Golden Finance | Hang Seng Index closed at 18,247 on Monday (23rd), down 11 points or 0.1%; total market turnover reached 124.2 billion yuan. The China Index rose 0.12% to 6,389, while the Technology Index fell 0.2% to 3,698. The Hong Kong stock market's 'Typhoon Signal No. 8' was officially implemented, with the Hong Kong Exchange (00388) dipping 0.2%; US nuclear power stocks rallied last Friday evening due to the US nuclear reactor restart, providing power to the Microsoft AI Center, leading to a surge of 8.2% in CGN Mining (01164) listed in Hong Kong for the entire day.

Dow Jones closed at 42,124 points on Monday (23rd), up 61 points or 0.15%; S&P 500 rose 0.28% to 5,718 points; Nasdaq rebounded 0.14% to 17,974 points; the Golden Dragon Index reflecting the performance of Chinese concept stocks rose 1.36%, with Miniso (09896) indirectly wholly-owned subsidiary acquires Yonghui Superstores Ltd. (~2.668 billion shares), accounting for 29.4% of Yonghui's issued share capital, Miniso ADR plunged 16.7%. Despite brokerage Jefferies lowering Boeing's aircraft delivery forecast for the year due to labor strikes, Boeing's stock price stopped falling and rose 2%; General Motors (GM), down 1.7% due to brokerage pessimism. The Asia-Pacific stock markets this morning (24th) diversified, with the Nikkei 225 Index currently at 38,251 points, up 1,096 points or 2.95%. The Korea Composite Index currently at 2,601 points, down 1 point or 0.01%. People's Bank of China supports stock market development, Hong Kong stocks continue to rise.

Market Focus: BYD Electronic (00285)

Consumer electronics demand recovery, against the backdrop of AI smartphones entering the native stage. Apple's iPhone16 series launched in mid-September received a warm reception. In addition, the highly prosperous new energy vehicle and energy storage industry in the past two years have seen a rapid increase in battery demand. Xiaopeng MONAM03, listed at the end of August, received over 10,000 large orders shortly after the press conference, adopting BYD Electronic's 'Blade Battery'. One of the leaders in the power battery industry worth paying attention to is BYD Electronic (285). The group's revenue in the first half of 2024 was 78.6 billion yuan, a year-on-year increase of 39.9%. Revenue growth meets expectations, mainly benefiting from Apple's market share growth and further product expansion in the new energy vehicle supply chain. AI servers will become the group's profitable next-generation ODM product. The group is cooperating with NVIDIA on AI server development, expecting surprises in the group's AI server business and new energy vehicle orders in the second half of 2024. The group has accumulated a lot of experience in automotive liquid cooling, providing a unique competitive advantage for its AI server business. It is believed that the group's performance in the second half of 2024 will continue to benefit from Apple's market share growth, AI server business, and new energy vehicle orders.

Target price $34, stop loss price $24

(The author is a licensed person of the China Securities Regulatory Commission and does not hold any of the above stocks.)

Author: Dr. Tang Shengxing, Chairman of the Hong Kong Stock Analysts Association.