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AAC Technologies / AIA Group / Alibaba Group / China Overseas Property Holdings / CSPC Pharmaceutical / EVE Energy / Han’s Laser / NetEase
Analyst
Key Indices
Top Stories
Company Results | AAC Technologies (2018 HK/BUY/HK$39.12/Target: HK$47.80)
• AAC Technologies’ 1H26 results missed top and bottom line consensus estimates by 5.6% and 8.9% respectively, dragged down by weak smartphone shipment volumes and higher-than-expected opex. While management expects smartphone-related headwinds to persist, they foresee premiumisation efforts cushioning volume declines. Revenue from AI-related diversification has begun to materialise, with management projecting accelerated growth in 2027 and further expansion in 2028. Upgrade to BUY with a target price of HK$47.80.
Company Results | AIA Group (1299 HK/BUY/HK$73.00/Target: HK$100.00)
• AIA’s 13% VONB growth in 1H26 was slightly below our estimates, due to muted sales in Hong Kong amid a high base effect. However, a better margin performance and strong growth momentum across Mainland China, ASEAN markets and India helped to partially cushion the weakness in Hong Kong. OPAT per share rose strongly at 18% yoy and management now expects to exceed its earnings growth target. Maintain BUY. Target price: HK$100.00.
Company Results | Alibaba Group (9988 HK/BUY/HK$126.20/Target: HK$188.00)
• Alibaba’s 1QFY27 revenue was largely in line. Revenue grew 9% yoy to Rmb269.0b, in line with estimates. Non-GAAP net profit was Rmb20.7b, down 38% yoy, missing our forecast, due to its investment in technology businesses and user experience. In 2QFY27, management expects: a) accelerating growth in cloud revenue and a continuous improvement in EBITA margin, b) further narrowing of quick commerce losses, and c) a recovery in e-commerce EBITA margin. Maintain BUY with a lower target price of HK$188.00 (US$192.00).
Company Results | China Overseas Property Holdings (2669 HK/BUY/HK$3.365/Target: HK$4.20)
• COPH's 1H26 attributable net profit fell 9.0% yoy to Rmb701m, in line with our expectation of a margin-led earnings decline. Revenue grew 4.5% yoy on continued GFA expansion, but group gross margin contracted 2.0ppt yoy to 14.9% as lump sum property management margin fell to 11.1%. Receivable turnover lengthened by nine days yoy to 82.5 days. Interim DPS was raised to HK$0.10, lifting the payout ratio to 40.3%. Maintain BUY and target price of HK$4.20.
Disclaimer: In Traders’ Corner, technical analysis is carried out purely based on charting patterns, price movements and trends, and is thus independent of the fundamental research views of our analysts. As a result, and from time to time, we may make a technical recommendation that is opposite to our fundamental BUY/HOLD/SELL rating.
Company Results | CSPC Pharmaceutical Group (1093 HK/BUY/HK$9.52/Target: HK$11.50)
• CSPC’s 1H26 revenue rose 40.1% yoy to Rmb18.6b and underlying net profit jumped 165.8% yoy to Rmb6.2b, well above our full-year growth estimates. Licence fee income surged 448.5% yoy to Rmb5.9b, serving as the key growth driver. CSPC expects its growth momentum to continue over the next five years, driven by rising out-licensing income and new product launches – with over 30 new product/indication approvals targeted in the next three years. Upgrade to BUY with a higher target price of HK$11.50.
Company Results | EVE Energy (300014 CH/BUY/Rmb55.06/Target: Rmb85.00)
• 2Q26 results came in as expected with adjusted net profit of Rmb1,337m (+294% yoy/+20% qoq). The earnings growth was driven by shipment growth and cost savings. We raise our 2026-28 net profit forecasts by 5%/6%/10% to Rmb7,583m/Rmb9,968m/Rmb11,679m respectively. Maintain BUY and lift target price from Rmb83.50 to Rmb85.00.
Company Results | Han’s Laser (002008 CH/BUY/Rmb91.56/Target: Rmb153.20)
• 2Q26 results were a beat across the board, with revenue up 77.3% yoy and 61.2% qoq and net profit up 187.6% yoy and 163.8% qoq. Management guided for 2026 revenue to be no less than Rmb27.0b and expects gross margin to keep recovering, with growth momentum extending into 2027 on Apple and AI-related demand. We raise our 2026-28 core earnings estimates and roll over our valuation to 2027. Han's is now our top BUY recommendation. Maintain BUY. Target price: Rmb153.20.
Company Results | NetEase (9999 HK/BUY/HK$193.40/Target: HK$252.00)
• NetEase’s 2Q26 earnings came in within expectations. Revenue grew 7.9% yoy to Rmb30.1b. Gross profit grew 17.5% yoy to Rmb21.2b, with gross margin rising 5.8ppt yoy to 70.5%. Non-GAAP operating profit grew 28.7% yoy to Rmb12.9b, well above our estimate by 23%. Non-GAAP net profit slumped 18.7% yoy to Rmb7.7b, below our and consensus estimates. Net margin shrank 8.4ppt yoy to 26% in 2Q26. Maintain BUY with a higher target price of HK$252.00 (US$160.00).
