Jinwu Financial News | The Hang Seng Index closed at 16,511 points on Monday (22nd), up 287 points, or 1.8%. Full-day transactions amounted to $104.925 billion. The National Index closed at 5,831 points, up 84 points, or 1.5%. The index closed at 3,336 points, up 58 points, or 1.8%. Blue chip stocks are generally doing well. Out of 82 blue chips, 68 have recorded increases. ATMXJ built well, and Tencent (00700)'s “Dungeons and Warriors: Origins” (“DNF Mobile Game”) will be officially launched on the 21st of next month, rising 5.5% across the day to 320.4 yuan, contributing 78 points to the Hang Seng Index.
The Dow closed at 38,239 points, up 253 points or 0.67% on Monday (22); the index rose 0.87% to 5010 points; the NASDAQ rose 1.11% to 15,451 points; and the Golden Dragon Index, which reflects the performance of Chinese concept stocks, soared 2.34%. The European stock market is doing well; the British, French and German stock markets were 1.62%, 0.22%, and 0.7% higher, respectively. Electric vehicle giant Tesla (Tesla), one of the “Seven Big Tech Companies”, announced quarterly results after the US stock market closed on Tuesday. However, the news of the company's price cuts in the European, American and Chinese markets dragged down a sharp drop of 5.6%, and the closing market still fell 3.4%. The Asia-Pacific stock market moved individually this morning (23rd) for the 7th consecutive trading day. The Nikkei 225 Index now reports 37,562 points, up 124 points, or 0.33%. The South Korea Composite Index is currently at 2,634 points, up 5 points, or 0.19%. The central government is backing up the market, and Hong Kong stocks are expected to rebound.
Market Focus: China Mobile (00941)
AI is empowering all walks of life, and demand for smart computing power is growing rapidly. China Mobile (941), one of the three major domestic operators, is actively promoting the rapid implementation of intelligent computing centers. The Group's operating revenue for the full year of 2023 reached 1,093 billion yuan (RMB, same below), up 7.7% year on year. Among them, revenue from communications services reached 863.5 billion yuan, up 6.3% year on year, higher than the average increase in the industry. The Group's digital transformation revenue reached 253.8 billion yuan, an increase of 22.2% over the previous year, accounting for 29.4% of communications service revenue. The Group is one of the leading companies in computing power networks and a leader in the construction of a digital China. The Group's smart computing power scale reached 10.1EFLOPS in 2023, a year-on-year increase of 206%. The scale of smart computing power is expected to exceed 17EFLOPS in 2024. The Group is committed to continuously consolidating its development foundation and continuously optimizing its revenue structure to lay a solid foundation for future sustainable development. In June of last year, the Group selected the Inner Mongolia and Ringer Data Center Cluster, which is one of the national hubs, as the first intelligent computing center node to begin construction of a large-scale single intelligent computing center. The project is scheduled to be put into operation this year. After completion, the computing power scale will reach 5.5 EFLOPS, and the localization rate will exceed 80%.
Target price $75, stop loss price $63
(The author is a licensed person of the Securities Regulatory Commission and the author does not hold the above shares)
Author: Dr. Deng Shengxing, Managing Partner, Yibo Capital Asia Limited