Investment Rating - The report maintains an "Accumulate" rating for the electronic industry, indicating a positive outlook for the sector over the next six months [1]. Core Insights - The advanced packaging sector is crucial for the development of domestic computing power, with significant growth expected due to rising demand for advanced packaging technologies such as CoWoS and Fan-out [4]. - The report highlights the strong performance of ASMPT in Q2, driven by robust demand in China, with a 50% year-on-year increase in TCB orders, indicating a recovery in domestic advanced packaging demand [4]. - The report suggests that domestic computing power is likely to replicate the rapid growth seen in overseas markets, particularly in AI applications, positioning advanced packaging as a foundational element for this growth [4]. Summary by Sections Industry Trends - The report notes a projected increase in the electronic industry, with a focus on advanced packaging technologies that are essential for GPU, CPU, and base station applications [4]. - The importance of domestic advanced packaging supply is emphasized, especially in light of constraints in Taiwan's advanced packaging capacity [4]. Investment Recommendations - The report recommends focusing on leading companies in advanced packaging, including Shenghe Jingwei, Changdian Technology, Tongfu Microelectronics, and Yongxi Electronics, as well as materials and equipment suppliers like Qiangli New Materials and Jingzhida [4].

Core Viewpoint - ASMPT reported a revenue of HKD 3.4 billion for Q2 2025, showing a year-on-year growth of 1.8% and a quarter-on-quarter growth of 8.9%, closely aligning with Bloomberg's consensus estimate of HKD 3.47 billion [1] Financial Performance - Revenue for Q2 2025 was HKD 3.4 billion, with a gross margin of 39.7%, a year-on-year decrease of 33 basis points and a quarter-on-quarter decrease of 119 basis points, in line with Bloomberg's expectation of 40% [1] - Net profit was HKD 134.3 million, a year-on-year decline of 1.7% but a quarter-on-quarter increase of 62.6%, falling short of Bloomberg's consensus estimate of HKD 147 million [1] - The company expects revenue for the next quarter to be between USD 4.45 billion and USD 5.05 billion, with a median growth of 10.8% year-on-year and 8.9% quarter-on-quarter, exceeding Bloomberg's consensus estimate of USD 4.65 billion [1] Business Segments - SMT orders saw significant growth, driven by AI and the Chinese market, with SEMI business revenue increasing by 21.4% year-on-year and 0.8% quarter-on-quarter [1] - Non-advanced packaging business is recovering steadily due to supply chain diversification, increased AI demand, and improved OSAT capacity utilization in China [1] - The company observed a trend of increasing orders in the SMT business, with a year-on-year increase of 51.6% and a quarter-on-quarter increase of 29.3% [1] Advanced Packaging Developments - Orders for TCB in advanced packaging increased by 50% year-on-year in the first half of 2025, with successful installations for leading HBM3E 12H customers [2] - The company is progressing from trial production to mass production for C2W AOR TCB in collaboration with leading foundries [2] - The second-generation HB tools are expected to be delivered to HBM customers in Q3, showcasing competitive advantages in alignment and bonding accuracy [2] Investment Recommendations - The target price has been raised to HKD 77.2, maintaining a "Buy" rating, with net profit estimates for 2025/2026/2027 increased by 3%/8%/7% to HKD 623 million/HKD 1.035 billion/HKD 1.627 billion [3] - The company is expected to benefit from AI-driven advanced packaging technology and long-term growth potential, with a target price based on a 31x PE for 2026 [3]

