Market Overview - On October 9, the Hang Seng Index fell by 0.29%, with southbound funds totaling a transaction amount of HKD 213.57 billion, including buy transactions of HKD 108.30 billion and sell transactions of HKD 105.26 billion, resulting in a net buying amount of HKD 3.04 billion [1] Southbound Trading Activity - The southbound trading through Stock Connect (Shenzhen) had a cumulative transaction amount of HKD 80.10 billion, with buy transactions of HKD 39.14 billion and sell transactions of HKD 40.95 billion, leading to a net selling amount of HKD 1.81 billion [1] - The southbound trading through Stock Connect (Shanghai) had a cumulative transaction amount of HKD 133.47 billion, with buy transactions of HKD 69.16 billion and sell transactions of HKD 64.30 billion, resulting in a net buying amount of HKD 4.85 billion [1] Active Stocks - The most actively traded stock by southbound funds was SMIC, with a total transaction amount of HKD 22.66 billion, followed by Alibaba-W and Huahong Semiconductor with transaction amounts of HKD 21.90 billion and HKD 9.59 billion, respectively [1] - In terms of net buying, Kuaishou-W led with a net buying amount of HKD 1.09 billion, with a closing price increase of 3.56%. ZTE Corporation and Xiaomi Group-W followed with net buying amounts of HKD 0.46 billion and HKD 0.23 billion, respectively [1] Continuous Net Buying - Among the stocks, Kuaishou-W and Xiaomi Group-W were noted for continuous net buying, with Kuaishou-W experiencing net buying for 3 days and Xiaomi Group-W for 4 days. The total net buying amounts were HKD 2.08 billion for Kuaishou-W and HKD 2.89 billion for Xiaomi Group-W [2]

Market Overview - On October 9, the Hang Seng Index fell by 0.29%, closing at 26,752.59 points, with a total net inflow of HKD 3.043 billion through the southbound trading channel [1][3] - The total trading volume for the southbound trading was HKD 213.566 billion, with a net buy of HKD 3.043 billion [1] Stock Performance - In the Shanghai-Hong Kong Stock Connect, the top traded stock was Alibaba-W with a trading volume of HKD 1,398.40 million, followed by SMIC and Hua Hong Semiconductor with trading volumes of HKD 1,369.73 million and HKD 652.64 million, respectively [1][2] - In terms of net buying, ZTE Corporation had the highest net inflow of HKD 37.82 million, with its stock price increasing by 12.40% [1][2] - Conversely, Alibaba-W experienced the largest net outflow of HKD 75.05 million, with its stock price declining by 2.42% [1][2] Shenzhen-Hong Kong Stock Connect - In the Shenzhen-Hong Kong Stock Connect, SMIC was the most actively traded stock with a trading volume of HKD 896.55 million, followed by Alibaba-W and Hua Hong Semiconductor with trading volumes of HKD 791.68 million and HKD 306.47 million, respectively [2] - Kuaishou-W had the highest net inflow of HKD 73.91 million, with its stock price rising by 3.56% [2] - SMIC also faced significant net outflow, totaling HKD 204.86 million, with its stock price dropping by 6.70% [2]

Investment Rating - The report maintains a "Buy" rating for Huahong Semiconductor with a target price raised to HKD 119 from HKD 53 [1][5]. Core Views - The report expresses a long-term positive outlook on Huahong's "integrated" strategic layout, emphasizing the rapid maturation of the domestic AI chip ecosystem and its impact on wafer foundry demand [2][3]. - The report highlights the potential benefits of the BIS regulations, which may accelerate supply chain localization and enhance Huahong's technological capabilities [3][4]. Summary by Sections Demand Side - The report estimates that the advanced process foundry demand from Chinese design companies will reach USD 9.5 billion in 2024, with 70% of this demand currently met by TSMC [1]. - The acceleration of AI chip iterations, particularly from Huawei's Ascend series, is expected to significantly expand domestic foundry demand [1][2]. Supply Side - The new BIS regulations will extend restrictions to subsidiaries with over 50% ownership, which may lead to tighter policies and further localization of the supply chain [3]. - Huahong's acquisition of Huali Microelectronics is projected to enhance its core business and add 38,000 wafers per month of 65/55nm and 40nm process capacity [2]. Financial Projections - The report forecasts a 3% increase in net profit for 2025, reaching USD 60 million, followed by a 48% increase in 2026 to USD 89 million, and a 16% increase in 2027 to USD 103 million [4][8]. - Revenue is expected to decline by 12.34% in 2024 but rebound with a growth of 20.81% in 2025 and 20.98% in 2026 [8][22]. Valuation - The target price adjustment to HKD 119 corresponds to a 4.2x 2025E price-to-book ratio, compared to a peer average of 3.86x [4][10]. - The report emphasizes Huahong's unique position as a leader in domestic specialty processes amid the accelerating trend of semiconductor localization in China [10][11].

