🇨🇳 Five consecutive looks at Hong Kong stocks' hard tech｜These five stocks are connected by one AI infrastructure theme

Let's talk about these five stocks today; looking at them together will make the logic clearer.

$SMIC(00981.HK) —No matter who makes chips, they all need its foundry services in the end

Capacity utilization is at 95.8%. The National Integrated Circuit Industry Investment Fund's stake has increased from 4.79% all the way to 9.25%, which is a strategic-level signal. In the entire domestic substitution chain, SMIC is the most fundamental infrastructure with the lowest risk and the steadiest growth rate.

$HORIZONROBOT-W(09660.HK) —The most direct beneficiary of the "democratization" of intelligent driving

Affordable cars are fully equipped with high-end intelligent driving systems. BYD, Geely, and Chery are all using Horizon's chips. Goldman Sachs' target price is $15.3, and the current price is $8.3. If the penetration rate of intelligent driving increases from 30% to 70%, the potential upside would be significant.

$SANHUA(02050.HK) —The most controversial one

Its main business is thermal management, a global leader with a deep moat. However, the recent surge is mainly driven by the humanoid robot concept—rumors of "Tesla placing a $5 billion order" once single-handedly boosted its market cap in a day, but the company promptly clarified: it's not true. Robot actuators are indeed Sanhua's third growth curve, but the mass production timeline is unclear. Its valuation has already exceeded 55x P/E, and the main risk is narrative overextension.

Those who prefer stability should focus on its main business; those who like to gamble can bet on the robot's commercialization—two completely different stories. Understand them clearly before betting.

$GIGADEVICE(03986.HK) —The most immediate catalyst recently

Q3 net profit increased by 61% year-on-year, driven by the dual tailwinds of the memory upcycle and domestic substitution. The board will review the annual report and consider dividends on March 30th. This is the stock with the nearest timeline and the clearest catalyst among these five.

$YOFC(06869.HK) —The hardest "shovel" among AI's "shovel sellers"

Explosive demand from AI data centers has driven fiber optic prices to a seven-year high. The price of G.652.D single-mode fiber has risen 92% this year. Yangtze's Hong Kong stock has accumulated a 163% gain this year, securing 50% of China Mobile's centralized procurement share. Just last week, Guangdong Telecom's optical cable tender price doubled within two months, and Yangtze's stock rose over 3% against the market trend that day.

But the risks must be made clear: institutions' average target price for Yangtze's H-shares is $67, but the current price has already risen above $147. The stock price has entered the "dream pricing" stage; be cautious when chasing highs.

🔺 How to allocate?

Conservative: Use SMIC as the foundation + Horizon for upside + Wait for GigaDevice's annual report catalyst.

Aggressive: Add Yangtze to bet on continued fiber optic prosperity + Use a small position in Sanhua to bet on robot commercialization. However, both Yangtze and Sanhua are not cheap at their current levels; position sizing is key.

Which one do you have the heaviest position in now? 👇