Company Overview - Shenzhen LianDe Automation Equipment Co., Ltd. has established long-term stable partnerships with renowned clients including Continental Automotive Electronics, Bosch, Harman, and Apple [2][3]. Advanced Packaging and Semiconductor Equipment - The company has successfully entered the semiconductor packaging industry with its developed semiconductor IC packaging equipment, focusing on advanced packaging technologies such as COF flip chip bonding equipment [4]. - LianDe is actively monitoring industry trends and technological advancements to seize opportunities in the semiconductor equipment sector [4]. Flexible AMOLED and Foldable Screen Applications - The company's flexible AMOLED bonding equipment is widely used in the mass production of foldable screens for well-known domestic and international smartphone brands [5]. - LianDe has established a leading position in the foldable screen bonding equipment market, leveraging its technological advantages [5]. Solid-State Battery Developments - In the new energy equipment sector, LianDe is increasing R&D investments in lithium battery packaging, cutting and stacking machines, and ultrasonic welding equipment, resulting in product breakthroughs and sales orders [6]. - The company has successfully shipped ultrasonic welding equipment related to new solid-state battery processes [6]. VR/AR/MR Display Equipment - LianDe has developed equipment for the VR/AR/MR display sectors, gaining recognition from clients in these emerging fields [7]. - The company has established partnerships with leading international clients in the VR/AR/MR display equipment market [7]. Mergers and Acquisitions Strategy - LianDe is actively seeking opportunities for resource integration and is considering mergers and acquisitions to enhance its operational capabilities, in line with regulatory support for industry consolidation [8].

Group 1 - The semiconductor equipment ETF (159516) has risen over 2.5%, with a focus on the domestic semiconductor materials localization process [1] - 3D printing is accelerating penetration in the consumer electronics sector, with potential applications in foldable device hinges and watch/mobile phone frames, marking a new era for consumer electronics [1] - The reduction in AI training and inference costs is driving application prosperity, with over a hundred AI-enabled devices such as smartphones, computers, and glasses emerging as new economic growth points [1] Group 2 - Meta has announced an investment of several hundred billion dollars to build data centers to support AI development, leading to a surge in demand for computing power [1] - TSMC's Q2 2025 performance is expected to be stable, with Q3 revenue projected between $31.8 billion and $33 billion, focusing on advanced process expansion as a key strategy for self-sufficiency [1] - Global smartphone shipments have increased for two consecutive quarters, with a recovery in upstream sectors such as passive components, digital SoC, RF, storage, and packaging, benefiting from advanced packaging demand driven by AI chips [1]

Group 1 - The semiconductor industry is experiencing growth, with the Guozheng Semiconductor Chip Index (980017) rising by 0.65% as of July 23, 2025, and key stocks such as Zhongwei Company (688012) and Huahai Qingke (688120) showing significant increases of 4.54% and 4.11% respectively [1] - The Shaanxi Electronic Chip Industry's 8-inch high-performance semiconductor integrated circuit production line project has reached 95% completion, with equipment commissioning scheduled for mid-August and trial production expected to begin in September. The project has a total investment of 4.5 billion yuan, with an initial investment of 3.2 billion yuan and a designed monthly capacity of 50,000 wafers, expandable to 100,000 wafers in the future [1] - The semiconductor ETF (159813) is closely tracking the Guozheng Semiconductor Chip Index, reflecting the market performance of listed companies in the chip industry [2] Group 2 - AI demand is driving the equipment supply chain, with advanced processes continuing to expand. Domestic IC design companies are working on adapting inference cards to domestic supply chains, benefiting from cost-effective 12nm process platforms [2] - As of June 30, 2025, the top ten weighted stocks in the Guozheng Semiconductor Chip Index include SMIC (688981), Haiguang Information (688041), and Cambrian (688256), collectively accounting for 67.05% of the index [2]

