1. Report Industry Investment Rating No information regarding the report's industry investment rating is provided in the text. 2. Core Viewpoints of the Report - As the annual report season approaches, the focus shifts to trading based on performance. With the approaching April performance disclosure period, despite high overseas uncertainties, domestic incremental funds are entering the market, and the focus may gradually shift to trading performance. Historically, April often faces correction pressure, especially for small - cap stocks, and high - expectation individual bonds with high performance certainty may become dominant [2][9]. - Trading based on performance expectations can focus on forecasts and expected differences. This April still faces pressure, with a relatively high proportion of negative performance forecasts. The probability of consecutive losses has increased, and the frequency and probability of both revenue and net profit growth have declined. Enterprise profitability is still under slight pressure [2][12]. - High - performing convertible bonds may be disclosed earlier. Most of the disclosed annual reports show that the net profit performance exceeds the performance forecast or expectations, and issuers with optimistic performance may disclose their annual reports earlier [18]. - The key time points in April are the first and middle ten - days. The performance of net profit disclosed at the end of the month weakens. It is advisable to focus on high - expectation convertible bonds with early - scheduled disclosure dates [22]. - The convertible bond strategy is to maintain a neutral position and be vigilant against the supplementary decline of low - parity bonds. Currently, the convertible bond valuation is in a neutral position, and the valuation correction of new - issue bonds is not yet complete. It is necessary to be cautious about individual bonds with a certain distance from a 0% conversion premium rate or pure bond premium rate. It is also necessary to avoid some high - risk convertible bonds and be vigilant against the supplementary decline risk of debt - oriented and balanced convertible bonds [3][30]. 3. Summary According to the Table of Contents 3.1 4 - month Performance Expectation Trading - **Market Environment**: Overseas risk events continue to unfold. After the correction caused by the geopolitical conflict, the Shanghai Composite Index oscillated after returning to 3800 points. With the approaching performance disclosure period in April, the focus may shift to trading performance. Historically, April often faces correction pressure, especially for small - cap stocks [2][9]. - **Performance Forecast Analysis**: This year, 176 convertible bond issuers disclosed 2025 performance forecasts, with 121 negative forecasts, accounting for 68.75%, a slight increase compared to the same period in 2025. The frequency and probability of consecutive losses have increased, and the pre - increase proportion has decreased. Among the 67 convertible bonds that disclosed performance reports, the frequency and probability of both revenue and net profit growth have declined. Although the year - on - year revenue performance in the annual report has improved due to the low - base effect in 2025, the net profit has turned negative, and enterprise profitability is still under slight pressure [12]. - **Early Disclosure of High - performing Bonds**: Among the 28 convertible bonds whose underlying stocks have disclosed annual reports, 21 have institutional profit forecasts. 8 bonds' disclosed net profit exceeds the consensus expectation, and 9 bonds' underlying stocks' year - on - year net profit growth rate exceeds the forecast upper limit. Among the 11 companies without forecasts and institutional coverage, only 3 have a negative year - on - year net profit increase. Overall, most net profit performances exceed the performance forecast or expectations, and issuers with good performance may disclose their annual reports earlier [18]. - **Key Time Points in April**: Reviewing the disclosure time and performance of convertible bond underlying stocks from 2022 - 2024, it is found that high - performing bonds are disclosed earlier. The performance of net profit disclosed at the end of the month weakens. It is advisable to focus on high - expectation convertible bonds with early - scheduled disclosure dates, such as Dingjie, Yunji, Julong, Ruichuang, and Aiwei convertible bonds [22]. 