It was another tough month, worse than expected. Last month it was noted: "Entering September, the overall feeling is HARD mode, because there are too many uncertainties." Hong Kong stocks fell almost unilaterally in September, trading within a range of 24,275.56 to 25,791.38 points. In terms of rhythm, the view mentioned was: "The important time point is the mid-month Federal Reserve interest rate meeting, and also beware of sharp volatility at the end of the month." That was roughly what happened. The Fed ultimately delivered a hawkish rate hike, causing the market to weaken continuously, and after the hike, the meeting between Chinese and U.S. heads of state stimulated sentiment for a few days of consecutive rebounds. But by the end of the month, it bottomed out again. Under the backdrop of Fed rate hikes, many sectors performed poorly, with only a few showing resilience, such as bank stocks, which were very stable, with the four major state-owned banks plus China CITIC Bank (00998) all hitting historic highs. The most eye-catching performer was undoubtedly the pharmaceutical sector, mainly driven by various BD deals, clinical data, and policy catalysts, with representative names including AI pharmaceutical leader and Zhitong September pick Insilico Medicine (03696), CXO player GenScript Biotech (01548), and others; the agriculture and animal husbandry sector was also relatively stable due to El Niño events. From an event-driven perspective, the September Hong Kong Stock Connect list adjustment triggered a round of significant speculation, with newly included targets continuously receiving southbound incremental capital to form a liquidity premium, and many names were speculated on, with the representative being Yingxing Holdings (01440); there was also the tariff reduction concept stock Goodbaby International (01086) related to the heads-of-state meeting, which doubled. The technology sector basically did nothing, with the application side catalyzed by Meta's launch of an independent AI agent app Muse, driving retail AGENT concept stock Duodian Zhishi (02586) to double; on the hardware side, core name Lenovo Holdings (03396) had a strong performance. Others included "new energy + AI + computing power" Zhonghuan New Energy (01735). Looking ahead to October's Hong Kong stock trend, it should be somewhat better than September, but generally it will likely be range-bound trading, and it will be difficult to break out into a trending market. The biggest variable in the market is the October Fed interest rate meeting. Based on September's situation, the Fed raised rates by 25 basis points to 3.75%-4.00%, and the dot plot showed possibly one more hike within the year. Whether October will see a hike is therefore quite critical, because it would mean entering a rate hike cycle rather than preventive hikes. The good news is that on Wednesday, official data showed that the U.S. August core PCE price index rose 3.0% year-on-year, below market expectations of 3.3%, with the previous reading at 3.3%; month-on-month it rose 0.2%, versus expectations of 0.3%. The overall PCE price index rose 3.4% year-on-year, versus expectations of 3.7%, and rose 0.3% month-on-month, in line with expectations. Meanwhile, U.S. consumer spending remained strong, with inflation-adjusted August personal consumption expenditures rising 0.6% month-on-month, the largest increase since March 2025. After the data release, traders reduced bets on a Fed October rate hike. If there is no hike in October, market sentiment will clearly improve. Of course, the most critical factor here is international oil prices. If oil prices continue to stabilize and decline, a rate hike becomes impossible. And oil prices depend on the situation in the Middle East conflict, with the U.S.-Iran game being key. Currently, the U.S. midterm elections are the main event, and Trump will most likely not take drastic offensive actions, but rather combine negotiations with various sanctions, while Iran takes this opportunity to significantly raise its negotiating price. If the two sides cannot find a balance point, it will probably be various tug-of-war. The reason Trump is relatively tough this time is that the September summit had a consensus: Iran does not have nuclear weapons, and international waterways are prohibited from charging fees. This is equivalent to drawing a red line. Another point is that foreign investment banks disclosed that Middle East crude oil exports may have already approached pre-war levels. The war has not ended, but U.S. military escorts, local fleet transfers, and Saudi oil pipeline bypasses have significantly eased supply pressure. Moreover, this kind of chaos in the Middle East is also an excellent opportunity for U.S. oil to sell aggressively and increase market share. On China-U.S. relations, the heads-of-state meeting indeed played a leading role. This time, 8 points of consensus were reached. For us, the core lies in establishing mechanisms such as a trade council, reaching a $30 billion reciprocal tariff reduction arrangement, and extending the trade truce by 60 days. China and the U.S. will continue talks subsequently, focusing on the $30 billion commodity list, specific tariff reduction magnitudes and effective dates, whether the two sides can achieve new economic and trade results after the phased economic and trade arrangement extension, and whether the U.S.'s ongoing Section 301 investigation and Section 232 measures will bring new tariff adjustments. But various games will continue, especially in the high-tech field, generally showing a situation of competition, cooperation, and control. As for China and the EU, trade negotiations have been