Zhitong Hong Kong Stock Early Knowledge | National Standard for Heated Tobacco Products Seeks Opinions, Apple Expected to Miss Revenue Expectations for Fourth Fiscal Quarter, After-Hours Drop Exceeds 8%

【Today's Headlines】

Public Consultation on National Standards for Heated Tobacco Products; Domestic Market Opening for HNB Products Expected

Following the initiation of the mandatory national standard for "Heated Tobacco Products" on April 7, 2026, the National Tobacco Administration has completed the draft for public consultation on the national standard for "Heated Tobacco Products." The draft was released on July 28, with the consultation period ending on September 26, 2026, and it is expected to be officially implemented six months after publication.

CITIC Securities believes that the establishment of national standards provides a technical basis for regulation and may indicate that the domestic market for HNB products is moving forward towards liberalization. With the domestic market for HNB products progressing, several tobacco supply chain companies have already begun to layout relevant segments of the industry chain, likely to benefit from the market opportunities brought by the opening of HNB products. It is recommended to pay attention to SMOORE INTL (HNB cartridges and overall solutions), CTIHK (responsible for the export of HNB products under China Tobacco), and HuaBao International (tobacco sheets and new materials for tobacco use).

【Market Outlook】

Optical Communication and Storage Sectors Surge; Kioxia ADR Rises Nearly 32%

Overnight, U.S. stocks closed with the Dow Jones Industrial Average rising 613.92 points from the previous trading day, closing at 52,208.06 points, an increase of 1.19%; the S&P 500 index rose 121.48 points, closing at 7,437.63 points, an increase of 1.66%; the NASDAQ Composite Index rose 679.24 points, closing at 25,122.18 points, an increase of 2.78%.

Most large tech stocks rose, with Microsoft up over 15%, adding $450 billion to its market value in a single day. Amazon rose nearly 4%, Tesla over 3%, and NVIDIA over 2%. The optical communication and storage sectors collectively surged, with Kioxia ADR rising nearly 32% and SanDisk up nearly 26%.

Most popular Chinese concept stocks rose, with the NASDAQ Golden Dragon China Index increasing by 1.05%. The Hang Seng Index ADR rose, closing at 25,982.92 points, up 124.04 points or 0.48% compared to the Hong Kong close.

WTI crude oil futures for the current month fell by $0.50, closing at $83.96 per barrel, a decrease of 0.59%. COMEX gold futures for the current month rose by $65.80, an increase of 1.61%, closing at $4,162.8 per ounce.

【Hot Topics Ahead】

EU Plans to Invest $11.4 Billion to Build 7 AI Super Factories

The executive of the EU's 27 member states announced on Thursday that the EU will provide €10 billion ($11.4 billion) in funding to support companies in establishing 7 giant AI factories to narrow the AI gap with the U.S. The European Commission stated that it hopes public financing will attract an additional €20 billion ($22.8 billion) in private investment. Companies can now bid for contracts to build the super factories, which are planned to be equipped with at least 100,000 cutting-edge AI chips, with performance approximately four times that of the current data centers operating in the EU.

Apple's U.S. Stock Drops Over 8% After Hours; Q4 Revenue Growth of 9% to 11% Falls Short of Market Expectations Apple expects revenue growth of 9% to 11% in the fourth fiscal quarter, while market expectations are for a growth of 12.1%. The company anticipates a gross margin of between 47% and 48% for the fourth quarter.

HSBC Holdings (00005) subsidiary HSBC Australia plans to sell its AUD 36 billion portfolio of Australian housing and personal loans to Blackstone.

Pepper Money Limited (service provider) will act as the servicer for the portfolio after the sale is completed, responsible for the ongoing administration and management of the loans. The sale is expected to result in a small loss of less than USD 100 million for HSBC Group in the first half of 2027. The remaining part of HSBC Australia's retail business will be gradually reduced over the next 18 months.

Kingboard Chemical Holdings (00148) issues profit warning, expecting interim net profit to exceed HKD 2.7 billion, an increase of over approximately 4% year-on-year.

The market for copper-clad laminates and their upstream materials, including electronic glass fiber yarn, electronic glass fiber cloth, and copper foil, continues to be in short supply. The unit prices of the group's copper-clad laminates and their upstream material products have generally risen significantly, and the sales volume of copper-clad laminates has increased compared to the same period in 2025, resulting in a substantial increase in reported segment profit.

Kingboard Laminates (01888) issues profit warning: expecting interim net profit to exceed HKD 2.8 billion, a year-on-year increase of over 200%.

The significant increase in net profit during the reporting period is mainly due to the ongoing shortage of copper-clad laminates and their upstream materials, including electronic glass fiber yarn, electronic glass fiber cloth, and copper foil. The unit prices of the group's copper-clad laminates and their upstream material products have generally risen significantly, and the sales volume of copper-clad laminates has recorded growth compared to the same period in 2025.

Changfeng Pharmaceutical (02652) plans to place 21.477 million new H-shares, netting approximately HKD 295 million.

The placement shares represent approximately 7.23% of the issued H-shares and about 5.30% of the total issued shares, and correspond to approximately 6.74% of the enlarged issued H-shares and about 5.03% of the total issued shares due to the placement.

Cinda International Holdings (00111) announces interim results: net profit of HKD 36.316 million, a year-on-year increase of 119.79%.

As a fully licensed securities institution established overseas within the China Cinda system, it serves as a hub connecting the China Cinda Group ecosystem with international capital markets, focusing on Chinese concepts and providing cross-border investment banking services globally.

Geek+ (02590): All autonomous mobile robot models currently sold in the United States have obtained valid FCC certification, thus not subject to related bans.

