Group 1 - The core index of the semiconductor materials and equipment theme on the STAR Market has decreased by 3.08% as of November 3, 2025, with mixed performance among constituent stocks [1] - New Yichang led the gains with an increase of 7.53%, while Huafeng Measurement Control saw the largest decline at 6.70% [1] - The STAR Semiconductor ETF (588170) has also dropped by 3.26%, with the latest price at 1.37 yuan [1] Group 2 - The STAR Semiconductor ETF (588170) has experienced a significant growth of 370 million yuan over the past two weeks [2] - As of the end of the third quarter, the major fund has heavily invested in 16 companies on the STAR Market, all within the electronics sector, becoming the largest circulating shareholder in two companies [2] - The semiconductor equipment and materials industry is identified as a key area for domestic substitution, benefiting from the AI revolution and advancements in lithography technology [2]

Summary of Piotech (688072.SS) Earnings Call Company Overview - **Company**: Piotech (688072.SS) - **Industry**: Semiconductor Equipment Manufacturing Key Financial Highlights - **3Q25 Revenue**: Rmb2.3 billion, representing a **124% YoY** increase and **82% QoQ** increase, exceeding GSe and Bloomberg consensus by **43%** and **49%** respectively [1][2] - **Gross Margin (GM)**: Declined to **34.4%** in 3Q25 from **38.8%** in 2Q25, attributed to lower margins from early-stage advanced node products [2][12] - **Operating Profit Margin (OPM)**: Improved to **16.9%** in 3Q25 from **14.5%** in 2Q25, reflecting effective expense control [1][2] - **Net Income**: Rmb462 million, a **225% YoY** increase and **92% QoQ** increase, surpassing GSe and consensus by **56%** and **60%** respectively [2][3] Future Outlook - **4Q25 Revenue Projection**: Expected to grow **26% YoY** and **1% QoQ** to Rmb2.3 billion, driven by continued capital expenditure expansions from Chinese foundries and IDMs [1][8] - **Net Income Projection for 4Q25**: Anticipated to reach Rmb567 million, reflecting a **36% YoY** and **23% QoQ** growth [1] Product Development and Market Position - **Advanced Node Equipment**: Piotech is focusing on advanced deposition tools for both logic and memory clients, with a ramp-up of flowable CVD expected in 1Q25 [1][12] - **Vertical Expansion**: The company is expanding its product offerings in areas where it has strengths, rather than diversifying into many product types [12] - **Advanced Packaging Solutions**: Piotech is engaged in mass production of hybrid bonding equipment and aims to develop a comprehensive platform solution for advanced packaging customers [12] Earnings Revisions - **Earnings Estimates**: Adjustments made to net income estimates for 2025-2027 increased by **8%**, **9%**, and **11%** respectively, while revenue estimates were raised by **5%**, **3%**, and **2%** [8] - **Gross Margin Adjustments**: GM estimates were lowered by **6.6 percentage points** for 2025, reflecting the lower margins of early-stage advanced node tools [8] Valuation and Rating - **Current Valuation**: Piotech is trading at **53x** 2026E P/E, close to its average P/E since September 2022 [1][11] - **Target Price**: Increased to Rmb266 based on a target P/E of **46.0x** for 2026E, reflecting higher earnings expectations [11][19] - **Investment Rating**: Maintained a **Neutral** rating due to relatively fair valuation [1][11] Risks and Considerations - **Market Risks**: Potential risks include stronger or weaker-than-expected semiconductor capital expenditure expansion and competitive pressures in the market [19]

