How is the fundamental of the Hang Seng Technology? Caitong listed 11 high-growth stocks, including Lenovo and Tencent.

Recently, Caitong Haoyanhui team released a research report stating that the Hang Seng technology sector is in the early stages of macro liquidity rebound and AI technology cycle resonance, with medium-term high allocation value. How is the fundamental situation of the Hang Seng technology currently? From the molecular end, the underlying logic benefits from the outbreak of the application end and the content end brought by new technological changes, currently at the starting point of the AI technology cycle; the medium to long-term logic lies in the competition for existing market users, user duration, and the operation and optimization of business models against the background of the gradual fading of traffic dividends, with organizational structure capability being tested behind it. Currently, high-quality companies have shown impressive shareholder returns after the fading of traffic dividends; the focus in the medium term is to track changes in EPS and policies, especially the outstanding performance of profit margins in the entire consumer sector. How to view the beta background of Hang Seng technology at present? From the denominator end, since the fastest and largest rate hike by the Federal Reserve since the 1980s, from a medium-term perspective (over one year cycle), the important variable affecting the liquidity of Hang Seng technologythe Fed has entered a loose liquidity channel since September; in terms of valuation, the forward P/E ratio of Hang Seng technology is currently at the 34th percentile in the past five years. In terms of investment recommendations, the Haoyanhui team believes that looking ahead, it is recommended to focus on the AI theme and focus on investing in sub-sectors that are expected to achieve performance realization ahead. On one hand, benefiting from the accelerated capital expenditure of global major companies, the AI hardware and computing power industry chain will continue to be prosperous in the resonance of the cloud and edge; on the other hand, software applications and content ecology are in the early stages of AI empowerment, with optimism in the opportunity brought by the release of overseas software performance and progress in other industrial ends. In addition, consumption technology sectors such as e-commerce, local life, and advertising marketing are performing steadily under policy stimulus and operational efficiency improvement; the acceleration of smart driving and travel scenarios is expected to become a new round of industrial growth momentum. The overall recommendation is to continue to overweight the Hang Seng technology sector, focusing on leading companies with high performance certainty, leading AI technology, and content ecology layout: Top pick: TENCENT Medium-term resilient stocks: ALIBABA, BAIDU GROUP Stable slow bulls: LENOVO GROUP, CHINA LIT, CTRIP GROUP, SUNNY OPTICAL. Resilient stocks: Kuaishou, Horizon Siasun Robot & Automation, KINGDEE INT'L, XPENG MOTOR.