Core Viewpoint - Semiconductor Manufacturing International Corporation (SMIC) plans to acquire 49% of the equity in North Integrated Circuit Manufacturing Co., Ltd. through a share issuance [1] Group 1 - The transaction is still pending completion of auditing, evaluation, and due diligence work [1] - After the completion of the aforementioned processes, the company will convene a board meeting to review the relevant proposals for the transaction [1] - The company will comply with relevant laws and regulations for subsequent procedures and information disclosure obligations [1]

Investment Rating - The report assigns an "Increase" rating for the stocks mentioned, indicating a potential rise of over 15% relative to the CSI 300 index within the next 12 months [5][13]. Core Insights - The launch of the Shuguang scaleX640 marks a significant advancement in domestic computing power, achieving a 30-40% performance improvement in trillion-parameter model training and inference compared to traditional solutions [2][5]. - The scaleX640 enhances the cost-effectiveness of inference scenarios and is expected to accelerate the breakthrough of domestic computing chips in training applications [5]. - The report highlights the long-term stability of the scaleX640, which has undergone over 30 days of reliability testing, ensuring support for large-scale cluster deployments [5]. - The open architecture of the scaleX640 is anticipated to facilitate the integration of domestic computing software ecosystems and unify supernode structures, potentially leading to rapid iterations in domestic supernodes [5]. Summary by Sections Performance and Features - The scaleX640 boasts a 20-fold increase in computing density per cabinet and supports trillion-parameter model training, with a performance boost of 30-40% in inference scenarios compared to traditional methods [5]. - Innovative technologies such as ultra-high-speed orthogonal architecture, high-density blades, immersion phase change cooling, and high-voltage direct current power supply are employed in the scaleX640 [5]. Recommended Stocks - The report recommends the following stocks: - Cambrian-U (688256.SH) with a closing price of 1480.00 and an EPS forecast of 5.04 for 2025 [7]. - Haiguang Information (688041.SH) with a closing price of 239.68 and an EPS forecast of 1.34 for 2025 [7]. - SMIC (688981.SH) with a closing price of 124.85 and an EPS forecast of 0.46 for 2025 [7]. - Zhaoyi Innovation (603986.SH) with a closing price of 227.20 and an EPS forecast of 2.35 for 2025 [7]. - Shengke Communication-U (688702.SH) with a closing price of 119.31 and an EPS forecast of 0.04 for 2025 [7]. - The report also mentions Chipone Technology (688521) as a related stock [5].

Core Viewpoint - SMIC's stock price increased by 4.23% on November 6, with a trading volume of 9.061 billion yuan, indicating strong market interest and activity [1] Financing Summary - On November 6, SMIC had a financing buy-in amount of 1.549 billion yuan, with a net financing buy of 350 million yuan after 1.2 billion yuan was repaid [1] - The total financing and securities lending balance for SMIC reached 14.179 billion yuan, with the financing balance accounting for 5.67% of the circulating market value, indicating a high level of leverage [1] - The securities lending data showed a repayment of 18,300 shares and a sale of 9,305 shares, with a total selling amount of 1.1617 million yuan, while the securities lending balance was 32.65 million yuan, also at a high level [1] Company Performance - As of June 30, SMIC had 252,300 shareholders, a decrease of 2.20%, while the average circulating shares per person increased by 2.26% to 8,223 shares [2] - For the first half of 2025, SMIC reported a revenue of 32.348 billion yuan, a year-on-year increase of 23.14%, and a net profit attributable to shareholders of 2.301 billion yuan, up 39.76% year-on-year [2] - The top ten circulating shareholders included several ETFs, with notable increases in holdings, indicating growing institutional interest [2]

Core Viewpoint - The Chip 50 ETF (516920) opened with a decline of 1.42%, indicating a negative market sentiment towards the semiconductor sector [1] Group 1: ETF Performance - The Chip 50 ETF (516920) opened at 1.043 yuan, reflecting a decrease of 1.42% [1] - Since its establishment on July 27, 2021, the fund has achieved a return of 5.88%, while the return over the past month has been -5.62% [1] Group 2: Major Holdings Performance - Key holdings in the Chip 50 ETF experienced significant declines, including: - SMIC down 1.54% - Cambricon down 1.65% - Haiguang Information down 2.38% - Northern Huachuang down 0.83% - Lattice Semiconductor down 1.75% - Zhaoyi Innovation down 1.99% - Zhongwei Company down 1.11% - OmniVision down 0.53% - Chipone down 2.23% - JCET down 1.13% [1]

Group 1 - The core point of the article highlights the performance of the Science and Technology Innovation ETF (588050), which opened down by 1.15% at 1.457 yuan on November 7 [1] - Major holdings in the ETF experienced declines, with notable drops including SMIC down 1.54%, Haiguang Information down 2.38%, and Cambrian down 1.65% [1] - The ETF's performance benchmark is the Shanghai Stock Exchange Science and Technology Innovation Board 50 Index, managed by ICBC Credit Suisse Asset Management Company, with a return of 2.74% since its inception on September 28, 2020, and a recent one-month return of -3.88% [1]

Core Viewpoint - The Hang Seng Index opened up by 0.49%, while the Hang Seng Tech Index rose by 0.63%, indicating a positive market sentiment towards technology and energy-related sectors [1] Group 1: Market Performance - The Hang Seng Index experienced an increase of 0.49% at the opening [1] - The Hang Seng Tech Index saw a rise of 0.63% [1] Group 2: Sector Performance - Stocks related to power grid equipment, charging stations, and energy storage concepts showed strong performance [1] - Semiconductor companies such as Hua Hong Semiconductor and SMIC both increased by over 2% [1]

