On the news, New Oriental released its financial report for the third quarter of the 2023 fiscal year as of February 28, with performance exceeding market expectations. Its revenue was 754.2 million US dollars, a year-on-year increase of 22.8%; The company should account for a net profit of $81.648 million, compared to a net loss of $122 million in the same period last year; The net profit attributable to the company under Non GAAP has also turned losses into profits.
Boosted by performance, New Oriental S (09901. HK) surged 11.76%, driving other education stocks higher. Among them, China Chunlai (01969. HK) rose 2.52%, while China Education Holdings (00839. HK) and others all rose.
The semiconductor sector continues to strengthen, with a cumulative increase of over 21% since April. Today, SMIC International (00981. HK) rose another 6.22%, Smart Core Holdings (02166. HK) rose 2.6%, and Huahong Semiconductor (01347. HK) rose 1.35%.
In terms of catalytic factors, the concept of computing power has recently seen two major benefits. Firstly, Huawei's rotating chairman Meng Wanzhou stated that AI computing power is expected to increase by 500 times by 2030. Secondly, Shanghai has issued the "Guiding Opinions on Promoting the Unified Dispatching of Computing Power Resources in Shanghai", improving the system of computing power trading mechanisms, exploring the construction of computing power trading centers, and building an advanced technology based ultra fast computing power carrying network. The institution stated that the development of the computing power industry has become a trend, and areas such as AI servers, AI chips, and supercomputing will face important development opportunities.
Some "Chinese" concept stocks continued to be strong, including infrastructure stocks, heavy machinery stocks, the the Belt and Road, highway and railway stocks, telecommunications stocks, telecommunications equipment stocks and other related sectors rose in succession.
Among them, infrastructure stocks almost all rose, China Railway Construction (01186. HK) rose 4.44%, China Railway (00390. HK) rose 4.68%, China Railway (01766. HK) rose 3.72%, and China Transportation Construction (01800. HK) and others followed suit.
On the news side, the SASAC Party Committee held an enlarged meeting and pointed out that it would focus on the organization and implementation of a new round of state-owned enterprise reform, deepen and improve the action, and participate in the high-level construction of the "the Belt and Road". According to the agency, considering that this year is the tenth anniversary of the "the Belt and Road" initiative and its construction is expected to accelerate, it is suggested to pay attention to the growth elasticity and sustainability of the performance of central state-owned enterprises and international projects related to the "the Belt and Road".
Driven by the news of "significant breakthroughs in China's 6G communication technology research and development", telecommunications equipment stocks also saw good gains, with Jingxin Communication (02342. HK) rising 6.88% and ZTE Communication (00763. HK) rising 6.5%.
With the first quarter report of home appliance companies shining out, home appliance stocks are also among the top performers! Among them, Hisense Home Appliances (00921. HK) has seen a particularly fierce rise in recent times, rising by another 3.81% today, recording four consecutive increases and doubling the growth rate within the year. Haier Zhijia (06690. HK) rose 3.72%.
In other aspects, the negative impact of Tesla's price reduction actions is beginning to manifest. The company's first quarter profit decreased by over 24% year-on-year, and its free cash flow plummeted by 80% year-on-year to $440 million, far below the market's expected $3.24 billion.
Affected by this, automotive stocks generally fell. Among them, Xiaopeng Motors W (09868. HK) fell 8.78%, NIO SW (09866. HK) fell 5.98%, Ideal Motors W (02015. HK) fell 4.26%, and Great Wall Motors (02333. HK) fell 3.3%. Tesla concept stocks such as Lijin Technology (00558. HK) and Ganfeng Lithium (01772. HK) also declined.
Film concept stocks generally fell, with Ning Meng Film and Television (09857. HK) falling 3.41%, IMAX China (01970. HK) falling 3.29%, and Cat's Eye Entertainment (01896. HK) falling 2.26%.
In addition, pharmaceutical stocks such as biopharmaceuticals and traditional Chinese medicine concepts experienced significant declines, real estate stocks such as domestic housing and property management stocks, as well as non-ferrous metal stocks and gold stocks; Energy stocks such as power stocks, coal stocks, and rare earth concept stocks also generally weakened.