Core Viewpoint - The semiconductor sector, particularly the related ETFs, is experiencing significant fluctuations, with a notable decline in the semiconductor materials and equipment index, while also witnessing growth in ETF scale due to increased demand for AI-related chips [1][2]. Group 1: Market Performance - The Shanghai Stock Exchange's semiconductor materials and equipment index fell by 4.14% as of November 3, 2025, with leading stocks like Huafeng Measurement Control down by 9.15% [1]. - The Kexin Semiconductor ETF (588170) decreased by 4.32%, with the latest price at 1.35 yuan [1]. - The ETF recorded a turnover rate of 7.74% during the trading session, with a transaction volume of 295 million yuan [1]. Group 2: Recent Developments - The Kexin Semiconductor ETF (588170) saw a scale increase of 370 million yuan over the past two weeks, indicating significant growth [2]. - Nvidia announced plans to supply over 260,000 advanced AI chips to the South Korean government and major corporations during the APEC meeting, with significant investments in AI infrastructure [2]. - Samsung and SK Hynix raised DRAM and NAND flash memory prices by up to 30%, driven by concerns over DRAM shortages and the ongoing AI semiconductor supercycle [2]. Group 3: Industry Insights - The Kexin Semiconductor ETF (588170) and its linked funds focus on semiconductor equipment (61%) and materials (23%), highlighting the importance of domestic substitution in the semiconductor sector [3]. - The semiconductor materials ETF (562590) also emphasizes the upstream semiconductor industry, which is expected to benefit from the AI revolution and ongoing technological advancements [3].

Group 1 - Semiconductor equipment concept stocks declined, with Tuojing Technology falling over 6%, Changchuan Technology down over 5%, and Huahai Qingke and Xinyuan Micro both dropping over 4% [1] - Related semiconductor equipment ETFs also experienced a decline, with an overall drop of over 4% [1] Group 2 - Specific ETF performance included: - Semiconductor Materials ETF at 1.459, down 0.069 or 4.52% - Chip Equipment ETF at 1.530, down 0.071 or 4.43% - Semiconductor Equipment ETF Fund at 1.643, down 0.075 or 4.37% - Semiconductor Equipment ETF at 1.390, down 0.063 or 4.34% - E Fund Semiconductor Equipment ETF at 1.624, down 0.072 or 4.25% [2] Group 3 - Analysts indicate that under the backdrop of the AI wave and domestic substitution, there is a continuous demand for expansion in advanced production lines in China, positioning semiconductor equipment as a cornerstone for wafer foundry expansion and an important link for achieving self-sufficiency in the industry chain, presenting development opportunities for domestic semiconductor equipment manufacturers [2]

Core Viewpoint - TuoJing Technology experienced a 5.07% decline in stock price, closing at 289.54 CNY per share, with a total market capitalization of 81.408 billion CNY as of November 3 [1] Company Overview - TuoJing Technology Co., Ltd. is located at 900 Shui Jia, Hunnan District, Shenyang, Liaoning Province, and was established on April 28, 2010. The company went public on April 20, 2022 [1] - The main business involves the research, production, sales, and technical services of high-end semiconductor equipment, with 96.47% of revenue coming from semiconductor equipment and 3.53% from other supplementary sources [1] Fund Holdings - Guolian An Fund has a significant holding in TuoJing Technology, with the Guolian An Craftsmanship Technology Mixed Fund (011599) holding 16,000 shares, accounting for 6.9% of the fund's net value, making it the fourth-largest holding [2] - The fund has experienced a floating loss of approximately 247,300 CNY today [2] - The Guolian An Craftsmanship Technology Mixed Fund was established on May 18, 2021, with a current scale of 60.3175 million CNY, yielding 5.55% this year and 9.84% over the past year, ranking 6728 out of 8223 and 5919 out of 8115 respectively [2] - Since its inception, the fund has incurred a loss of 27.36% [2] Fund Manager Profile - The fund manager, Pan Ming, has a tenure of 11 years and 265 days, managing assets totaling 2.108 billion CNY, with the best fund return during his tenure being 233.15% and the worst being -35.33% [2]