3.2 Convertible Bond Strategy: Neutral Position and Caution Against Low - Parity Supplementary Decline - **Market Situation**: The equity market lacks a clear trading mainline under high macro - uncertainty. After a rapid and comprehensive adjustment on Monday, the market entered a wide - range oscillation from Tuesday to Friday. The technology sector fluctuated significantly, and the new energy and chemical sectors performed prominently [28]. - **Valuation and Strategy**: The convertible bond valuation has reached a short - term anchor point. The average price of convertible bonds increased by 1.19% to 136.84 yuan, and the 100 - yuan premium rate increased by 2.13 percentage points to 35.97%. It is recommended to maintain a neutral position. The valuation correction of new - issue bonds is not yet complete, and it is necessary to be cautious about individual bonds with a certain distance from a 0% conversion premium rate or pure bond premium rate. It is also necessary to avoid some high - risk convertible bonds and be vigilant against the supplementary decline risk of debt - oriented and balanced convertible bonds [30]. 3.3 Market Review: Convertible Bonds Rose Weekly, and Valuation Increased - **Weekly Market Performance**: Most major stock indices declined last week. The CSI 300 index fell by 1.41%, the CSI 500 fell by 0.29%, the CSI 1000 fell by 0.48%, the CSI 2000 rose by 0.35%, and the CSI Convertible Bond Index rose by 1.28%. The convertible bonds performed relatively well. The performance of popular concepts was divergent [36]. - **Valuation Performance**: The closing prices of equity - oriented, debt - oriented, and balanced convertible bonds all increased. The proportion of convertible bonds in the range above 150 yuan increased significantly. The median price increased by 1.21%. The average premium rate of low - rated and small - scale convertible bonds increased significantly. The conversion premium rate of convertible bonds in the parity range below 80 (inclusive) increased by 5.81 percentage points [43]. 3.4 Terms and Supply: No Convertible Bonds Announced Forced Redemption, and the Total Newly Promoted Scale was Approximately 7.248 billion - **Terms**: As of March 27, no convertible bonds announced early redemption. Huamao Convertible Bond announced not to redeem early. Several convertible bonds, such as Yiwei, Jinhong, Zhenhua, Tianhao, Jieneng, Tongyu, and Jinji, announced that they were expected to meet the forced - redemption conditions. No convertible bonds proposed a downward - revision plan. Weining Convertible Bond announced the downward - revision result, and several convertible bonds announced not to revise downward. Some convertible bonds were expected to trigger downward revision [61]. - **Primary Market**: Last week, Xianghe Convertible Bond was listed, with a scale of 400 million yuan. There were 361 issued and unexpired convertible bonds, with a balance of 50.3643 billion yuan. Some convertible bonds, such as Shang 26, Boshi, and Changgao, have not been listed yet, and Changgao Convertible Bond will be listed on March 30. There are currently no convertible bonds to be issued. Last week, 2 companies had new board proposals, 3 companies passed the general meeting, and there were no new approvals from the issuing review committee or the CSRC. Compared with the same period last year, the numbers were - 1, +3, - 1, and +0 respectively [64][65].

Investment Rating - The report assigns a "Buy" rating to the stocks of Northern Huachuang and Zhongwei Company, indicating a positive outlook for their performance in the coming years [4]. Core Insights - The semiconductor equipment sector is witnessing a transition from domestic substitution to innovation, with multiple new products launched at SEMICON China 2026, enhancing the product matrix of key players [1][9]. - Key semiconductor materials are making significant breakthroughs, accelerating the domestic substitution process, with companies like Dinglong and Jiangfeng Electronics showcasing their competitive advantages in the global market [23][24]. Semiconductor Equipment - Northern Huachuang launched the NMC612H, a new generation 12-inch high-end ICP etching equipment, focusing on advanced logic and storage fields, achieving a depth-to-width ratio enhancement to hundreds-to-one [1][9]. - Zhongwei Company introduced four new products, including the Primo Angnova™ ICP etching equipment, which offers high precision and efficiency for advanced semiconductor manufacturing [15][18]. - TuoJing Technology released two new atomic layer deposition products and achieved the highest installation and process coverage in PECVD equipment domestically [20]. Semiconductor Materials - Dinglong's polishing pad products are gaining market share, breaking the monopoly of companies like Dow Chemical [23]. - Jiangfeng Electronics has become one of the few suppliers capable of providing sputtering targets for 3nm process technology, showcasing its leading technology in ultra-pure metal sputtering targets [23]. - Anji Technology launched a new cerium oxide polishing liquid, breaking the long-standing monopoly of Japanese and American suppliers in this field [24]. Related Stocks - Key stocks in the semiconductor equipment sector include Northern Huachuang, Zhongwei Company, and TuoJing Technology, while the semiconductor materials sector features companies like Dinglong and Anji Technology [27].

