitalization and intelligence upgrading of power grids, expedite the construction of new generation control stations, and enhance the power grid control and fault diagnosis capabilities. Involving HKEX Wasion Holdings (03393).

Two departments: Encourage northern provinces to combine the operational status of clean heating equipment and include clean heating equipment in large-scale equipment renovation and consumer goods replacement programs

The General Office of the National Development and Reform Commission and the Comprehensive Department of the National Energy Administration issued the "Implementation Plan for Large-scale Equipment Renewal in Key Energy Areas", encouraging provinces in northern China to include clean heating equipment in the large-scale equipment renewal and consumer goods replacement plan based on the operation of clean heating equipment for clean heating, and increasing local financial, financial, and other policy support. Carry out renovation of clean heating equipment after the warranty expires, support the development of safe, efficient, advanced, and reliable clean heating technology, optimize and upgrade the clean heating technology route according to local conditions, ensure the long-term sustainable operation of the equipment after the update, and ensure that the public can afford and use it well.

The Cyberspace Administration of China and the Ministry of Industry and Information Technology jointly issued the "Action Plan for IPv6 Traffic Enhancement in Key Cities Nationwide"

The Cyberspace Administration of China and the Ministry of Industry and Information Technology jointly issued the "Action Plan for IPv6 Traffic Enhancement in Key Cities Nationwide", deploying IPv6 traffic enhancement actions in eight cities including Beijing, Tianjin, Shanghai, Shenzhen, Hangzhou, Hefei, Wuxi, and Yantai. The action plan focuses on improving fixed network IPv6 traffic, focusing on improving the end-to-end IPv6 penetration level and service quality, focusing on key links such as applications, terminals, networks, and platforms, by promoting the expansion of IPv6 traffic in large-scale Internet applications to increase the scale of IPv6 inflows, improving the IPv6 activation rate of home routers, improving the actual usage rate of IPv6 for key enterprise dedicated lines, comprehensively upgrading and transforming data centers to carry business, and improving the IPv6 support rate of cloud service products. These measures will significantly increase the proportion of IPv6 traffic in key cities' networks and enhance the internal driving force for IPv6 development nationwide. In order to ensure that the effectiveness of the work can be quantified, the "Action Plan" sets eight indicators, including the proportion of fixed network IPv6 traffic, the proportion of mobile network IPv6 traffic, the average proportion of IPv6 traffic on the fixed network side of large-scale Internet applications, the IPv6 activation rate of customized home routers, the IPv6 activation rate of public home routers, the actual usage rate of IPv6 for key enterprise dedicated lines, the average proportion of IPv6 traffic on the Internet enterprise data center exit, and the IPv6 support rate of cloud service products. It involves Hong Kong stocks ZTE (00763) + three major telecom operators.

The metal market was volatile in the first half of the year, and the London Metal Exchange's profits increased significantly.

Hong Kong Exchanges and Clearing Limited said that during the turbulent period of the global metal market, the trading volume of the London Metal Exchange surged in the first half of the year. Hong Kong Exchanges and Clearing Limited stated that the core profit of LME year-on-year increased by 82% to $0.816 billion. This is the strongest performance of the commodity department in many years. On the one hand, the trading of copper, aluminum, and other metals has become busier, and fees were also raised in early 2024. The metal market experienced a turbulent year, with copper prices reaching a record high in May due to concerns about supply shortages, and then falling due to concerns about the sluggish Chinese economy. LME metal trading fee revenue increased by 43% to $0.724 billion. It involves Hong Kong stocks HKEX (00388).

The Ministry of Commerce has initiated an anti-subsidy investigation into imported dairy products related to the EU.

The subsidy investigation period determined in this survey is from April 1, 2023, to March 31, 2024, and the industry damage investigation period is from January 1, 2020, to March 31, 2024.

Joint Procurement Office: Cancel the selected qualification of the selected enterprise for hydrobromic acid hexyl bromide injection and include the relevant bidding enterprises in the list of violations.

