JD.com, GDS, and KINGDEE INT'L disclosed their financial reports on the same day, with mixed results. Institutions: The Hong Kong stock market needs to overcome two major hurdles to enter a bull market

Editor: Xiao Ruidong

As of 14:07, the three major indices of the Hong Kong stock market have collectively retreated, with the Hang Seng Index down 0.99%, the Hang Seng China Enterprises Index down 0.85%, and the Hang Seng Tech Index down 1.55%. The Hang Seng Internet ETF Huaxia (513330) has adjusted for the fourth consecutive day, falling 1.80% during the session. Component stocks showed mixed performance, with GDS-SW leading the gains at 11.98%, NetEase up 2.14%, Kingsoft Cloud up 1.58%, and KINGDEE INT'L up 1.21%; JD Group-SW led the declines at 10.57%, and Meituan-W fell 4.66%.

The Hang Seng Internet ETF Huaxia (513330) saw its intraday secondary market price dip to 0.381 yuan, hitting a new low in nearly 10 days. In terms of capital inflow, the Hang Seng Internet ETF Huaxia (513330) recorded a net inflow of 91 million yuan the previous day, indicating strong willingness for bottom-fishing.

On the news front, on August 13, the component stocks of the Hang Seng Internet ETF Huaxia (513330), including JD Group-SW, GDS-SW, and KINGDEE INT'L, announced their interim results on the same day. Among them, JD Group-SW's financial report showed that the quarterly revenue was 346.4 billion yuan, and although the revenue was under pressure, it still exceeded market expectations overall. Compared to revenue performance, the improvement in profit was even more pronounced. The operating profit for the second quarter turned from a loss of 900 million yuan in the same period last year to a profit of 4.5 billion yuan, and the operating profit under non-GAAP also increased from 900 million yuan to 5.5 billion yuan, significantly restoring profitability. JP Morgan commented that "profit recovery has been achieved, but valuation adjustments have not yet arrived." GDS-SW's net income for the second quarter increased by 6.5% year-on-year to 3.088 billion yuan, with a net profit of 838 million yuan, turning from a loss to a profit. KINGDEE INT'L's revenue in the first half of the year grew by 13.6% year-on-year to 3.63 billion yuan, achieving a net profit of 54.5 million yuan. The company's native AI products performed strongly, with first-half revenue reaching 296 million yuan, a year-on-year increase of 189%; contract value reached 605 million yuan, a year-on-year increase of 159%.

From a valuation perspective, the latest price-to-earnings ratio (PE-TTM) of the Hang Seng Internet ETF Huaxia (513330) tracking the Hang Seng Internet Technology Index is 21.18 times, which is at the 17.23% percentile over the past 10 years, indicating that the valuation is lower than over 82.77% of the time in the past decade, reaching a historical low.

Looking ahead, CITIC Construction Investment Securities believes that the Hong Kong stock market is indeed emerging from multiple pressures, but whether it can enter a truly long bull or big bull market still requires crossing two important thresholds—improvement in corporate profits and relaxation of U.S. dollar liquidity. The former determines the trend of the bull market, while the latter determines the magnitude and elasticity of the bull market.

Daily Economic News