CITIC Securities: Hong Kong's technology sector may have significant flexibility in the mid-term report for 2025.

The research report of CITIC Securities indicated that it is expected that the mid-term performance of Hong Kong stocks in 2025 will be concentrated and released in the latter half of August. Based on the current profit expectations of companies, the overall revenue growth of the Hang Seng Index in the first half of 2025 is expected to significantly increase compared to the same period last year, but profit growth may moderate slightly. Some specific industries are showing a trend of increased confidence, such as the new consumer, technology, and pharmaceutical sectors. With expectations of high growth or significant improvement in performance, profit expectations before the disclosure of financial reports are still being revised upwards. It is recommended to focus on sectors with good performance expectations and certainty. As for the Hang Seng Technology Index, although profit expectations have been slightly lowered recently, it is mainly due to disruptions from subsidies for takeaway platforms, and the related negative news has already been fully priced in by the market. Profit expectations for other sub-industries are generally trending upwards, especially for new energy vehicles, semiconductors, and consumer electronics. Among them, there is a significant difference in performance expectations for new energy vehicles and semiconductors, implying greater elastic space; while the performance expectations for consumer electronics show less differentiation, they have strong business certainty. Overall, the mid-term report of the Hang Seng Technology Index in 2025 is expected to present a pattern of "stability as the main trend, with upward flexibility".