Group 1 - The storage concept continues to strengthen, with companies like Longsys Technology (06809) and Gigadevice Semiconductor (03986) reaching new highs, with Longsys up 17.08% to HKD 216.6 and Gigadevice up 12.05% to HKD 414.6 [1] - A price surge in storage chips is intensifying, with Japanese storage giant Kioxia expected to implement a revised pricing policy for North American customers starting in Q1 2026, anticipating an average selling price (ASP) increase of approximately 50% [1] - Morgan Stanley estimates that Kioxia's adjusted gross margin will reach 66% in Q1, indicating a significant improvement in profitability for the NAND industry [1] Group 2 - According to Counterpoint's February memory price tracking report, memory prices are expected to rise by 80%-90% by Q1 2026, primarily driven by a substantial increase in general server DRAM prices [1] - For instance, the contract price for 64GB RDIMM server memory has surged from USD 450 in Q4 of the previous year to over USD 900 in Q1, with expectations to exceed USD 1,000 in Q2 [1]

Group 1 - The storage sector is experiencing significant growth, with companies like 澜起科技 (Lianqi Technology) and 兆易创新 (Zhaoyi Innovation) reaching new highs in stock prices, increasing by 17.08% to 216.6 HKD and 12.05% to 414.6 HKD respectively [1] - A price increase trend in storage chips is intensifying, with Japanese storage giant Kioxia expected to implement a revised pricing policy for North American customers starting in Q1 2026, anticipating an average selling price (ASP) increase of approximately 50% [1] - Morgan Stanley estimates that Kioxia's adjusted gross margin will reach 66% in the first quarter, indicating a positive signal for the entire NAND industry and suggesting a substantial improvement in profitability for the storage chip sector [1] Group 2 - According to Counterpoint's February memory price tracking report, memory prices are projected to rise by 80%-90% by Q1 2026, primarily driven by a significant increase in general server DRAM prices [1] - For instance, the contract price for 64GB RDIMM server memory has surged from 450 USD in Q4 of the previous year to over 900 USD in Q1, with expectations to exceed 1000 USD in Q2 [1]

Market Overview - On February 16, the Hong Kong stock market opened slightly lower, with the Hang Seng Index down 0.25% and the Hang Seng Tech Index down 1.14% [1] - The market saw strength in sectors such as precious metals, semiconductors, and oil, while sectors like defense, consumer discretionary, and hardware struggled [1] Technology Sector - The Hang Seng Tech Index has experienced significant declines recently, creating potential value for investors [9] - Recent market volatility is attributed to liquidity shocks, and the current situation is compared to market conditions in November 2025 [10] - Analysts recommend buying on dips and holding stocks through the holiday season [10] AI Application Stocks - AI application stocks in Hong Kong saw gains, with Zhiyu (智谱) opening up over 7% and later experiencing fluctuations [11] - Zhiyu's stock price has increased by 130% since February, with a total market capitalization exceeding 230 billion HKD [11] IPO Developments - Zhiyu has withdrawn its IPO guidance submitted in April 2025 and is now pursuing a new listing on the Sci-Tech Innovation Board [13] - The company has changed its IPO advisory firms to Guotai Junan Securities and China International Capital Corporation [13] Semiconductor Sector - The semiconductor sector showed strength, with stocks like Zhaoyi Innovation (兆易创新) rising over 17% [16] - A price increase in storage chips is expected, with Kioxia planning to raise average selling prices by approximately 50% starting in Q1 2026 [17] - Analysts predict significant improvements in profitability for the NAND industry, with Samsung's NAND business operating margin expected to rise to 37% and SK Hynix to 42% in Q1 2026 [18] Precious Metals Market - The precious metals sector is experiencing a boost, with gold prices expected to rise due to seasonal demand and investment interest [14] - ANZ analysts have raised their gold price forecast for Q2 from $5,400 to $5,800 per ounce [14]

