Entering August, while A-shares have yet to recover, Hong Kong stocks continued their recent strength, edging up 0.48% today. The US and Israel had planned to launch a "fierce bombardment" on Iran over the weekend, with the US government advising its citizens in the Middle East to evacuate. However, at a critical moment, former President Trump again signaled a reversal, agreeing to cancel the strike on Iran—the pattern of deciding whether to strike or not has become a recurring theme. South Korea's stock market suffered another heavy blow, with the KOSDAQ index triggering a circuit breaker, while Samsung Electronics and SK Hynix each fell over 7% in a single day. South Korean regulators are reportedly considering reducing leverage, potentially cutting the leverage multiple for single-stock ETFs to just 1x. Accountability has also emerged, with the head of the South Korean presidential policy office facing criminal charges for previously promoting the listing of single-stock leveraged ETFs, suggesting that leverage risks are not yet fully resolved.
GigaDevice (03986) fell over 7% again, and other hardware stocks resumed their decline. In the AI sector, the trend continued toward software. MiniMax-W (00100) officially released its full-modal generation model, MiniMaxH3, featuring enhanced full-modal capabilities, high cost-performance, and an open ecosystem, driving its shares up over 7% today. On August 3, Alibaba released its next-generation base large model, Qwen3.8. Additionally, the company launched an enterprise-level Agent product, Qianwen Office. The Qwen3.8 model has a total of 2.4 trillion parameters, with significant improvements in coding and professional office capabilities. The release includes the Qwen3.8-Max, the largest and most powerful model in the Qwen series, supporting visual understanding and a context length of up to 1 million tokens. Alibaba's Qwen model ranks second only to Anthropic's Claude series, placing its overall performance in the global top tier of large language models. The model will be open-sourced next week, along with the Qwen3.8-27B model. This is expected to significantly solidify the global developer ecosystem, potentially boosting demand for private deployment from overseas clients and SMEs, directly benefiting Alibaba Cloud's MaaS business. In the office software space, among AI office agents, Tencent's WorkBuddy recorded 20.97 million monthly desktop visits in June, followed by ByteDance's TRAEIDE (domestic version) with 12.79 million visits, and Alibaba's QoderWork in third place with 7.88 million visits (excluding Wukong's 1.31 million visits, which were not included). Competition is fierce, but Alibaba still has room to grow. The focus will now be on whether Alibaba can see incremental growth in its cloud business and improve its B2B ecosystem conversion in the office space, leading to a gain of over 7% today. According to the latest weekly AI model call volume ranking released by the global multi-model aggregation platform OpenRouter, the top five products are all developed by Chinese companies. Xiaomi's MiMo-V2.5 topped the list with a single-week call volume of 10.5 trillion tokens, up 12% month-over-month. The second and fifth positions both belong to DeepSeek. Jihong Group (02603), which recently held in-depth discussions with Alibaba Cloud focusing on three main areas—AI Agent Infra infrastructure construction, co-creating AI-native scenarios for cross-border e-commerce, and Token出海 distribution authorization—combined with news that the world's largest online fashion retailer SHEIN has passed a Hong Kong Stock Exchange hearing and is about to list, saw its shares rise over 9% today. Deep Logic Tech (01384) reported a staggering 209.2% year-over-year increase in AI business revenue for the first half of the year, leveraging its core advantage: the Deepology skills library, which has accumulated over 2,000 industry skills, including over 900 for manufacturing and over 460 for brand retail. These skills can be freely combined to form an AI expert group, deeply covering full-chain production and operational scenarios, leading to a gain of over 4%.
