Key Points Summary Industry Overview - The report focuses on the semiconductor storage industry, particularly NAND production and related technologies. Core Insights and Arguments - Micron Technology is investing $24 billion in new NAND capacity in Singapore, indicating strong growth prospects in the NAND market [1] - NVIDIA's ICMS platform is showing excellent performance in SSD applications, highlighting advancements in storage technology [2] - TrendForce has revised upward its NAND price increase expectations for Q1 2026, suggesting a bullish outlook for NAND pricing [3] Recommendations - Continued recommendations for investment in storage devices, including companies such as: - Zhongwei Company - Jingyi Equipment - Northern Huachuang - Zhongke Feimeng - Jingce Electronics - Tuojing Technology - Huahai Qingke - Fuchuang Precision - Chip Source Micro [4] - Recommendations also extend to storage foundries and chips, including: - China Resources Micro - Jinghe Integration - Yandong Micro - Zhaoyi Innovation - Lanke Technology - Beijing Junzheng - Jucheng Shares - Purun Shares [5] - Storage materials and modules are also highlighted as areas of investment, specifically mentioning: - Xingfu Electronics [6] Additional Important Content - The report emphasizes the ongoing demand for storage solutions and the potential for growth in the semiconductor sector, driven by advancements in technology and increased production capacity [7]

Group 1 - On January 27, brokerages set target prices for listed companies with notable increases for Changyuan Donggu, Hongyuan Green Energy, and Haotaitai, with target price increases of 50.61%, 42.37%, and 30.60% respectively, belonging to the automotive parts, photovoltaic equipment, and home goods industries [2][3] - A total of 29 listed companies received brokerage recommendations on January 27, with Tonghua Dongbao, Zhibang Home, and Yanjing Beer receiving one recommendation each [3] Group 2 - On January 27, one company had its rating upgraded, with Xinda Securities raising Xueda Education's rating from "Hold" to "Buy" [4][5] - Five companies received initial coverage on January 27, including Taihe New Materials with an "Accumulate" rating from Northeast Securities, Kelike with an "Outperform" rating from Guosen Securities, Tianyi Medical with a "Buy" rating from Xinda Securities, Xinhenghui with an "Accumulate" rating from Zhongyou Securities, and Tuojing Technology with a "Buy" rating from Donghai Securities [6]

Core Viewpoint - The report highlights the significant growth driven by technology in certain sectors, while also noting the substantial losses due to cyclical downturns in others [1] Performance Growth Highlights - **Zhongwei Company (688012)**: Expected net profit between 208 million to 218 million yuan, a year-on-year increase of 28.74% to 34.93%, driven by increased recognition of plasma etching equipment and a surge in market demand [5] - **Lianchuang Optoelectronics (600363)**: Expected net profit between 43.5 million to 53.2 million yuan, a year-on-year increase of 80.36% to 120.57%, attributed to significant growth in laser business and improved profitability in traditional sectors [6] - **Ruixin Microelectronics (603893)**: Expected net profit between 102.3 million to 110.3 million yuan, a year-on-year increase of 71.97% to 85.42%, driven by rapid growth in the AIoT market and recognition of new AI technology [7] - **Sangfor Health (688336)**: Expected net profit around 290 million yuan, a year-on-year increase of approximately 311.35%, due to a significant collaboration with Pfizer and advancements in clinical research [8] - **Pulite (002324)**: Expected net profit growth of 155.76% to 194.73%, driven by the demand for high polymer materials in the automotive lightweight trend [9] - **Tonghua Dongbao (600867)**: Expected net profit around 124.21 million yuan, turning from loss to profit, driven by market share gains in insulin products [10] - **Suotong Development (603612)**: Expected net profit between 73 million to 85 million yuan, a year-on-year increase of 167.98% to 212.03%, due to rising prices and demand in the prebaked anode industry [11] Major Performance Declines - **China Shipbuilding Technology (600072)**: Expected net loss between -260 million to -340 million yuan, a year-on-year decline of over 24 times, due to cyclical downturns in shipbuilding and high material costs [12] - **Silver Nonferrous Metals (601212)**: Expected net loss between -45 million to -67.5 million yuan, transitioning from profit to loss due to legal disputes affecting financial performance [13] - **China Metallurgical Group (601618)**: Expected net profit between 130 million to 160 million yuan, a year-on-year decline of 76.28% to 80.73%, impacted by the downturn in the construction industry [14] - **Jindi Group (600383)**: Expected net loss between -1.11 billion to -1.35 billion yuan, with increased losses due to declining sales and inventory impairments [15] - **Jianfa Co. (600153)**: Expected net loss between -1 billion to -520 million yuan, transitioning from profit to loss due to increased impairments in real estate [16] Industry Trend Analysis - **Technology and Innovation-Driven Sectors**: Companies in semiconductor equipment, laser military applications, and innovative pharmaceuticals are experiencing rapid growth due to high demand in AIoT, national defense, and biomedicine [23] - **Traditional Cyclical Industries**: Sectors like coal and engineering machinery are facing significant adjustments due to demand shortages and price declines, leading to widespread performance pressures [24] - **Pharmaceutical Industry Disparities**: Innovative drugs are seeing explosive growth through external licensing, while traditional formulations and raw materials are significantly impacted by procurement policies [24] - **External Environment Uncertainties**: Factors such as international trade tensions and regulatory changes are significantly affecting corporate performance, necessitating enhanced risk management [24] - **Asset Quality Risks**: Many companies are reporting substantial asset impairment provisions, indicating potential inefficiencies in previous investments [24]