Core Viewpoint - The stock price of Zhaoyi Innovation (03986) surged over 17%, reaching a new high of 435 HKD, driven by positive market sentiment following Kioxia's strong earnings forecast, which highlights the growing demand for NAND flash memory in data centers due to AI applications [1] Company Summary - Zhaoyi Innovation is positioned as a platform chip design company benefiting from the convergence of three favorable trends: AI, domestic substitution, and an upward storage cycle [1] - The company is expected to achieve revenues of 9.203 billion, 11.386 billion, and 13.878 billion CNY for the years 2025, 2026, and 2027 respectively, with net profits projected at 1.610 billion, 2.589 billion, and 2.769 billion CNY for the same years [1] Industry Summary - Kioxia, a Japanese flash memory manufacturer, has released an annual earnings forecast that exceeds market expectations, indicating a significant shift in the NAND flash market driven by AI applications [1] - Kioxia plans to implement a revised pricing strategy for North American customers starting in Q1 2026, with an expected average selling price (ASP) increase of approximately 50% [1] - Morgan Stanley estimates that Kioxia's adjusted gross margin will reach 66% in the first quarter [1]

Market Overview - The Hang Seng Index opened slightly lower on February 16, with a decline of 0.25%, while the Hang Seng Tech Index fell by 0.19% and the Hang Seng China Enterprises Index decreased by 0.08%. The tech index saw a drop of nearly 2% during the day before narrowing its losses [1][16]. - The market experienced volatility, with sectors such as precious metals, semiconductors, and oil and petrochemicals showing strength, while sectors like defense, consumer discretionary, and hardware equipment struggled [1][16]. Sector Performance - The non-ferrous metals sector rose by 3.88%, semiconductor sector increased by 2.57%, and oil and petrochemical sector gained 2.21% [2][17]. - In contrast, sectors such as defense and military (-2.90%), consumer discretionary (-2.24%), and hardware equipment (-1.94%) faced declines [2][17]. Notable Stocks - In the non-ferrous metals sector, notable performers included Luoyang Molybdenum, which rose over 7%, and Lingbao Gold, which increased by over 6%. Other companies like China Nonferrous Mining, Shandong Gold, Jiangxi Copper, and Minmetals Resources also saw gains [3][19]. - The semiconductor sector saw significant gains, with companies like Zhaoyi Innovation rising over 17% and Lianqi Technology increasing by over 13% [11][26]. AI Application Stocks - AI application stocks opened higher, with Fubo Group rising over 10% and MINIMAX-WP increasing nearly 6%. Zhihui continued its recent momentum, reaching a peak of 540 HKD per share with a rise of over 11% [8][24][25]. Upcoming Changes - The Hang Seng Index will increase its constituent stocks from 88 to 90, adding Ningde Times, Luoyang Molybdenum, and Laopu Gold, while removing Zhongsheng Holdings. This change will take effect on March 9 [7][22].

Group 1 - The core viewpoint of the article highlights that兆易创新 (GigaDevice) has seen a significant stock increase of over 13%, reaching a new high of 423 HKD since its listing, driven by positive market conditions in the NAND flash memory sector [1] - The recent performance forecast from Japanese flash memory manufacturer Kioxia exceeded market expectations, indicating that AI-driven demand in data centers is reshaping the NAND flash market landscape [1] - Kioxia is expected to implement a revised pricing policy for North American customers starting in Q1 2026, with an anticipated average selling price (ASP) increase of approximately 50% quarter-on-quarter [1] Group 2 - Tianfeng Securities views GigaDevice as a platform chip design company benefiting from a triple tailwind of "AI + domestic substitution + upward storage cycle" [1] - Revenue projections for GigaDevice from 2025 to 2027 are estimated at 9.203 billion, 11.386 billion, and 13.878 billion CNY, respectively, with expected net profits attributable to the parent company of 1.610 billion, 2.589 billion, and 2.769 billion CNY [1] - The firm believes that GigaDevice has strong growth momentum and resilient performance in the forecast period [1]

