The HSI closed at 25,182, up 176 pts or 0.7%. Market turnover for the day spiked 29.7% from the previous session to HKD462.07 billion. The HSCEI closed at 8,425, up 61.41 pts or 0.73%. The HSTECH closed at 4,884, down 4 pts or less than 0.1%. The HSI slid 423 pts or nearly 1.7% for the week, and tumbled 591 pts or 2.3% for the month.

Among blue chips, LENOVO GROUP (00992.HK) sustained its strength, underpinned by results from Dell Technologies Inc. (DELL.US). It closed at HKD24, a record closing high, up 21.95%, making it the best-performing blue chip of the day. SUNNY OPTICAL (02382.HK) jumped up 13.78%. INNOVENT BIO (01801.HK) rallied 11.36% on news of cooperation with Pfizer. SMIC (00981.HK) faced selling pressure at high levels, closing at HKD81.6, down 7.54%. LI AUTO-W (02015.HK) had its TP cut by several brokers after results and closed at HKD57.85, down 4.3%. XPENG-W (09868.HK) also nosedived 3.8% after earnings.

Among techs, POP MART (09992.HK) continued to attract funds, soaring 7.37%. BIDU-SW (09888.HK) elevated 3.5%, while XIAOMI-W (01810.HK) dipped 1.82%. TENCENT (00700.HK) edged up 0.5% and MEITUAN-W (03690.HK) added 0.2%.
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LI AUTO-W (02015.HK)'s 1Q results were broadly in line with market expectations but about 15% below JP Morgan's forecasts. The broker upheld a cautious long-term view on Li Auto, believing that the highly competitive market environment implies limited room for volume and earnings upside surprise.

At the results briefing, management outlined several strategies, including upgrading the product mix. The new L9 and the upcoming L8 will reinforce the high-end SUV positioning, which should help gross margin gradually recover from 2Q onward.

On overseas expansion, the L-series EREV models have entered the Middle East and Central Asia markets, with further expansion into SE Asia starting in May. Battery electric vehicle (BEV) models are set to enter Europe in 2H26, followed by right-hand-drive products launching in Hong Kong and Singapore.

However, JP Morgan noted that several Chinese competitors, including NIO, XPeng, Huawei, Xiaomi, Zeekr and Leapmotor, are launching EREV and BEV products with increasing overlap with Li Auto's core models in terms of pricing, specifications, sales channels and target family buyers. This may weigh on revenue growth momentum, while price competition, promotions and input cost inflation could continue to squeeze profit margins.

The broker maintained its Underweight rating on LI AUTO-W, cutting the Hong Kong-listed shares TP from HKD60 to HKD56, and lowering the TP for Li Auto Inc. (LI.US) ADR from USD15.5 to USD14.
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XPENG-W (09868.HK) delivered 1Q results broadly in line with expectations, JP Morgan said in its report. Management remained optimistic on sales prospects for 2Q and beyond. Meanwhile, AI initiatives including humanoid robots and robotaxis are set to begin product deliveries and generate revenue starting from 4Q.

Management reiterated that the company is transforming from an EV maker into a physical AI company. The broker maintained its long-term bullish view on XPENG-W.

The broker expected XPENG-W to have passed the seasonal and product-cycle trough in 1Q and entered a strong recovery phase. 2Q delivery guidance is 100,000-106,000 vehicles, with three new global models to be launched in 2H.

In overseas markets, management expected overseas revenue contribution to surpass 20% starting from 2Q, targeting monthly overseas deliveries of more than 10,000 units by 4Q.

Taking into account 1Q results and the latest outlook, JP Morgan fine tuned its FY2026 earnings forecast, lowering the H-share TP from HKD135 to HKD118, and cutting the US-share TP for XPeng Inc. (XPEV.US) from USD34 to USD30. Both are rated Overweight.
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International oil prices descended today (29th) after reports said the US and Iran had preliminarily agreed to extend the ceasefire deadline by 60 days.

Brent oil futures for July delivery sank 1.32% to USD92.47 per barrel, bringing the total drop in May to 19%, on track for the largest monthly decline since 2020.

Ryan McKay, Senior Commodity Strategist at TD Securities, said crude supply is still expected to be acutely curbed by time lags in tanker transportation and the time required to resume production. During the recovery in transportation, as much as 1 billion barrels of supply could still be lost.
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This morning (29th), the HSI opened up 155 pts; with extended gains, it closed at 25,281 at midday, up 275 pts or 1.1%, with half-day turnover reaching HKD194.1 billion. The HSTECH closed at 4,969 at midday, up 81 pts or 1.66%, while the HSCEI closed at 8,471, up 106 pts or 1.28%.