ongoing all summer because Europe hopes to reduce its record trade deficit with China before October. China's Ministry of Commerce warned: if Europe imposes restrictions on Chinese companies, it will take retaliatory measures. Europe itself has already become a blood bank for the U.S.; even the U.S. knows to cooperate, but unexpectedly Europe still cannot figure out its direction. The 10-year U.S. Treasury yield once touched 5.29%, and long-end rates suppressing U.S. stocks are investors' biggest concern. However, JPMorgan is boosting confidence: pointing out that its team judges the market environment is improving marginally: bond yields are gradually finding a support range, and international oil prices are expected to fluctuate downward. The core logic supporting its full bullish turn is as follows. Macro fundamentals: the latest preliminary PMI shows that the resilience of U.S. economic expansion exceeds market pricing expectations, which is expected to inject momentum into corporate hiring, final consumption, and profit growth. S&P 500 earnings per share growth has historically been highly tied to nominal GDP rather than real GDP, and the current economic fundamentals mean that previous earnings expectations were clearly too pessimistic. Consumption shows resilience: although the market continues to worry that high inflation and a tightening rate environment will erode household purchasing power, actual consumer spending data frequently beats expectations, which not only supports the economy but also refutes the "K-shaped divergence" economic hypothesis. At present, the U.S. labor market is improving and driving further improvement in consumption performance. Domestically, the September manufacturing PMI rose 0.3 percentage points to 50.1, returning above the boom-or-bust line after two months, with the rebound slightly weaker than seasonal patterns. But domestic demand is sluggish, and China's economic trend will rely more on policy support. The State Council Executive Meeting's "roll out a batch of pragmatic and effective incremental policies" has begun to gradually land. On September 29, the Ministry of Finance, the central bank, and the National Financial Regulatory Administration jointly issued a policy to subsidize resident home purchase loan interest. The policy mainly benefits lower-tier cities and first-time homebuyers and provides some stimulus to the real estate industry. At the same time, the central bank lowered the interest rate on pledged supplementary lending (PSL) and expanded its support scope—the one-year PSL loan rate was cut from 1.75% to 1.5%. In addition, the central bank included the construction of "six networks"—water networks, new-type power grids, computing power networks, next-generation communication networks, urban underground pipe networks, and logistics networks—into PSL support areas. Subsequently, focus on observing early October: the National Bureau of Statistics releases September real estate sales, sales of the top 100 developers, and home prices in 70 cities. If sales recover, the mainland property market trend will continue; if below expectations, expectations are likely to be hit. Mid-October: September social financing, credit, CPI/PPI, and third-quarter GDP data. Strong social financing will raise overall market risk appetite. Overseas long-term funds remain underweight Chinese equities, and incremental capital is limited; mainly hedge funds and passive ETF funds do band trading. Southbound capital net inflow accelerated to HK$55.02 billion in September, increasing its pricing power over Hong Kong stocks and enhancing the Hong Kong market's ability to withstand external disturbances. In summary, Hang Seng Index is expected to remain range-bound between 24,000 and 26,000 in October, and breaking above the upper or lower limits would require strong external factors. October 2026 Investment Strategy: Defense as the foundation, seize impulse opportunities. Zhitong Finance's September picks significantly outperformed the market. In the same period of September, the Hang Seng Index's maximum gain was 0.9%; the top ten picks' average maximum gain in September was 11.2%. The monthly maximum gains of the top ten picks are specifically as follows: Insilico Medicine (03696) rose 49.1%, Kingboard Laminates (01888) rose 14.7%, Marketingforce (02556) rose 12.3%, Ju Hui Technology (01729) rose 11.5%, China Nonferrous Mining (01258) rose 7.8%, Zhipu (02513) rose 5.7%, First Tractor Company (00038) rose 5.4%, Shougang Resources (00639) rose 2.5%, AAC Technologies (02018) rose 1.5%, and CICC (03908) rose 1.4%. A unilateral decline is indeed quite difficult to trade, and last month we again caught a big gainer, so overall returns were still acceptable. Against the backdrop of October's range-bound market, capital choices will tend to be more prudent. Also, during the National Day period there will be no southbound capital support for a while, making it even harder. From the perspective of positive factors, hopes basically rest on the Fed not hiking, while domestic policy stimulus already came out at the end of September, and it is unlikely that new measures will appear in October. Of course, there is also the U.S.