Core Findings - In January 2026, a total of 22 Chinese companies successfully completed IPOs across A-shares, Hong Kong, and US markets, raising a total of 42.839 billion yuan, with A-share IPO numbers halving compared to the previous month [7][8] - The number of IPOs decreased by 26.67% year-on-year and by 50% month-on-month, while the total amount raised increased by 2.17 times year-on-year but decreased by 21% month-on-month [8] - The Hong Kong Stock Exchange led in both the number of IPOs (12 companies) and the amount raised (33.717 billion yuan) [8] A-share Market Analysis - In January 2026, 9 Chinese companies went public in the A-share market, with a 25% year-on-year decrease and a 50% month-on-month decrease in IPO numbers [16] - The total amount raised in the A-share market was 9.053 billion yuan, reflecting a 27.47% year-on-year increase but a 71.18% month-on-month decrease [16] - The highest fundraising in the A-share market was achieved by Zhenstone Co., Ltd., which raised 2.919 billion yuan [16] Hong Kong Market Analysis - The Hong Kong market saw 12 IPOs in January 2026, with a 50% year-on-year increase but a 52% month-on-month decrease [18] - The total amount raised in Hong Kong was 33.717 billion yuan, marking a 5.62 times year-on-year increase and a 48.49% month-on-month increase [18] - The presence of AI-related companies in the IPOs indicates a significant investment interest from VC/PE institutions in the sector [18] US Market Analysis - Only 1 Chinese company completed an IPO in the US market in January 2026, representing a 90% year-on-year decrease [21] - The amount raised in the US was 0.07 billion yuan, a 94.71% year-on-year decrease [21] - Recent SEC policy changes are expected to further impact small companies' ability to go public in the US [21] VC/PE Exit Analysis - In January 2026, 13 companies with VC/PE backing went public, a 13.33% year-on-year decrease and a 62.86% month-on-month decrease [26] - The total exit return for VC/PE institutions was 109.455 billion yuan, a 15.3 times year-on-year increase [26] - The electronic information sector had the highest exit returns, with notable contributions from companies like Zhiyuan and Biran Technology [26] Industry and Regional Analysis - The electronic information sector led in both the number of IPOs and the amount raised, with 7 companies raising a total of 26.595 billion yuan [34] - Shanghai had the highest number of IPOs (5 companies) and the highest amount raised (18.384 billion yuan) [40] - The fundraising amount from Shanghai increased by 165.61 billion yuan year-on-year, the largest increase among regions [40] Key IPO Cases - The top fundraising companies included Biran Technology (5.017 billion yuan), MiniMax (4.318 billion yuan), and Haowei Group (4.297 billion yuan) [48] - The highest market capitalization on the first day was recorded by Haowei Group at 150.833 billion yuan [49]

Group 1 - The core viewpoint of the article highlights the strong performance of Zhaoyi Innovation (兆易创新), which saw its stock price increase by over 5% following positive earnings forecasts from Kioxia, indicating a significant demand surge in the flash memory market driven by data centers and AI applications [1] - Kioxia's revenue and net profit targets exceeded analyst expectations by approximately 35% to 60%, reflecting robust demand in the server market for data centers and enterprise-level AI applications, as well as sustained demand from PCs and smartphones due to new AI models [1] - The article notes that the global AI competition is intensifying, leading to a surge in demand for storage chips, with market analysts predicting that semiconductor supply-demand tightness will persist until 2026, driven by large-scale investments from major tech companies [1] Group 2 - Deutsche Bank analysts expect the supply tightness of DRAM to continue until 2027 or even 2028, particularly due to the AI boom driving increased demand for high-bandwidth memory (HBM) [1] - Tianfeng Securities emphasizes that Zhaoyi Innovation is positioned as a platform chip design company benefiting from a triple resonance of "AI + domestic substitution + storage cycle upturn," indicating strong growth momentum and resilient performance in the forecast period [1]