The National Medical Products Administration announced on August 21 that, after collective deliberation by all member units of the National Medical Products Administration, it was decided to cancel the selection qualifications of Chengdu Xinjie, Renheyikang, Guangzhou Apichope, and Shijiazhuang Siyao (02005) for their Yansuanbromide New Injection. The above 4 companies, as well as Shanghai Xudonghaipu and Jiangxi Eyou, both non-selected companies, are listed in the "Violation List." Subsequent to the prior discussions, Chengdu Xinjie, Renheyikang, Guangzhou Apichope, and Shijiazhuang Siyao have returned the losses of medical insurance funds, proactively reduced the price of Yansuanbromide New Injection, and selected 3-4 other drugs to voluntarily reduce their prices. Concurrently, due to the positive cooperation and provision of valuable leads by Renheyikang, Guangzhou Apichope, and Shijiazhuang Siyao, the participation qualifications of these 3 companies in the national centralized drug procurement have been temporarily suspended from August 21, 2024 to February 20, 2025; the participation qualifications of Chengdu Xinjie, Shanghai Xudonghaipu, and Jiangxi Eyou have been temporarily suspended from August 21, 2024 to August 20, 2025. The Yansuanbromide New Injection of the seventh batch of national centralized drug procurement has been invalidated, and local areas are required to manage the hanging network in accordance with non-procured products to ensure clinical supply.

FIT HON TENG (06088) plans to invest 0.18 billion euros in FIT Singapore.

FIT Hon Teng announced that the company plans to inject 0.18 billion euros into its wholly-owned subsidiary, Foxconn Interconnect Technology Singapore Pte. Ltd. (FIT Singapore); FIT Singapore plans to inject 0.18 billion euros into its wholly-owned subsidiary, Foxconn Interconnect Technology GmbH (FIT GmbH); and FIT GmbH plans to inject 0.18 billion euros into its wholly-owned subsidiary, FIT Voltaira Autokabel Gruppe GmbH.

Zhenjiu Lidu (06979) released its half-yearly performance: revenue increased by 17.5%, net profit increased by 26.9%.

The only baijiu stock in the Hong Kong stock market, Zhenjiu Lidu, released its half-year performance for 2024: revenue of 4.133 billion yuan, a 17.5% year-on-year increase, an increase of 2.5 percentage points from the same period last year; adjusted net profit of 1.02 billion yuan, a 26.9% year-on-year increase, an increase of 4.9 percentage points from the same period last year; gross margin of 58.8%, and adjusted net margin of 24.6%, an increase of 0.9 and 1.8 percentage points respectively from the same period last year. In a deeply adjusting baijiu industry, Zhenjiu Lidu has maintained growth for 4 consecutive years, and major indicators have shown a qualitative and quantitative increase, with continuously enhanced profitability.

Xiaomi Corporation-W (01810) achieved a record high revenue in the second quarter, with an adjusted net profit of approximately 6.175 billion yuan, representing a 20.1% year-on-year increase.

Smart Finance and Economics APP reported that Xiaomi Corporation-W disclosed its performance for the second quarter of 2024, with revenue of approximately 88.888 billion yuan, reaching a historical high, a 32% year-on-year increase, and a 17.7% increase from the previous quarter. The gross profit was approximately 18.394 billion yuan, a 29.9% year-on-year increase, and a 9.3% increase from the previous quarter; adjusted net profit was approximately 6.175 billion yuan, a 20.1% year-on-year increase. The interim profit was approximately 5.07 billion yuan, a 38.3% year-on-year increase, and a 21.5% increase from the previous quarter.

AIA Insurance (01299) released its interim performance, with new business value increasing by 25% to 2.455 billion US dollars, reaching a historical high. It plans to distribute an interim dividend of 44.50 Hong Kong cents per share.

Zhitong Finance APP News, AIA Insurance released its interim performance for the six months ended June 30, 2024, with growth rates shown on a fixed exchange rate basis: total weighted premium income of 21.086 billion US dollars, a year-on-year increase of 12%; net operating surplus after tax of 3.386 billion US dollars, a year-on-year increase of 7%; basic net operating surplus per share of 30.18 US cents, a year-on-year increase of 10%. Return on equity for shareholders' distribution is 15.3%, higher than the full-year 13.5% in 2023. The compound annual growth rate of net operating surplus per share from 2023 to 2026 is targeted at 9% to 11%; interim dividend is HK$ 44.50 per share.

Stock Forecast:

Innovent bio (01801): China's first KRAS G12C inhibitor, Tavalisse, approved by the National Medical Products Administration for marketing.

Zhitong Finance APP News, Innovent Bio announced that Debort (Fluzpirapine tablets) has been approved by the National Medical Products Administration(NMPA) Drug Evaluation Center in China for the treatment of advanced non-small cell lung cancer (NSCLC) in adults with the KRAS G12C mutation, who have received at least one systemic therapy.

Debort (Fluzpirapine tablets) is the first approved KRAS G12C inhibitor in China, which will benefit more lung cancer patients with KRAS G12C mutations.