SDMC (00901) saw its shares jump more than 5% on Tuesday, trading up 5.11% at HK$72 per share as of the time of writing, with a turnover of HK$15.18 million.

On the news front, the company was recently selected by Hang Seng Indexes Company Limited for inclusion as a constituent of the Hang Seng Composite Index, effective September 7, 2026. This milestone underscores a pivotal advancement in the company's capital market development. Concurrently, the stock will be added to the list of eligible securities under the Shanghai-Hong Kong Stock Connect program starting September 7.

In terms of fundamentals, SDMC previously unveiled its interim performance results for 2026, reporting revenue of RMB 2.095 billion for the first half, a year-on-year increase of 36.3%. Net profit for the period reached RMB 181 million, surging 75.9% from the prior year. Notably, revenue from digital video equipment climbed 40.5% to RMB 1.734 billion, representing 82.7% of total revenue. Overseas revenue accounted for RMB 1.947 billion, making up 92.9% of the total.

Analysts point out that at this critical juncture where edge AI is transitioning from concept to real-world deployment, SDMC is leveraging its Cedar intelligent agent and edge computing infrastructure to transform household environments into monetizable, value-appreciating digital assets. As a leading global provider of AI Home integrated solutions, the company has intensified R&D spending during the first half, concentrating on key areas such as the home-focused AI agent Cedar, edge computing, smart terminals, and coordinated underlying storage systems. This strategic focus is driving deeper integration between cloud-based solutions and home-edge devices, establishing a complete technology architecture and a viable path toward commercialization.