-Iran negotiation, such as reaching results. But these are unpredictable scenarios, so longer-term funds will not dare to bet heavily, and more will favor defensive names. Short-term funds, however, will enter to speculate under various events or sudden positive news. Therefore, October's strategy is: defense as the foundation, seize impulse opportunities. Within defense, pharmaceuticals remain the main focus. On the policy side: the "14th Five-Year Plan for Pharmaceutical Industry Development" was issued, with core aggregate targets (by 2030) of large-scale pharmaceutical industry revenue ≥ RMB 3.5 trillion, innovative drug industry average annual growth ≥ 20%, and FIC (first-in-class innovative drugs) accounting for more than 25% globally. Key tracks: cell/gene therapy, novel antibodies, nucleic acid drugs, radiopharmaceuticals, orphan drugs, pediatric drugs, and drugs against undruggable targets. AI is used for target discovery, molecular design, clinical trials, and production quality control; cultivate AI pharmaceutical implementation scenarios. There are also event catalysts: October 23–27, ESMO European Society for Medical Oncology Congress (Madrid). Many innovative drug companies in Hong Kong will disclose clinical data. If positive data leads to sharp gains in individual stocks, clinical failure will cause sharp drawdowns. This is the most important catalyst window for the Biotech sector, and the market will speculate in advance. Ports are also defensive names, and with the APEC meeting in mid-November, opportunities are expected. Impulse directions include China and the U.S. reaching a "$30 billion" reciprocal tariff reduction arrangement, in which U.S. imports from China mainly include small home appliances, toys, holiday decorations, child car safety seats, and other consumer goods. The full commodity list, specific tariff reduction magnitudes, and effective dates have not yet been announced, and once announced, this is likely to trigger market speculation. The APEC meeting will be held in mid-November, but the market generally front-runs. If there is no rate hike, then gold and nonferrous metals should have opportunities, especially since they have already corrected sufficiently. Nickel is chosen in nonferrous metals because it is an A+H share type, and new share listings in A-shares will create linkage. In the technology direction, basically do not consider hardware, because the market has obvious differences on this, and U.S. artificial intelligence companies are "investing huge amounts of money," but whether these companies' revenue can support such massive expenditure is questionable. However, the application side is worth watching, such as AI short dramas, AI film and television, and so on, which are expected to have many catalysts. At the fundamental level, the main improvements include lower-tier city real estate stocks benefiting from the interest subsidy policy, related construction machinery and heavy trucks, and European energy transition wind power, among others. Specific names: Pharmaceuticals: Biocytogen (02315), Hutchmed (00013). Nickel: Lygend Resource (02245). Gold: Chifeng Gold (06693). Wind power: Dajin Heavy Industry (01081). Consumer: Anker Innovations (00668). Film and television: China Ruyi (00136). Heavy trucks: Sinotruk (03808). Real estate: China Overseas Grand Oceans (00081). Ports: COSCO Shipping Ports (01199). The detailed list is as follows: 1. Biocytogen (02315). In the first half of 2026, the company achieved operating revenue of RMB 941 million, up 51.60% year-on-year; net profit attributable to shareholders was RMB 241 million, up 402.29% year-on-year; net profit attributable to shareholders after deducting non-recurring items was RMB 197 million, up 591.53% year-on-year. In addition, second-quarter 2026 operating revenue was RMB 508 million, up 36.79% year-on-year; net profit attributable to shareholders was RMB 137 million, up 123.79% year-on-year; net profit attributable to shareholders after deducting non-recurring items was RMB 107 million, up 156.12% year-on-year. In the first half of 2026, the preclinical products and services business centered on innovative animal model sales achieved operating revenue of RMB 723 million, up 57.94% year-on-year, with a gross margin of 75.22%, of which the model animal business achieved revenue of RMB 446 million, up 62.44% year-on-year, with a gross margin of 82.30%; the antibody discovery business achieved revenue of RMB 218 million, up 33.77% year-on-year, with a gross margin of 92.82%. As of 2026H1, the company had cumulatively signed more than 455 drug co-development/licensing/transfer agreements, of which more than 105 were newly signed in the first half of 2026. At present, more than 10 candidate molecules have successfully advanced to the clinical trial stage, and it has reached RenMice platform licensing and development cooperation with partners including multiple MNCs. At present, the company has formed deep technological advantages in innovative animal model development and antibody drug discovery. As of 2026H1, the company had internally developed about 5,670 gene-edited animal and cell models, including more than 2,300 target humanized mice, and had completed more than 10,700 drug evaluation projects for about 1,500 partners worldwide. In addition, the company continues to upgrade the Thousand Mice, Ten Thousand Antibodies plan. It has currently completed evaluation and research on about 1,200 targets and has basically conducted antibody development for all targets, forming a "shelf" of more than one million antibody molecule sequences with rich binding epitopes. In May 2026, the company officially released a new-generation AI-driven antibody discovery platform, RenSuperWorkstation, successfully building a triple-driven architecture of "real antibody sequence library + AI + automated intelligent manufacturing platform." 