Core Viewpoint - Guanghe Technology focuses on computing power applications and collaborates widely with clients in the computing power industry chain, while being limited in disclosing specific client cooperation details due to commercial policy restrictions [2] Group 1 - The company emphasizes its strong research and development capabilities and process reserves that cover various computing power chip architecture needs [2] - The current business primarily caters to overseas computing power demand, indicating a strategic focus on international markets [2] - The company places high importance on each client and actively seeks to seize every business opportunity [2]

Report Summary 1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints - In the past week (20251117 - 20251123), major stock indices in the US and Hong Kong, as well as A - shares in China, all declined. The Fed may turn dovish again, and there are investment opportunities in domestic equity markets and potential for gold prices to remain strong [2][3][15]. - The A - share market is likely to strengthen in subsequent oscillations, and attention can be paid to investment opportunities in sectors such as new energy, photovoltaic, coal, steel, chemical, chip, computing power, and artificial intelligence. The bond market will likely continue to oscillate within a narrow range, and gold prices are expected to maintain a strong oscillation [16]. 3. Summary by Related Content Stock Market Performance - US stock indices and the Hang Seng Index declined. The Nasdaq, S&P 500, and Dow Jones Industrial Average changed by - 2.74%, - 1.95%, and - 1.91% respectively, and the Nasdaq China Technology Index changed by - 6.06%. The Hang Seng Index changed by - 5.09% [2]. - A - shares tumbled across the board. The wind All - A Index changed by - 5.13%, and various indices such as CSI A100, CSI 300, etc., also declined [3]. - Blue - chip and growth sectors in the Shanghai and Shenzhen stock markets both dropped. The Shanghai Composite 50 and STAR Market 50 in Shanghai declined, and the Shenzhen Component 100 and ChiNext Index in Shenzhen also fell. The Beijing Stock Exchange 50 Index changed by - 9.04% [4]. - Among industries, banking, consumer goods, etc., had relatively small declines, and bond - related ETFs led the gains. All 30 CITIC industries fell, with banking, food and beverage, media, and home appliances having declines of less than 2.0% [5]. Bond Market Performance - The national debt market fluctuated within a narrow range. The 10 - year national debt futures main contract rose 0.01% compared to November 14, 2025, and the yield of the 10 - year active national debt bond increased by 0.26 BP [6]. - Fund prices mainly decreased, and the central bank made a net injection in open - market operations. As of November 21, 2025, R007 increased by 0.07 BP, and DR007 decreased by 2.65 BP. The central bank made a net injection of 554 billion yuan [7]. - The bond market leverage level decreased. The 5 - day average of inter - bank pledged repurchase volume decreased from 74.4 trillion yuan on November 14, 2025, to 72.9 trillion yuan on November 21, 2025 [9]. - US Treasury yields declined, and the yield curve shifted downward overall. As of November 21, 2025, the 10 - year US Treasury yield changed by - 8 BP to 4.06% [10]. Exchange Rate and Commodity Market Performance - The US dollar strengthened, and the RMB depreciated against the US dollar. The US dollar index rose 0.87%, and the exchange rates of the US dollar against the euro, pound, and yen all increased. The exchange rates of the US dollar against the offshore and on - shore RMB also rose [11]. - Gold prices showed a split between the international and domestic markets. The London gold spot price rose 0.04%, while the domestic Shanghai gold spot and futures prices fell by 2.49% and 2.79% respectively [12]. US Economic Data and Fed Expectations - In September, the number of new non - farm jobs in the US exceeded expectations, but the number of unemployed people increased significantly. The unemployment rate reached 4.4%, rising for the fourth consecutive month [13]. - The latest futures data shows that the probability of the Fed cutting interest rates in December is again higher than 50%. Due to the delayed release of non - farm data, the Fed's December decision will be based on September data [14].