Among blue chips, LENOVO GROUP (00992.HK) swelled on the back of results from Dell Technologies Inc. (DELL.US), closing at HKD24.4, up 23.98%, making it the best-performing blue chip at midday. SUNNY OPTICAL (02382.HK) shot up 7.81%. LI AUTO-W (02015.HK) reported a non-GAAP loss of RMB2.1 billion in 1Q26 and closed down 4.8% at midday, the worst-performing blue chip.

Bolstered by urban renewal planning in mainland China aimed at revitalizing existing land inventory, Chinese property developers rallied. COUNTRY GARDEN (02007.HK) soared 19.14%; CHINA VANKE (02202.HK) leaped 12.2%; LONGFOR GROUP (00960.HK) spiked5.88%; CHINA RES LAND (01109.HK) and CHINA OVERSEAS (00688.HK) each climbed more than 3%.

Among leading tech names, BIDU-SW (09888.HK) proliferated 8.36%; KUAISHOU-W (01024.HK) escalated 3.48%; TENCENT (00700.HK) jumped up 2.64%; and MEITUAN-W (03690.HK) advanced 3%. BABA-W (09988.HK) and NTES-S (09999.HK) each grew more than 1%.
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Hangzhou Warm Core Jia Electronic Technology recently underwent industrial and commercial changes, adding Shanghai Qishan Investment under TENCENT (00700.HK) and others as new shareholders, with registered capital increasing to RMB16.8853 million, Chinese media reported, citing information from Qichacha APP.

Founded in 2014, Hangzhou Warm Core Jia Electronic Technology is engaged in integrated circuit design and development, as well as technology development, technical services and consulting for electronic products and biomedical equipment.
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LI AUTO-W (02015.HK) Chairman and CEO Li Xiang said that competition in the mid-to-high-end smart vehicle segment will essentially be competition in embodied AI over the next three to five years.

The highest technological barriers in the industry and the core factors determining a company's long-term competitiveness will lie in deep co-design of chips and large models, which the group will focus on, the Chairman said.

With LI AUTO-W developing more powerful in-house computing chips and adopting entirely different model deployment approaches and model scales, together with vertically integrated software-hardware capabilities, the traditional practice of poaching talent as a competitive strategy will become ineffective.

In the long run, Li believed that factories, retail stores and users will all require humanoid robots. Therefore, robotics does not belong exclusively to LI AUTO-W nor solely to start-ups. The company envisions humanoid robots achieving large-scale commercialization and industrialization, similar to the electric vehicle sector between 2010 and 2015.

He expects that reaching such a stage will take at least more than three years, or even longer. During this period, many technical challenges remain to be addressed, as there is still no consensus on the technological roadmap for many detailed aspects, all of which need to be resolved.
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The Intelligent Driving 9.0 version powered by LI AUTO-W (02015.HK)'s self-developed Mahe M100 chip achieved a major upgrade compared with version 8.0, Xie Yan, Chief Technology Officer of LI AUTO-W (02015.HK), said. Version 9.0 is the first intelligent driving system fully running on the Group's in-house chip. It is ranked among the first tier in the highly competitive industry, though this marks only the beginning, the CTO said. The Group aims in 2H26 to benchmark its performance against Tesla, Inc. (TSLA.US) FSD Beta version 14.

On international expansion, President Ma Donghui said LI AUTO-W's globalisation strategy is progressing steadily. In overseas markets, the Group is adopting a phased expansion approach, flexibly choosing between establishing subsidiaries to develop dealer networks or appointing exclusive general distributors based on local market size and competitive landscape. It aims to leverage leading local partners to rapidly build an integrated service system covering sales, delivery and after-sales support.

Ma added that LI AUTO-W's brand and products continue to gain recognition in overseas markets. In the Middle East and Central Asia markets, the L-series extended-range models will serve as the main offerings, with official entry into these markets in 3Q26. In 2H26, the Group will also launch the all-electric I6 model in the European market. For right-hand-drive markets, a right-hand-drive version of the Mega will be introduced by the end of this year in core Asia-Pacific regions such as Hong Kong and Singapore.
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AASTOCKS Financial News compiled the latest investment ratings, TPs and views from 7 brokers on LI AUTO-W (02015.HK) (LI.US) as follows:

Brokers | Ratings | TPs | Core Views

CLSA | Outperform | HKD140/ USD36
1Q26 results recorded a net loss due to a higher contribution from entry-level models, inventory clearance and subsidies. Industry headwinds, including weak demand and cost pressures, are expected to continue weighing on its performance.

