Today, the three major indexes collectively opened lower, slightly bottoming out before oscillating and rebounding. As of midday closing, the Shanghai Composite Index rose 0.28%, the Shenzhen Component Index rose 0.37%, and the ChiNext Index rose 0.06%.
On the market, Huawei's industrial chain surged, with multiple stocks including Shenzhen Huaqiang and Tuowei Information hitting the daily limit up for 7 consecutive sessions.
The concept of digital currency has fluctuated and strengthened, with companies such as Jingbei and Youbo News hitting the daily limit up. The household appliances sector strengthened, with companies such as Shenkangjia A and Changhong Meiling hitting the daily limit up. Insurance, securities and other major financial sectors fluctuated and rose. The concept of robots continues to adjust, and Aisida has hit the limit down. Insurance, software services, IT equipment, securities and other sectors saw the highest gains; The sectors of public transportation, pharmaceuticals, textiles and clothing, media and entertainment experienced the highest decline.
NetEase drops sharply
Continuing the decline in the US stock market last night, Hong Kong stock NetEase continued to open significantly lower on August 23, with its stock price dropping more than 14% during trading to as low as HKD 121.8.
On August 22, NetEase released its Q2 2024 financial report, with a net income of 25.5 billion yuan, a year-on-year increase of 6.1%; The net profit attributable to the company's shareholders was 6.8 billion yuan, compared to 8.2 billion yuan in the same period last year; After adjustment, the net profit attributable to the company's shareholders decreased by 13.3% year-on-year to 7.8 billion yuan, compared to 9 billion yuan in the same period last year.
In the second quarter of this year, NetEase's gaming and related value-added services revenue was 20.1 billion yuan; NetEase Cloud Music has a revenue of 2 billion yuan, and the commercialization of its core online music business maintains a healthy momentum; NetEase Youdao achieved a revenue of 1.3 billion yuan and a record high net inflow of operating cash flow, making positive progress in the commercialization of AI; The revenue of the innovation sector is 2.1 billion yuan.
After the release of the financial report, NetEase CEO Ding Lei and the company's management attended the earnings conference call to answer questions from investors about the performance of the mobile game "Eternal Tribulation", the return of Blizzard's Chinese server, the launch time of "Yanyun Sixteen Sounds", and new game reserves.
NetEase executives revealed that the player data for the return of World of Warcraft exceeded expectations. The game continues to attract old players to return and new players to join, with a 4:6 ratio of new and old players added. Blizzard's other games will also gradually return, and NetEase has reached a consensus with Blizzard that there will be more in-depth cooperation in the future to bring players a better experience. It has been confirmed that "Hearthstone Legend" will officially return on September 25th.
In the second half of the year, NetEase still has abundant game reserves. Two Marvel IP games, "Marvel Ultimate Reversal," will be launched in China on August 29th, and "Marvel Strife," will be launched globally on December 6th. Yanyun Sixteen Sounds "will start cross platform testing on August 28th and is expected to be released by the end of the year.
Looking back at last night's US stock market, NetEase experienced a sharp decline. On Thursday Eastern Time, although there were voices of interest rate cuts, the three major US stock indices collectively closed down due to the drag of technology stocks. As of the close, the Dow Jones Industrial Average fell 177.71 points, or 0.43%, to 40712.78 points; The Nasdaq fell 299.63 points, or 1.67%, to 17619.35 points; The S&P 500 index fell 50.21 points, or 0.89%, to 5570.64 points.
Most popular Chinese concept stocks fell, with the Nasdaq China Golden Dragon Index dropping 1.52%. IQiyi fell over 15%, NetEase fell over 11%, and Bilibili fell over 7%.
Huawei's industrial chain experiences significant growth
Recently, the Huawei industry chain led by HarmonyOS and Huawei HiSilicon Concept has continued to rise. On August 23rd, multiple stocks including Tuowei Information, Century Dingli, Haoyun Technology, Zhongdian Port, and Guohua Wang'an hit the daily limit up. In addition, Tianyi Shares rose more than 12% at one point, Liyuan Information rose more than 17% during trading, and Tianyuan Dike rose more than 8%.
Huawei HiSilicon's concept stock, Shenzhen Huaqiang, has been listed for 7 consecutive days, while YouBoxun's 20cm limit up.
The main business of Shenzhen Huaqiang is authorized distribution of electronic components, and its cooperation with Huawei HiSilicon is the direct reason for its sustained rise in stock price. Shenzhen Huaqiang recently stated on the interactive platform that the company is one of the main authorized agents of Hisilicon and will participate in the Hisilicon Connect Conference. And in order to promote HiSilicon products well, the company will specifically invite customers to participate in the conference together.
The 2024 HiSilicon Connect Conference will be held in Shenzhen on September 9th, which is also the first HiSilicon Connect Conference. Haisi stated that the theme of this conference is "Innovation for the Future", aiming to create an open and shared industrial platform that brings together thought leaders, business elites, technical experts, partners and other industry colleagues to seek cooperation and a win-win future.
HiSilicon is a semiconductor and device design company under Huawei, which has launched chips such as the Kirin series and is a leading enterprise in the global semiconductor industry. The market generally speculates that HiSilicon, which has been dormant for 4 years, may release new products at this conference. The Huawei HiSilicon concept stock in A-shares has also exploded.
Additionally, some investors have asked, what is the approximate proportion of Huawei HiSilicon's agent revenue to the company's overall revenue? Shenzhen Huaqiang stated on the interactive platform that the company's main business is authorized distribution of electronic components and is one of the main agents of leading chip design companies (referred to as "original factories") in China. The sales revenue of the company's OEM product line is influenced by factors such as the progress of OEM product research and development, market competitiveness, and sales strategy. Therefore, the proportion of product line sales revenue in the company will also change every year.
In addition, Huawei's foldable screen concept stocks fluctuated and rebounded, with Jintuo shares hitting the limit up by 20cm. Yian Technology rose more than 14% at one point, Oufei Optical Disc rose more than 7%, Jingyan Technology rose more than 11% at one point, and Kaisheng Technology, Dongmu Shares, and others followed suit. On the news front, recently, Huawei's three fold screen smartphones have been "exposed" by Yu Chengdong, and the three fold foldable smartphones may become a new trend in the form of foldable smartphones. According to CINNO Research data, the sales of foldable screen smartphones in the Chinese market reached 2.62 million units in the second quarter of 2024, a year-on-year increase of 125% and a month on month increase of 11%, with both year-on-year and month on month growth, maintaining a triple digit year-on-year growth rate for the fourth consecutive quarter.