Investment Rating - The industry investment rating is "Positive" [2] Core Insights - The SEMICON China 2026 event highlighted the acceleration of domestic substitution in the semiconductor industry, presenting a golden opportunity for semiconductor equipment and materials [3] - The event attracted around 1,500 exhibitors covering the entire industry chain, including chip design, manufacturing, and packaging [3] - Key companies showcased advanced technologies and products aimed at enhancing production capacity, yield, and process precision [3] Summary by Sections Semiconductor Industry Performance - The semiconductor sector has shown a year-to-date increase of +2.97%, while other electronic sectors have varied, with consumer electronics down by -9.72% [3][10] - Recent fluctuations in stock prices of major North American companies indicate a mixed performance, with notable declines in companies like Micron Technology (-15.53%) and Oracle (-6.69%) [11] Key Exhibitors and Innovations - North Huachuang presented new products in advanced packaging and etching, including the 12-inch NMC612H ICP etching equipment and various advanced crystal growth equipment [3] - Zhongwei Company showcased four core new devices, enhancing its capabilities in the semiconductor manufacturing process [3] - Tuojing Technology focused on advanced semiconductor equipment, particularly in thin film deposition and 3D-IC packaging [3] Investment Opportunities - Recommended companies to watch include: - Overseas AI: Industrial Fulian, Huadian Co., Pengding Holdings, Shenghong Technology, and Shengyi Technology - Domestic AI: Cambricon, Chipone, SMIC, Huahong Semiconductor, and Shenzhen South Circuit - Equipment: North Huachuang, Zhongwei Company, Tuojing Technology, and Jingce Electronics [4]

Core Viewpoint - The article discusses the "Bayesian pricing" phase in global markets, particularly in relation to oil prices and geopolitical uncertainties, emphasizing the need for dynamic adjustments in investment strategies based on evolving information and market conditions [1][5]. Group 1: Investment Strategies During Bayesian Pricing - Investors should avoid overcommitting to a single scenario and instead adopt a balanced asset allocation approach, considering the strengths of various asset classes amid geopolitical uncertainties [2][3]. - Utilizing volatility for contrarian positioning is advised, as market reactions to fragmented news can create opportunities for reverse trades when assets deviate from their intrinsic values [3]. - Focusing on low-correlation assets can reduce reliance on geopolitical cues, allowing for investment in sectors like industrial exports from developing countries and essential consumer goods benefiting from income growth [4]. Group 2: Market Dynamics and Asset Performance - Global markets are experiencing a "Bayesian pricing" mode, with oil prices fluctuating around $100 per barrel, leading to inflationary trading patterns and adjustments in stock indices [5][6]. - The S&P Global Flash PMI indicates a slowdown in U.S. growth momentum, with employment metrics showing contraction, suggesting a potential stagflation scenario [16][18]. - Commodity prices are adjusting in response to high oil prices and inflation, with gold and oil showing a positive correlation, while other sectors like technology are facing downward pressure [8][30]. Group 3: Economic Indicators and Forecasts - The article highlights expectations for CPI and PPI, with projections indicating slight increases in both metrics due to ongoing inflationary pressures and commodity price fluctuations [20][22]. - The construction sector is showing mixed signals, with infrastructure projects seeing increased cement supply, while residential construction lags behind [27]. - The article notes that the Chinese economy is expected to maintain a relatively stable growth trajectory, with GDP forecasts suggesting a nominal growth of 5.47% for Q1 [20].