2. Hutchmed (00013). The company is an innovative pharmaceutical enterprise founded in 2000, focusing on oncology and immune diseases and building an integrated platform from R&D to commercialization. The company has achieved commercialization of multiple products in China, and its core product fruquintinib has also successfully entered major global markets such as the U.S., Europe, and Japan, marking continuous improvement in its global ability to realize innovation outcomes and international competitiveness. Fruquintinib's inflection point is near, and sales are expected to return to an upward trajectory. 1) For the drug's mature indication of third-line colorectal cancer (3L CRC), the domestic market has emerged from a phased trough, with sales stabilizing and recovering; in 26H1, sales of the product were about $61 million (up 41% year-on-year). 2) Overseas sales for 3L+ CRC were $185 million, of which markets outside the U.S. grew 70% year-on-year in 26H1. 3) Domestic second-line endometrial cancer (2L EMC) was approved in 2024, included in medical insurance in 2025, and second-line renal cell carcinoma (2L RCC) was also launched in 26H1. These will jointly open up the medium- to long-term growth space for fruquintinib and drive domestic and overseas sales back into a rapid upward channel. Savolitinib's new indications are accelerating to market, and global sales are worth anticipating. Although in the first half of 2025 savolitinib sales in 1L/2L MET exon 14 skipping mutation indications came under phased pressure, it is judged that its subsequent growth momentum is clear: 1) Domestically, as the new indication of 2L EGFR mutation/MET amplification is expected to be included in medical insurance in 2026, this will drive a recovery in domestic sales. 2) Overseas, with positive top-line results from the Phase III SAFFRON study, the indication is expected to submit an NDA in 26H2, thereby promoting global commercial ramp-up of savolitinib. 3) Third-line treatment of MET-amplified gastric cancer was also approved in 26H1, and first-line treatment of MET-overexpressing EGFR mutation-positive non-small cell lung cancer (SANOVO) is also expected to read out registrational clinical data in 26H2. The subsequent launch of these indications is expected to further expand savolitinib's domestic and international sales space. Innovative technology ATTC opens upward elasticity, and sovleplenib will submit an NDA in 2026. 1) The ADC drug R&D platform ATTC uses antibody-conjugated small molecules. At present, two molecules (PI3K/PIKK conjugated with HER2 and EGFR) have entered global Phase I clinical trials, and the third is expected to enter global Phase I clinical trials in 26H2. The platform has a unique mechanism, strong scarcity, and the company is progressing quickly, with great overseas potential. 2) Two indications for sovleplenib completed marketing submission (NDA) in 26H1 and are expected to be approved in 2027. 3. Lygend Resource (02245). In 2025, the company achieved revenue of RMB 40.24 billion, up 37.7% year-on-year, and net profit attributable to shareholders of RMB 2.86 billion, up 61.2% year-on-year; in 25H2, revenue was RMB 22.09 billion, up 21.7% quarter-on-quarter, and net profit attributable to shareholders was RMB 1.43 billion, flat quarter-on-quarter; for 2025, it plans to pay a dividend of RMB 0.6 per share (including tax), totaling RMB 930 million in cash dividends, with a payout ratio of 32.6%, corresponding to a dividend yield of 3.5% based on the April 2 closing price. In 2025, the company officially launched a wet-process slag resource utilization demonstration project and an MHP refining project, completed project feasibility studies and regulatory filings, and ensured the projects progressed on schedule. Core highlights: 1) Signing long-term agreements to secure nickel ore supply, with significant ore price advantages. The company's Indonesian nickel smelting project receives nickel ore raw materials from a partner, and the two parties signed a 20-year agreement to secure nickel ore supply. Nickel ore pricing uses the guidance price stipulated by the Indonesian government, giving outstanding cost advantages in nickel ore raw materials. 2) Indonesia plans 400,000 tons of nickel capacity, with large capacity elasticity. The company and its partner plan 120,000 tons of wet nickel and 280,000 tons of pyrometallurgical nickel capacity in Indonesia. The six pyrometallurgical nickel production lines reached full production on schedule in 2025, and all remaining lines are planned to be put into operation in 2026, representing a large capacity increment. 3) Nickel and cobalt resonance, growth is worth anticipating. The Democratic Republic of the Congo, the world's largest cobalt raw material supplier, has a firm stance on supporting prices and implements an export quota system. Cobalt supply has shrunk significantly, the industry supply-demand pattern has reversed, and the cobalt price center has moved upward. Indonesia tends toward resource nationalism, and nickel ore quotas are expected to shrink, supporting nickel prices. The company's wet-process nickel capacity is located in Indonesia, and sales are not affected by DRC export restrictions, so it is expected to benefit from rising nickel and cobalt prices, with remarkable growth. In summary, the company has cost advantages in nickel ore raw materials, large capacity elasticity, DRC has significantly reduced cobalt supply, the cobalt price center has clearly moved upward, Indonesia plans to reduce nickel ore quotas, and with nickel and cobalt resonance, the company has strong growth. 