The 720 Lenovo, Japan Tech, Rohm, JD.com, SMIC, Hua Hong, Hon Hai, GDS, Thai Oil, SanDisk, Yen, Tingyi

Equity Research 14 August 2026 | 7:24AM HKT

The 720: Lenovo, Japan Tech, Rohm, JD.com, SMIC, Hua Hong, Hon Hai, GDS, Thai Oil, SanDisk, Yen, Tingyi

In Focus | Lenovo Michael Snaith | Lenovo – AI total solution to win customers – Buy. We raise our 12m TP to HK$51 Goldman Sachs (Asia) L.L.C.

from HK$31 following strong June-quarter results, where ISG operating margins Caleb Chan | surpassed IDG at 9.1% and IDG revenues grew 27% year-over-year. We increase our Goldman Sachs (Asia) L.L.C.

FY2027-29E net income estimates by 56%-89% to reflect higher revenues, gross margin expansion from a product mix upgrade across AI PCs and servers, and a lower opex ratio driven by scale efficiencies. We expect the company’s growing AI server and storage business to drive a re-rating as it diversifies away from consumer electronics and capitalizes on solid demand for agentic AI. Verena Jeng

Themes in Play | Japan Tech, Rohm

Japan Tech: Components/Semiconductors – Earnings Summary and Upward Revisions. We expect the sector’s share prices to regain upward momentum toward the second half of the year, backed by strong fundamentals and benefits from AI and data centers. Following a generally strong earnings season where we revised up estimates for 15 of 19 companies, we expect previous guidance to be beaten in the next reporting season, potentially leading to a series of full-year upward revisions. We highlight Buy-rated names including Ibiden, Murata Mfg., Taiyo Yuden, Renesas, Rohm, and TDK, and we specifically raise our earnings estimates and 12m TP for Rohm following positive structural changes. Daiki Takayama

Rohm – Significant earnings leverage post-structural reform – Buy. We raise our 12m TP to ¥7,200, increasing our FY3/27-FY3/29 operating profit estimates by 35%/23%/17% following 1Q results. We expect operating profit to step up to ¥18.2 bn in 2Q, driven by rising capacity utilization, a strong 1.2x book-to-bill ratio, and the resolution of prior SiC yield issues. Furthermore, we anticipate strong earnings leverage in the second half and beyond, supported by structural reforms, aggressive price hikes, and raised FY3/27 AI/DC sales guidance amidst robust demand. Daiki Takayama

Tech | JD.com, SMIC, Hua Hong, Hon Hai, GDS, AVC, LandMark

JD.com – 2Q26 Review and 2H26 Inflection – Buy. We view JD’s broadly in-line 2Q26 results as reflecting stable retail margins, favorable free cash flow generation, and continued narrowing of food delivery losses. We expect JD Retail revenue growth to

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recover to 4% in 3Q26 and 6% in 4Q26 as comparisons normalize, while Joybuy’s European expansion and Jingdong Industrials’ strong momentum provide additional growth drivers. We maintain our Buy rating on JD with unchanged 12m TPs of US$43/HK$169, maintain Buy on JD Logistics with a 12m TP of HK$18.7, and maintain Buy on Jingdong Industrials with a raised 12m TP of HK$17.9. Ronald Keung

SMIC – 2Q26 Strong Beat and 3Q26 Margin Guidance Upgrade – Buy. We maintain our Buy rating on SMIC following a strong 2Q26 beat, with revenue of US$3.0bn (+36% YoY) and gross margin of 25.3% both exceeding our expectations on higher wafer shipments and ASPs. Management’s 3Q26 gross margin guidance of 26%-28% also came in well above our 22% estimate, while revenue guidance of +2%-4% QoQ was in line. We remain positive on the company’s long-term growth driven by growing demand from local fabless customers and AI-related opportunities, keeping our 12m TP for the H-shares at HK$135. Allen Chang

Hua Hong – 3Q26 GM Guidance Beat; 2Q26 GM Better Than Expected – Buy. We raise our 12m TP to HK$335 following better-than-expected 2Q26 gross margins of 16.5% and strong 3Q26 margin…