Investment Rating - The report maintains a positive outlook on the AI core computing hardware, storage chips and modules, price increase trends (copper-clad laminates, electronic fabrics, passive components, etc.), and semiconductor materials, indicating that Q1 performance is expected to exceed expectations [4][27]. Core Insights - The demand for AI core computing hardware remains strong, with major companies like TSMC, Broadcom, and NVIDIA projecting optimistic revenue for Q1 2026. TSMC expects revenue between $34.6 billion and $35.8 billion, a 4% quarter-over-quarter increase and a 38% year-over-year increase. NVIDIA anticipates revenue of $78 billion for February to April 2026, reflecting a 14.5% quarter-over-quarter increase and a 76.9% year-over-year increase [2][4]. - The storage chip and module sector is experiencing significant price increases, with Micron projecting revenue of approximately $33.5 billion for FY26Q3, a 40% quarter-over-quarter increase and a 260% year-over-year increase. The price of DRAM and NAND continues to rise, with Samsung and SK Hynix announcing price hikes of around 40% for DDR5 chips [2][4]. - The report highlights the ongoing price increases in the PCB supply chain driven by strong AI demand, with companies like 建滔积层板 announcing a 10% price increase for copper-clad laminates [2][4]. - Semiconductor materials are expected to see optimistic Q1 projections due to increased wafer fab utilization rates and the expansion of storage chip production. 鼎龙股份 anticipates a net profit of 240 to 260 million yuan for Q1 2026, representing a year-over-year increase of 70.2% to 84.4% [2][4]. Summary by Sections 1. Consumer Electronics - The report emphasizes the expansion of C-end application scenarios, particularly in AI smartphones and devices, with a focus on Apple's supply chain and the introduction of new products like AI glasses and smart desktops [5]. 2. PCB - The PCB industry maintains a high level of prosperity, driven by demand from automotive and industrial control sectors, alongside AI's large-scale deployment. The report notes that the industry is experiencing price increases for raw materials and copper-clad laminates [6]. 3. Components - The report discusses the structural demand in passive components, with manufacturers expected to raise prices due to high utilization rates and increased costs. The demand for MLCCs in AI applications is projected to grow significantly [20]. 4. IC Design - The storage sector is expected to enter an upward cycle, with increased demand from cloud service providers and consumer electronics. The report highlights the anticipated price increases for DRAM and the potential for domestic alternatives [22][23]. 5. Semiconductor Equipment and Materials - The report notes the ongoing trend of de-globalization in the semiconductor industry, with increased focus on domestic capabilities. Companies in the semiconductor equipment sector are expected to benefit from rising demand for advanced packaging and HBM production [24][25][26]. 6. Specific Companies - Companies like 芯原股份 and 胜宏科技 are highlighted for their strong performance and growth potential in the AI and semiconductor sectors, with significant revenue increases projected for 2025 [28][30].

Investment Rating - The industry investment rating is "Positive" [2] Core Insights - The SEMICON China 2026 event highlighted the acceleration of domestic substitution in the semiconductor industry, presenting a golden opportunity for semiconductor equipment and materials [3] - The event attracted around 1,500 exhibitors covering the entire industry chain, including chip design, manufacturing, and packaging [3] - Key companies showcased advanced technologies and equipment aimed at enhancing production capacity, yield, and process precision [3] Summary by Sections Semiconductor Industry Performance - The semiconductor sector has shown a year-to-date increase of 2.97%, while other electronic sectors have varied, with consumer electronics down by 9.72% [3][10] - Recent fluctuations in stock performance among major North American companies were noted, with Micron Technology experiencing a significant decline of 15.53% [3][11] Key Exhibitors and Innovations - North Huachuang presented new products in advanced packaging and etching, including the 12-inch NMC612H ICP etching equipment and various advanced crystal growth equipment [3] - Zhongwei Company showcased four core new devices, enhancing its capabilities in the semiconductor manufacturing process [3] - Tuojing Technology focused on advanced semiconductor equipment, particularly in thin film deposition and 3D-IC packaging [3] Investment Opportunities - Recommended companies to watch include: - Overseas AI: Industrial Fulian, Huadian Co., Pengding Holdings, Shenghong Technology, and Shengyi Technology - Domestic AI: Cambricon, Chipone, SMIC, Huahong Semiconductor, and Shenzhen South Circuit - Equipment: North Huachuang, Zhongwei Company, Tuojing Technology, and Jingce Electronics [4]

