HK Stock Market Move | Victory Giant Technology (02476) fell nearly 14% in morning trading; HSBC's earnings forecast is below market expectations, with risks largely reflected in the share price.

Victory Giant Technology (02476) fell nearly 14% in morning trading. As of press time, it was down 10.66% at HK$106.4, with a turnover of HK$424 million. HSBC issued a research report stating that Victory Giant Technology is a key PCB supplier for Nvidia and Google. Benefiting from AI server PCB demand, the bank forecasts a compound annual earnings growth rate of 58% from 2026 to 2028, but this is below market expectations. The bank noted that third-quarter results were below market expectations, mainly due to shipment delays from major customers that brought costs forward and pushed back revenue recognition; it expects a strong earnings recovery in the fourth quarter driven by the ramp-up of Nvidia's Vera Rubin and improved yields. The bank pointed out that A-shares and H-shares have corrected about 55% and 61% year-to-date respectively, underperforming the broader market, reflecting risks such as AI concerns, co-packaged optics (CPO) with higher data transmission density potentially reducing the value of AI server PCBs, and overcapacity in 2027. The bank believes these risks are largely reflected in the share price and has incorporated conservative earnings forecasts. It initiated coverage with a "Buy" rating.