Broker: DBS Bank (Hong Kong) Limited
Date of Report: 30 July 2026

Excerpt from DBS report.

Report Summary

• Hang Seng Index (HSI) rebounded 13% in July, but further upside depends on a recovery in corporate earnings. The earnings trend is expected to stabilize, but a meaningful rebound is unlikely due to subdued domestic demand in China.
• Key Actionable Buy Calls & Target Prices:
  • Alibaba Group (9988 HK): BUY, Target Price: HKD 202.00 (Current: HKD 113.60). Strong medium-term earnings and valuation upside driven by accelerating cloud and AI growth.
  • Tencent (700 HK): BUY, Target Price: HKD 770.00 (Current: HKD 466.40). Well-positioned for AI-driven uplift with stabilizing competition and ecosystem advantages.
  • Meituan (3690 HK): BUY. Potential for earnings beat as competition in food delivery moderates.
  • Lenovo (992 HK): BUY. Supported by faster AI server ramp-up and resilience in memory pricing.
  • CATL (3750 HK): BUY, Target Price: HKD 925.00 (Current: HKD 619.50). Benefits from global energy storage demand and expansion.
  • China Construction Bank (939 HK): BUY, Target Price: HKD 10.20 (Current: HKD 9.21). Attractive dividend yield (~5%) and stable earnings outlook.
  • China Mobile (941 HK): BUY, Target Price: HKD 98.00 (Current: HKD 84.10). AI and computing capex focus, sustaining high dividend payout.
  • HKEx (388 HK): BUY, Target Price: HKD 525.00 (Current: HKD 407.80). Positioned to benefit from improved turnover and IPO market.
  • PetroChina (857 HK): BUY, Target Price: HKD 12.50 (Current: HKD 9.93). Record earnings driven by higher oil prices and strong cash flow.
  • Zijin Mining (2899 HK): BUY, Target Price: HKD 55.00 (Current: HKD 32.70). Supported by copper demand from energy transition and AI sector.
• Stocks Expected to Beat Consensus: BOC HK (2388 HK), Cathay Pacific (293 HK), Cosco Shipping (1919 HK), Geely (175 HK), Lenovo (992 HK), Meituan (3690 HK).
• Stocks Expected to Miss Consensus: CALC (1848 HK), Li Auto (2015 HK), Mixue (2097 HK), Samsonite (1910 HK), Tencent (700 HK).
• Sector Outlooks:
  • Positive: Energy, HK banks, Pharmaceutical & Healthcare, Tech Hardware, Oil & Gas.
  • Neutral: Apparel & Footwear, China Banks, Food & Beverages, HK Developers, Internet, Macau Gaming.
  • Negative: Aviation, China Automobile, China Property, Consumer Discretionary Retail.
• Key Metrics to Watch: Cloud revenue growth (>45% for Alibaba/Baidu), capex trends, and cloud business momentum are highlighted as potential near-term catalysts for further sector re-rating.
• Implication: Investors should focus on sectors with positive earnings revision trends (energy, banks, pharmaceuticals) and consider the highlighted BUY-rated stocks with clear target prices for potential upside.

Above is an excerpt from a report by DBS Bank (Hong Kong) Limited. Clients of DBS Bank (Hong Kong) Limited can access the full research report from the broker’s website: DBS Bank (Hong Kong) Limited research website.