--- title: "Zhitong Hong Kong Stock Analysis | NVIDIA's impressive earnings report once again catalyzes AIDC as North America faces severe electricity shortages, leading to a surge in gas turbines" type: "News" locale: "en" url: "https://longbridge.com/en/news/277044189.md" description: "NVIDIA released its financial report, and CEO Jensen Huang emphasized that the development of AI has reached a turning point, with a surge in demand for computing power driving the market. Hong Kong stocks opened high but fell throughout the day, closing down 1.44% due to tensions in the US-Iran negotiations. Foreign capital remained cautious, leading to sell-offs in innovative drug stocks and insurance stocks. Lithium battery stocks showed mixed performance, with Ganfeng Lithium and Tianqi Lithium maintaining gains, while CATL fell over 6%" datetime: "2026-02-26T12:55:07.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/277044189.md) - [en](https://longbridge.com/en/news/277044189.md) - [zh-HK](https://longbridge.com/zh-HK/news/277044189.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/277044189.md) | [繁體中文](https://longbridge.com/zh-HK/news/277044189.md) # Zhitong Hong Kong Stock Analysis | NVIDIA's impressive earnings report once again catalyzes AIDC as North America faces severe electricity shortages, leading to a surge in gas turbines **\[Market Dissection\]** Currently, the A-share market is relatively independent and not easily disturbed, while the Hong Kong stock market is different; it becomes nervous with any external fluctuations. Due to the critical phase of the US-Iran negotiations, funds have withdrawn to observe. Throughout the day, the Hong Kong stock market opened high but continuously fell, closing down 1.44%. The latest talks between the US and Iran are ongoing. According to the Omani Foreign Ministry, the discussions covered the proposals and suggestions put forth by the Iranian side, as well as the responses and inquiries from the US negotiating team regarding the core issues of Iran's nuclear program. Additionally, both sides discussed the necessary safeguards required to reach a nuclear agreement, covering technical and regulatory demands. Bader pointed out that all parties are continuing to advance the negotiation process with a constructive attitude, and the negotiators have shown an unprecedented openness to novel and creative ideas and proposals, striving to create a favorable environment to ultimately reach a fair and sustainable agreement. The final outcome will depend on further news. This is the last round of negotiations, and until a conclusion is reached, foreign capital will remain relatively cautious. The major area of capital flight is innovative drugs, such as those related to WuXi AppTec, which is not related to performance but is expected to be related to the reallocation of main funds. Some believe it is also related to Trump's proposed restrictions on Chinese pharmaceutical companies' clinical data/authorization transactions and the tightening of FDA approvals. In any case, there is capital being dumped. Additionally, insurance stocks have also been hit, with China Life (02628) and others falling over 4%. Yesterday, there was originally favorable news for lithium batteries, but today it surged and then retreated. Several listed companies stated that Zimbabwe's lithium ore exports are expected to resume within a month, and the company has sufficient raw material inventory, limiting the impact on production and operations. Companies like Ganfeng Lithium (01772) and Tianqi Lithium (09696) performed relatively well, maintaining positive territory, but CATL (03750) fell over 6%, which is also a popular choice among foreign investors. NVIDIA finally released its earnings report, achieving record results with revenue, operating profit, and free cash flow all hitting historical highs. In the fourth quarter, revenue reached $68.1 billion, a year-on-year increase of 73%, with data center business revenue at $62 billion, up 75% year-on-year and 22% quarter-on-quarter, exceeding market expectations of $60.62 billion. The growth is mainly attributed to the continuous release of capacity for Blackwell and Blackwell Ultra products. The earnings guidance is also better than expected: the company anticipates first-quarter revenue of $78 billion, with a fluctuation of 2%. Analysts had expected $72.6 billion, continuing to exceed expectations. NVIDIA stated that its forecast does not include revenue from data centers in China. The fact that NVIDIA can have such strong