Core Insights - The report emphasizes the importance of proactive discovery in the financial market rather than merely relaying information [1] Domestic Financial Market - The Shanghai Composite Index closed at 3836.77, with a slight increase of 0.05% - The Shenzhen Component Index closed at 12585.08, rising by 0.37% - The ChiNext Index closed at 2929.04, up by 0.31% - The Hang Seng Futures Index saw a significant increase of 1.88%, closing at 33186.03 [2] Macro News Summary - The Ministry of Industry and Information Technology plans to establish around 100 national emerging industry development demonstration bases and approximately 1000 enterprise-level bases by 2035 - The People's Bank of China will conduct a 10 billion yuan MLF operation on November 25 - The National Energy Administration reported that the cumulative installed power generation capacity reached 3.75 billion kilowatts by the end of October, marking a year-on-year increase of 17.3% [4] Industry Developments - Google stated that it must double its AI computing power every six months, indicating a potential growth opportunity for related stocks such as Yibo Technology and Yingweike [5] - A report suggests that the commercial aerospace sector may have been established, signaling a potential industrialization turning point, with related stocks including Shanghai Huguang and Shanghai Gangwan [5] - The pet industry is highlighted as a dual hotspot in the consumer market, with significant growth potential for stocks like Yuanfei Pet and Petty Co. [5] Company Focus - Hitec High-tech is collaborating with major manufacturers to advance its eVTOL simulator business [6] - Aoke Co. produces carbonate series products used as solvents in lithium battery electrolytes [6] - Tianyi Medical has applied for medical device certification for its blood dialysis concentrate in the EU [6] - Zhongwu Drone's shareholder, Chengdu Industrial Investment Group, has set a preliminary transfer price of 41.99 yuan per share [6] Market Review and Outlook - On November 24, the market rebounded, with all three major indices closing in the green. The total trading volume in the Shanghai and Shenzhen markets was 1.73 trillion yuan, a decrease of 237.9 billion yuan from the previous trading day - The market saw over 4200 stocks rise, with commercial aerospace concepts and military industry stocks experiencing significant gains - Despite recent market volatility influenced by global factors, the fundamental support for the Chinese stock market remains intact, providing an opportunity for investors to reposition for the upcoming spring market [7]

Core Viewpoint - The CPO concept saw a strong surge in the market, with significant stock price increases for various companies, driven by Amazon's announcement of a $50 billion investment in expanding its AWS AI and HPC capabilities for U.S. government clients [1] Group 1: Market Reaction - Dekoli reached a 20% limit up, while Guangku Technology rose over 17%, Changguang Huaxin and Changxin Bochuang increased by over 15%, and Tengjing Technology saw a rise of over 10% [1] - Other companies like Zhongji Xuchuang and Xinyi Sheng also experienced gains exceeding 7% [1] Group 2: Amazon's Investment - Amazon plans to invest up to $50 billion to enhance its AWS AI services and HPC capabilities for federal government agencies in the U.S. [1] - The investment will provide broader access to AWS AI services, including SageMaker AI, Bedrock, Claude models, Trainium chips, and NVIDIA chips [1] - Amazon currently operates over 900 data center facilities across more than 50 countries, indicating a much larger operational scale than commonly perceived [1] Group 3: Industry Analysis - CITIC Construction Investment Securities noted increased volatility in the computing power sector recently [1] - The demand for computing power driven by AI remains robust, suggesting that recent adjustments in the sector present investment opportunities [1] - The ongoing AI industrial revolution is compared to the industrial revolution, emphasizing the need for a long-term perspective and higher vision in observing AI-driven computing demand and applications [1]

Core Viewpoint - The market has experienced a recent decline, particularly with a significant drop on Friday, affecting previously popular sectors such as computing power and new energy [6][8]. Market Trends - The market has been on an upward trend since April, but has reached a high valuation point, leading to a short-term adjustment period due to external disturbances and liquidity issues from the Federal Reserve [8][9]. - Despite the current adjustments, the long-term slow bull market trend remains intact, with expectations for a rebound towards the end of November and early December [10][11]. Index and Valuation - The Shanghai Composite Index's equity risk premium (ERP) is at a mid-level, while the dividend yield of the CSI 300 remains higher than the ten-year government bond yield, indicating that A-shares still offer high value [9]. - Comparatively, the dividend yield of U.S. stocks is 1.2%, while the ten-year U.S. Treasury yield exceeds 4%, further supporting the attractiveness of A-shares [9]. Technology Sector Outlook - Anticipation for the release of the new version of DEEPSEEK and various AI applications, along with the upcoming listings of multiple tech unicorns, suggests a positive outlook for the technology sector [9]. - The approval of 16 hard technology funds, including the first batch of AI ETFs, indicates an influx of capital into the tech sector, which is expected to drive growth [9]. Short-term Considerations - The market is expected to take time to find a bottom, with a focus on the adjustments in the technology and new energy sectors, as well as clarity on external disturbances [10]. - The end of November is highlighted as a potential opportunity for a rebound, coinciding with institutional accounting periods and the conclusion of the Federal Reserve's balance sheet reduction [10][11].