The "Ecological and Environmental Code of the People's Republic of China" will take effect on August 15. As the code's implementation approaches, the standardized and legalized environmental governance framework continues to release policy dividends, prompting companies in the new energy, energy conservation, environmental protection, and resource recycling sectors to accelerate their green transformation plans. In the wind power sector, Goldwind Sci & Tech (02208), whose Ummbila Emoyeni project group's first-phase wind farm project in South Africa, developed by Seriti Green, recently entered commercial operation, saw its shares rise over 6% today. On July 31, the State Administration for Market Regulation conducted guidance on pricing compliance for the photovoltaic (PV) industry in Yancheng, Jiangsu Province, aiming to deeply rectify "involution-style" competition. This move is expected to guide PV companies from a pure price-driven approach to a value-driven transformation, encouraging them to invest more resources in core competitiveness areas like technology R&D, product quality improvement, and brand building. The polysilicon futures main contract hit the daily limit up, closing at 35,890 yuan per ton. The PV sector, being the last area of internal strife and having languished at the bottom, is now seeing serious action, potentially breaking free from vicious price competition. Xinyi Solar (00968), GCL Technology (03800), and Flat Glass Group (06865) all surged over 11%. According to a July 31 report from China Central Television's "Xinwen Lianbo," a State Council executive meeting decided to approve four new nuclear power projects: Zhejiang Jinqimen Phase II, Guangdong Taipingling Phase III, Liaoning Zhuanghe Phase I, and Shandong Laiyang Phase I, totaling eight nuclear power units. This is the first nuclear project approval in 2026 and the first batch approved during the "15th Five-Year Plan" period. It is estimated that the total investment for these new projects will exceed 170 billion yuan. Economies around the world are almost universally expanding nuclear power. According to a report from the International Energy Agency, the power generation from nearly 420 nuclear reactors globally is expected to reach a new high in 2025, and the global new installed capacity of nuclear power under construction is also at one of the highest levels in the past 30 years. Nuclear power offers high stability, unaffected by seasonal or climatic factors, with its on-grid cost per kilowatt-hour being second only to hydropower. It is highly likely to become the next clean energy source to boom after solar power. Dongfang Electric (01072), which manufactures critical nuclear island equipment and is exploring semiconductor IGCT technology with an investment of 192 million yuan, rose over 9% today. Shanghai Electric (02727) and Harbin Electric (01133) both gained over 5%. According to a State Grid Corporation of China announcement on August 2, due to recent widespread high temperatures, electricity loads in many regions under its management have repeatedly hit record highs. Between July 27 and 31, two regional grids—North China and Northeast China—and five provincial-level grids—Tianjin, Hebei North, Jiangsu, Liaoning, and Inner Mongolia East—saw loads repeatedly set new records. Wasion Holdings (03393) rose nearly 7%. In the first half of 2026, Zhuoyue Ruixin (02687)'s subsidiary, Zhihui Tree Network, reported an explosive surge in the digital teaching track for higher education. It won bids for projects including Beijing Institute of Technology's smart course construction project with a score of 99.00, and China University of Petroleum's digital smart course project with a score of 95.80. Furthermore, it has signed intensive contracts with prestigious 985 universities such as Zhejiang University, Nanjing University, Huazhong University of Science and Technology, and Xi'an Jiaotong University. From Peking University to Hainan Medical University, and from core "101 Plan" disciplines to vocational colleges in border regions, AI orders from universities are seeing a blowout growth, with the company's delivery schedule already extending to 2027-2028. Its physical AI simulation technology is widely applied, and its shares surged over 14% today, hitting a new all-time high.
Other gainers were driven by earnings. On July 31, Angelalign (06699), a leader in the orthodontic industry, issued an announcement expecting net profit for the first half of the year to increase by 69.0% to 78.9% year-over-year. The domestic invisible orthodontic market is further expanding from first- and second-tier cities to third- and fourth-tier cities, with demand for orthodontic treatment among teenagers showing stronger resilience than that among adults. The domestic BGM market is in a phase of replacement stock, while CGM penetration has significant room to grow. Globally, the duopoly of Abbott and Dexcom remains solid, but domestic companies are gradually expanding into overseas markets, which offer substantial potential. The company's shares surged nearly 18% today. Nanhua Futures (02691) issued a profit alert, expecting attributable net profit of 375 million to 405 million yuan, a year-over-year increase of 62.16% to 75.13%. Crucially, it also announced an attractive dividend plan: a cash dividend of 0.69 yuan per 10 shares, and a capital reserve increase of 4.50 shares per 10 shares. The market favors such stock dividends, often playing the "ex-rights" rally, and the stock rose over 8% today.
