According to the Zhitong Finance APP, Industrial Securities released a research report stating that in Q2 2025, among the major indices of Hong Kong stocks, the revenue and net profit growth rates of the Hang Seng TECH Index lead. The year-on-year growth rates of the Hang Seng Index, Hang Seng Composite Index, Hang Seng Composite Index - Non-Financial, and Hang Seng TECH revenue are 2.45%, 2.29%, 1.33%, and 14.43%, respectively, while the net profit year-on-year growth rates are -1.12%, 3.63%, 2.21%, and 16.18%, respectively. Excluding Alibaba (09988), JD Group (09618), and Meituan (03690), the net profit year-on-year growth rates of the Hang Seng Index, Hang Seng Composite Index, and Hang Seng TECH are -1.04%, 3.88%, and 25.34%.
From an industry perspective, 1) in terms of year-on-year growth rates of net profit per quarter, the materials industry, healthcare industry, and information technology industry lead. 2) In terms of ROE (TTM), the information technology industry and non-essential consumption levels are relatively high; the year-on-year improvements in non-essential consumption, information technology industry, and healthcare industry are quite significant.
The main points of Industrial Securities are as follows:
1. The profit growth rate of the Hang Seng TECH Index leads
In Q2 2025, among the major indices of Hong Kong stocks, the revenue and net profit year-on-year growth rates of the Hang Seng TECH Index lead. The year-on-year growth rates of the Hang Seng Index, Hang Seng Composite Index, Hang Seng Composite Index - Non-Financial, and Hang Seng TECH revenue are 2.45%, 2.29%, 1.33%, and 14.43%, respectively, while the net profit year-on-year growth rates are -1.12%, 3.63%, 2.21%, and 16.18%, respectively. Excluding Alibaba, JD Group, and Meituan, the net profit year-on-year growth rates of the Hang Seng Index, Hang Seng Composite Index, and Hang Seng TECH are -1.04%, 3.88%, and 25.34%.
In Q2 2025, the ROE (TTM) levels of the major indices of Hong Kong stocks have all increased year-on-year. Among them, the ROE of the Hang Seng TECH Index has increased the most significantly, rising by 3.04 percentage points to 13.5%; the ROE of the Hang Seng Index increased by 0.19 percentage points year-on-year, the Hang Seng Composite Index increased by 0.21 percentage points year-on-year, and the Hang Seng Composite Index - Non-Financial increased by 0.18 percentage points year-on-year.
From an industry perspective, 1) in terms of year-on-year growth rates of net profit per quarter, the materials industry, healthcare industry, and information technology industry lead. 2) In terms of ROE (TTM), the information technology industry and non-essential consumption levels are relatively high; the year-on-year improvements in non-essential consumption, information technology industry, and healthcare industry are quite significant.
2. Technology: Artificial Intelligence Drives Accelerated Performance Growth
The year-on-year growth rate of net profit for the information technology industry in Q2 2025 is 29.67%, higher than Q1's 26.76%. The ROE (TTM) has increased by 2.44 percentage points year-on-year to 13.18%.
In the hardware sector, represented by Lenovo and Xiaomi, the year-on-year growth rate of net profit for information technology equipment is 68.15%, with an ROE (TTM) of 13.65%, an increase of 5.36 percentage points compared to the same period last year; the year-on-year growth rate of net profit for semiconductors has turned negative to -21.20%, with the ROE (TTM) still at a historical low
As large model technology transitions from &#34;R&amp;D&#34; to &#34;application,&#34; the performance of the software service industry is improving, and profitability is on the rise. The year-on-year growth rate of net profit in the software service sector has rebounded to 21.54% in a single quarter. In the sub-sectors: 1) The net profit year-on-year growth rate ofapplication software**, represented by Kingsoft and Kingdee, is 47.59%, continuing to rise from the high growth rate of 45.92% in Q1; 2) The year-on-year growth rate ofgame software, represented by NetEase, is 27.36%; 3) The year-on-year growth rate ofdigital solution services, represented by Tencent Holdings and SenseTime, is 19.59%. The profitability of various sub-sectors in software services has increased compared to the same period last year.
III. Consumption: Significant Performance Divergence in Sub-sectors
Non-essential consumption: The year-on-year growth rate of net profit has significantly declined, with professional retail and automotive being the main drags, while AI+ and new consumption companies have performed outstandingly. In Q2 2025, the year-on-year growth rate of net profit for non-essential consumption in a single quarter is 3.10%, down from 44.64% in Q1. ROE (TTM) has continued to rebound since 2023, with a 3.75 percentage point increase to 12.58% in Q2 2025 compared to the same period last year. In the sub-sectors:
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Driven by AI business, the year-on-year growth rate of net profit in media and entertainment reached 32.27%, with advertising and promotion (e.g., Huimai Technology, Quzhi Group) at 541.75%, publishing (e.g., China Literature Group) at 68.50%, film and entertainment (e.g., Tencent Music) at 44.08%, and interactive media and services (e.g., Baidu Group, Kuaishou, Meitu) at 28.08%.
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The year-on-year growth rate of net profit in home appliances and products is 22.38%, with toys and leisure products driven by Pop Mart and Blokus achieving a growth rate of 396.49%.
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Additionally, the year-on-year growth rate of net profit in textiles and apparel, tourism and leisure facilities has rebounded. In textiles and apparel, the year-on-year growth rate of net profit for watches and jewelry, driven by Lao Pu Gold, reached 285.76%.
