[Anatomy Dashboard]
Global stock markets have reached the brink of danger. US stocks weakened across the board last Friday, and the NASDAQ plummeted 2.86%. A-shares helped bail out the market at a critical moment. At last, Hong Kong stocks continued to rebound, but not very strong, rising by 0.42%.
In the final stage of the US midterm elections, all kinds of chaos abounded. Michigan Democratic Representative Stevens publicly endorsed his Republican opponent and was criticized by senior party officials and resigned from his staff; the Alaska Democratic Party campaign recruited a candidate of the same name to “disrupt the game” and divert votes, and the Department of Justice intervened in the lawsuit. Trump is slowing down in order to stabilize his voting posture. According to reports, US President Trump hopes to evaluate whether to resume military attacks on Iran after the midterm election results are released on Tuesday, preferring to give more time for diplomatic efforts. Iran and Qatar resumed negotiations on Monday, and both the US and Iran revealed the idea of seeking a diplomatic solution to the conflict. Brent crude oil immediately fell by about 3%, and the fall in oil prices helped ease inflationary pressure.
On the domestic side, there were calls from the central bank and the Securities Regulatory Commission after the sharp drop last Friday, but it was clearly not enough. Sure enough, specific measures will be introduced over the weekend: the Central Bank, the Financial Supervisory Authority, and the Securities Regulatory Commission will hold a meeting on November 2 to study and promote policies to support the use of capital market instruments and optimize stock refinancing. Major state-owned banks plan to add 100 billion yuan of special loan lines to China Xinxin and China Chengtong each to increase their holdings.
Catalysis continues after the market: The People's Bank of China is expected to issue a tender notice and accept institutional declarations on November 3. At present, more than 30 securities and fund companies have indicated their intention to participate in the bidding, which exceeds the scale of participation of 20 institutions in each of the first two batches. It is estimated that the total demand declared by institutions will exceed 100 billion yuan. It has already surpassed the size of the previous two batches, and is close to the total amount of the previous two batches added together. This is the largest instrument capital in this round of stabilizing the market. Naturally, this is most beneficial to brokerage firms. It's easy to do if you have money, and if you go to the bottom, it will also improve performance flexibility. Yunfeng Finance (00376) rose more than 10% due to the combination of stablecoins, and CICC (03908) and GF Securities (01776) rose more than 8%. CITIC Securities (06030) and China Merchants Securities (06099) rose more than 5%.
However, what needs to be paid attention to is that whether it is a brokerage firm or an enterprise, it is a good thing to have money on their hands, but it is another thing. If the market stabilizes and does not fall here, of course, the brokerage firms dare to use it; otherwise, they don't dare to use it at all. The same goes for corporate repurchases. Take a look at the last time the “924” central bank announced this policy tool in 2024. The statement is: 500 billion dollars in the first installment; if done well, they can get 500 billion dollars or even the third 500 billion dollars. In reality, we only had 105 billion dollars, so we need to figure out this causal relationship.
Now it's better to “let the bullets fly for a while” to see if it actually stabilizes. Today, the overall technology stocks are recovering, but sustainability needs to be observed. The good performance is Changfei Optical Fiber Cable (06869): Announcing the results for the first three quarters on October 30, the group achieved operating revenue of 19.124 billion yuan, an increase of 86.12% over the previous year; net profit attributable to shareholders of listed companies was 6.128 billion yuan, up 1204.63% year on year, up more than 11% today.
Today's popular segment of the market is the AI skit I mentioned to you last Friday. According to weekend news, the red fruit skit topped the Taiwanese app download list. Some people saw the dawn, and others unsubscribed from Netflix. According to media reports, at present, about 10 domestic Chinese companies have set up overseas skit platforms, and more than 10 overseas skit apps have launched exclusive AI comic channels. According to data from iiMedia Research (iiMedia Consulting), China's AI short drama market is experiencing explosive growth. In 2025, China's AI short drama market size is 18.98 billion yuan, and it is expected to exceed 140 billion yuan in 2030. Overseas markets: the main battleground for the expansion of AI efficiency dividends. In the context of domestic oversupply, going overseas has changed from an “optional incremental” to a “required option”: data shows that the overseas short drama market will reach 4 billion US dollars in 2025, and it is expected to exceed 5 billion US dollars in 2026.
