UOB Kay Hian's latest research report indicates that mainland Chinese equities underwent a consolidation phase during August, with the Hang Seng Index and MSCI China Index retreating 1.2% and 0.4% month-over-month respectively, largely preserving the gains achieved in July.

The brokerage maintains a fundamentally constructive stance on the TMT and IT hardware sectors, favoring companies that stand to benefit from AI-driven capital expenditure and the domestic substitution trend in semiconductor and advanced manufacturing equipment. In line with this view, UOB Kay Hian has added several names to its "Buy" list, including Han'S Laser Technology Industry Group Co.,Ltd. (002008.SZ), Naura Technology Group Co.,Ltd. (002371.SZ), INNOVENT BIO (01801), and TENCENT (00700). Conversely, the brokerage has opted to lock in profits on BEONE MEDICINES (06160) and cut losses on Eve Energy Co.,Ltd. (300014.SZ) and TRIP.COM-S (09961).

UOB Kay Hian also reiterated its "Buy" recommendations for Alibaba-W (09988), ASMPT (00522), BYD Company Limited (01211), GoerTek (01415), Foxconn Industrial Internet (601138.SH), NetEase-S (09999), and Shuanghuan Transmission (002472.SZ).

Among the additions, TENCENT was included in the list on the strength of AI-driven revenue and efficiency gains, enhanced WeChat Channels advertising, newly approved game licenses, and the expanding Hunyuan ecosystem, with a target price set at HK$608.

As for INNOVENT BIO, its inclusion is underpinned by robust revenue and earnings growth, smooth research and development progress, a steady pipeline of new product launches, and widening global collaborations, with a target price of HK$132.