Country Daily
China Property Management / Futu Holding / KE Holdings / Lens Technology / Li Ning / Ping An Insurance / ZTE Corporation
Analyst
Key Indices
Top Stories
Sector Update | China Property Management
The amended HPF Regulations will take effect on 20 Sep 26, widening withdrawal purposes from six to nine to include renovation and property management fees. We see the property fee channel as a collection and cash flow catalyst, and the renovation channel as support for decoration inside community VAS. We forecast the two new purposes at Rmb183.8b by 2028, 5.2% of national withdrawals. Maintain UNDERWEIGHT; we would re-rate the sector on stronger-than-expected take-up of the two new purposes.
Company Results | Futu Holding (FUTU US/BUY/US$112.73/Target: US$137.00)
Futu reported upbeat 2Q26 results with a 42% yoy earnings growth, driven by a record-high trading volume (+79% yoy) amid revived market sentiment which boosted commission income (+30% yoy) and NII (+17% yoy). Despite outflow pressure from Mainland Chinese clients amid regulatory requirement, client asset growth and new paying clients were also above our expectations. However, management guided that qtd operating metrics moderate sequentially amid a market pullback in 3Q26. Maintain BUY. Target price: US$137.00.
Company Results | KE Holdings Inc (2423 HK/BUY/HK$45.38/Target: HK$60.00)
Beike’s 2Q26 results came in above expectations. Revenue declined 5.7% yoy to Rmb24.5b, in line with our and consensus estimates. Non-GAAP net profit increased 75.4% yoy to Rmb3.2b, beating our and consensus expectations. Non-GAAP net margin expanded 6ppt yoy to 13.0% in 2Q26. Beike estimated 3Q26 revenue at Rmb20.5b, or an 11% decline, below our and consensus estimates. Maintain BUY with a higher target price of HK$60.00 (US$23.00).
Company Results | Lens Technology (6613 HK/BUY/HK$22.96/Target: HK$43.10)
Lens Technology’s 2Q26 net profit reached Rmb726m (+1.8% yoy), swinging from 1Q26 losses to beat consensus by 48.7% despite revenue falling 7.4% yoy to Rmb14.7b on weak smartphone shipments. Gross margin expanded 2.5ppt yoy to 18.2% on yield gains and lower assembly exposure. Looking ahead, management anticipates a smartphone recovery in 2H26 alongside sustained auto margin tailwinds and accelerating momentum across its emerging growth drivers. Maintain BUY with a target price of HK$43.10.
Company Results | Li Ning (2331 HK/BUY/HK$14.25/Target: HK$21.80)
Li Ning’s 1H26 net profit was better than feared. Looking ahead, with the challenging consumption environment, management lowers the full-year revenue growth guidance to a low single digit from a high single digit. In addition, with the stepped-up A&P expenses in 2H26, primarily driven by Stephen Curry’s partnership, net margin expectation is lowered to a mid- to high single-digit range from the previously high single-digit range. Maintain BUY; cut target price by 6% to HK$21.80.
Company Results | Ping An Insurance Group (2318 HK/BUY/HK$56.20/Target: HK$75.00)
• Ping An posted in-line results with an accelerating OPAT growth of 8% in 1H26 on a strong recovery in asset management and banking while the life and P&C insurance segment results were dragged by a higher tax rate. Net profit rose 36% yoy on a strong investment performance. However, NBV growth moderated to 11% yoy in 1H26, due to margin compression from a product mix shift toward participating products and a sales decline in 2Q26. Maintain BUY. Target price: HK$75.00.
Company Results | ZTE Corporation (763 HK/HOLD/HK$23.86/Target: HK$22.30)
ZTE's 2Q26 results were below expectations, with reported net profit declining 44.6% yoy to Rmb1,442m, as a sharp carrier network margin miss more than offset slightly better-than-expected government & corporate and consumer sales. The carrier margin decline is structural – product and market mix – and is guided to persist through 2026. Maintain HOLD; target price: HK$22.30.
