2025 Analysis Report on A-Share Technology Stocks' Earnings Growth Exceeding Expectations

Based on the above data collection, I now provide you with a comprehensive and in-depth analysis report on the earnings of A-share technology stocks.

• Hithink RoyalFlush’s continuous investment in AI has entered a harvest period; AI products such as smart investment advisors and quantitative trading tools have greatly improved user experience
• Benefiting from the development of large model technology, the monthly active users and paid conversion rate of the company’s AI products such as iAsk Finance have increased significantly
• The intelligent upgrade of financial data terminals has driven an increase in average revenue per user (ARPU)

• In 2025, the overall trading volume of the A-share market increased YoY, and the number of active users grew steadily
• The proportion of paid users has increased, with dual drivers of membership revenue and value-added service revenue
• The fund agency business has benefited from the recovery of the equity market

• Derivatives businesses such as futures and options have grown rapidly
• The proportion of enterprise-level SaaS service revenue has increased, reducing business cyclical fluctuations
• International business expansion has brought incremental revenue

• Procurement demand for government projects such as smart cities and smart transportation has recovered
• Enterprise digital transformation has accelerated, and security demand has shifted from “passive protection” to “active management”
• The increased penetration rate of AI cameras has driven product structure optimization

• The robotics business (Hikvision Robotics) has developed rapidly after spin-off and listing
• The smart home business has grown steadily
• The industrial automation business has benefited from the recovery of the manufacturing industry

• Supply chain management has been continuously optimized, and gross profit margin has remained stable
• R&D investment efficiency has improved, and technology conversion has accelerated
• Global layout has diversified geopolitical risks

• Capital market fluctuations may affect user trading activity
• Competitors such as Eastmoney and Compass continue to strengthen their efforts
• Intensified competition in AI large models may compress profit margins

• Overseas business still faces uncertainty due to geopolitical influences
• Intensified industry competition has put pressure on gross profit margin
• The investment period for innovative businesses may affect short-term profit margins

• Current Price: $23.44
• DCF Neutral Scenario Valuation: $8.09
  
  Deviation Range: -65.5% (Current price is significantly overvalued)
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• Current Price: $31.14
• DCF Neutral Scenario Valuation: $58.55
  
  Deviation Range: +88.0% (Current price is significantly undervalued)
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• Trend Judgment: Sideways Trading (Reference Range: $23.11-$23.84)
• MACD Indicator: Bearish Signal
• KDJ Indicator: In Oversold Zone, Potential Short-term Rebound Opportunity
• Beta Coefficient: 1.15, Sensitive to Market Fluctuations [0]

• Trend Judgment: Sideways Trading (Reference Range: $30.27-$31.44)
• MACD Indicator: Bullish Signal
• KDJ Indicator: Risk of Death Cross
• Beta Coefficient: 0.45, Strong Downside Resistance [0]

• Earnings differentiation within the technology sector has intensified, and high-quality companies enjoy valuation premiums
• Excess growth of leading companies such as Hithink RoyalFlush and Hikvision provides support for sector valuation
• Investors pay more attention to earnings realization capabilities

• Policies for scientific and technological innovation continue to be strengthened to support the development of technology enterprises
• The policy orientation of new-quality productive forces is conducive to the valuation improvement of the technology sector
• Capital market reforms have improved the financing efficiency of technology companies

• Institutional investors continue to increase allocations to technology leaders
• ETF funds continue to flow into the technology sector
• Foreign investors’ attention to A-share technology companies has increased

• Overcrowded Trading Risk:
  Valuations of some AI concept stocks have already discounted future growth
• Earnings Realization Risk:
  If high growth expectations are not met, it may trigger a valuation pullback
• Liquidity Risk:
  Changes in Fed policies may affect the valuation of global technology stocks
• Policy Risk:
  Regulatory policies such as data security and anti-monopoly may affect valuations

1. Overweight:
   AI Applications, Financial Technology, Security Leaders
2. Equal Weight:
   Semiconductor Equipment, Innovative Drugs
3. Underweight:
   Consumer Electronics, Traditional Software

• Pay attention to low-beta targets such as Hikvision as defensive allocations
• Use high-elasticity targets such as Hithink RoyalFlush to capture rebound opportunities
• Maintain appropriate diversification to avoid excessive concentration in a single industry

In 2025, the earnings of A-share technology stocks show an obvious divergent pattern, with AI-enabled technology enterprises performing prominently. Hithink RoyalFlush has achieved 50%-80% earnings growth through AI technology breakthroughs, while Hikvision has maintained steady growth relying on its improved AIoT ecosystem. The growth drivers of the two stocks have strong sustainability, but there are significant differences in their current valuation levels.

From a valuation perspective, Hikvision (with 88% upside implied by DCF) has more investment value than Hithink RoyalFlush (which is 65.5% overvalued according to DCF). The overall valuation of the technology sector is driven by earnings support and favorable policies, but investors need to be vigilant against risks of overcrowded trading and earnings realization. It is recommended to adopt a strategy of “selecting leading stocks and accumulating on dips”.

[0] Jinling AI Financial Database - Real-time Market, Financial Analysis, DCF Valuation and Technical Analysis Data (January 20, 2026)