Core Insights - The National Big Fund holding concept rose by 2.67% as of the close on November 6, ranking second among concept sectors, with 46 stocks increasing in value, led by Saiwei Electronics, Aisen Co., and Shengke Communication, which rose by 13.14%, 10.38%, and 8.22% respectively [1] Market Performance - The top-performing concept sectors included Phosphate Chemicals with a 3.92% increase and the National Big Fund holding concept at 2.67%, while the Hainan Free Trade Zone saw a decline of 3.77% [1] - The National Big Fund holding concept experienced a net inflow of 2.862 billion yuan, with 36 stocks receiving net inflows, and 7 stocks exceeding 100 million yuan in net inflows [1] Stock Highlights - The stocks with the highest net inflows included SMIC with 688 million yuan, followed by Zhongwei Company, Chipone, and Northern Huachuang with net inflows of 368 million yuan, 302 million yuan, and 293 million yuan respectively [1] - Chipone, Jingce Electronics, and GeKongwei led in net inflow ratios at 13.03%, 12.08%, and 10.07% respectively [2] Detailed Stock Data - Notable stock performances included: - SMIC (688981) with a 4.23% increase and a turnover rate of 3.66% [2] - Zhongwei Company (688012) with a 4.26% increase and a turnover rate of 3.06% [2] - Chipone (688521) with a 3.97% increase and a turnover rate of 2.97% [2] - Stocks with significant declines included China Shipbuilding Special Gas (down 1.67%) and Beidou Star (down 0.07%) [4]

Market Overview - The Shanghai Composite Index rose by 0.97% on November 6, with 19 sectors experiencing gains, led by the non-ferrous metals and electronics sectors, which increased by 3.05% and 3.00% respectively [2] - The media and social services sectors saw the largest declines, with decreases of 1.35% and 1.11% [2] Capital Flow - The net inflow of capital in the two markets was 6.174 billion yuan, with 12 sectors receiving net inflows [2] - The electronics sector had the highest net inflow, totaling 12.224 billion yuan, while the non-ferrous metals sector followed with a net inflow of 3.647 billion yuan [2] Electronics Sector Performance - The electronics sector increased by 3.00%, with 362 out of 470 stocks in the sector rising, including 6 stocks hitting the daily limit [3] - A total of 266 stocks in the electronics sector experienced net capital inflows, with 33 stocks receiving over 100 million yuan in net inflows [3] - The top three stocks by net inflow were Shenghong Technology (1.623 billion yuan), Dongshan Precision (1.069 billion yuan), and Haiguang Information (942 million yuan) [3] Electronics Sector Capital Inflow - Key stocks with significant capital inflow included: - Shenghong Technology: +5.97%, 162.34 million yuan - Dongshan Precision: +10.00%, 106.91 million yuan - Haiguang Information: +7.96%, 94.17 million yuan [4] Electronics Sector Capital Outflow - Notable stocks with significant capital outflow included: - Wentai Technology: -4.78%, -239.91 million yuan - Daway Shares: +1.34%, -234.40 million yuan - OFILM: -1.26%, -193.21 million yuan [5]

Core Viewpoint - The semiconductor sector, particularly the SMIC concept stocks, experienced a positive trading day with a notable increase in share prices and significant net inflows of capital, indicating strong investor interest and confidence in the sector [2][3]. Market Performance - As of November 6, the SMIC concept stocks rose by 2.39%, ranking 7th among concept sectors, with 73 stocks increasing in value. Notable gainers included Demingli (up 10.38%), Shun Sodium (up 9.50%), and Aisen Co. (up 7.55%) [2]. - The concept sectors with the highest and lowest daily changes included Phosphate Chemicals (up 3.92%) and Hainan Free Trade Zone (down 3.77%) [2]. Capital Flow - The SMIC concept sector saw a net capital inflow of 3.286 billion yuan, with 50 stocks receiving net inflows. Ten stocks had inflows exceeding 100 million yuan, led by Demingli with 734 million yuan [2][3]. - The top stocks by net capital inflow included SMIC, Zhongwei Company, and Northern Huachuang, with respective inflows of 688 million yuan, 368 million yuan, and 293 million yuan [2]. Stock Performance Metrics - Key stocks in the SMIC concept included: - Demingli: 10.00% increase, 8.59% turnover rate, 734.41 million yuan net inflow, 21.70% net inflow ratio [3]. - SMIC: 4.23% increase, 3.66% turnover rate, 688.49 million yuan net inflow, 7.60% net inflow ratio [4]. - Zhongwei Company: 4.26% increase, 3.06% turnover rate, 368.41 million yuan net inflow, 6.32% net inflow ratio [4]. Additional Notable Stocks - Other significant gainers included: - Aisen Co.: 10.38% increase, 18.37% turnover rate [5]. - Henshuo Co.: 9.50% increase, 13.65% turnover rate [6]. - Stocks with notable declines included Antai Technology (down 1.90%) and Zhejiang Dongfang (down 1.41%) [7].

Group 1 - The storage chip concept index rose by 2.46%, ranking fourth among concept sectors, with 136 stocks increasing in value [2][3] - Notable gainers included Bojie Co., Ltd. and Deminli, which hit the daily limit, with increases of 10.57% and 10.38% respectively [2][3] - The sector saw a net inflow of 5.742 billion yuan from main funds, with 105 stocks receiving net inflows, and 16 stocks exceeding 100 million yuan in net inflows [3][4] Group 2 - The top net inflow stock was Deminli, attracting 734 million yuan, followed by SMIC and Zhongwei Company with net inflows of 688 million yuan and 368 million yuan respectively [3][4] - The net inflow ratios for Deminli, Yawey Co., and Canxin Co. were 21.70%, 19.61%, and 18.50% respectively [4][5] - The storage chip sector's performance was supported by significant capital inflows, indicating strong investor interest [3][4]