Core Viewpoint - TuoJing Technology experienced a 5.07% decline in stock price, closing at 289.54 CNY per share, with a trading volume of 1.12 billion CNY and a turnover rate of 1.36%, resulting in a total market capitalization of 81.41 billion CNY [1] Company Overview - TuoJing Technology Co., Ltd. is located at 900 ShuiJia, Hunnan District, Shenyang, Liaoning Province, established on April 28, 2010, and listed on April 20, 2022 [1] - The company's main business involves the research, production, sales, and technical services of high-end semiconductor specialized equipment [1] - The revenue composition of the main business is 96.47% from semiconductor specialized equipment and 3.53% from other supplementary sources [1] Fund Holdings - According to data from the top ten holdings of funds, one fund under Fangzheng Fubon holds TuoJing Technology [2] - Fangzheng Fubon CSI 500 ETF (510550) held 500 shares in TuoJing Technology in the third quarter, accounting for 0.51% of the fund's net value, ranking as the tenth largest holding [2] - The fund has a total scale of 25.68 million CNY and has achieved a year-to-date return of 28.61%, ranking 1934 out of 4216 in its category [2] - Over the past year, the fund has returned 24.58%, ranking 2038 out of 3894 in its category, and since inception, it has returned 85.1% [2] - The fund manager, Yu Runze, has been in position for 3 years and 232 days, with a total asset scale of 1.96 billion CNY [2]

Macro Overview - 2025 is characterized as a turning point for China's macroeconomic landscape, with expectations for a brighter macroeconomic outlook in 2026 [2] - The U.S. economy is experiencing a dual-speed growth pattern, with rapid expansion in AI-related investments and slightly below-trend growth in traditional sectors [2][3] Investment Strategy - The profit cycle is expected to rebound due to approaching turning points in capacity and inventory cycles, with positive signals from the real estate cycle and overseas expansion [3] - Relative valuations in the Chinese market still have room for improvement, making Chinese assets attractive [3] - The market style is anticipated to rebalance rather than switch, focusing on seven key investment themes including policy, technology, real estate, and capital market reforms [3][4] Fixed Income Market - The global investment landscape is expected to see a shift with a focus on domestic demand and technology, leading to a potential recovery in nominal GDP growth [6] - The bond market is likely to exhibit characteristics of low interest rates and high volatility, with a projected yield range for ten-year government bonds between 2.0% and 2.1% [6] Equity Market Insights - The insurance sector is shifting towards dividend insurance products, with positive sales trends expected to continue into 2026 [8] - The securities market is undergoing a transformation, with low interest rates enhancing the attractiveness of equity assets and sustainable inflows of new capital [9] Company-Specific Analysis - Xinquan Co., Ltd. reported Q3 revenue of 3.954 billion yuan, a year-on-year increase of 14.91%, but net profit decreased by 27.10% due to competitive pressures [10] - Jifeng Co., Ltd. achieved Q3 revenue of 5.608 billion yuan, with a net profit increase of 116.62% year-on-year, indicating strong order backlog and production ramp-up [11] - Guobo Electronics reported Q3 revenue of 498 million yuan, with a focus on mobile terminal expansion and military product recovery [12] - Icewheel Environment's Q3 revenue grew by 6.88% year-on-year, supported by recovery in commercial cold chain and new applications in data centers [13] - Changfei Optical Fiber's Q3 revenue increased by 16.27% year-on-year, driven by AI data communication demand [14] Sector Performance - The traditional energy sector, represented by Gansu Energy, showed a revenue increase of 1.33% year-on-year in Q3, benefiting from strong profitability in hydropower [26] - The pump manufacturing sector, led by Southern Pump, is expanding into new applications such as liquid cooling and data centers, with Q3 revenue showing a slight decline but net profit growth [27]