Investment Rating - The report maintains an "Overweight" rating for the industry, recommending investment in AI computing, cloud vendors, AI applications, and AI social sectors [4][26]. Core Insights - Xiaomi's new SU7 model has successfully expanded its customer base, achieving strategic advancements in AI. Despite a decline in mobile phone gross margin to 8.3% in Q4 2025 due to unexpected storage price increases, Xiaomi's market share in the high-end smartphone segment in mainland China is projected to rise by 3.8 percentage points to 27.1% in 2025. The automotive division delivered 145,000 units in Q4, with the new SU7 model receiving 15,000 orders within 34 minutes of launch [2][7]. - Kuaishou has increased its investment in AI, with a comprehensive deepening of its AI strategy. In Q4 2025, the company reported revenue of 39.57 billion yuan, a year-on-year increase of 11.8%, and a gross margin improvement of 1.1 percentage points to 55.1%. The online marketing service revenue grew by 14.5% to 23.62 billion yuan, driven by AI capabilities [8][26]. - Hesai Technology achieved record performance, with revenue of 1 billion yuan in Q4 2025, a year-on-year increase of 39.0%. The company shipped 1.6204 million lidar units in 2025, marking a 222.9% increase. The ADAS business shipped 1.3811 million units, up 202.6%, while the robotics segment saw a 425.8% increase in shipments [9][26]. Summary by Sections Xiaomi - The new SU7 model has expanded customer acquisition and achieved strategic AI advancements. The gross margin for mobile phones fell to 8.3% in Q4 2025, but Xiaomi's proactive inventory management and premium upgrades are mitigating price pressures. The high-end smartphone market share is expected to increase to 27.1% in 2025 [2][7]. Kuaishou - Kuaishou's revenue reached 39.57 billion yuan in Q4 2025, with a year-on-year growth of 11.8%. The gross margin improved to 55.1%, and operating profit rose by 35.7% to 5.79 billion yuan. The online marketing service revenue increased by 14.5% to 23.62 billion yuan, driven by AI capabilities [8][26]. Hesai Technology - Hesai reported Q4 2025 revenue of 1 billion yuan, a 39.0% year-on-year increase. The company shipped 1.6204 million lidar units in 2025, a 222.9% increase, and achieved its first annual GAAP profit of 436 million yuan. The ADAS business shipped 1.3811 million units, while the robotics segment saw a 425.8% increase in shipments [9][26].

Core Insights - The article discusses the significant transformation in the semiconductor industry driven by AI computing power, predicting that the "trillion-dollar chip era" may arrive by the end of 2026, ahead of the previously expected 2030 timeline [4][5] - Three major trends are identified: the rise of AI computing power, a storage revolution, and technology-driven industrial upgrades [5][6] Group 1: AI Computing Power - By 2026, global spending on AI infrastructure is expected to reach $450 billion, with inference computing power surpassing 70% for the first time, leading to strong demand for GPUs, HBM, and high-speed network chips [5][6] - The industry is experiencing a shift from "pursuing process miniaturization" to "pursuing system integration" as the demand for inference computing power increases [4][5] Group 2: Storage Revolution - Storage is becoming a core strategic resource for AI infrastructure, with global storage output projected to exceed wafer foundry output for the first time, marking it as the primary growth driver in the semiconductor sector [5] Group 3: Technology-Driven Industrial Upgrades - As the 2nm and below process approaches physical limits, advanced packaging is becoming strategically important, driving industry upgrades through a dual focus on "advanced processes + advanced packaging" [5][6] - The need for a new "operating system" to manage the complexities of the transition from chips to data centers is emphasized, as traditional methods are insufficient to meet the demands of AI [6][8] Group 4: System-Level Design - The concept of "Extreme Co-design" is emerging as a new paradigm in AI hardware development, shifting the focus from efficiency to survival as the industry faces unprecedented complexity [8][9] - The traditional EDA tools are becoming inadequate, necessitating a new approach called STCO (System Technology Co-Optimization) to address the industry's challenges [11][13] Group 5: STCO Strategy - STCO aims to redefine the design perspective from "IC" to "System," focusing on system interconnectivity rather than just individual chips [13] - The core value of STCO lies in "virtual rehearsal," allowing for costly physical trial-and-error to be shifted to virtual spaces, ensuring designs are correct on the first attempt [14] - EDA vendors are evolving from mere tool providers to becoming ecological platforms that connect chip design, wafer manufacturing, packaging testing, and system vendors [15] Group 6: Conclusion - The article concludes that mastering system-level design capabilities will be crucial for companies to establish a solid physical foundation for the AI era, as the industry transitions from "single chip" to "computing factories" [17][18]