earnings guidance without revenue from China indicates that the willingness of overseas markets to invest in AI remains high. Additionally, an important point is that GPUs have been endowed with financial attributes, becoming hard currency. Recent signs show that overseas tech companies are increasingly turning to loans secured by chips to raise funds for their massive AI investments. Investors are attracted by enticing yields of around 7%-17%, which are typically higher than the debt issued by tech companies themselves. Therefore, being able to buy chips that can be used as collateral is a significant advantage, as chips are not hard to sell What catalyzed the market was NVIDIA CEO Jensen Huang emphasizing at the earnings conference: the development of AI has reached a turning point, with explosive growth in computing power demand. In this new era, computing power equates to revenue, which is undoubtedly a shot in the arm for computing infrastructure. FIT HON TENG (06088), originally a traditional "consumer electronics assembly/cable factory," is now transforming its revenue structure towards high-margin, high-barrier "connector and core component manufacturing." It is upgrading from "precision parts" to "system-level interconnection solutions." On the AI side, the company benefits from the high growth of the global optical module market, with plans for 224G high-speed interconnection, 800G/1.6T optical modules, and CPO solutions, with products already introduced to core customers in North America. On the EV side, with the popularization of the 800V platform and the improvement of autonomous driving levels, the value of connectors per vehicle is soaring. FIT HON TENG (06088) surged over 11%. China International Marine Containers (02039): In 2024, it will deliver the world's first ultra-large modular data center—the Malaysia 2312 project, with cumulative global deliveries exceeding 1,000 megawatts and over 17,000 modules; it is currently providing services for AI/cloud computing customers with over 300MW. It offers an integrated solution for "design-manufacturing-transportation-commissioning," shortening the construction cycle by about 40%-70% compared to traditional methods. Core capability: providing an integrated solution for "design-manufacturing-transportation-commissioning," with a construction cycle shortened by about 40%-70% compared to traditional methods. Today, it also rose nearly 8%. Other hardware companies like Cambridge Technology (06166) with optical modules rose nearly 8%, and Tianyue Advanced (02631) in the SiC concept rose over 6%. The packaging sector is also benefiting simultaneously. According to a Morgan Stanley report, ASMPT (00522) is expected to exceed normal seasonal levels in revenue for the first quarter of this year, reaching HKD 4 billion. ASMPT's revenue growth for the entire year is expected to accelerate from last year's 7% to 22%, becoming an important driver of future revenue growth in emerging business areas such as CoWoS-L and high-bandwidth memory (HBM). It rose over 3%. Under the pressure of AI, the electricity shortage problem in North America is becoming increasingly severe. Trump plans to convene tech giants like Amazon, Meta, Microsoft, and Google next week to sign a commitment requiring these companies to bear the electricity costs of their high-energy-consuming data centers, further validating the continuation of the electricity shortage driven by high demand for data centers. Institutions estimate that the CAGR of electricity capacity demand in the U.S. driven by AI from 2025 to 2028 will be about 55%, with cumulative demand exceeding 150GW in the next three years, leading to a massive electricity demand and opportunities for supporting equipment. Self-built power sources are becoming a major trend, with gas turbines being prioritized as the main power source for AIDC due to their rapid response, high power adaptability, lower generation costs, and high reliability. Harbin Electric (01133) rose over 7%, and Shanghai Electric (02727) rose over 3%. The Panama port was not sold smoothly, prompting Li Ka-shing to accelerate the sale of UK assets. CK Hutchison Holdings (00001) announced on February 26 on the Hong Kong Stock Exchange that its subsidiary Cheung Kong Infrastructure Group (01038), Power Assets Holdings (00006), and CK Asset Holdings (01113) will sell 40% of UK Power Networks to the French utility company Engie for HKD 44.3 billion, HKD 44.3 billion, and HKD 22.15 billion, respectively 40% and 20% equity. Cashing out over HKD 110 