4. Chifeng Gold (06693). The company released its 2026 semi-annual report. During the reporting period, it achieved operating revenue of RMB 7.018 billion, up 33.11% year-on-year; net profit attributable to shareholders of RMB 1.732 billion, up 56.50% year-on-year; basic earnings per share of RMB 0.92, up 46.03% year-on-year; and net cash flow from operating activities of RMB 1.880 billion, up 16.60% year-on-year. In 2026H1, the company's self-produced gold revenue was RMB 6.178 billion, up 30.16% year-on-year, with a gross margin of 61.63%, up 7.11 pct year-on-year. The average selling price of self-produced gold was RMB 1,008.52 per gram, up 44.08% year-on-year. The sharp increase in selling price was the main source of revenue growth. In 2026H1, the company's self-produced gold output was 6,149.24 kg, down 8.96% year-on-year, and sales volume was 6,125.63 kg, down 9.45% year-on-year, mainly due to technical renovation construction at the Laos Sepon mine and limited sulfuric acid supply, which caused output to fall below budget. The decline in output was offset by the rise in gold prices, and self-produced gold revenue still achieved positive growth; medium-term increments are expected to come from the Ghana Wassa ADK decline ramp (expected to contribute 180,000 tons of ore in the second half) and domestic mine expansion projects. In 2026H1, the unit operating cost of mineral gold was RMB 383.44 per gram, up about 20.18% from RMB 319.06 per gram in the same period last year, with a relatively large overall cost increase. Main reasons: first, higher taxes and fees. Rising gold prices led to year-on-year increases in resource tax, royalty, and sustainable development tax. Ghana adjusted its resource tax in April 2026 from 5% to a tiered tax rate of 5%-12%, further pushing up unit costs; second, technical renovation and large-scale maintenance at some mines affected gold output. With the completion of technical renovation and maintenance, the company's output in 26H2 is expected to recover, and costs are expected to decline. On March 22, 2026, the company's controlling shareholder and actual controller Ms. Li Jinyang and her concerted party Zhejiang Hanfeng Venture Capital Partnership (Limited Partnership) signed an "Equity Transfer Agreement Regarding Chifeng Jilong Gold Mining Co., Ltd." with Zijin Gold (Group) Co., Ltd. Ms. Li Jinyang and her concerted party planned to transfer all of their total 241,925,746 unrestricted tradable shares to Zijin Gold; on March 22, 2026, approved by the sixth meeting of the company's ninth board of directors, the company signed a "Strategic Investment Agreement" with Zijin Gold, and the company planned to issue 310,902,731 H shares of ordinary shares to Zijin Gold. After the above transactions are completed, Zijin Gold will become the company's controlling shareholder. After Zijin takes control, the company's operating capability is expected to improve further. 5. Dajin Heavy Industry (01081). In the first half of 2026, Dajin Heavy Industry achieved operating revenue of RMB 3.253 billion, up 14.48% year-on-year; net profit attributable to shareholders of RMB 601 million, up 9.89% year-on-year; net profit attributable to shareholders after deducting non-recurring items of RMB 589 million, up 4.57% year-on-year. In terms of profitability, the company's comprehensive gross margin reached 37.53%, up 9.36 percentage points from 28.17% in the same period last year; the net margin attributable to shareholders (net profit attributable to shareholders/revenue) was 18.46%, down 0.77 percentage points from 19.24% in the same period last year. By business, the gross margin of wind power equipment products was 35.90%, up 10.37 percentage points year-on-year; the gross margin of export business was 39.36%, up 8.67 percentage points year-on-year. The improvement in gross margins of wind power equipment and export business reflects the profit contribution of high-end offshore engineering delivery and provides operating support for the company to further expand overseas markets. In the first half, the company's export revenue was RMB 2.675 billion, up 19.25% year-on-year, accounting for 82.25% of total revenue. Export offshore engineering delivery volume was nearly 120,000 tons, a record high for the same period in history, mainly supplying wind power monopile foundations and a small amount of tower sections from the Penglai base to the European market, of which all monopile foundations adopted the DAP destination delivery model. During the reporting period, the Caofeidian offshore engineering base was officially put into production and completed the first batch of exported offshore wind monopile manufacturing, with an annual capacity of about 400,000 tons, capable of supporting extra-large monopiles, floating foundations, jackets, and other products required for 15–25MW large wind turbines. The base is equipped with a 100,000-ton dedicated deep-water wharf, promoting the connection among production, coating, and shipment. The delivery experience accumulated at the Penglai base and the new capacity at Caofeidian are expected to work together to enhance the company's supply capacity for large-scale offshore engineering products and overseas project delivery capability. The KINGONE vessel has completed two European monopile transport voyages, the second vessel of the same type, KINGTWO, has been delivered, and the third, KINGTHREE, is planned for delivery in September 2026. The company plans to put all three KING-series vessels into operation within the year. In terms of ship design and construction, the company has cumulatively signed orders for 24 new vessels, with a total contract value of about RMB 12 billion and delivery periods from 2027 to 2030. The vessel types cover large bulk carriers, deck carriers, unpowered semi-submersible barges, and multi-purpose heavy-lift vessels. At the same time, the company has arranged four base ports in Germany, Spain, Denmark, and other places, and some overseas offshore engineering projects already include base port services. The coordinated advancement of its own transport fleet, shipbuilding, and overseas base port layout is expected to broaden the service scope and promote the company's upgrade from an equipment supplier to an integrated service provider of manufacturing, transportation, and delivery. 