The AI skit industry chain has formed a three-tier structure of “upstream (technology and elements) - midstream (production and supply) - downstream (distribution and monetization)”. The most valuable are mainly downstream and upstream. The midstream production process is fiercest and has little voice.
The downstream sector unquestionably received the most profit because it controlled traffic and settlement rules, and was scarce. At the beginning, the red fruit skit had a first-mover advantage; later, Tencent (00700) also made efforts to create a green bubble. Other channels include Kuaishou (01024), which relied on massive users to focus on lightweight, high-paced content. WeChat Mini Program, Pinduoduo, and Meituan (03690) entered the distribution pattern with scenario-based entrances. The platform uses AI recommendation algorithms to achieve accurate content distribution and long-tail monetization. Of course, the most profitable company is ByteDance Group, which has both upstream IP tomato, production tools such as Dream Seedance (accounting for 70-80%), and downstream red fruit, forming a perfect closed loop, but unfortunately it was not listed. Tencent (00700), a short drama, does not account for much of it, and is in the development period.
Looking at upstream IP, this barrier is very high, second only to downstream distribution platforms. This is based on long-term accumulation, which is equivalent to the origin of skits. The Reading Text Group (00772) mentioned on Friday has the largest domestic Internet text IP library, its own DramaBuddy comic AI tool, its own starting point theater, overseas ToonScroll comic platform, IP licensing+homemade AI comic. The revenue of short dramas in the first half of the year was 430 million, +230% over the same period last year, up more than +14.33% today, even though the IP end accounts for the overall cost of short dramas It's not big, but it accounts for The revenue side is very impressive. Once there is an explosion of money, the later revenue split is the most significant. Today, it surged more than 15%; China Star Group (00326)'s old film and television IP library has a copyright library for classic Hong Kong films. It can adapt short dramas and comics to be developed twice, up 10% today.
The midstream direction is relatively the least valuable. Most of them make hard money. The competition is too fierce. It belongs to the Red Sea, Duibar (01753) self-developed AI skit workflow agent. AI skits have been profitable for 3 consecutive months, and the number of broadcasts has risen rapidly, and the increase in the previous period was significant. Meanwhile, China's Ruyi (00136) spans upstream IP+ midstream AI production+downstream own distribution (pumpkin movie), and is a full-link target. This target is the October Zhitong Gold Stock. I didn't expect it to be delayed last month, but only now. It's all a matter of timing. It's all a matter of timing. It's not OK if it's too early. Today, it's up more than 7%.
In terms of other individual stocks, Huaxin Construction (06655) announced on October 30 that the company plans to acquire shares in the target company Brazil Cement Company held by Brazil's National Steel Company (CSN). The target company's Enterprise Value (Enterprise Value) of the agreement is R$12.7 billion (approximately $15.868 billion at the current exchange rate). The company's net profit for Q3 exceeded market expectations. If the acquisition is successful, it will raise performance expectations and surged by more than 10% today.
Xiaomi (01810) has made another move, investing 1.7 billion yuan to subscribe to Sunwoda Dynamics with an additional registered capital of 898 million yuan, corresponding to 5.34% of the shares after the capital increase is completed. After the completion of this round of capital increase, Sunwoda Power was valued at about 31,835 billion yuan, and Xiaomi became the third largest shareholder. Its latest model, the Xiaomi Pengcheng, is all equipped with Sunwoda power batteries. The Xiaomi YU7 has a one-year value preservation rate of 82.3%, ranking first in the value preservation rate of pure electric models for 4 consecutive months. Today, it has increased by more than 6%.