Group 1: Core Insights - The Sci-Tech Innovation Board (STAR Market) has surpassed 600 listed companies with a total market capitalization exceeding 10 trillion yuan [1][16] - The Beijing Municipal People's Congress emphasized the development of high-tech industries, including integrated circuits, international pharmaceutical innovation parks, and advanced energy projects [1][16] - Policies are increasingly supportive of technology-driven enterprises, particularly those focusing on "hard technology" and core technological breakthroughs [2][17] Group 2: Industry Dynamics - The STAR Market is witnessing significant growth in sectors such as electronics, biomedicine, computing, power equipment, and machinery, which together account for 88% of the market capitalization [3][19] - Recent trends indicate a rebound in the STAR Market, particularly in the chip, information technology, and new materials sectors [3][18] - The demand for high-end semiconductors is driven by AI infrastructure development, leading to increased orders for semiconductor equipment and materials [5][20] Group 3: Investment Opportunities - The STAR Market's focus on hard technology includes sectors like electronic chips, emerging software, and intelligent manufacturing, reflecting the rise of advanced manufacturing in China [2][17] - ETFs related to hard technology, such as the Sci-Tech Chip ETF (588290) and Sci-Tech Information ETF (588260), are highlighted as long-term investment opportunities [2][17] - The pharmaceutical sector is experiencing a dual push for innovation, with Chinese companies both exporting their products and acquiring foreign assets to enhance their portfolios [8][22]

Group 1 - The core viewpoint of the news highlights a strong performance of the semiconductor materials and equipment sector, with the CSI Semiconductor Materials and Equipment Theme Index rising by 2.43% as of January 27, 2026 [1] - Notable individual stocks within the index include Chipone Technology, which increased by 10.90%, and other companies like Shengen Co. and Jinhai Tong, which saw gains of 10.53% and 10.00% respectively [1] - The E Fund Semiconductor Equipment ETF (159558) also experienced a rise of 2.06%, with a latest price of 2.23 yuan, and a cumulative increase of 2.20% over the past two weeks [1] Group 2 - In terms of liquidity, the E Fund Semiconductor Equipment ETF recorded a turnover rate of 6.35% and a trading volume of 294 million yuan, with an average daily trading volume of 320 million yuan over the past week, ranking it among the top two in comparable funds [1] - The ETF's scale grew significantly, with an increase of 1.825 billion yuan over the past two weeks, placing it second among comparable funds [1] - The latest share count for the E Fund Semiconductor Equipment ETF reached 2.091 billion shares, marking a one-year high and ranking it second among comparable funds [1] Group 3 - Over the past 20 days, the E Fund Semiconductor Equipment ETF has seen continuous net inflows, with a peak single-day net inflow of 621 million yuan, totaling 2.758 billion yuan in net inflows and an average daily net inflow of 138 million yuan [1] - The CSI Semiconductor Materials and Equipment Theme Index tracks 40 listed companies involved in semiconductor materials and equipment, reflecting the overall performance of these securities [1] - As of December 31, 2025, the top ten weighted stocks in the index accounted for 65.08% of the total, including companies like North Huachuang and Zhongwei Company [2]

Group 1 - The semiconductor sector experienced a strong rebound on January 27, 2026, with the China Securities Semiconductor Materials and Equipment Theme Index rising by 2.39% [1] - Notable individual stock performances included ChipSource Microelectronics increasing by 14.04%, and Jin Hai Tong and Kang Qiang Electronics hitting the daily limit up [1] - The semiconductor equipment ETF Wan Jia (159327) saw an increase of 2.03% and reached a new high in scale at 1.187 billion yuan with 536 million shares outstanding [1] Group 2 - The electronic industry achieved a 19.5% double-digit profit growth in 2025, indicating a robust demand for semiconductor manufacturing equipment, particularly high-end process and advanced packaging equipment [2] - Huatai Securities highlighted that the A-share market is shifting towards performance recovery, with semiconductor equipment identified as a key investment focus [2] - As of December 31, 2025, the top ten weighted stocks in the China Securities Semiconductor Materials and Equipment Theme Index accounted for 65.08% of the index, including companies like North Huachuang and Zhongwei Company [2]