Group 1 - The report highlights that Fengshen Co., the only centrally controlled tire listed company in China, has entered a growth phase with a 168% year-on-year increase in net profit for Q3 2025 [2][6][7] - The company achieved a revenue of 5.543 billion yuan for the first three quarters of 2025, representing a 13.58% increase year-on-year, despite a decline in net profit [6][8] - The average selling price of products increased by 7.88% year-on-year to 1198 yuan per tire, contributing to improved profitability [8][10] Group 2 - Dongfang Tower benefited from the potassium fertilizer boom, reporting a 77.57% increase in net profit for Q3 2025, with a revenue of 3.392 billion yuan [16][17] - The company’s gross profit margin increased by 10.23 percentage points to 40.53% due to rising potassium prices [17][19] - The average price of potassium chloride reached 3269 yuan per ton in Q3 2025, up 773 yuan per ton year-on-year [17][19] Group 3 - Longbai Group's net profit decreased by 34.68% year-on-year in Q3 2025, impacted by falling titanium dioxide prices, with a revenue of 6.105 billion yuan [23][24] - The average price of titanium dioxide fell by 2018 yuan per ton year-on-year, leading to a significant profit squeeze [25][27] - The company is pursuing a strategic acquisition of Venator UK's titanium dioxide assets to enhance its global presence [27][29] Group 4 - Shanmei International reported a 30.20% decline in revenue for the first three quarters of 2025, with a net profit drop of 49.74% [32][33] - The company’s coal production increased by 8.73% year-on-year, while trade coal sales fell by 28.50% [35][36] - The average selling price of self-produced coal decreased by 24.72% year-on-year, affecting overall profitability [36][37] Group 5 - Fenhong Media achieved a total revenue of 9.607 billion yuan in the first three quarters of 2025, reflecting a 3.73% year-on-year growth [38][39] - The company’s gross profit margin improved significantly, reaching 74.1% in Q3 2025 [40][41] - The company plans to distribute a cash dividend of 0.5 yuan per share, indicating a commitment to shareholder returns [41][42] Group 6 - Yunnan Rural Commercial Bank reported a 0.67% increase in revenue for the first three quarters of 2025, with a net profit growth of 3.74% [43][44] - The bank's non-performing loan ratio decreased to 1.12%, reflecting improved asset quality [44]

Core Viewpoint - The company reported strong financial performance in Q3 2025, with significant year-on-year and quarter-on-quarter growth in revenue and net profit, driven by robust order backlog and successful validation of advanced process equipment [1][2]. Financial Performance - Q3 2025 revenue reached 2.266 billion yuan, representing a year-on-year increase of 124% and a quarter-on-quarter increase of 82% [1][2]. - The net profit attributable to shareholders was 460 million yuan, showing a year-on-year growth of 225% and a quarter-on-quarter growth of 91.6% [1][2]. - The gross margin was 34.4%, which is a decrease of 4.8 percentage points year-on-year and 4.4 percentage points quarter-on-quarter, reflecting normal quarterly fluctuations [1]. - The net profit margin after deducting non-recurring items was 18.5%, up 14 percentage points year-on-year and 1 percentage point quarter-on-quarter [1]. Order Backlog and Future Outlook - As of the end of Q3 2025, the company's contract liabilities reached 4.894 billion yuan, a 64% increase from the beginning of the year, indicating strong order growth [2]. - The outlook for revenue growth in 2026 is positive, supported by the expansion of leading domestic storage production lines and expected increases in order scale and product share [2]. - The company has upgraded its revenue forecasts for 2025, 2026, and 2027 to 6.51 billion, 8.56 billion, and 11.04 billion yuan, respectively, and net profit forecasts to 1.05 billion, 1.66 billion, and 2.33 billion yuan, respectively [2]. Product Development and Production - Multiple advanced process equipment models have successfully passed customer validation and have entered the mass production phase [1][2]. - The company is leveraging new equipment platforms and reaction chambers to enhance its production capabilities, which are expected to drive continued revenue growth [1].

Investment Rating - The report maintains an "Accumulate" investment rating for the company [4][7]. Core Insights - The company reported a significant increase in revenue and profit for Q3 2025, with revenue reaching 2.266 billion yuan, up 124% year-on-year and 82% quarter-on-quarter, and net profit of 460 million yuan, up 225% year-on-year and 91.6% quarter-on-quarter [1][7]. - The company has a strong order backlog, with multiple advanced process machines entering mass production after customer validation [1][7]. - The outlook for 2026 is positive, with a substantial increase in contract liabilities indicating strong order growth [1][7]. Financial Data and Valuation - Revenue projections for 2025, 2026, and 2027 have been revised upwards to 6.511 billion, 8.561 billion, and 11.035 billion yuan respectively, with corresponding net profit estimates of 1.053 billion, 1.661 billion, and 2.327 billion yuan [3][7]. - The company’s PE ratios for 2025, 2026, and 2027 are projected to be 81.4, 51.6, and 36.8 respectively [3][7]. - The company’s total assets are expected to grow from 9.969 billion yuan in 2023 to 30.380 billion yuan by 2027 [9][10].