2026 Tech Stock Strategy: Targeting Quality Picks in Hang Seng Tech – Caitong Securities Recommends These 20 Stocks

Stock News
11 hours ago

According to a recent internet sector strategy report by Caitong Securities analyst Hao Yanhui, identifying stocks with potential short- or long-term earnings surprises or unexpected AI advancements will be a key focus in 2026. The report highlights value investing in Hang Seng Tech as the primary strategy.

Given the volatility in Hong Kong stocks due to market dynamics and short-selling mechanisms, selecting fundamentally strong and sustainable companies is crucial. For 2026, the following stocks are worth watching:

1. **Undervalued or Rebound Potential**: Meituan, XIAOMI-W (positioning for next-gen vehicles), BYD Electronic. 2. **EPS Growth & Valuation Upside**: TENCENT, Trip.com Group, JD Health, LENOVO GROUP. 3. **Self-Sufficient Growth Plays**: Alibaba, Baidu Group, SMIC, Hua Hong Semiconductor. 4. **AI-Driven Opportunities**: Kuaishou, Bilibili, Kingdee International, Horizon Robotics, XPeng, China Literature, NetEase, Sunny Optical, UBTech. 5. **High-Potential Small Caps**: Inspur Digital Enterprise, Heartcore, Mobvista.

**Key Rationales**: - **TENCENT (00700)**: Top pick due to robust research framework and growth prospects. - **Alibaba (09988)**: Leading Chinese asset in the AI tech wave. - **LENOVO GROUP (00992)**: AIPC adoption and profitable server business expected in 2026. - **Trip.com (09961)**: Dual growth drivers—domestic stability and overseas expansion. - **JD Health (06618)**: Consistently outperforming internet healthcare leader. - **Meituan (03690)**: Resilient with competitive inflection potential. - **Kingdee (00268)**: Macro headwinds offset by AI and global expansion. - **XIAOMI-W (01810)**: Clearing negatives with sustained profit resilience. - **SMIC (00981)**: Advancing process technology and yield improvements. - **Hua Hong (01347)**: Profit recovery driven by computing and consumer electronics. - **China Literature (00772)**: IP monetization as core growth lever. - **NetEase (09999)**: Upcoming game launches (e.g., *Infinity* and *Forgotten Sea*) to fuel cycle. - **BYD Electronic (00285)**: Apple foldable phone ramp-up, EV, and data center potential. - **Heartcore (02400)**: Gaming and TapTap platform synergy, overseas expansion.

**Additional Highlights**: Kuaishou (01024), Bilibili (09626), Horizon Robotics (09660), XPeng (09868), Sunny Optical (02382), UBTech (09880), Inspur Digital (00596), Mobvista (01860).

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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