Top Stories
Company Results | AAC Technologies (2018 HK/BUY/HK$39.12/Target: HK$47.80)
• AAC Technologies’ 1H26 results missed top and bottom line consensus estimates by 5.6% and 8.9% respectively, dragged down by weak smartphone shipment volumes and higher-than-expected opex. While management expects smartphone-related headwinds to persist, they foresee premiumisation efforts cushioning volume declines. Revenue from AI-related diversification has begun to materialise, with management projecting accelerated growth in 2027 and further expansion in 2028. Upgrade to BUY with a target price of HK$47.80.
Company Results | AIA Group (1299 HK/BUY/HK$73.00/Target: HK$100.00)
• AIA’s 13% VONB growth in 1H26 was slightly below our estimates, due to muted sales in Hong Kong amid a high base effect. However, a better margin performance and strong growth momentum across Mainland China, ASEAN markets and India helped to partially cushion the weakness in Hong Kong. OPAT per share rose strongly at 18% yoy and management now expects to exceed its earnings growth target. Maintain BUY. Target price: HK$100.00.
Company Results | Alibaba Group (9988 HK/BUY/HK$126.20/Target: HK$188.00)
• Alibaba’s 1QFY27 revenue was largely in line. Revenue grew 9% yoy to Rmb269.0b, in line with estimates. Non-GAAP net profit was Rmb20.7b, down 38% yoy, missing our forecast, due to its investment in technology businesses and user experience. In 2QFY27, management expects: a) accelerating growth in cloud revenue and a continuous improvement in EBITA margin, b) further narrowing of quick commerce losses, and c) a recovery in e-commerce EBITA margin. Maintain BUY with a lower target price of HK$188.00 (US$192.00).
Company Results | China Overseas Property Holdings (2669 HK/BUY/HK$3.365/Target: HK$4.20)
• COPH's 1H26 attributable net profit fell 9.0% yoy to Rmb701m, in line with our expectation of a margin-led earnings decline. Revenue grew 4.5% yoy on continued GFA expansion, but group gross margin contracted 2.0ppt yoy to 14.9% as lump sum property management margin fell to 11.1%. Receivable turnover lengthened by nine days yoy to 82.5 days. Interim DPS was raised to HK$0.10, lifting the payout ratio to 40.3%. Maintain BUY and target price of HK$4.20.
Disclaimer: In Traders’ Corner, technical analysis is carried out purely based on charting patterns, price movements and trends, and is thus independent of the fundamental research views of our analysts. As a result, and from time to time, we may make a technical recommendation that is opposite to our fundamental BUY/HOLD/SELL rating.
Company Results | CSPC Pharmaceutical Group (1093 HK/BUY/HK$9.52/Target: HK$11.50)
• CSPC’s 1H26 revenue rose 40.1% yoy to Rmb18.6b and underlying net profit jumped 165.8% yoy to Rmb6.2b, well above our full-year growth estimates. Licence fee income surged 448.5% yoy to Rmb5.9b, serving as the key growth driver. CSPC expects its growth momentum to continue over the next five years, driven by rising out-licensing income and new product launches – with over 30 new product/indication approvals targeted in the next three years. Upgrade to BUY with a higher target price of HK$11.50.
Company Results | EVE Energy (300014 CH/BUY/Rmb55.06/Target: Rmb85.00)
• 2Q26 results came in as expected with adjusted net profit of Rmb1,337m (+294% yoy/+20% qoq). The earnings growth was driven by shipment growth and cost savings. We raise our 2026-28 net profit forecasts by 5%/6%/10% to Rmb7,583m/Rmb9,968m/Rmb11,679m respectively. Maintain BUY and lift target price from Rmb83.50 to Rmb85.00.
Company Results | Han’s Laser (002008 CH/BUY/Rmb91.56/Target: Rmb153.20)
• 2Q26 results were a beat across the board, with revenue up 77.3% yoy and 61.2% qoq and net profit up 187.6% yoy and 163.8% qoq. Management guided for 2026 revenue to be no less than Rmb27.0b and expects gross margin to keep recovering, with growth momentum extending into 2027 on Apple and AI-related demand. We raise our 2026-28 core earnings estimates and roll over our valuation to 2027. Han's is now our top BUY recommendation. Maintain BUY. Target price: Rmb153.20.
Company Results | NetEase (9999 HK/BUY/HK$193.40/Target: HK$252.00)
• NetEase’s 2Q26 earnings came in within expectations. Revenue grew 7.9% yoy to Rmb30.1b. Gross profit grew 17.5% yoy to Rmb21.2b, with gross margin rising 5.8ppt yoy to 70.5%. Non-GAAP operating profit grew 28.7% yoy to Rmb12.9b, well above our estimate by 23%. Non-GAAP net profit slumped 18.7% yoy to Rmb7.7b, below our and consensus estimates. Net margin shrank 8.4ppt yoy to 26% in 2Q26. Maintain BUY with a higher target price of HK$252.00 (US$160.00).
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