[Anatomy Dashboard]
Today marks Black Thursday. Korea's KOSPI index fell 3.52%, Nikkei 225 index fell 2.65%, and Shanghai index fell 1.48%. Major European stock indexes also generally fell, while Hong Kong stocks directly shorted and fell more than 700 points, and the Hang Seng Index closed down 3.03%. This decline in Hong Kong stocks is quite rare; there are no signs at all. Instead, US stocks all rose last night. From day to night, I was told that everyone else's bubble would plummet, but I didn't expect to be able to hold back myself.
There are reasons to look for; the Middle East cannot be circumvented. The US State Department ordered the evacuation of US government employees and their families from non-emergency positions in Saudi Arabia early this morning. Also, according to foreign media reports on the 21st local time, Islamic Revolutionary Guard Corps spokesman Hussein Mohbi said on the same day that Iran is preparing to launch a new weapon he called the “father of the bomb.” It looks like the mountains and rain are about to fill the air. In fact, we all know that the possibility of action is extremely low. As I said yesterday, the US and Israel are all in the election, and it is unlikely that there will be any action during this period; if they want to fight, it is also after the election is over.
Speaking of this, there is good news for Russia and Ukraine. Ukrainian President Zelensky said in an interview that Ukraine can reach a peace agreement on the basis of retaining control of at least 75% of the territory. Zelensky said that Russia has agreed to hold a new round of tripartite negotiations between the US, Ukraine, and Russia. Why isn't the market excited? Everyone knows it's fake. But it's not good to believe.
Oil chaos broke out. WTI crude oil futures rose to 2%, and Brent crude oil futures rose 2.22% to 111.231 US dollars/barrel. However, petroleum stocks have not moved; they are afraid of repetition. Shandong Molong (00568) for oil and gas equipment has risen, rising more than 7%.
The reason for the decline is still in itself. Policies are not strong enough, there is no major financial support, external exports are hampered by various kinds, real estate has not improved, and domestic demand has not been boosted. Technology stocks, in particular, are not stable in this sector, and the market simply cannot stop. In the market, agencies claimed that the leading optical module performance fell short of expectations. Xinyisheng (300502.SZ) plummeted by more than 12%. In addition, it was said that Jiangsu and Zhejiang had some large private capital bursts and stopped losing sales. This rumor is even more lethal. Technology on the Hong Kong stock side fell broadly. Changfei Optical Fiber Cable (06869) and Chipboard (09630) fell by more than 11%. Along with the weakening of technology stocks, optical chip leader Yuanjie Technology (688498.SH) fell nearly 10%, and the stock price fell below the 1,000 yuan mark; currently, only Kweichow Moutai (600519.SH) and Liancun Instruments (688808.SH) remain in A-share 1,000 yuan stocks. The continuous elimination of high-priced stocks is a sign of weakening market conditions.
Even Musk couldn't handle it and quickly carried out the merger. Although Tesla's third-quarter earnings report seemed to be going well, slightly falling short of expectations. Reports say that Musk and his team of advisors are trying to announce a deal in the first half of 2027 to ensure that the merger is completed during Trump's current term. After the merger, the two companies will have a market value of about 3.7 trillion US dollars, surpassing any merger or acquisition in history. The urgency of the time window comes from multiple pressures. Less than two weeks until the US midterm elections, if the Democratic Party takes back any house of Congress, Musk's commercial empire will face the risk of congressional investigation, and Trump will also accelerate into a lame duck state.
When the market falls sharply, there will always be some individual stocks whose decline will be exaggerated. Bruco (00325) announced that Smart Bloks, a member of the controlling shareholder group, passed a major transaction to sell 3.849 million shares at HK$6528 per share, accounting for about 1.56% of the company's total issued shares (excluding treasury shares), and cashed out about HK$251 million. The reduction in holdings at this point was a bit of a panic, and the drop was over 21%.
There are quite a few strong individual stocks. According to CCTV news reports, the International Organization for Standardization (ISO/IEC) issued an international standard for the brain-computer interface reference architecture developed by China — the “Information Technology Brain-Computer Interface Reference Framework”. The publication of this standard will help unify standards across industries around the world. Brain Motion Aurora-B (06681) is the only target of non-invasive EEG+ cognitive digital therapy in Hong Kong stock brain computers. It specializes in Alzheimer's, cognitive impairment brain assessment and intervention digital therapy. The product is under medical insurance in 30 provinces, and has been distributed to cognitive centers in more than 2,000 public hospitals. The main catalyst is that the pipeline is nearing completion. The cognitive rehabilitation training product for dyslexia is expected to complete clinical research in December 2026, and the depression function evaluation product is expected to obtain a registration certificate in November 2026. Up over 27%.
Zhaowei Mechatronics (02692) is trending rapidly today. It is not a speculative robot concept, but a physical AI theme. On the surface, various dexterous manufacturers sell hands; in reality, they are competing for the right to enter physical interaction data. The company's ZWHAND B20 dexterous hand has 20 degrees of freedom. The product can be equipped with electronic skin and various sensors as needed, which means that it sells not only execution components, but also physical AI training data collection tools. It is a physical AI shovel seller. The valuation system is directly elevated. The company has a clear product matrix and production capacity expectations: it already has an A17/B20/B06 full-scale dexterous hand, and 800 million dollars to build the Baoan Dexterous Hand Industrial Park. In 2025, Zhaowei's mechatronic robot products (dexterous hands and their core driving modules) achieved revenue of 23.87 million yuan, an increase of 297.2% over the previous year, but only accounted for 1.4% of overall revenue. However, this also means that there is a lot of room ahead. The three-quarter report on October 29 will be the first point to test the success of the story of Zhaowei's mechatronic dexterity, which surged nearly 22% today.