billion. The above varieties all rose by 4%. **【Sector Focus】** According to the Ministry of Commerce website, on February 24, the Ministry of Commerce issued two announcements, deciding to place 20 Japanese entities on the export control list, while also placing 20 Japanese entities on the watch list. According to Japan's Kyodo News, on the 26th local time, Japanese Prime Minister Sanae Takaichi expressed during a question session in the House of Councillors regarding China's announcement on the 24th to include Japanese defense-related companies in the export control list: "This is absolutely unacceptable and extremely regrettable. We have lodged a strong protest and requested the withdrawal of this measure." The intensification of Sino-Japanese trade friction further enhances the penetration rate of domestic products, with related authentic varieties mainly concentrated in the semiconductor sector of A-shares. There are no directly comparable stocks in the Hong Kong market, but attention can be paid to: China Shipbuilding Defense (00317), Aluminum Corporation of China (02600), CRRC Times Electric (03898), China Railway Signal & Communication (03969), etc. **【Stock Picking】** **Minghua Holdings (01999): Previous acquisition of American home brand enhances competitiveness, second growth curve worth noting** In December last year, Minghua Holdings announced the acquisition of GRIC Group for approximately USD 58.7 million, which mainly engages in the manufacturing and trading of soft furniture in the United States. Of this, USD 32 million was used to acquire 100% equity, and the remaining USD 26.99 million was provided as an interest-free loan to take on the other party's bank debt. **Commentary:** After the acquisition, the company may promote its business development in North America through its brand and channels. The acquisition price of USD 32 million represents a premium rate of only 27% compared to GRIC's net assets of USD 25.2 million. GRIC owns two core brands: Southern Motion and Fusion Furniture, with nearly 30 years of brand accumulation in the mid-to-high-end market in the United States. Channel integration is a core highlight. As a global leader in functional sofas, the company has ranked first in global functional sofa sales for seven consecutive years; it holds a 50.1% market share in China, surpassing the second place by 45 percentage points, and possesses strong supply chain bargaining power, with its sponge procurement price 14% lower than the industry average and a steel cost differential rate of 9%. It has reduced unit product energy consumption by 19%, relying on Vietnam for major exports to the U.S., benefiting from low tariff costs and fast delivery, with the proportion of overseas revenue continuously increasing. These data have been validated in Minghua's Vietnam factory, where the localization rate of the supply chain is 62%, and the gross profit margin of export business has risen to 41.3%. The company also has a second growth curve: technological transformation and a joint venture with Leader & Harmonious (holding 60%), focusing on humanoid robot joint modules in North America, with full-chain design/manufacturing/commercialization; entering AI server liquid cooling plates/cooling boxes, targeting revenue of USD 200 million by 2026, binding demand for computing power infrastructure ### Related Stocks - [GraniteShares 2x Long NVDA Daily ETF (NVDL.US)](https://longbridge.com/en/quote/NVDL.US.md) - [T-REX 2X Long NVIDIA Daily Target ETF (NVDX.US)](https://longbridge.com/en/quote/NVDX.US.md) - [Direxion Daily NVDA Bull 2X Shares (NVDU.US)](https://longbridge.com/en/quote/NVDU.US.md) - [NVIDIA Corporation (NVDA.US)](https://longbridge.com/en/quote/NVDA.US.md) - [YieldMax NVDA Option Income Strategy ETF (NVDY.US)](https://longbridge.com/en/quote/NVDY.US.md) - [T-REX 2X Inverse NVIDIA Daily Target ETF (NVDQ.US)](https://longbridge.com/en/quote/NVDQ.US.md) ## Related News & Research - [SpaceX Doubles Down on Nvidia (NVDA) Chips Amid Musk's AI Expansion Plans](https://longbridge.com/en/news/279809619.md) - [The Brutal Math Of Nvidia's $1 Trillion Target: A 3x Quarterly Revenue Surge In Under 2 Years](https://longbridge.com/en/news/279462250.md) - [BUZZ-Street View: Nvidia keeps winning with its full-stack AI strategy](https://longbridge.com/en/news/279422975.md) - [NVIDIA could shake up AI economy with Rubin platform](https://longbridge.com/en/news/280132707.md) - [Nvidia Asked by US Senators to Provide Details on Groq Deal](https://longbridge.com/en/news/279931631.md)