On September 10, VGT (02476.HK) fell 3.03% in regular trading, trading at HK$204.4/share, with turnover of HK$263 million.

The decline was triggered by a combination of a large-scale position transfer and broker downgrades. Exchange data showed that on September 9, approximately 1.8256 million shares valued at HK$690 million — representing 3.03% of total shares — were transferred out of Citibank. Meanwhile, JPMorgan reportedly lowered its target price, following Bank of America's earlier cut from RMB 455 to RMB 367, citing a deteriorating competitive landscape in the PCB supply chain.

Fundamental concerns further pressured sentiment. The company's Q2 non-GAAP net profit declined 5.28% year-over-year, while inventory surged 119.5% to RMB 5.89 billion in H1, far outpacing the 28.8% revenue growth. Gross margin contracted 2.4 percentage points quarter-over-quarter due to the addition of roughly 4,000 new employees and rising depreciation from new production lines. Management has indicated that the inventory buildup was strategic, aimed at supporting second-half volume ramp, and expects revenue growth to drive margin recovery.

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