6. Anker Innovations (00668). In 2026H1, the company achieved revenue of RMB 16.61 billion, up 29.1% year-on-year; net profit attributable to shareholders of RMB 1.70 billion, up 45.9% year-on-year; net profit attributable to shareholders after deducting non-recurring items of RMB 1.44 billion, up 49.7% year-on-year. Among this, single Q2 revenue rose 30.9% year-on-year, with revenue growth accelerating quarter-on-quarter; net profit attributable to shareholders after deducting non-recurring items rose 71% year-on-year. In 26Q2, the company's gross margin was 55%, up 9 pct year-on-year; net margin attributable to shareholders after deducting non-recurring items was 9.9%, up 2.3 pct year-on-year. The gross margin exceeded market expectations, judged mainly due to IEEPA tariff refunds reducing operating costs, combined with product structure optimization, a higher proportion of high-gross-margin new products, and economies of scale. In addition, in 2026Q2, the company's period expense ratio rose 2.6 pct year-on-year, of which selling and administrative expense ratios together fell 0.8 pct year-on-year, while the R&D expense ratio rose 2.5 pct year-on-year, possibly mainly due to accelerated energy storage product iteration and continued investment in new businesses such as AI; the financial expense ratio rose 0.9 pct year-on-year, mainly due to exchange losses, increased interest expenses on convertible bonds, and increased handling fees brought by business scale expansion. According to the financial report, in 2026H1, the company's charging and energy storage/smart innovation/smart audio-visual revenue rose 31%/29%/25% year-on-year respectively; by region, North America/Europe revenue rose 33%/29% year-on-year respectively, advancing globalization in depth; by channel, Amazon revenue rose 20% year-on-year, with its share falling to 46%, while other third-party platforms/official website/offline revenue rose 96%/39%/25% year-on-year respectively, continuing channel diversification. Charging and energy storage remains the most anticipated increment and is expected to continue benefiting from high overseas electricity prices, subsidies, and energy independence demand: among these, the UK market's liberalization of plug-and-play photovoltaics allows continued expansion, Australia's OSW cooperation of about 3GWh opens household storage channels, and U.S. household storage is gradually scaling up, accelerating the realization of multi-region growth logic. Looking ahead to H2 and the medium to long term, the dual drivers of energy storage + AI hardware are expected to enhance growth certainty. (1) Charging and energy storage: in the small charging category, revenue growth in 2026H2 is expected to recover (2025H2 may have been dragged down by supply chain switching and phased disruptions), and the downstream demand and product upgrade logic continue to be validated; in the medium and large charging category, the company launched new products such as SolarbankMaxAC and Solarbank4E5000Pro, and with regional expansion and channel deepening, demand and shipments are expected to accelerate. (2) Smart innovation category: at IFA, it launched MindBase, a home local AI hub, with AI improving the experience of security and other products. (3) Smart audio-visual category: the company launched multiple new headphone products equipped with Thus?AI audio chips, with AI continuing to empower and consolidate category growth momentum and market share. 7. China Ruyi (00136). China Ruyi previously released its interim results for the six months ended June 30, 2026. The group achieved revenue of RMB 1.183 billion; adjusted net profit of RMB 952 million; and basic earnings per share of RMB 0.05. In the first half of 2026, the group anchored its medium- and long-term development plan, focused on improving quality and efficiency, and built a solid foundation for sustainable operations. During the reporting period, performance adjustments were mainly affected by project cycles and strategic investment: on the one hand, revenue recognition in the group's film and television and gaming businesses was affected by project production, distribution, and launch cycles. Some key projects were still in production, distribution preparation, or pre-launch stages during the reporting period, and related investment and some costs and expenses were incurred during the reporting period, while revenue and profit contributions are expected to be reflected in the second half. On the other hand, the group continued to increase strategic investment in top-quality content, AI technology R&D, reserves of world-class IP, and industrial chain integration, and the related investment had not yet fully translated into revenue contribution in this reporting period. As of the reporting date, "Eight Immortals!" and "Welcome to Long Restaurant" had been released and achieved good market performance, "Immortal Grand Master" had officially launched, and other key film, television, and gaming projects were also progressing as planned. During the reporting period, based on its main business development plan, the group selected high-quality enterprises that could deeply connect with the group's existing businesses, helping improve quality and efficiency of core businesses and broaden growth boundaries. The group's strategic investment layout in "Ruyi Film Entertainment