Hong Kong Stocks Concept Tracker | Q3 Earnings Season Kicks Off! AI, Innovative Drugs and Other Sectors Draw Attention; How Should Investors Position for Q3 Earnings Season? (With Concept Stocks)

On October 10, Shandong Wohua Pharmaceutical disclosed its Q3 report, officially opening the A-share Q3 disclosure window. Many listed companies released earnings forecasts in advance, with some companies' net profit year-over-year growth reaching as high as 190 times. Market funds continued to focus on the three main sectors of technology, new energy, and dividend stocks, and the Q3 earnings-driven market has become the current focus of attention. In terms of performance, in the first three quarters of 2026, Shandong Wohua Pharmaceutical achieved operating revenue of approximately 589 million yuan, a year-on-year decrease of 5.73%; net profit attributable to shareholders was 92.6545 million yuan, a year-on-year increase of 44.78%. Among this, in the third quarter the company achieved operating revenue of 195 million yuan, a year-on-year decrease of 1.89%; net profit attributable to shareholders was 25.0882 million yuan, a year-on-year increase of 29.87%. Shortly afterward, on October 13, Grinm Advanced Materials, Focus Lightings Tech, Jilin Liyuan Precision Manufacturing, Tangshan Jidong Equipment and Engineering, and others will disclose their Q3 reports; Hainan Jinpan Smart Technology, Sichuan Chuantou Energy, Shandong Jinling Mining, and others will disclose their Q3 reports on October 14; Zhejiang Yiming Food, Yutong Bus Co.,Ltd., Yutong Heavy Industries, Pamica Technology Corporation, and Shandong Link Science and Technology will disclose their Q3 reports on October 15. In addition, Ganfeng Lithium Group, which is closely watched by the market, will disclose its Q3 report on October 16. Industry leaders such as Zangge Mining and Hangzhou Hikvision Digital Technology will disclose their Q3 reports on October 17. From the perspective of research reports, institutions generally favor the performance of high-performing stocks in the Q3 reports. A Soochow research report stated that growth directions that suffered larger declines earlier while still maintaining prosperity may have higher elasticity. However, as the market trend deepens, funds will gradually shift from "oversold repair" to "performance verification," and the Q3 reports will become a key variable affecting the structure of the October market. In terms of allocation, it is recommended to "use technology as the offensive side and balance other directions." Within technology, priority should be given to AI hardware directions whose current prosperity is most easily verified by the Q3 reports; at the same time, attention should be paid to the AI middle layer, agent orchestration, and application platforms with native SaaS capabilities. Outside technology, pharmaceuticals, manufacturing going global, and some low-position financials also have structural opportunities. Some leading companies in certain industries recently disclosed their first three quarters earnings forecasts, drawing market attention. China Jushi Co., Ltd., a leading electronic fabric company, expects net profit attributable to shareholders in the first three quarters of 2026 to be 5.136 billion yuan to 5.393 billion yuan, a year-on-year increase of 100% to 110%. The main reason for the expected increase in this period's performance is that in the first three quarters of 2026, demand in major downstream application areas of fiberglass increased, and both product volume and price rose. The company laid a good foundation for profit growth by accelerating product structure optimization, increasing technological innovation efforts, and strengthening market development, among other measures to improve profitability. "Among the companies that have currently disclosed Q3 earnings forecasts, the positive earnings rate is close to 70%, with obvious growth in tracks such as semiconductors, non-ferrous metals, and hardware equipment," said Yu Fenghui, a specially invited researcher at the China Financial Think Tank. He stated that ordinary investors looking at Q3 reports need to focus on three tracks: first, AI hardware, with emphasis on the realization of orders and capacity utilization, and it is recommended to pay attention to AI hardware with higher earnings certainty. Second, industrial metals and resource products, where supply constraints combined with profit improvement further strengthen the logic on the basis of the interim report. Third, innovative drugs and securities and insurance, where industry trends are improving and valuations are at low levels, and the sustainability of profit improvement can be verified in the Q3 reports. CICC believes that, in light of Q3 performance, investors should focus on three main investment lines. The current market is greatly affected by external uncertainty, and