Core Insights - On October 9, 2025, Alibaba-W (09988), SMIC (00981), and Hua Hong Semiconductor (01347) were the top three stocks by trading volume in the Southbound Stock Connect, with trading amounts of 139.84 billion, 136.97 billion, and 65.26 billion respectively [1] - In the Southbound Stock Connect for the Shenzhen-Hong Kong Stock Connect, SMIC (00981), Alibaba-W (09988), and Hua Hong Semiconductor (01347) also ranked as the top three, with trading amounts of 89.66 billion, 79.17 billion, and 30.65 billion respectively [1] Southbound Stock Connect (Hong Kong) - The top three active stocks by trading amount were: - Alibaba-W (09988): 139.84 billion, net buy of -7.51 billion - SMIC (00981): 136.97 billion, net buy of -3.48 billion - Hua Hong Semiconductor (01347): 65.26 billion, net buy of -6.34 billion [2] - Other notable companies included: - Jingtai Holdings (02228): 40.38 billion, net buy of +0.315 million - UBTECH (09880): 32.28 billion, net buy of +1.234 million [2] Southbound Stock Connect (Shenzhen) - The top three active stocks by trading amount were: - SMIC (00981): 89.66 billion, net buy of -20.49 billion - Alibaba-W (09988): 79.17 billion, net buy of +0.364 million - Hua Hong Semiconductor (01347): 30.65 billion, net buy of -5.07 billion [2] - Other notable companies included: - Tencent Holdings (00700): 28.14 billion, net buy of -3.85 billion - Xiaomi Group-W (01810): 20.22 billion, net buy of +0.349 million [2]

Summary of Key Points Core Viewpoint - The Hong Kong stock market experienced significant net buying and selling activities on October 9, with a net inflow of 30.43 billion HKD from northbound trading. The most actively traded stocks included Kuaishou-W, ZTE Corporation, and Xiaomi Group-W, while SMIC, Hua Hong Semiconductor, and Alibaba-W faced the highest net selling pressure [1][5]. Group 1: Net Buying and Selling Activities - Northbound trading recorded a net buying of 48.53 billion HKD through the Shanghai Stock Connect and a net selling of 18.1 billion HKD through the Shenzhen Stock Connect [1]. - Kuaishou-W (01024) led net buying with 10.85 billion HKD, followed by ZTE Corporation (00763) with 4.57 billion HKD, and Xiaomi Group-W (01810) with 2.31 billion HKD [5][6]. - Alibaba-W (09988) faced a net selling of 7.51 billion HKD, while SMIC (00981) and Hua Hong Semiconductor (01347) saw net selling of 3.48 billion HKD and 6.34 billion HKD, respectively [2][6]. Group 2: Company-Specific Developments - Kuaishou's strong performance is attributed to its leadership in AI video content, with a projected revenue growth of 13% year-on-year for Q3, reaching 35.3 billion RMB [5]. - ZTE Corporation's new SuperPod solution aims to enhance AI training capabilities for enterprise clients, which is expected to drive growth in the AI market [5]. - Xiaomi Group's electric vehicle deliveries exceeded 40,000 units in September, showing an increase from 36,000 units in August, indicating a positive trend in production capacity [5]. - Alibaba's recent challenges stem from internal reports regarding Oracle's server rental income, which negatively impacted market sentiment [6]. Group 3: Market Trends and Valuations - The semiconductor sector is experiencing significant selling pressure, particularly for SMIC and Hua Hong Semiconductor, due to high static P/E ratios exceeding 300, leading to adjustments in margin financing [6][7]. - Despite the current valuation pressures, analysts believe that the semiconductor sector still has upward potential driven by AI-related growth [7].

格隆汇10月9日｜南下资金今日净买入港股30.43亿港元。其中： 净买入快手-W 10.86亿、中兴通讯4.57亿、小米集团-W 2.31亿、上海电气1.06亿； 净卖出中芯国际23.96亿、华虹半导体11.41亿、阿里巴巴-W 7.5亿(终结连续28日净买入态势)、腾讯控股 4.63亿、晶泰控股1.69亿、中国海洋石油1.55亿。 | 名称 | 潔跌幅 | 净买入额(亿) | 成交额 | 名称 | 涨跌幅 | 净买入额(亿) | 成交割 | | --- | --- | --- | --- | --- | --- | --- | --- | | 阿里巴巴-W | -2.4% | -7.51 | 139.84亿 | 中古国际 | -6.7% | -20.49 | 89.66 Z | | 中心同际 | -6.7% | -3.48 | 136.97 Z | 阿里巴巴-W | -2.4% | 0.00 | 79.17 6 | | 作就非常体 | -6.4% | -6.34 | 65.26 Z | 作就非常体 | -6.4% | -5.07 | 30.65 Z | | m 年轻股 | -13.9% | 0.03 | 4 ...