Co., Ltd." (formerly Wanda Film, hereinafter "Ruyi Film") entered a stage of deep integration and brand renewal, achieving full industrial chain connectivity from content creation and production to terminal exhibition. Ruyi Film continued to deepen its "super scene + super IP" strategy, deeply linking its own film and television production and gaming resources with Ruyi Film's nationwide cinema network, significantly improving the conversion efficiency of high-quality content into commercial value, and continuously amplifying IP influence and lifecycle. To seize the strategic opportunity of "AI + content," the group strategically invested in the global AI video leader Aishi Technology, building a two-way empowerment system of "technology + industry." The two parties will promote coordinated implementation from multiple dimensions: at the strategic level, Aishi Technology's core team will help the group's intelligent transformation; at the technology application level, focus on deep application of AI in film and television special effects, promotion and distribution, and game scene optimization to improve efficiency and content quality; at the innovation expansion level, relying on the group's rich IP resources combined with AI technology for secondary creation, jointly develop multimodal intelligent agents, and explore next-generation interactive content forms. 8. Sinotruk (03808). In 26H1, revenue and net profit attributable to shareholders were RMB 70.841 billion and RMB 4.325 billion, up 39.2% and 26.2% year-on-year respectively. On the revenue side, the heavy truck main business achieved both volume and price increases, benefiting from the dual drivers of domestic sales + exports. In 26H1, revenue from heavy trucks, light trucks and others, and financial segments was RMB 64.800 billion, RMB 7.556 billion, and RMB 515 million, up 44.5%, 4.2%, and 50.3% year-on-year respectively, driving total revenue up 39.2%, 0.6%, and 0.3% respectively. In heavy trucks, in 26H1 the company sold 193,600 heavy trucks, up 41.8% year-on-year, with a comprehensive ASP of about RMB 334,600 per vehicle, up 1.9% year-on-year. By region, H1 exports and domestic sales were 108,400 and 85,300 vehicles, up 57.1% and 26.3% year-on-year respectively. Export ASP and domestic sales ASP were RMB 285,300 per vehicle and RMB 397,300 per vehicle, down 1.9% and up 8.3% year-on-year respectively. Exports were continuously driven by mining and infrastructure demand in Africa, Southeast Asia, and other regions, and the company's growth rate was about 14 pct faster than the industry (+43.0%), while average prices remained stable. Domestically, the company accelerated its transition to new energy. In 26H1, Sinotruk's new energy terminal sales reached 22,100 vehicles, up 135% year-on-year, ranking first domestically for the first time, and its comprehensive domestic market share also remained in the top two; the increase in the new energy proportion also pushed up domestic ASP. In light trucks and others, in 26H1 light truck revenue was about RMB 6.649 billion (accounting for about 88% of segment revenue), down 2.5% year-on-year; sales volume was 62,600 vehicles, down 0.3% year-on-year, and ASP was about RMB 106,200 per vehicle, down 2.1% year-on-year. On the profit side, heavy truck exports were the core of profit growth, while light trucks continued to reduce losses. In 26H1, the company's operating profit and net profit attributable to shareholders were RMB 5.079 billion and RMB 4.325 billion, up 23.3% and 26.2% year-on-year respectively. The company plans to distribute a cash dividend of RMB 1.02 per share (equivalent to HK$1.18 per share), totaling RMB 2.816 billion, corresponding to a payout ratio of about 65%, up about 9 pct from the full year of 2025. If the full-year payout ratio remains unchanged, the current dividend yield exceeds 5%. According to data from the China Association of Automobile Manufacturers, from January to August 2026, Sinotruk Group cumulatively sold 248,700 heavy trucks, up 26.2% year-on-year, of which domestic sales and exports were 107,400 and 141,400 vehicles, up 6.4% and 46.9% year-on-year respectively; the group's comprehensive, domestic sales, and export market shares were 29.9%, 47.6%, and 20.1%, up 2.4 pct, 1.7 pct, and 0.2 pct year-on-year respectively. As the leading automaker that is China's heavy truck sales champion and has an export market share of nearly 50%, the company will benefit from the resonance of internal and external demand from the industry-level China V replacement cycle + China IV subsidy policy + expansion of African and Southeast Asian markets. With its overseas competitiveness realization and emerging market development, exports continue to outperform the industry, and it is expected to continue to release profit elasticity; replacement demand drives the domestic cycle upward, and combined with Sinotruk's smooth new energy transition, the domestic sales base will be stable in the future, and profitability is expected to gradually improve over the medium to long term. 9. China Overseas Grand Oceans Group (00081). In 2026H1, the company's operating revenue was RMB 14.1 billion, down 3% year-on-year; net profit attributable to shareholders was RMB 330 million, up 15% year-on-year; net profit attributable to shareholders accounted for 91% of total net profit, up 17 pct year-on-year. In 2026H1, the company achieved a net margin attributable to shareholders of 2.3%, up 0.4 pct year-on-year; the selling expense ratio increased 0.1 pct year-on-year to 4.0%, and the administrative expense ratio remained stable at 2.0%; the gross margin increased 2.5 pct year-on-year to 11.8%, maintaining a counter-trend