Core Viewpoint - The article commemorates the contributions of Wu Dexin, a prominent figure in China's semiconductor industry, highlighting her dedication to the development of semiconductor technology and her lifelong commitment to serving the nation [2][21]. Group 1: Early Life and Career - Wu Dexin was born in 1936 in Hebei Province and graduated from Tsinghua University in 1961, subsequently joining the Semiconductor Research Institute [3]. - The establishment of the Semiconductor Research Institute in 1960 was part of China's strategic plan to enhance semiconductor technology, which Wu Dexin actively contributed to from its inception [3]. Group 2: Key Achievements - From 1962 to 1964, under the guidance of Wang Shouwu, Wu Dexin led a project on planar high-speed switching transistors, achieving a switching speed that matched international standards, which significantly benefited China's technological capabilities [5]. - In 1965, she became the leader of the device research group and later developed digital integrated circuits and high-impedance operational amplifiers, laying the groundwork for China's early digital and analog integrated circuit development [5]. Group 3: Contributions to Integrated Circuits - In 1978, Wu Dexin played a crucial role in the development of the N-MOS 4096-bit dynamic random-access memory (DRAM), introducing advanced techniques that improved yield rates significantly [11]. - Her work on the 16K and 64K DRAM technologies further advanced China's memory technology, earning her accolades including the Chinese Academy of Sciences' Science and Technology Achievement Award [12]. Group 4: Leadership and Legacy - In 1986, Wu Dexin was appointed as the deputy director of the newly established Microelectronics Center, continuing her leadership in semiconductor research and development [15]. - Throughout her career, she remained committed to supporting the Semiconductor Research Institute, contributing to various projects and mentoring young scientists, thus leaving a lasting impact on the field [15][21].

Group 1 - The report highlights that the market may be overly optimistic about the quick resolution of the US-Israel-Iran conflict, indicating a significant expectation gap regarding the duration of the conflict and the situation in the Strait of Hormuz, which directly impacts oil prices and subsequently affects global asset prices [1][10]. - The current phase of the US-Israel-Iran conflict has transitioned from pure battlefield engagement to a "fighting while negotiating" scenario, creating a precarious political balance that complicates investment decisions [1][12]. Group 2 - The report introduces two volatility indicators, OVX and VIX, as essential tools for institutional investors to navigate the current geopolitical uncertainties. OVX measures the market's expectation of oil price volatility, while VIX gauges the expected volatility of the S&P 500 index, representing economic recession risks [2][14]. - A rapid increase in OVX coupled with a lagging VIX suggests that risks are still concentrated in the energy sector and have not yet fully transmitted to global macro credit risks or earnings expectations. A simultaneous upward movement in both indicators may signal a liquidity crisis or global economic recession triggered by geopolitical risks [2][14]. Group 3 - The investment strategy is categorized into four quadrants based on the relationship between OVX and VIX, providing tailored recommendations for different market conditions: 1. High OVX and fluctuating VIX suggest a local energy crisis, recommending an overweight in traditional energy and energy alternatives, particularly in sectors like power equipment and coal [3][26]. 2. High OVX and rapidly rising VIX indicate systemic recession or liquidity risks, prioritizing defensive strategies [3][26]. 3. A peak and decline in OVX with a downward-trending VIX suggest a transition to technology growth investments, recommending sectors such as computing power, semiconductors, and AI-related themes [3][26]. 4. A declining OVX with an unusually high VIX indicates the end of geopolitical tensions, but the impact of high oil prices on the economy persists, suggesting a shift towards high-dividend and low-volatility investments [3][26].