Core Insights - The Hong Kong stock market saw a net inflow of 30.43 million HKD from northbound trading on October 9, with a net buy of 48.53 billion HKD from the Shanghai Stock Connect and a net sell of 18.1 billion HKD from the Shenzhen Stock Connect [1] Group 1: Stock Performance - Kuaishou-W (01024) received the highest net buy of 10.85 billion HKD, driven by positive sentiment regarding its AI video capabilities and expected revenue growth of 13% year-on-year to 35.3 billion RMB in Q3 [4][5] - ZTE Corporation (00763) had a net buy of 4.57 billion HKD, supported by the launch of its SuperPod solution aimed at enhancing AI training capabilities for enterprise clients [5] - Xiaomi Group-W (01810) saw a net buy of 2.31 billion HKD, with a reported increase in electric vehicle deliveries to over 40,000 units in September, up from 36,000 in August [5] Group 2: Notable Sell-offs - Alibaba-W (09988) faced a net sell of 7.5 billion HKD, influenced by negative news regarding Oracle's server rental performance, which impacted global cloud computing stocks [6] - Semiconductor stocks experienced significant net sell-offs, with SMIC (00981) and Hua Hong Semiconductor (01347) seeing net sells of 23.96 billion HKD and 11.41 billion HKD respectively, attributed to changes in margin trading regulations [6][7] - Tencent (00700) and CNOOC (00883) also experienced net sells of 4.63 billion HKD and 1.55 billion HKD respectively [7]

Core Insights - The Hong Kong stock market saw a net inflow of 30.43 million HKD from Northbound trading on October 9, with a net buy of 48.53 billion HKD through the Shanghai Stock Connect and a net sell of 18.1 billion HKD through the Shenzhen Stock Connect [1] Group 1: Stock Performance - Kuaishou-W (01024) received the highest net buy of 10.85 billion HKD, driven by positive sentiment from a report by Guosen Securities highlighting its leadership in the AI video sector [4] - ZTE Corporation (00763) had a net buy of 4.57 billion HKD, supported by the launch of its SuperPod solution aimed at enhancing AI training capabilities for enterprise clients [5] - Xiaomi Group-W (01810) saw a net buy of 2.31 billion HKD, with September electric vehicle deliveries exceeding 40,000 units, reflecting improved production capacity [5] - Alibaba-W (09988) faced a net sell of 7.5 billion HKD, influenced by negative news regarding Oracle's server rental income [6] - Semiconductor stocks, including SMIC (00981) and Hua Hong Semiconductor (01347), experienced significant net sells of 23.96 billion HKD and 11.41 billion HKD respectively, attributed to changes in margin financing policies [7] Group 2: Market Trends - The overall trading activity indicates a strong interest in AI-related companies, with Kuaishou and ZTE being highlighted for their advancements in AI technology [4][5] - The semiconductor sector is under pressure due to high valuations and regulatory changes affecting margin trading, despite a general bullish outlook on AI-driven growth [7]

Market Overview - On October 9, the A-share market saw a strong rally, with the Shanghai Composite Index rising over 1% to surpass 3900 points, marking a 10-year high [1] - The total trading volume in the Shanghai and Shenzhen markets reached 26,723 billion yuan, an increase of 4,748 billion yuan compared to the previous trading day [1] - The technology sector, particularly the STAR Market, experienced significant gains, with the STAR 50 Index surging over 6% during the session [1] Sector Performance - The non-ferrous metals sector showed remarkable performance, with stocks like Tongling Nonferrous Metals, Northern Copper, and Yunnan Copper hitting the daily limit [1][5] - The rare earth sector also saw gains, with companies like China Rare Earth and Northern Rare Earth reaching their daily limit [8] - The storage chip concept remained active, with stocks such as Zhaoxin Semiconductor and Huahong Semiconductor hitting their daily limit [12] Notable Stocks - Newly listed stock Yunhan Chip City (301563) closed up 40.89%, reaching 164.56 yuan per share, with an intraday high of over 70% [2] - In the Hong Kong market, stocks like Xin Mining Resources and Hang Seng Bank saw significant increases, with Xin Mining Resources rising over 120% [4] Gold and Precious Metals - International spot gold prices surged past $4000 per ounce, reaching a historical high, driven by factors such as the U.S. government shutdown and ongoing expectations of interest rate cuts by the Federal Reserve [6][7] - Analysts suggest that the rise in gold prices is also influenced by global central banks' continued purchases of gold [7] Fusion Energy Sector - The controlled nuclear fusion concept gained traction, with stocks like Changfu Co. and Western Superconducting Technologies hitting their daily limit [9] - The BEST project in Hefei achieved a key breakthrough, marking a new phase in its construction [10] - The upcoming International Atomic Energy Fusion Energy Conference is expected to catalyze further developments in the fusion sector [11] Semiconductor Market - The storage chip market is projected to see price increases, with expectations of a 10% rise in eSSD prices and a 10-15% increase in DDR5 RDIMM prices by Q4 2025 [12][14] - NAND Flash prices are also expected to rise, with estimates of a 5-10% increase in Q4 2025 due to high demand from data centers [14]

第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01347 | | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | | 1,325,869,670 | | 0 | | 1,325,869,670 | | 增加 / 減少 (-) | | | | 1,834,733 | | | | | | 本月底結存 | | | | 1,327,704,403 | | 0 | | 1,327,704,403 | | 2. 股份分類 | 普通股 | 股份類別 | A | | 於香港聯交所上市 (註1) | 否 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券 ...