The company continues to promote the long-term strategy of localizing manufacturing, supply chain, research and development, and product testing. The board is pleased to announce that the company's new production base in the United States will be put into operation in due course. The company will ensure that subsequent new products continue to comply with U.S. regulatory standards, maintaining long-term market access and stable business operations, demonstrating a firm commitment to serving global customers.

Dongyang Sunshine Pharmaceutical (06887): Degu Insulin Injection has received marketing approval from the National Medical Products Administration (NMPA). With the approval of the Degu insulin injection, the number of insulin products approved for the group in the Chinese market has increased to six, forming a complete matrix of insulin products covering second to fourth generation, and covering three major clinical application scenarios: basic, mealtime, and premixed.

Sigo New Energy (06656) issues profit warning, expects interim profit attributable to shareholders to be approximately RMB 2.35 billion to RMB 2.45 billion, an increase of approximately 190% to 210% year-on-year

The board believes that the growth in performance during the reporting period is mainly due to the continuous growth of the core market scale and the increase in market share driving sales growth.

Introducing new investors, Ocean Park (02255) two major shareholders collectively transfer 21.75% equity

After the completion of this transaction, Mr. Qu Cheng's shareholding will be reduced to 19.13%; Sunriver Starrysea's shareholding will be reduced to 25.92%, and it will no longer be the controlling shareholder of the company; HH SeaPark Holding and its ultimate beneficial owner, Mr. Mei Zhiming, will hold 21.75% of the company's equity, becoming the major shareholders of the company.

Dipu Technology (01384): Interim revenue increased by 115% year-on-year, Q2 turned profitable

Dipu Technology (01384) announced its interim results for 2026, achieving revenue of approximately RMB 284 million, a year-on-year increase of 115%; gross profit of approximately RMB 160 million, a year-on-year increase of 120.5%; net loss narrowed by 89.6% year-on-year; adjusted loss narrowed by 48.5% year-on-year. The announcement stated that the revenue growth was mainly due to the upgrade of the FastAGI enterprise-level artificial intelligence solution to the DeepexiOS AI-level enterprise operating system platform solution, which significantly increased its revenue, driving overall revenue growth.

Xiansheng Pharmaceutical (02096) issues profit warning: expects revenue for the first half of the year to be RMB 4.55 billion to RMB 4.61 billion, an increase of approximately 26.9% to 28.6% year-on-year

It is expected that the group will achieve a profit attributable to the equity shareholders of the company of approximately RMB 810 million to RMB 860 million in the first half of 2026, an increase of approximately 34.8% to 43.1% compared to the restated profit attributable to the equity shareholders of the company of approximately RMB 601 million in the first half of 2025. The group is expected to achieve an adjusted profit attributable to the equity shareholders of the company of approximately RMB 950 million to RMB 1.0 billion in the first half of 2026.

InnoCare Pharma-B (07630) signs exclusive licensing agreement with PHARMANOVIA for Senapali in Europe, the Middle East and North Africa, Australia, and New Zealand, expected to receive a total transaction price of up to €423.5 million

This includes the upfront payment, recent registration milestone payments, and commercialization milestone payments based on reaching corresponding sales thresholds, as well as tiered royalties based on net sales of the product of up to twenty percent (in the mid-twenties). The exclusive cooperation marks the first step for the group to bring its proven therapeutic solutions to patients outside of China and expands the business footprint of Senapali to Europe, the Middle East and North Africa, as well as Australia and New Zealand.

Meitu Company (01357) expects interim adjusted net profit attributable to the parent to achieve a year-on-year growth of 36% to 40% This strong growth momentum is mainly attributed to the increase in revenue from the group's core business "Imaging and Design Products," which is driven by the continuous growth in the number of paid subscription users and the increase in average revenue per paid user. Notably, the growth rate of paid subscription users from international markets continues to outpace that of the mainland China market, confirming the effectiveness of the group's globalization strategy.

LuoShi Robotics (03752) Earnings Surprise: Revenue Exceeds 400 Million in the First Half of 2026, Growing Over 127.4% Year-on-Year

During the reporting period, the adjusted net profit turned positive, achieving a turnaround from loss to profit. LuoShi's revenue structure saw significant growth, primarily due to the rapid increase in sales of its embodied intelligent robots, which are expected to account for over 30% of revenue. Additionally, the launch of new robotic products, growing market demand, increased brand awareness, and the continuous expansion of sales channels are also important factors contributing to its performance growth.

【Stock Highlights】

Yum China (09987) Releases Second Quarter Results: Operating Profit Increases 14% Year-on-Year to $348 Million

Yum China (09987) announced its financial performance for the second quarter of 2026, with total revenue increasing 13% year-on-year to $3.1 billion; operating profit grew 14% year-on-year to $348 million; net profit rose 14% year-on-year to $244 million; and diluted earnings per share increased 21% year-on-year to $0.70.

Ms. Joey Wat, CEO of Yum China, stated: "We achieved strong performance in the second quarter, marking the ninth consecutive quarter of synchronized growth in system sales, operating profit, and operating profit margin. Despite the market environment remaining volatile, our revenue growth in the second quarter continued to outperform the industry. Same-store sales growth improved to 1% quarter-on-quarter, primarily due to the 14th consecutive quarter of growth in same-store transactions, while the pace of expansion for both company-operated and franchised stores accelerated compared to the same period last year. KFC delivered strong operational performance, with system sales increasing 7% year-on-year, and restaurant profit margins also improved. Pizza Hut's same-store sales returned to positive growth, with the net increase in store numbers nearly doubling compared to the same period last year."