HK Stock Market Move | Zhongji Innolight (03308) rebounded nearly 4% in the afternoon; the company denied order-cut rumors and said customer demand remains strong.

Zhongji Innolight (03308) rebounded nearly 4% in the afternoon, rising 3.39% as of press time to HK$641, with turnover of HK$2.241 billion. On the news front, on the evening of November 3, Zhongji Innolight released a record of investor relations activities, responding to recent market rumors about overseas customers cutting orders, lowering demand, and foreign brokerage firms cutting target prices. The company said that the vast majority of customers have not revised down demand or orders, and customer demand remains strong; regarding rumors that a certain foreign brokerage firm lowered the company's rating and target market value, the company has verified with the foreign brokerage firm, which said it still maintains its rating on the company and that there is no situation of lowering the rating or target price. Citi maintained its "Buy" rating on Zhongji Innolight H-shares and a target price of HK$1,394. The bank believes that Zhongji Innolight's A-shares and H-shares fell 12.7% and 10.9% respectively on November 3, which it believes is related to investor concerns about order cuts, but management has clarified that the company has not seen widespread order cuts, with only limited structural adjustments by individual customers. Citi believes the related share price adjustment may be excessive, and the company's fundamentals remain solid, but the share price has been dragged down by cooling sentiment in the artificial intelligence market.