Group 1 - The semiconductor materials and equipment theme index on the STAR Market has seen a strong increase of 3.22%, with notable gains from stocks such as ChipSource Microelectronics up 14.10% and Xingfu Electronics up 9.87% [1] - The semiconductor equipment ETF, Huaxia, has risen by 2.4%, with a trading volume of 2.12 billion yuan and a turnover rate of 7.08% [1] - The National Bureau of Statistics reported that profits in the high-tech manufacturing sector increased by 13.3%, significantly outpacing the overall industrial profit growth of 12.7 percentage points [2] Group 2 - The semiconductor industry has shown remarkable profit growth, with integrated circuit manufacturing profits soaring by 172.6% and semiconductor device manufacturing profits increasing by 128% [2] - The domestic fab expansion is expected to accelerate, particularly in advanced logic, driven by a significant gap in supply [2] - The semiconductor equipment ETF, Huaxia, focuses on the upstream semiconductor sector, with 63% of its index comprising semiconductor equipment [3]

25 January 2026 | 5:54PM HKT Equity Research AMEC (688012.SS): Etching tools shipments ramp up for advanced nodes; 4Q Rev +21% YoY, NI midpoint +31% YoY; Buy AMEC pre-announced 4Q Rev of Rmb4.3bn (+21% YoY), which is 10%/ 3% lower than our estimates and Bloomberg consensus. 4Q GM improved to 39.7% (vs. 2Q25/ 3Q25 at 38.5%/ 37.9%). With the continuous spending on R&D for new product development, 4Q25 net income came in at Rmb869m~Rmb969m (+24%~+38% YoY). In 2025, the company's etching equipment sales were Rm ...

Group 1 - The semiconductor equipment sector is showing strong performance, with the semiconductor equipment ETF (561980) increasing by 1.59% and peaking at 2.51% [1] - Major stocks in the sector, such as Northern Huachuang, Zhongwei Company, and Cambricon Technologies, have also seen gains of 1.63%, 3.30%, and 0.46% respectively [1] - The ETF has experienced continuous net inflows for eight consecutive days, accumulating over 560 million [1] Group 2 - A research team from the Chinese Academy of Sciences has made significant advancements in storage technology for AI chips, with their findings published in the prestigious journal "Science" [3] - This new technology is expected to break existing limits on memory density and energy efficiency, providing foundational hardware support for future AI computing [3] - The concept of "space storage" links this technology to high-reliability applications in extreme environments, opening long-term growth opportunities for semiconductor materials and advanced equipment [3] - Short-term trends indicate an upward trajectory in storage prices, which will positively impact orders and performance for equipment companies [3] - Long-term demand for AI chips will continue to drive semiconductor capital expenditures, with domestic equipment and material companies benefiting from technological advancements and supply chain security [3] - Investors are encouraged to focus on leading companies with deep layouts in storage, advanced packaging, and key materials [3] - The semiconductor equipment ETF (561980) emphasizes domestic substitution in critical areas, with nearly 80% of the top ten holdings and close to 90% in equipment and design sectors [3] - Investors can also consider connecting funds (Class A: 020464; Class C: 020465) for investment opportunities [3]

Group 1 - The A-share market experienced a collective decline on January 27, with the Shanghai Composite Index down by 0.32%. The sectors showing gains included metals, banking, and oil, while electric equipment and pharmaceuticals saw the largest declines [1] - In the semiconductor sector, the performance was mixed. The chip ETF (159995.SZ) fell by 1.00%, while some component stocks like Ruixin Micro and Zhongwei Company increased by 2.85% and 2.23%, respectively. However, companies like Jing Sheng Machinery and Sanan Optoelectronics performed poorly, with declines of -3.82% and -3.07% [1] Group 2 - According to TrendForce, the global server shipment volume is expected to grow at an annual rate of 12.8% by 2026, with AI server shipments projected to grow over 28%, up from 24.2% in 2025. This growth is driven by significant investments in AI infrastructure by global CSPs [3] - The storage industry, including DRAM and NAND Flash, is expected to see its market value reach $551.6 billion by 2026, a year-on-year increase of 134%, and continue to grow by 53% to $842.7 billion in 2027. Samsung Electronics is reported to increase NAND flash supply prices by over 100% in Q1 2026, highlighting a severe supply-demand imbalance in the semiconductor market [3] - The packaging and testing segment of the storage chip industry is benefiting from a recovery in downstream demand, with leading manufacturers operating at near full capacity and service prices increasing by approximately 30%. This indicates a positive trend in the storage industry, with growth in both volume and price [3]