Top Stories
Sector Update | China Property Management
The amended HPF Regulations will take effect on 20 Sep 26, widening withdrawal purposes from six to nine to include renovation and property management fees. We see the property fee channel as a collection and cash flow catalyst, and the renovation channel as support for decoration inside community VAS. We forecast the two new purposes at Rmb183.8b by 2028, 5.2% of national withdrawals. Maintain UNDERWEIGHT; we would re-rate the sector on stronger-than-expected take-up of the two new purposes.
Company Results | Futu Holding (FUTU US/BUY/US$112.73/Target: US$137.00)
Futu reported upbeat 2Q26 results with a 42% yoy earnings growth, driven by a record-high trading volume (+79% yoy) amid revived market sentiment which boosted commission income (+30% yoy) and NII (+17% yoy). Despite outflow pressure from Mainland Chinese clients amid regulatory requirement, client asset growth and new paying clients were also above our expectations. However, management guided that qtd operating metrics moderate sequentially amid a market pullback in 3Q26. Maintain BUY. Target price: US$137.00.
Company Results | KE Holdings Inc (2423 HK/BUY/HK$45.38/Target: HK$60.00)
Beike’s 2Q26 results came in above expectations. Revenue declined 5.7% yoy to Rmb24.5b, in line with our and consensus estimates. Non-GAAP net profit increased 75.4% yoy to Rmb3.2b, beating our and consensus expectations. Non-GAAP net margin expanded 6ppt yoy to 13.0% in 2Q26. Beike estimated 3Q26 revenue at Rmb20.5b, or an 11% decline, below our and consensus estimates. Maintain BUY with a higher target price of HK$60.00 (US$23.00).
Company Results | Lens Technology (6613 HK/BUY/HK$22.96/Target: HK$43.10)
Lens Technology’s 2Q26 net profit reached Rmb726m (+1.8% yoy), swinging from 1Q26 losses to beat consensus by 48.7% despite revenue falling 7.4% yoy to Rmb14.7b on weak smartphone shipments. Gross margin expanded 2.5ppt yoy to 18.2% on yield gains and lower assembly exposure. Looking ahead, management anticipates a smartphone recovery in 2H26 alongside sustained auto margin tailwinds and accelerating momentum across its emerging growth drivers. Maintain BUY with a target price of HK$43.10.
Company Results | Li Ning (2331 HK/BUY/HK$14.25/Target: HK$21.80)
Li Ning’s 1H26 net profit was better than feared. Looking ahead, with the challenging consumption environment, management lowers the full-year revenue growth guidance to a low single digit from a high single digit. In addition, with the stepped-up A&P expenses in 2H26, primarily driven by Stephen Curry’s partnership, net margin expectation is lowered to a mid- to high single-digit range from the previously high single-digit range. Maintain BUY; cut target price by 6% to HK$21.80.
Company Results | Ping An Insurance Group (2318 HK/BUY/HK$56.20/Target: HK$75.00)
• Ping An posted in-line results with an accelerating OPAT growth of 8% in 1H26 on a strong recovery in asset management and banking while the life and P&C insurance segment results were dragged by a higher tax rate. Net profit rose 36% yoy on a strong investment performance. However, NBV growth moderated to 11% yoy in 1H26, due to margin compression from a product mix shift toward participating products and a sales decline in 2Q26. Maintain BUY. Target price: HK$75.00.
Company Results | ZTE Corporation (763 HK/HOLD/HK$23.86/Target: HK$22.30)
ZTE's 2Q26 results were below expectations, with reported net profit declining 44.6% yoy to Rmb1,442m, as a sharp carrier network margin miss more than offset slightly better-than-expected government & corporate and consumer sales. The carrier margin decline is structural – product and market mix – and is guided to persist through 2026. Maintain HOLD; target price: HK$22.30.
Analyst
Key Indices
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