Core Viewpoint - The Hong Kong IPO market has become increasingly active in 2026, with insurance capital accelerating its investments in this market, highlighting a trend towards global asset allocation and the pursuit of undervalued quality assets [1][2][6]. Group 1: Insurance Capital Participation - Since January 2026, insurance capital has participated in cornerstone subscriptions for 10 Hong Kong IPOs, with a total subscription amount of HKD 1.558 billion [1][6]. - In 2025, insurance capital participated in cornerstone subscriptions for 12 Hong Kong IPOs, amounting to HKD 2.620 billion [1][6]. - Key cornerstone investors in recent IPOs include Ping An Life and Taikang Life, with significant allocations in companies like Muyuan Foods and Dongpeng Beverage [2][6]. Group 2: Market Dynamics and Investment Preferences - The low interest rate environment has made the Hong Kong market a primary avenue for insurance capital's global asset allocation, with many undervalued quality assets available [2][6]. - Companies listed in both A-shares and H-shares often have H-shares priced at a discount compared to A-shares, making them attractive for insurance capital seeking better valuations and higher dividend yields [2][6]. - Insurance capital is increasingly focusing on "hard technology" and new consumption sectors, with some projects experiencing competitive bidding [3][7]. Group 3: Performance and Tax Advantages - The Hong Kong capital market regained the top position globally for IPO fundraising in 2025, raising USD 37.4 billion, surpassing the total of the previous three years [3][7]. - Newly listed stocks have performed well, with an average first-day increase of 23.8% and a cumulative first-month increase of 30.7%, particularly in the biotech and healthcare sectors [3][7]. - Insurance companies benefit from tax advantages in Hong Kong, as they can avoid corporate income tax on dividends from H-shares held for over 12 months, enhancing their net returns compared to individual investors [8].

Market Overview - The Hong Kong stock market declined today, influenced by technology stocks, with the Hang Seng Index stopping its three-day rise and barely holding above the 27,000 mark. The index closed down 0.86% or 233.84 points at 27,032.54, with a total turnover of HKD 238.7 billion. The Hang Seng China Enterprises Index fell 1% to 9,175.18, and the Hang Seng Tech Index dropped 1.65% to 5,408.98 [1] Blue Chip Performance - Zijin Mining (601899) (02899) led blue-chip gains, rising 3.45% to HKD 45.02 with a turnover of HKD 4.993 billion, contributing 14.47 points to the Hang Seng Index. Citigroup raised its target price for Zijin's A-shares and H-shares by over 30% due to increased gold and lithium price forecasts and higher gold sales. The target price for Zijin's H-shares was raised from HKD 39 to HKD 51.8, a 32.8% increase [2] - Other notable blue-chip movements included WuXi AppTec (603259) (02359) up 2.91% to HKD 127.5, contributing 2.69 points; Sun Hung Kai Properties (00016) up 2.85% to HKD 133.5, contributing 8.63 points; while Budweiser APAC (01876) fell 5.21% to HKD 7.83, dragging down the index by 1.42 points [2] Sector Highlights - Technology stocks dragged the market lower, with Tencent down over 2% and Alibaba nearly 1%. However, several major companies launched new models, with Zhizhu's flagship model GLM-5 seeing a price increase and its stock rising over 40% to a new high. MINIMAX also rose over 14% [3] - The chip sector saw significant gains, with domestic GPU leader Tianzuo Zhixin and storage chip leader Zhaoyi Innovation both rising over 20%. Optical communication concepts rebounded, with Yangtze Optical Fibre (601869) benefiting from rising fiber prices, increasing over 12% [4] Notable Stock Movements - Zhongyuan Shipping (600026) (01138) surged 8.61% to HKD 17.6, driven by heightened shipping rates due to geopolitical tensions and increased demand for oil transportation [8] - China National Heavy Duty Truck (000951) (03808) reached a new high, rising 5.58% to HKD 42.38, with January heavy truck exports exceeding 16,000 units, marking a historical high [9] - Rebio Biotech (06938) also performed well, increasing 5.26% to HKD 74.05 after announcing a global exclusive licensing agreement with Madrigal Pharmaceuticals for innovative siRNA therapies [9] Company-Specific News - Budweiser APAC reported a revenue of USD 5.764 billion for the year ending December 31, 2025, a decrease of 7.7% year-on-year, with net profit attributable to shareholders down 32.6% to USD 489 million. The company also reported a loss of USD 105 million in the last quarter, compared to a loss of USD 16 million in the same period last year [10]