UBS | Buy | USD23
1Q26 operating loss was in line with expectations. Vehicle gross margin of 6.1% was above prior guidance of around 5%, but below the 16-20% range reported over the past four quarters.

Nomura | Neutral | USD20
1Q26 marked the largest quarterly loss since listing. Weak 2Q guidance; intensifying competition and rising costs suggest a challenging outlook.

BofA Securities | Neutral | HKD86 -> 70/ USD22 -> 18
1Q26 non-GAAP net loss was better than expected. Management expects vehicle gross margin to rebound to 10% in 2Q. TP was lowered to reflect cuts in sales volume and gross margin forecasts.

JP Morgan | Underweight | HKD60 -> 56/ USD15.5 -> 14
1Q earnings were about 15% below expectations. Intensifying competition limits upside to sales and profitability, and the broker maintains a cautious stance.

UOB Kay Hian | Sell | HKD45 -> 40
1Q26 ASP was disappointing, with margin pressure leading to weaker-than-expected results. Earnings are expected to be affected by declining L-series sales, pricing pressure and a deteriorating product mix.

Daiwa | Buy | ---
1Q26 results were weak due to lower ASP. The broker focuses on sales performance of the new L9 model.
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Deliveries of the all-new L9 in 2Q are expected to be around 8,000 units, on the back of initial production ramp-up after launch, LI AUTO-W (02015.HK) President Ma Donghui said.

After full completion of capacity ramp-up in 3Q, the Group is confident that the steady-state monthly sales of the new L9 will steadily exceed the previous average monthly level of the older L9.

Group CFO Li Tie noted that 1Q gross margin was impacted by multiple factors, including model replacement cycles, the upgrade transition from L5 to new models, and the increased sales mix of L6, which was also affected by purchase subsidy policies.

However, with the launch and delivery of the all-new L9, the Group expects gross margin to rebound to 10% in 2Q. On a full-year basis, as the L series model upgrades are completed and product mix continues to optimize, overall gross margin is expected to improve steadily.

Ma supplemented that while the L9 focuses on a flagship six-seater positioning, the new L8 will target the flagship five-seater segment. The two models will form an efficient complement to each other, further consolidating the brand's leading position in the high-end flagship market.

The L8 had its filing completed with the Ministry of Industry and Information Technology in April and is scheduled for official launch and delivery by the end of June.
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Based on the latest monthly data, international market sales of XPENG-W (09868.HK) accounted for nearly 20% of the company's total sales, XPENG-W Vice Chairman and Co-President Brian Gu stated. In comparison, international sales represented only about 10% of global sales last year, indicating that the importance of international operations in the overall sales mix is advancing dramatically.

New models developed for global markets have not yet been officially launched, and the current growth momentum is expected to continue in the coming quarters and throughout the year. In view of this assessment, the group believes maintaining international sales contribution at around 20% is achievable. Meanwhile, the China market is also showing positive growth signals, which will support the company's overall development.

Regarding localized production, Gu noted that the company has established two factories in SE Asia, located in Indonesia and Malaysia, primarily to serve local market demand. In addition, it has formed a partnership with a Magna factory in Austria to produce vehicles for the European market. This year, all three production bases will further expand capacity and gradually commence production of new models. In the future, most products sold by the company in the European market are expected to be locally produced.
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LG Electronics announced the launch of a series of innovative automotive products built on Google technology, sending its shares up by as much as 27% today (29th).

LG Electronics said its new suite of solutions is based on the Android Automotive operating system, featuring a single-chip design capable of simultaneously controlling multiple displays of different sizes, distinguishing it from traditional in-vehicle systems.

The company noted that the solution helps automakers sharply reduce the cost of deploying multi-screen in-car systems.
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Jensen Huang, Founder and CEO of NVIDIA Corporation (NVDA.US), will attend NVIDIA's annual AI developer conference, GTC Taipei 2026, in Taipei next week, and will visit South Korea after completing his main itinerary, report told.

Industry sources expected that Huang may discuss cooperation during his visit to South Korea in areas such as high-bandwidth memory (HBM), next-generation AI accelerators and wafer foundry services with major South Korean semiconductor companies including Samsung Electronics and SK Hynix.
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XPENG-W (09868.HK) Vice President of Finance and Accounting Wu Jiaming said the group's overall gross margin in 1Q26 was broadly flat compared with 4Q25. In the meantime, soaring prices of memory chips and increasing battery raw material costs have created certain cost pressures for the group, with part of the impact already reflected in 1Q26. The related cost factors are expected to continue to be reflected in subsequent quarters this year.