Core Viewpoint - The report from Guotai Junan Securities indicates that with the downstream sectors of industrial and automotive industries starting to replenish inventory, the demand for BCD Analog is expected to grow, leading to an increase in wafer foundry capacity utilization in the second quarter and the second half of the year [1] Group 1: Market Recovery and Capacity Utilization - The recovery in market conditions is expected to lead to a slight increase in mature process capacity utilization to over 75% [1] - According to TrendForce, the shipment of end markets such as smartphones, PCs/laptops, and servers is projected to recover with year-on-year growth by 2025, supported by replenishment demand from automotive and industrial sectors after inventory corrections throughout 2024 [1] - In the first quarter, the capacity utilization rates for 8-inch and 12-inch wafers at SMIC showed an overall increase of 4.1%, reaching above 90% [1] Group 2: Capacity Expansion and Local for Local Trend - SMIC is expected to achieve an annual increase of approximately 50,000 12-inch wafer capacity, with capital expenditure for 2025 projected to remain around $7.5 billion, consistent with the previous year [2] - Advanced packaging capacity, led by fab plants, is becoming scarce, as advanced packaging relies on chip manufacturing capabilities that are the strong suit of fab plants rather than traditional packaging and testing factories [2] - The integration of advanced packaging services into fab plants is creating ecological barriers, as high-performance chip design and packaging are becoming increasingly intertwined [2]

Investment Rating - The report rates the chemical industry as "Outperform" [2] Core Views - The chemical industry has been significantly impacted by tariff-related policies and fluctuations in crude oil prices. Key areas of focus for July include safety regulations, supply changes in the pesticide and intermediate sectors, performance volatility due to export dynamics, and the importance of self-sufficiency in electronic materials companies [2][9] - The report suggests a medium to long-term investment strategy focusing on high oil prices, robust performance in the oil and gas extraction sector, and the growth potential in new materials, particularly in electronic and renewable energy materials [2][9] Summary by Sections Industry Dynamics - As of July 20, the SW basic chemical sector's price-to-earnings ratio (TTM excluding negative values) is 23.36, at the 69.37 percentile historically; the price-to-book ratio is 1.90, at the 18.24 percentile historically. The SW oil and petrochemical sector's price-to-earnings ratio is 11.20, at the 18.91 percentile historically; the price-to-book ratio is 1.22, at the 4.85 percentile historically [2][9] - In the week of July 14-20, 22 out of 100 tracked chemical products saw price increases, while 53 experienced declines, and 25 remained stable. The products with the highest weekly price increases included TDI, urea, and R22, while those with the largest declines included polyester FDY and acetic acid [8][30] Investment Recommendations - The report recommends focusing on companies with stable dividend policies in the energy sector, as well as leading companies in high-growth sub-sectors such as fluorochemicals and vitamins, which are expected to maintain high demand and supply concentration [2][9] - Specific companies recommended for investment include China Petroleum, China National Offshore Oil Corporation, China Petrochemical Corporation, and several others in the electronic materials and new energy sectors [2][9] Price Trends - TDI prices increased by 18.83% week-on-week, reaching an average of 14,913 CNY/ton, while glyphosate prices rose by 1.57% to 25,901 CNY/ton. The report indicates that supply-side constraints and strong demand are likely to support these price trends in the near term [3][30]

Core Viewpoint - The article outlines the historical evolution and significant milestones of Changjiang Electronics Technology Co., Ltd. (长电科技), emphasizing its transformation from a small factory in 1972 to a leading player in the global semiconductor packaging and testing (OSAT) industry, with projected revenues exceeding 35 billion yuan in 2024, marking its entry into the top three globally [1]. Group 1: Historical Context - The establishment of Jiangyin Transistor Factory in 1972 coincided with the early stages of China's semiconductor industry under a planned economy, highlighting the challenges faced during this period [3]. - The factory's initial struggles included a near bankruptcy due to competition from foreign firms, but it achieved a breakthrough in 1984 by contributing to the successful launch of China's synchronous communication satellite [4]. - The leadership of Wang Xinchao was pivotal in improving production quality and transitioning the company towards integrated circuit manufacturing, marking a significant shift in its operational strategy [7]. Group 2: Strategic Developments - In 1994, Changjiang Electronics officially launched its packaging and testing business, positioning itself strategically within the semiconductor supply chain [7]. - The company underwent modernization and capital restructuring in the early 2000s, leading to its listing on the Shanghai Stock Exchange in 2003, which facilitated further investments in advanced packaging technologies [9]. - The acquisition of STATS ChipPAC in 2015 marked a significant milestone, enhancing Changjiang's capabilities in advanced packaging and expanding its international presence [16][20]. Group 3: Industry Position and Market Dynamics - Changjiang Electronics has established itself as a key player in the global semiconductor packaging market, competing with major firms like ASE and Amkor, and holding over 10% market share [23]. - The article notes the ongoing transformation in the semiconductor packaging industry, driven by advancements in technology and increasing demand for high-performance packaging solutions, particularly in the context of AI and IoT applications [26][28]. - The advanced packaging market is projected to grow significantly, with expectations of reaching $80 billion by 2029, driven by innovations in 2.5/3D packaging technologies [24][26]. Group 4: Future Outlook - The company is expected to achieve revenues of nearly 36 billion yuan in 2024, with advanced packaging accounting for over 70% of its business, indicating a strong focus on high-value markets [33]. - Despite facing challenges during industry downturns, the company's strategic emphasis on advanced packaging and its ability to adapt to market changes position it favorably for future growth [34].