The AI+ direction continues. Ketuo Co., Ltd. (02272) specializes in digital intelligent parking systems, parking hosting services, and contract operation of parking lots. It is an AI agent and static traffic physical agent. The company developed its own KeyTopAgent AI proxy platform. This set of agents can independently plan tasks and continuously iterate, and has already implemented a complete digital employee matrix for AI police stations, AI car park managers, AI cloud customer service, and AI finance. AI guard boxes are already running in hundreds of parking lots, and all entrances and exits are unattended. The target is large-scale promotion in the second half of the year, which is expected to continue to reduce labor costs in car parks. At the same time, the company also reached a cooperation with HUAWEI CLOUD to further strengthen AI technology implementation capabilities around cloud platforms, smart parking solutions, etc. Two car park service robots, “Little K and Little T,” were also released. They are connected to large models for in-park navigation and interaction services. The market directly classifies them into the smart echelon. They are not traditional road gate hardware. Today, they have risen by more than 10%.
[Section Focus]
According to QuestMobile data, as of July 2026, Hongguo's daily activity reached 168 million, an increase of 107% over the previous year, exceeding the total daily activity of the four major video platforms of Aiyou Tengmang; the average daily usage time per person was 125 minutes. A free skit app that has just been online for three years, and has accumulated more than ten years of users on the Long Video Platform.
The key behind the rise of skits is a sharp decline in the cost curve. According to industry estimates, the production price for a one-minute AI skit dropped from about 5,000 yuan in the second half of 2025 to hundreds of yuan; the cost of a boutique AI imitation reality skit can be kept within 200,000 yuan, while a live action skit of the same level would cost 1.5 million to 3 million yuan. Unexpectedly, AI is triggering changes in the film and television industry. The supervisory authorities are more cautious, because it has had too much impact on the industry, and skits are a bit like fast food. Although there is no shortage of quality products, most of them are not very nutritious. However, the present is indeed a product of the times, and it is also a future trend. It is difficult to stop it; if there is demand, there will be a market.
The upcoming release of the first domestic AI theatrical film “Sanxingdui: Future Past” is also a catalyst. What is currently being touted first is the variety that is expected to be profitable. For example, the head of the marketing department of Duibar (01753) said that about 80% of the company's production process is connected to the AI workflow, and one producer can complete several AI skits every month. In September of this year, 172 popular AI skits were broadcast in a single month, and the AI skit business was profitable in the third quarter. Later markets will explore content-side Reading Group (00772) and China Confucian (00136).
[Individual Stock Mining]
Midea Group (00300): Rapid Growth in ToB Business Continues to Repurchase Shares to Boost Confidence
The company recently repurchased shares at a high frequency, with a cumulative total of more than 132 million A-shares. It has already spent about 10.731 billion yuan, and the use was changed to cancellation and capital reduction. Revenue for the first half of 2026 was $261,052 billion (+3.46%), net profit to mother of $26.45 billion (+1.7%), smart homes of $174.3 billion (+4.3%), and commercial and industrial solutions of $66.7 billion (+3.3%).
Comment: The company's overseas air conditioning orders continue to grow. Since this year, PortasSplit's sales volume has doubled from last year to become a hit, with over 200,000 units shipped and delivered at the Nansha and Wuhu factories. Overseas e-commerce revenue grew 50% +, shifting from OEM to brand going overseas, improving profit quality. The company's technological transformation was successful. From home appliances to technology groups, the three tracks of AI+robot+new energy are gaining strength.
ToB outbreak: Second curve at the 100 billion level. The growth rate is significantly higher than ToC, and the gross profit is higher. Two-wheel drive (ToC+ToB), ToC (67%): Air conditioning market share 35%. Building technology in the first half of 2026: $21.625 billion (+10.84%); robotic automation: $16.621 billion (+10.27%). The company has a global layout, with 29 overseas R&D centers and 43 manufacturing bases, covering 50 countries; in the first half of 2026, overseas revenue of 113.127 billion +5.54%, accounting for 43.5%. The whole industry chain: core components such as compressors, motors, and controllers are self-developed and produced. The cost is 10%-15% lower than that of peers, and the delivery cycle is short. Lighthouse factories: 6 (No. 1 in the home appliance industry). The Chongqing Building Technology Factory is the first full-process AI lighthouse factory in the global central air conditioning industry. Robots: KUKA+ self-developed humanoid robots are receiving orders of 2 billion + and centralized delivery by 2026H2. New energy vehicle parts: orders of 5 billion +, supporting leading car companies. AI+ high-end: the penetration rate of AI appliances is 40% in 2026; COLMO stores are 2000+, with high-end revenue accounting for 20% +.
The company's globalization deepened, OBM's own brand went overseas, and there was a surge in Southeast Asia, North America, and the Middle East. The company acquired European HVAC leaders and established the MBT Climate European HVAC Alliance to open up the European ToB incremental market for energy storage, heating and refrigeration equipment. The second growth curve is favorable in the medium to long term. The first point of cooperation between Midea Group and Alibaba Group is to jointly build the core capabilities of whole-house intelligence, and carry out in-depth cooperation in the three directions of home AI brain, IoT ecosystem and lifestyle service scenarios, and popular smart hardware.
The company has high dividends and large repurchases, the company's 100% net profit return (dividend+repurchase), and an expected dividend rate of 1.95% in 2026. The company continued to repurchase large amounts of shares, strong profit growth, and an active shareholder return policy, which significantly boosted investor confidence. Midea Group's overseas and ToB business is growing strongly, and the growth rate of the ToB business is expected to be higher than the ToC business.