On August 23rd, the three major A-share indices rebounded with fluctuations. By the close, the Shanghai Composite Index rose by 0.20%, the Shenzhen Component Index increased by 0.24%, and the ChiNext Index edged up by 0.02%. The North China Stock Exchange 50 Index fell by 0.70%, with a total turnover of 513 billion yuan in the Shanghai, Shenzhen, and Beijing markets.

In terms of sector themes, battery, lithium mine, and home textile sectors were at the forefront of the decline, while ride-hailing and pharmaceutical sectors experienced a downturn. The Huawei industry chain saw an outbreak, and stocks related to the Western Development concept rose at the end of the day.

Western Development concept stocks show unusual movement

Today, the Western Development concept stocks surged at the end of the trading day, with Western Construction and Xinjiang Communication Infrastructure hitting the daily limit up, followed by North Xinjiang Road Bridge, Tianshan Shares, Sichuan Jin Ding, and Qingsong Chemicals.

In terms of news, the Political Bureau of the CPC Central Committee held a meeting on August 23rd to review the "Several Policy Measures to Further Promote the Formation of a New Pattern of Western Development."

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At the end of the day, Tibet Tianlu, a popular stock in the infrastructure sector, touched the daily limit up, staging a quasi-earth sky board, with a turnover rate exceeding 24%, closing at 6.33 yuan per share, and the latest market value of 8.158 billion yuan. In the early morning, the stock was close to the daily limit down.

Riding the wave of the large infrastructure concept, Tibet Tianlu had previously hit the daily limit up for three consecutive trading days. On the evening of August 15th, Tibet Tianlu issued a risk warning announcement for stock trading, stating that the company's main business is the production and sales of building materials. Currently, there have been no significant changes in the company's main business and daily operations, nor have there been any major adjustments in the market environment or industry policies.

On August 13th, the turnover rate of Tibet Tianlu's stock was 6.74%; on August 14th, it was 2.36%; and on August 15th, it was 34.18%. Tibet Tianlu stated that the turnover rate of the company's stock is relatively high, and it urges investors to fully understand the risks of secondary market transactions, make prudent decisions, and invest rationally.

According to the performance forecast disclosed by Tibet Tianlu on July 10th, the company is expected to have a net loss of 60 million to 99 million yuan for the first half of 2024, compared with the same period last year (legally disclosed data), the expected loss is reduced by 136 million to 175 million yuan, a year-on-year reduction in losses of 57.93% to 74.51%.

Tibet Tianlu analyzed that in the construction sector, the competition in the Tibet construction market has intensified, the company's existing projects have been completed one after another, and there are limited incremental projects, resulting in a significant year-on-year decrease in operating income. In addition, due to the national strengthening of government investment project management in key provinces such as Chongqing, strict control over new government investment projects, and strict rectification and standardization of ongoing government investment projects, the operating income and profits of the related building materials sector have been affected to varying degrees during the forecast period.In the construction materials sector, Tibet Tianlu stated that the effective demand in the Tibet cement market is generally weak, and market competition is more intense, leading to a year-on-year decline in the company's cement sales volume and price. Cement enterprises in Tibet are highly dependent on external supplies for resources such as coal, which limits the room for cost reduction, and cost-cutting efforts are difficult to offset the impact of price reductions.

Huawei's Industry Chain Rises Across the Board

Today, the Huawei industry chain has seen an uptick, with the Huawei HiSilicon concept leading the charge. Shenzhen Huaqiang achieved a 7-day board, Ubisend hit a 20% limit up, and Gongjin Shares reached a limit up. Other companies like CEC Port, Liyuan Information, HuiBo YunTong, Huilun Crystal, and Sichuan Changhong followed suit with gains.

Shenzhen Huaqiang, which has been on a 7-day board, stated on August 22 on the interactive platform that the company's main business is the authorized distribution of electronic components. It is one of the main agents for domestic leading chip design companies (referred to as "original factories"). The company's sales revenue from the original factory's product lines is influenced by a combination of factors such as the research and development progress of the original factory's products, the market competitiveness of the products, and sales strategies. Therefore, the proportion of the product line in the company's annual sales revenue will also change.

Additionally, an investor asked Ubisend on the interactive platform: "From June 21 to June 23, Huawei held the Huawei Developer Conference in Songshan Lake, Dongguan. Did the company participate? Were there any specific products involved in that developer conference? Will there be any disclosure of specific cooperation with Huawei at that time?"

In response, Ubisend answered: "The company participated in the 6th Huawei Developer Conference 2024 (HDC.2024) held in Songshan Lake, Dongguan, from June 21 to June 23, 2024, and showcased the DT50 5G smart mobile data terminal based on OpenHarmony at the OpenHarmony Unified Interconnection exhibition area. The Ubisend OpenHarmony version DT50 5G has not only completed the adaptation of domestic chips and the OpenHarmony system but also carries China's independently developed single Beidou global satellite navigation system. With its excellent product performance, Ubisend's OpenHarmony version DT50 5G is widely applicable to medical, power, energy, transportation, logistics, retail, and other industry scenarios, and has been piloted for application."

Recently, a research report from a securities firm pointed out that two major Huawei conferences in September are worth looking forward to. With the upcoming Huawei and HiSilicon Connect Conference, it is recommended to pay attention to the investment opportunities of core manufacturers in the industry chain. For other directions, it is suggested to focus on related companies in the industry chain of domestic servers, domestic mobile phones, domestic automotive industry chains, equipment/connection/operating systems, etc.