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Morgan Stanley: Pinggao Electric: UHV deliveries lift profits, while order backlog supports future growth

Pinggao Electric’s third-quarter net profit rose 30.5% year on year, as increased deliveries of ultra-high-voltage (UHV) GIS lifted its gross margin. Morgan Stanley is optimistic that full-year deliveries will exceed the target and that orders on hand will provide support, but growth in new orders is concentrated in high-voltage products, and future earnings are also subject to tendering schedules, competition and cost control.

Morgan Stanley: Europe’s metals and mining sector diverges: tight copper supply, easing aluminium restarts and policy protection for steel

Morgan Stanley favours the scarcity of copper resources and improving pricing for European steelmakers, but recovering aluminium supply, high valuations and project execution risks make stock selection more important than a broad bullish view on metals.

Morgan Stanley: CMOC's third-quarter profit misses expectations: higher copper output fails to translate into sales as lower tungsten and gold prices weigh on earnings

CMOC's third-quarter net profit rose 40% year on year but fell 6.3% quarter on quarter, missing Morgan Stanley's expectations. Copper production continued to grow, but sales and costs weighed on earnings, while lower tungsten and gold prices added further pressure. The bank maintained its Overweight rating and HK$21.10 price target.

Morgan Stanley: Kedali’s third-quarter profit growth accelerates, while rising expenses constrain the recovery in gross margin

Third-quarter net profit rose 41% year on year, exceeding Morgan Stanley’s expectations. Faster revenue growth and a quarter-on-quarter recovery in gross margin supported earnings, but gross margin remained below its year-earlier level, while research and development spending also pushed up the expense ratio.

Morgan Stanley: Asymchem: Third-quarter profit beats Morgan Stanley expectations; full-year growth hinges on fourth-quarter deliveries

Asymchem’s third-quarter revenue fell short of Morgan Stanley’s expectations, while profit exceeded them, but growth in profit excluding non-recurring items was markedly slower than net profit growth. The company maintained its full-year revenue growth guidance of 19%–22%; concentrated deliveries in its macromolecule businesses and delayed small-molecule projects are key.

Morgan Stanley: Will AI-driven cash transfers disrupt banks and brokerages? Morgan Stanley sees less risk than markets fear

Large amounts of low-interest cash have already moved into higher-yielding products, while remaining balances also serve payment and trading needs. Morgan Stanley believes AI is more likely to accelerate deposit repricing than substantially raise the ultimate cost; brokerages can try shifting to fees, but customer acceptance and competition determine how much revenue they can replace.

Morgan Stanley: G-bits: Why did Morgan Stanley cut its price target despite raising this year’s earnings forecast?

New games and overseas expansion have lifted revenue expectations, but customer acquisition, R&D spending and changes in investment income are weighing on profit conversion. Morgan Stanley is more focused on the slowdown in growth in 2027, cutting its price target from 449 yuan to 389 yuan while maintaining its Equal-weight rating.

Morgan Stanley: China Resources Building Materials’ third-quarter loss widens as slight cement gross profit recovery is outweighed by rising expenses

China Resources Building Materials’ net loss widened to 355 million yuan in the third quarter of 2026. Higher cement prices brought a modest gross profit recovery, but selling and administrative expenses rose, other income declined, and concrete and aggregates also came under price pressure. Morgan Stanley expects fourth-quarter price increases to support earnings but maintains its Underweight rating.

Morgan Stanley: Zijin Mining’s third quarter misses expectations: Copper gains cannot offset gold and lithium price and cost pressures

Zijin Mining’s third-quarter net profit rose 26% year on year but fell 3.8% quarter on quarter, missing Morgan Stanley’s expectations. Higher copper sales volumes and prices lifted the business, while lower selling prices squeezed gross profit in gold and lithium; Morgan Stanley maintained its Overweight rating and its investment thesis remains unchanged.

Morgan Stanley: COINS draft adds to policy pressure: deal structure takes on greater importance as Chinese innovative drugs go global

Morgan Stanley believes the draft US outbound investment restrictions challenge its more moderate policy assessment from September. Standalone licensing is relatively less affected, while whole-company acquisitions and NewCo collaborations face different constraints. Well-funded companies that can repeatedly monetize projects have an advantage.