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Affected by the food delivery war, the year-on-year growth rate of net profit for major internet companies has significantly declined, dragging down the profitability of professional retail. On the other hand, the latest quarterly reports from internet leaders confirm the accelerated commercialization potential of AI applications. In Q2 2025, Alibaba Cloud Intelligence Group achieved a year-on-year revenue growth of 26% to 33.4 billion yuan, with AI-related revenue achieving triple-digit year-on-year growth for eight consecutive quarters; the adjusted EBITA for cloud business grew by 26% year-on-year to 3 billion yuan. During the Q2 2025 earnings call, management indicated that they expect Alibaba Cloud's revenue growth rate to continue to rise in the coming quarters.
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The year-on-year growth rate of net profit in automotive and education has significantly declined, dragging down industry performance. In the automotive sector, the year-on-year growth rate of net profit for auto parts (YoY +32.55%) outperformed that of complete vehicles (YoY -39.77%).
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Essential consumption: Dairy products and agricultural products have dragged down profitability, while non-alcoholic beverages have performed well. In Q2 2025, the year-on-year growth rate of net profit for essential consumption in a single quarter is 4.47%, slightly lower than 4.68% in Q1
In the segmented industry, the net profit year-on-year growth rate of food additives, non-alcoholic beverages, and packaged foods is relatively high, while the year-on-year growth rate of dairy products and agricultural products is negative. From the perspective of ROE (TTM), essential consumption has increased by 0.74 percentage points compared to the same period last year to 12.25%, which is at the 75.7 percentile level since 2017. Except for dairy products and alcoholic beverages, ROE (TTM) has increased to varying degrees in the segmented industries, with non-alcoholic beverages having a profitability of 31.69%, the highest value since 2017.
IV. Healthcare: The overall net profit growth rate of the industry has significantly improved. In Q2 2025, the year-on-year net profit growth rate of the healthcare industry for a single quarter was 42.50%, higher than Q1's 26.47%. From the perspective of ROE, the healthcare industry in Q2 2025 increased by 1.55 percentage points year-on-year to 7.09%, at the 57.5 percentile level since 2017. Among the segmented industries, biotechnology, medical devices, and supplies showed the most significant increase in ROE (TTM).
V. Large Finance: Brokerage firms perform well, while real estate and construction profits remain under pressure.
Finance: Brokerage profits show impressive growth, while banks drag down the performance of the financial sector. In Q2 2025, the year-on-year net profit growth rate of the financial industry for a single quarter was 5.02%, higher than Q1's -2.56%. Against the backdrop of an overall recovery in the capital market, the year-on-year net profit growth rate of Securities and Brokerage was 73.80%, at the 90.90 percentile level since 2017; Other Financial III, represented by the Hong Kong Stock Exchange, had a growth rate of 38.27%, and Insurance had a growth rate of 15.86%; Banks had a growth rate of -0.11%. In Q2 2025, the financial ROE (TTM) increased by 0.22 percentage points year-on-year to 9.12%, with securities and brokerage increasing by 2.25 percentage points year-on-year to 7.70%; Other Financial III increased by 5.57 percentage points year-on-year to 27.22%, the highest value since 2017; banks decreased by 0.64 percentage points year-on-year to 8.62%; insurance increased by 4.81 percentage points year-on-year to 13.23%.
The overall performance of the real estate and construction industry remains under pressure. In Q2 2025, the year-on-year net profit growth rate of the real estate and construction industry for a single quarter was -13.58%, higher than Q1's -27.04%. In Q2 2025, the ROE (TTM) of the real estate and construction industry was 1.16%, at the lowest percentile level since 2017, with the profitability of major segmented industries also at historical lows.
VI. Cyclical Industries: Energy profits decline year-on-year, raw material profitability is at historical highs, and the growth rate of electronic components in the industrial segmented industry remains high.
In Q2 2025, energy profits decline year-on-year. The year-on-year net profit growth rate of the energy industry for a single quarter was -19.36%, lower than Q1's -12.63%. Except for oil and gas equipment and services, the segmented industries of oil and gas producers and coal saw a year-on-year decline in net profits.
In Q2 2025, raw material profitability is at historical highs. The year-on-year net profit growth rate of raw materials was 50.78%. Among the segmented industries, those with high year-on-year net profit growth rates include gold and precious metals, copper, and other metals and minerals
In terms of ROE (TTM), raw materials increased by 1.37 percentage points year-on-year to 12.25%, which is at the 81.8 percentile level since 2017, with gold at 16.82% and aluminum at 16.04%, both being the highest values since 2017.
In Q2 2025, the year-on-year growth rate of industrial revenue was 4.64%, lower than Q1's 6.47%; the year-on-year growth rate of net profit was 3.34%, lower than Q1's 12.84%. In the sub-sectors, electronic components (such as Sunny Optical Technology and GoerTek) and energy storage devices (such as CATL) had relatively high year-on-year net profit growth rates of 79.49% and 66.21%, respectively.
VII. Utilities: Performance under pressure, profitability at relatively low levels. In Q2 2025, the year-on-year growth rate of utility revenue for the quarter was -1.06%, and the year-on-year growth rate of net profit was -1.70%. Among the sub-sectors, only conventional power had a positive year-on-year net profit growth rate of 6.52%, and the ROE (TTM) for conventional power was 7.05%, at a relatively high historical level, while the performance of other sub-sectors was under pressure, with profitability at historical low levels

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Industrial Securities released a research report indicating that in the second quarter of 2025, among the major indices of Hong Kong stocks, the revenue and net profit growth rates of the Hang Seng TECH Index lead, at 14.43% and 16.18% respectively. Excluding Alibaba, JD.com, and Meituan, the net profit growth rate of the Hang Seng TECH Index reaches 25.34%. In addition, the ROE of the Hang Seng TECH Index increased by 3.04 percentage points year-on-year to 13.5%. The net profit growth rates in the raw materials, healthcare, and information technology sectors performed outstandingly

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Industrial Securities: Q2 Hong Kong stock profitability improves, Hang Seng Technology growth leads