Sector Focus
Citigroup released a research report noting that Apple's quarterly results for the period ending June indicate that system-on-chip supply constraints will significantly increase, limiting supply chain flexibility in the September quarter. Memory costs are expected to rise further, but costs for some non-memory components will decline. The bank's latest iPhone production plan shows that third-quarter production remains robust, up 22% year-over-year. Production volume for the iPhone 18 in the second half of the year is estimated at 81 million units, lower than the previous expectation of 84 million units, of which 7.5 million units are expected to be the foldable model. Key upgrades for the iPhone 18 include: (1) foldable phones driving upgrades in ultra-thin glass, hinges, titanium metal casings, and VC heat dissipation; (2) the Pro and Pro Max main cameras featuring variable aperture. Key beneficiary suppliers include: Luxshare Precision gaining share (supply ratio for Pro/Pro Max estimated at ~31%/41%, better than last year, and also winning actuator orders); Lens Technology providing foldable UTG; AAC Technologies providing VC heat dissipation; Sunny Optical gaining lens share and actuator orders. Hon Hai is the exclusive EMS supplier for the iPhone 18, while Pegatron and Tata will only supply about 7% of the Pro Max. Related stocks to watch include: AAC Technologies (02018), Gaoneng Electronics (01415), Lens Technology (06613), and Sunny Optical (02382).
Stock Picks
Biocytogen-B (02315): Multiple Bispecific ADC Assets Go Global; Partners with Whitehawk. The company recently entered into a global strategic collaboration agreement with Whitehawk covering multiple bispecific antibody-drug conjugate research projects, with both parties advancing a next-generation therapeutic product pipeline. The company's revenue is accelerating, gross margins are consistently rising, and it has achieved profitability for four consecutive quarters. In Q1 2026, revenue was 433 million yuan (up 73.68% year-over-year), attributable net profit was 104 million yuan, and gross margin improved to 78.88%. Commentary: The company's original innovation strength has been further recognized. It will provide up to five fully human bispecific antibodies through its proprietary RenLite® platform, marking a significant upgrade for its RenMice® fully human antibody technology. Whitehawk can subsequently select the resulting BsADC candidates for inclusion in its pipeline and further development. The company possesses proprietary SUPCE large fragment chromosome engineering technology for in-situ replacement of mouse antibody genes, creating the RenMice full series mouse platforms. It is one of the few companies globally with a complete set of capabilities for developing fully human antibody mice. It has over 5,000 types of ready-to-use gene-edited models, including 2,000 target humanized mice; owns a 55,000-square-meter animal breeding center, enabling large-scale production with advantages in delivery speed and cost. Its "Thousand Mice, Ten Thousand Antibodies" program has completed a library of over 1 million fully human antibody molecules. With a high-end global layout, overseas revenue accounts for approximately 68% of total revenue. Penetration rate among the top 20 global pharmaceutical companies exceeds 90%, with core clients including multinationals and leading biotechs like Merck, Johnson & Johnson, Gilead, and BeiGene. Out-licensing agreements continue to land significantly, with the company having signed over 350 antibody collaboration/licensing agreements. Representative large transactions include a collaboration with IDEAYA on bispecific ADC projects with a potential total deal size of nearly 3 billion yuan, and global antibody licenses with Merck KGaA, Tubulis, and BeiGene. As numerous projects progress to the clinic, milestone revenues will continue to be released. The company's orders are mainly based on recurring framework orders, with steady growth driven by continuous target validation needs from global pharmaceutical companies. Biocytogen simultaneously provides model services for stable cash flow while building a vast inventory of self-developed antibody molecules for out-licensing. If molecules are successfully marketed, the company can obtain long-term continuous sales royalties, providing sustained explosive potential for performance. The company's focus on bispecific antibodies, ADCs, nanobodies, and intracellular target drugs represents the hottest tracks in global biopharma, perfectly matching R&D needs. Its model animal and preclinical CRO business has maintained a strong growth trajectory for years and has established deep partnerships with leading global innovative drug companies. High barriers combined with industry tailwinds suggest its market share can continue to rise. The company has launched a new-generation AI platform, RenSuper, achieving intelligent and automated antibody screening with significantly improved efficiency. The AI + RenMice platform antibody business is accelerating its realization.
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