Core Viewpoint - TSMC reported strong Q2 2025 results with revenue of $30.07 billion, a year-on-year increase of 44.4% and a quarter-on-quarter increase of 17.8%, leading to an upward revision of the 2025 full-year revenue guidance to 30% growth [1][3][17] Financial Performance - Q2 2025 profit exceeded expectations with a gross margin of 58.6%, close to the upper limit of guidance [1][3] - Q3 2025 revenue guidance is set at $31.8 to $33 billion, representing a year-on-year increase of 38% and a quarter-on-quarter increase of 8% [3][13] - Q2 2025 capital expenditure was $9.63 billion, maintaining the full-year capex guidance of $38 to $42 billion [4][14] Revenue Composition - HPC revenue continues to rise, with 74% of revenue coming from 7nm and below process nodes [2][12] - By technology node, revenue breakdown is 24% from 3nm, 36% from 5nm, and 14% from 7nm [2][12] - By platform, HPC revenue increased by 14% quarter-on-quarter, accounting for 60% of total revenue [2][12] Guidance and Outlook - The company expects strong revenue growth in Q3 2025, with a gross margin guidance of 55.5% to 57.5% [3][13] - The company anticipates a potential decline in Q4 2025 revenue due to tariff impacts and other uncertainties [3][4] - AI demand is expected to see explosive growth within 6 months to 1 year, with a projected CAGR of nearly 45% from AI-accelerated chips [4][17] Global Expansion Plans - TSMC plans to invest $165 billion in advanced semiconductor manufacturing in Arizona, including six advanced wafer fabs and two advanced packaging facilities [19][20] - The company is also expanding in Japan and Europe, with plans for specialized technology factories in Kumamoto and Dresden [20][21] Technological Advancements - N2 and A16 technologies are positioned to meet the growing demand for high-efficiency computing, with N2 expected to enter mass production in the second half of 2025 [21][22] - The company is focusing on enhancing its technology leadership and operational excellence to strengthen its competitive position [18][41]

Group 1 - The article highlights significant announcements in the stock market from Sunday to Thursday, including "suspensions and resumption of trading, shareholding changes, investment wins, acquisitions, earnings reports, unlocks, and high transfers" [1] - Important announcements are marked in red to assist investors in identifying investment hotspots and preventing various black swan events, providing ample time for analysis and selection of suitable listed companies [1] Group 2 - A company in the solid-state battery sector has secured orders from leading industry clients, with its PCB products entering mass production for some top-tier clients [1] - Another company, a supplier to NVIDIA, has completed the prototyping of a 1.6T optical module and is capable of mass production, focusing on PCB and optical modules for smart driving applications [1] - A company plans to enter the Samsung supply chain through acquisitions, involving AI glasses, chips, and laser radar technologies, in collaboration with Huawei [1]