Citi: Tencent showcases AI and payment services at APEC; Citi sees value in global exposure

Tencent has become a strategic partner of the 2026 APEC Leaders’ Meeting and will deploy media AI, real-time translation and cross-border payment services. Citi believes this will help raise awareness of the company’s technology brand and the Weixin ecosystem among overseas users; its HK$755 target price remains primarily supported by gaming, advertising and social businesses.

Goldman Sachs: Kingsoft Cloud third-quarter preview: Easing compute constraints drives growth, while margins and valuation remain under pressure

Goldman Sachs expects Kingsoft Cloud’s third-quarter revenue to grow 34% and AI cloud revenue to grow 81%, driven mainly by demand from Xiaomi and Kingsoft and improved GPU supply. But a return to normal expense levels weighs on operating profit, expansion depends on customer prepayments and leasing support, and the target price has been cut to 15.5 dollars due to a higher discount rate.

Morgan Stanley: China Shenhua: Coal gross margin improves, power under pressure; fourth-quarter resilience hinges on coal prices

Third-quarter net profit rose 3% year on year, broadly in line with market expectations. Gross margin on self-produced coal improved markedly, but weaker power earnings and higher finance costs limited overall profit growth. Morgan Stanley expects a slow resumption of production and winter stockpiling demand to support year-end earnings.

J.P. Morgan: Western Digital: Price increases drive an earnings beat, but why has expansion spending not shaken JPMorgan’s view?

Faster growth in the price per TB drove Western Digital’s first fiscal quarter revenue and margins above expectations, while its second-quarter guidance also exceeded consensus. JPMorgan raised its earnings forecasts and price target, citing a return to growth in shipped capacity and the focus of new investment on heads, platters and technology transitions.

Nomura: China’s fiscal spending remained in contraction in the third quarter. How much lift can faster bond issuance provide in the fourth?

Nomura believes that, although the decline in broad fiscal spending narrowed in the third quarter, it still weighed on growth. Government bond financing is expected to increase significantly in the fourth quarter, but its actual impact will depend on how the funds are used and the constraints corporate arrears place on complementary financing.

Nomura: Chipown: AI power-supply chips open up room for growth, but costs still constrain profit recovery

Nomura initiates coverage with a Buy rating and a target price of 79 yuan. The investment case is that mass production of AI server products will drive expansion in the higher-margin industrial business, but revenue growth coincided with a decline in profit in the first three quarters, and the bank’s profit recovery forecasts are also well below consensus.

Nomura: Nomura auto monthly: Demand remains resilient, while costs and new European rules constrain profitability

Nomura believes the US auto market will remain relatively strong in the near term, but actual demand has exceeded levels implied by macroeconomic indicators. For Japanese automakers’ earnings, the focus is on how raw material costs flow into profits, while European local manufacturing policies could put further pressure on Mazda.

Nomura: Robot model breakthroughs draw closer; dexterous hands to benefit first, while factory reliability remains a hurdle

Nomura sees new models from December 2026 to January 2027 as the first catalyst. First-person video and improved training efficiency are lowering the learning barrier, but commercialization also depends on continuous operation, an on-site data feedback loop and hardware consistency.

Nomura: AI race supports memory upcycle; 2027 long-term contracts and power bottlenecks determine pace of realization

Tech giants have begun using external financing to bridge the AI investment gap, but Nomura still expects the race to continue. Long-term contracts support 2027 memory shipment volumes and price ranges, but power delays could first cause chip inventories to accumulate, and supply and demand could also loosen in 2028.

Nomura: Fed expected to pause rate hikes in October as housing weakens and investment remains strong

Nomura expects the Fed to hold rates steady in October and raise them by another 25 basis points in December. A rebound in inflation still supports tightening, but downward revisions to historical data, credit pressures and housing weakness reduce the urgency to act immediately; third-quarter growth is supported by consumption and business investment.