[Section Focus]
According to market news, Chinese robot company Fourier and Meta have jointly developed a humanoid robot prototype called Max. It only took about three months for the two parties, and they have now begun second-generation product research and development. According to reports, the robot is about 1.5 meters tall and weighs about 48 kilograms. It is equipped with an Nvidia Jetson Thor chip, equipped with a display that simulates facial expressions, a speaker, and a five-finger dexterous hand, and can grab small items.
This means opening up a new paradigm of robots: overseas giants are responsible for large models and intelligent brains, and domestic robot manufacturers are responsible for the whole machine body, motion engineering, and hardware base for dexterous interaction. The prototype was quickly produced in three months, proving that the efficiency of this division of labor model is far higher than that of a single company developing a complete machine from scratch.
Individual stocks related to Hong Kong stocks: Horizon Robotics (09660), Sleeping Robot (06600), Yuejiang (02432), Xiangong Intelligence (06106), and Preferred Choice (09880).
[Individual Stock Mining]
CIMC Group (02039): Increase energy storage and sign new drilling service contracts with sufficient orders in hand to continuously improve profitability
On October 30, it was announced that the company plans to invest 298.83 million yuan through its subsidiary CIMC Capital Holdings to participate in the establishment of a new energy storage industry fund with a pledge scale of 1 billion yuan, accounting for 29.88%, increasing the electrochemical energy storage industry chain; its subsidiary, CIMC Holdings, an international customer, signed a drilling service contract for the semi-submersible platform “Beacon Pacific”.
Comment: The company is increasing the layout of the energy storage industry chain, which is a long-term industrial incubation layout. The semi-submersible platform “Beacon Pacific” drilling service contract proves that CIMC Offshore's platform asset leasing capabilities continue to be fulfilled. The company's profit exploded in Q3, verifying that high-margin offshore orders have entered a centralized delivery period. The company is a multi-track global leader, producing dry containers, refrigerated boxes, special containers, tank containers, and semi-trailers in the world; boarding bridges are the world's core supplier; the offshore sector (Raffles) is one of the few domestic enterprises with FPSO and FLNG dual-package EPC capabilities, which is a scarce production capacity for high-end domestic floating equipment.
The whole industry chain+global manufacturing layout. Nearly 20 countries at home and abroad have set up production bases, and domestic/overseas revenue is close to half, spreading the risks of a single regional trade policy; it covers equipment manufacturing, general engineering contracting, asset operation, and logistics services. It is not simply OEM, and has integrated equipment+operation capabilities. Offshore Engineering (Raffles) is the company's biggest highlight. Offshore's gross margin has increased to around 20%, and profit flexibility is greatest.
Ongoing orders surpassed US$10 billion, with new signing of US$5.7 billion in the first three quarters, including large-scale FPSO and FLNG turnkey projects, with long scheduling cycles, high order quality, significant increase in gross margin, improved delivery efficiency, and net profit +155.5% YoY in the first half of 2026; Q3 continued to be fulfilled, and large-scale FLNG/FPSO high-margin projects were gradually delivered, which is the strongest source of growth at present.
Energy and chemical equipment (Enrico) grew steadily, revenue was steady, and profits rose steadily, with on-hand orders of 33.381 billion yuan, +8.5% year over year; new orders of 21.937 billion yuan were signed in the first three quarters, +11.7% year over year. Demand for LNG, hydrogen energy, and industrial storage and transportation supported order growth, which is a long-term increase.
Container sector: There are no long-term large turnkey orders, which are short-term rolling orders; dry containers sold 2.055 million TEU (+14.05%) and 152,600 TEU of refrigerated containers in the first three quarters of 2026. Refrigerators benefited from fresh cold chain demand, and the prosperity was superior to that of ordinary dry containers. The company's two major sectors, energy and offshore, have very high order reserves, and production schedules have dragged down for many years. Long-term large turnkey orders have continued to land, opening up room for valuation.