He Xiaopeng, Co-founder, Chairman and CEO of XPENG-W, added that following the launch of four global models in 2H26, the company believes its globalization pace will accelerate noticeably in 2027 and 2028, and he expressed strong confidence in this outlook. Previously, the group had only two vehicle models.

This year, the group's R&D investment in the automotive segment is primarily focused on overseas markets. He also expressed strong confidence that overseas market performance will accelerate over the next three years.
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Foxconn Chairman Liu Young-Way stated that, driven by AI demand spike, major cloud service providers' capital expenditure this year has already crossed USD700 billion and is expected to reach USD1 trillion next year, giving him strong confidence in the company's growth momentum.

As the group ramps up manufacturing capacity for AI servers, it expects capital expenditure this year to increase by 30% from last year's USD5.55 billion, Foxconn said earlier this month.
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XPENG-W (09868.HK) encountered many different logics in the mass production of robots compared to automobiles, said He Xiaopeng, Co-founder, Chairman and CEO. In fact, robot mass production is quite different from that of vehicles.

Since early last year, XPENG has been developing humanoid robot hardware and software in-house, He said. Except for battery cells, which are not yet self-developed, the company is essentially the only player in the industry to achieve full-stack in-house development of humanoid robots.

This has enabled XPENG to realize a high level of integration. He believed that the initial hardware cost structure of robots will resemble that of automobiles, but in the long run, more scalable and economical solutions may emerge. At present, however, the cost structure of robots is quite close to that of a car.

As for future commercialization plans, He said discussions are ongoing. The robot's bill of materials (BOM) is similar to that of a vehicle, so its selling price will definitely be higher than that of a typical car. From a hardware perspective, robots are expected to deliver relatively strong gross margins.
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Robotaxi will present an enormous and entirely new business opportunity in 2028 and beyond, XPENG-W (09868.HK) Co-founder, Chairman and CEO He Xiaopeng remarked. The company is working to commercialize the model in China and globally.

At this juncture, the overall focus is to implement VLA 2.0 in both the China and overseas markets and execute it well. In the China market, the group will leverage its existing vehicle models for rapid research and testing. In 2027, XPENG will launch an economy model to facilitate Robotaxi demonstration and commercial validation.

He noted that XPENG's Robotaxi strategy has two key features. First, the company will focus solely on product development and take commissions, rather than directly engaging in operations, and therefore will work with a large number of partners. Second, XPENG's Robotaxi will primarily target the global market, which he believes holds substantial commercial value for Robotaxi globalization.
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He Xiaopeng, Co-founder, Chairman and CEO of XPENG-W (09868.HK), said the company is keeping a close tab on the sustainability of the GX model, while believing that GX, as XPENG's flagship model, actually delivers an impressive gross margin.

The group is pushing ahead supply chain support and production capacity ramp-up in full swing, while also aiming to launch high-quality services and products to stabilize long-term delivery performance of the GX model.

He revealed that all new XPENG models will focus on two new priorities starting this year. First it's how to determine configuration and pricing while pursuing appropriate commercial quality, which is one of the key initiatives launched this year.

Second is that the group does not seek high sales in the initial phase followed by a decline later. Instead, it aims for more stable sales, and will introduce a new system for modular supply chain management, capacity ramp-up and supply chain security.
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INNOVENT BIO (01801.HK) opened 6.88% higher today, hitting an intraday peak of HKD82.4. It last quoted at HKD80.65, up 7.75%, with a turnover of 5.4011 million shares, involving HKD438 million.

INNOVENT BIO announced that the Group entered into a strategic global licensing and collaboration agreement with Pfizer Inc. (PFE.US) for the research and development of 12 promising breakthrough early-stage and de novo cancer medicines.

Pursuant to the Agreement, Innovent will receive a US$650 million upfront payment and is eligible for up to US$9.85 billion in development, regulatory and commercial milestone payments, bringing the total value of the deal to up to US$10.5 billion.

The collaboration spans a portfolio of 12 oncology programs, comprising eight Innovent-originated early-stage assets and four Pfizer-proposed discovery programs.

According to the Agreement, Innovent will conduct development of these programs through Phase 1 clinical study powered by its proprietary discovery engine and robust early clinical capabilities, after which Pfizer will lead the global development.
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China Foreign Exchange Trade System (CFETS) announced on Friday (29th) that the central parity of USD/ RMB added 64 bps from the previous day to 6.8176, notching a new high since 14 February 2023.
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