Daily Brief TMT/Internet: Kingsoft Cloud Holdings, Hitachi Ltd, Intel Corp, 360 Finance, Inc., Tencent, eFishery, Unerry, JST Group and more

• Materials, Healthcare and Tech sectors continue to lead the Hong Kong Secular Bull Market higher. The tech sector has been re-rating since Alibaba (9988 HK) announced its AI chip.
• Momentum, Growth, and Liquidity factors have led the Hong Kong market performance year-to-date.  Southbound flows into the Hong Kong market continue at historically high levels.
• Kingsoft Cloud Holdings (3896 HK) was rated a BUY by Deutsche Bank with its initial target price of HK$11.  Shenwan Hongyuan initiates coverage of CaoCao (2643 HK) a BUY.

• An agreement to supply OpenAI with energy-saving electric power equipment should be accretive to Hitachi’s sales and profits as long as the AI boom continues.
• Hitachi is also building an “AI Factory” based on Nvidia technology. This should accelerate the growth of Hitachi’s Lumada digital services platform, also boosting sales and profits.
• Hitachi’s share price jumped 10.3% on the OpenAI news. Data center news flow and AI sentiment now drive the share price. 

• What is happening with Advanced Micro Devices (AMD US) and Intel Corp (INTC US)?
• Intel’s stock price has risen about 50% from its April 8 low. However, we have yet to see any tangible progress in its manufacturing technology.  
• Intel’s stock price has risen about 50% from its April 8 low. However, we have yet to see any tangible progress in its manufacturing technology.  

• New Chinese regulations mandate risk sharing with banks, likely raising Qfin’s platform CoR. Management is responding conservatively with tighter controls and higher provisioning before Oct 2025.
• Strong 2024, early 2025 profits were supported by low CoR. Based on peer analysis, a conservative 4% CoR is assumed for Qfin’s platform, which lacks underwriting or credit guarantees.
• Regulatory impact lowers expected RoE by ~2pts. With an 18% CoE, fair value is ~$43/share, implying ~60% total return and supporting a positive investment outlook.

• Context: Volatility cones provide a straightforward framework to evaluate whether options are trading cheap or rich. This Insight provides volatility analysis for 8 prominent Hong Kong stocks and the benchmark index.
• Highlights: In contrast, Alibaba’s IV remains rich, while Hang Seng Index IV is cheap across the curve, offering attractive hedge entry points.
• Why Read: Spot opportunities, assess regime shifts, and manage risk effectively — volatility cones turn complex data into actionable insights for traders and investors.

• eFishery, once a celebrated Indonesian agritech unicorn valued at over USD 1.4 billion, has collapsed following the discovery of a massive financial fraud scandal in late 2024.
• Investigations revealed that the company had grossly inflated its revenue and user metrics for years, leading to the suspension and arrest of its co-founders and the appointment of interim management to oversee the company’s remnants.
• The company is now considered commercially unviable in its current form, with investors facing near-total loss and the firm’s future highly uncertain. The scandal serves as a stark cautionary tale regarding corporate governance and due diligence within the regional startup ecosystem.

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Key points (machine generated)

• Unerry reported a 31.4% increase in sales to 3,726 million yen and a 74.2% rise in operating profit to 311 million yen for the fiscal year ending June 2025.
• The company’s ordinary profit surged by 133.4% to 315 million yen.
• Unerry enhances user experience through its Beacon Bank® platform, focusing on data analysis, behavior change, and personalized marketing.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.

• JST Group (1703609D CH) is looking to raise up to US$300m in its upcoming Hong Kong IPO.
• It is China’s largest and most popular e-commerce SaaS ERP provider.
• We have looked at the company’s past performance in our previous note. In this note, we will undertake a PHIP update.