investors are expected to pay more attention to fundamental trends. It is recommended to focus on the following areas: first, areas where Q3 performance growth improves quarter over quarter, such as upstream non-ferrous metals and technology hardware benefiting from high AI prosperity and overseas demand. Second, technology growth: the performance of growth stocks still depends crucially on the industry's own prosperity and earnings realization. The A-share technology sector may show divergent trends in the future and requires careful selection: AI infrastructure-related segments such as optical communications and PCBs still have relatively strong certainty of high prosperity this year and may rebound after an earlier downturn. For many companies in areas such as semiconductors and computing power, it is still necessary to pay attention to the matching degree between fundamentals and valuation; many innovative drug companies have entered the stage of clinical data verification and are worth bottom-up attention. Third, comprehensively considering the geopolitical situation and the position in the capacity cycle, pay attention to areas with improving performance and supply-demand structure, such as power grid equipment and petrochemicals and chemicals. The progress of the fundamental recovery in purely domestic demand industries remains relatively slow and requires further observation. Related concept stocks: Contemporary Amperex Technology(03750): The company will announce its 2026 third quarter results on October 20. Last month, Contemporary Amperex Technology's stock price suffered a heavy blow from the "de-CATLization" trade, with cumulative declines of more than 19%. However, a JPMorgan research report argues that the market has seriously misjudged this narrative. The report points out that investors are overly focused on the narrowing technology gap but underestimate the strategic value of scale, execution, quality, consumer trust, and financial resilience, which are precisely the core of Contemporary Amperex Technology's structural leadership. Ganfeng Lithium Group(01772): In late September, UBS released a research report stating that it lowered the target price of Ganfeng Lithium Group(01772) from HK$106.86 to HK$44.28, while reiterating a "Buy" rating. After the bank's global commodities team lowered its global lithium price assumptions, UBS further lowered its 2027 China lithium price assumption from 200,000 yuan per ton to 120,000 yuan per ton, while also cutting earnings forecasts and target prices for Chinese lithium stocks. Zijin Mining Group(02899): The company announced that the board of directors hereby announces that a board meeting will be held on Friday, October 23, 2026, to, among other things, consider and approve the company's and its subsidiaries' 2026 third quarter results for the nine months ended September 30, 2026, and their publication. In mid-to-late September, UBS released a research report stating that it maintained a "Buy" rating on Zijin Mining Group(02899) with a target price of HK$57.8. The bank noted that the short-term production delivery of the company's Julong copper mine in Lhasa, Tibet, has become the main pillar of business development in the region, while other regional projects support the next stage of growth. Ping An Insurance(02318): The board of directors of Ping An Insurance (Group) Company of China, Ltd. announced that a board meeting will be held on Wednesday, October 28, 2026, to consider and approve the group's third quarter results for the nine months ended September 30, 2026, and to handle other matters. In early October, JPMorgan released a research report stating that it expects Chinese insurance companies' third quarter earnings to be very weak. Affected by volatility in China's stock market, industry net profit may fall 53% year over year, after having surged 223% in the second quarter. However, the bank does not believe this will become the main downward pressure on share prices, because first-nine-month net profit is expected to be roughly stable, down only 3% year over year, the risk of profit warnings is limited, 2026 earnings per share forecasts have also been revised only modestly after strong first-half results, and the sector has already underperformed the broader market over the past month. Therefore, the bank recommends using weakness as an opportunity to increase holdings in Ping An Insurance(02318) and China Life Insurance(02628), citing their attractive expected dividend yields of 8% and 4% for FY2027, respectively, as well as solid solvency capital and steady growth in contractual service margin. Key catalysts before the end of the year include final dividend per share guidance announced during the third quarter earnings conference calls, and possible government support policies for elderly care and long-term care, potentially with tax incentives.