Technology stock strategy for 2026: Anchoring quality targets of Hang Seng Technology, Caitong recommended these 20 stocks.

Caitong Hao Yanhui released the Internet annual strategy report, believing that the core task of 2026 is to find targets that may have short-term or long-term performance expectations differences, or potential surprises in AI progress. In terms of operational recommendations, the report believes that investing in Hang Seng technology value is the main theme. Based on the assessment of the Hang Seng Technology Index and the industry, along with the volatility brought about by the Hang Seng stock market, as well as the operational space brought about by the ability to short sell, the key to operations lies in selecting targets with truly outstanding fundamental and sustainable development capabilities. In 2026, the following targets are worth noting: (1) Targets that are currently at the bottom or still adjusting, and are likely to reverse their fundamentals in 2026: Meituan, Xiaomi Group (expanding to the next car), BYD ELECTRONIC (2) Targets with the potential for valuation improvement from earning EPS earnings + EPS or exceeding expectations: TENCENT, Ctrip Group, JD HEALTH, LENOVO GROUP (3) Elastic targets that are self-control: Alibaba, Baidu Group (09888), Semiconductor Manufacturing International Corporation, HUA HONG SEMI (4) AI elastic targets: Kuaishou, Bilibili, KINGDEE INT'L, Horizon Siasun Robot & Automation, Xiaopeng Motors, CHINA LIT, NetEase, SUNNY OPTICAL, UBTECH ROBOTICS (5) Potential small-cap companies: INSPUR DIGI ENT, XD INC, MOBVISTA Recommended stocks: TENCENT (00700): Research framework and key points, why is Tencent our Toppick? Alibaba (09988): The most worthy Chinese leading asset to be allocated in the AI technology industry LENOVO GROUP (00992): Accelerated penetration of AIPC, server business expected to be profitable next year Ctrip Group (09961): The best time, a target driven by domestic steady growth and accelerated overseas growth JD HEALTH (06618): Continuously exceeding expectations in the internet medical industry, clear growth path Meituan (03690): Combines resilience and elasticity, expecting a turning point in the competitive landscape KINGDEE INT'L (00268): Fundamental growth is restrained by the macroeconomic situation, with additional elasticity from AI and going global Xiaomi Group (01810): Gradual clearance of negative factors, profit resilience remains unchanged Semiconductor Manufacturing International Corporation (00981): Increasing share of advanced manufacturing, continuous technological breakthroughs HUA HONG SEMI (01347): Improved profitability, driven by computing and consumer electronics growth CHINA LIT (00772): IP as the core, looking forward to further expansion and realization of IP commercialization NetEase (09999): Optimistic about a new product cycle, looking forward to the launch of "Infinite" and "Forgotten Sea" BYD ELECTRONIC (00285): Expecting Apple's foldable screen phone to go into production, with great growth potential in new energy vehicles and data center business XD INC (02400): Driven by both games and Taptap, looking forward to the launch of the overseas version of Small Town Key target outlook: Kuaishou (01024), Bilibili (09626), Horizon Siasun Robot & Automation (09660), Xiaopeng Motors (09868), SUNNY OPTICAL (02382), UBTECH ROBOTICS (09880) Key high-quality small and medium-cap target outlook: INSPUR DIGI ENT (00596), MOBVISTA (01860)