repair trend, mainly benefiting from high-gross-margin projects acquired after 2022 gradually entering the settlement period. In 2026H1, the company completed full-caliber contracted sales of RMB 19.1 billion, up 15% year-on-year, ranking 18th in the industry and continuing to improve; of which attributable sales were RMB 16.5 billion, accounting for 86%, ranking 14th in the industry; sales area was 1.65 million square meters, up 12% year-on-year; average selling price was RMB 11,619 per square meter, up 3% year-on-year, of which residential average selling price was RMB 12,725 per square meter. Relying on operational strength, brand reputation, and product power, in 2026H1 the company ranked among the local top 3 in sales in 18 cities, and its full-caliber sales market share exceeded 20% in 8 cities; the company's overall market share in 40 full-caliber cities was 9.6%, continuing to increase from 7.9% for the full year of 2025. In 2026H1, the company's average delivered area per unit was 192 square meters, up 13% year-on-year, fully matching the needs of improvement-oriented customer groups in the cities where it operates. In 2026H1, the company's newly added land reserve gross floor area was 480,000 square meters, down 64% year-on-year; total land acquisition price was RMB 2.1 billion, down 66% year-on-year, of which attributable land price accounted for 100%; investment intensity calculated as land acquisition amount/sales amount was 11%; the property-to-land ratio calculated as the year's average selling price/newly added land reserve floor price was 2.7, preserving reasonable profit space. As of the end of 2026H1, the company's total land reserve gross floor area was 11.43 million square meters, down 16% year-on-year, and 8.65 million square meters after excluding sold but unsettled area, with coverage of 2.6 times relative to sales scale, still relatively ample; the proportion of attributable area in total land reserves was 86%, remaining at a relatively high level. In 2026H1, the company achieved sales collections of RMB 18.0 billion, with a collection rate of 94%; revenue from the commercial property operation business (including non-consolidated projects) was RMB 270 million, up 11% year-on-year, supporting steady operations; net cash flow from operating activities was RMB 6.0 billion, remaining positive. As of the end of 2026H1, the company's monetary funds were RMB 31.0 billion, accounting for 27% of total assets; the cash-to-short-term debt ratio was 3.6, the asset-liability ratio excluding advance receipts was 60%, and the net debt ratio was 19%, all continuing to improve. In 2026H1, the company's weighted average financing cost was 3.3%, down 0.2 pct year-on-year, remaining at a low level in the industry. 10. COSCO Shipping Ports (01199). The company previously announced 1H26 results: revenue of $905 million, up 12.3% year-on-year, and net profit attributable to shareholders of $234 million, up 28.5% year-on-year; 2Q26 achieved revenue of $484 million, up 14.1% year-on-year and up 15.1% quarter-on-quarter, gross profit of $132 million, up 16.4% year-on-year and up 23.8% quarter-on-quarter, and net profit attributable to shareholders of $148 million, up 51% year-on-year and up 73% quarter-on-quarter. The company's 2Q26 results were better than expected, mainly due to the company recognizing a one-time reversal gain of $54 million in the second quarter. In 1H26, the company's controlling terminals and revenue per TEU growth drove gross profit improvement, gross margins of domestic controlling terminals improved significantly, and the interim dividend per share increased year-on-year due to profit growth. In the first half, the company's equity throughput of terminals in which it has stakes increased 7.0% year-on-year, with the Bohai Rim, Yangtze River Delta, and overseas terminals showing standout growth, up 6.0%, 6.2%, and 12.4% year-on-year respectively. In 1H26, revenue per TEU of the company's controlling terminals increased year-on-year, with domestic and European regional controlling terminals up 3.2% and 2.1% year-on-year respectively, mainly benefiting from rate increases and container mix optimization. Among these, the gross margin of domestic controlling terminals rose 2.3 ppts year-on-year, of which Tianjin Container Terminal's gross margin rose 7.9 ppts year-on-year, a standout performance, while the gross margin of overseas controlling terminals fell 3.7 ppts year-on-year, mainly because the Chancay terminal is still in the capacity ramp-up period. The company maintained its interim dividend payout ratio unchanged at 40%, with a dividend per share of 2.36 U.S. cents, up 22.4% year-on-year. The company is expected to fully benefit from the growth of domestic coastal container throughput, and the long-term growth space of its overseas business is favored as production is released and rates increase. Since the beginning of this year, benefiting from increased trade in AI-related products and accelerated exports of high-end manufacturing products such as China's "new three items," domestic coastal port container throughput has maintained relatively fast growth, and this trend is expected to continue; overseas, with the release of production at Peru's Chancay terminal and rate increases at controlling terminals with obvious overseas location advantages, the overseas business is expected to maintain relatively fast long-term growth. By Wan Yongqiang (Director of the Zhitong Finance Research Center). Disclaimer: The stocks mentioned in the article are only for discussion among investors and should not constitute investment advice. The stock market carries risks, and investment should be cautious.