Core Viewpoint - The market is experiencing unexpected weakness, with significant declines in key assets such as Industrial Fulian and Ganfeng Lithium, despite a rebound in US stocks last week [1][4]. Group 1: Industrial Fulian - Industrial Fulian has seen substantial sell-offs, contributing over 7.63 points to the Shanghai Composite Index's decline, indicating it accounted for more than half of the index's drop [3]. - The sell-off is attributed to rumors regarding Nvidia's potential entry into the L10 system and a downward revision of Q4 performance, which some institutions believe are unfounded [3]. - Industrial Fulian maintains that its Q4 operations are on track, with expected cabinet deliveries increasing by over 30% quarter-on-quarter, and no profit target adjustments have been made [3]. Group 2: Ganfeng Lithium - Goldman Sachs downgraded Ganfeng Lithium's H-shares rating to "Sell," citing a 14% reduction in lithium price expectations for the second half of 2026 due to weak short-term market feedback and slowing inventory replenishment [2][4]. - Despite improvements in the lithium market fundamentals, a prolonged inventory cycle in energy storage systems may offset the expected supply-demand balance [4]. Group 3: Japanese Financial Market - Japanese government bond yields continue to rise, with the 10-year yield above 1.78% and the 40-year yield reaching 3.678%, indicating ongoing market volatility [4]. - Analysts suggest that potential intervention measures may not reverse the broad depreciation of the yen but could slow its decline [2][5]. Group 4: A-share Market Outlook - The A-share market is currently in a "three-phase overlap," characterized by a consolidation phase in the mid-bull market, a critical period for economic verification, and a performance policy vacuum, leading to a slowdown in upward momentum [6][7]. - The market is expected to stabilize as it approaches key support levels, with a potential bottoming opportunity if the A-share index reaches the half-year line [7].

Group 1 - The core viewpoint of the article highlights the disparity between policy-driven market enthusiasm and the actual financial outcomes for retail investors, emphasizing that many fail to capitalize on opportunities despite favorable conditions [1][2]. - The Hebei planning document aims to establish a "Beijing-Tianjin-Hebei intelligent computing power cluster," with specific focus on sectors like optical modules, liquid cooling technology, and quantum computing, which are seen as significant industry opportunities [2][12]. - The article discusses the psychological pitfalls faced by retail investors, particularly the misconceptions that stocks will always rise and that market corrections present buying opportunities, leading to significant losses [3][6]. Group 2 - Institutional investors exhibit different behaviors compared to retail investors, as evidenced by the contrasting responses to market corrections, where institutions may withdraw while retail investors continue to buy [6][8]. - The article emphasizes the importance of data processing capabilities in the competitive landscape of computing power, suggesting that tools that monitor capital flows can provide retail investors with an edge similar to institutional investors [11][12]. - The planning document reflects a commitment to industrial upgrades, but it warns that technological revolutions will inevitably lead to the obsolescence of traditional investment strategies, highlighting the need for investors to adapt [12].

Group 1 - The core viewpoint is that the probability of a Federal Reserve interest rate cut has decreased, leading to global liquidity contraction and a collective pullback in tech stocks represented by AI in the US market, which adds pressure to global stock markets, including A-shares [2][4] - Some brokerages believe that the current market pullback is still in its initial stage and recommend maintaining a wait-and-see approach for better opportunities, while others think that the adjustment space is limited and presents a good opportunity for positioning in the next phase of the market [2][6] Group 2 - The adjustment in the A-share market is attributed to both external factors and internal pressures, including global liquidity tightening and concerns over an "AI bubble" affecting tech stocks [4][5] - The recent drop in the US stock market was influenced by stronger-than-expected non-farm payroll data, which lowered the expectations for a December rate cut, leading to significant declines in major indices such as the Nasdaq, S&P 500, and Dow Jones [5] - The decline in lithium carbonate futures has also contributed to a downturn in the new energy sector, reflecting broader market trends [5] Group 3 - There is a divergence in opinions among institutions regarding the future direction of the market, with some being cautious about the AI sector's performance in the Asia-Pacific region, predicting continued pressure in the fourth quarter [6][7] - Other brokerages, like Huazhong Securities, express a more optimistic view, suggesting that the current adjustment is nearing historical comparable levels and that the growth technology sector will be the strongest theme in the next market phase [7][8] - East Wu Securities anticipates that the market adjustment will conclude by November, paving the way for an early spring market, with a focus on AI applications and sectors benefiting from domestic policy support [8]

Group 1 - The recent adjustment in the A-share market saw the Shanghai Composite Index drop nearly 4% in a week, with the ChiNext Index falling over 6%, affecting more than 4,900 stocks [1][3] - External factors such as the cooling of interest rate cut expectations from the Federal Reserve, renewed debates over the AI bubble, and geopolitical tensions have contributed to the market downturn, impacting global risk assets [3] - Despite the market's decline, institutional investors have been actively buying, with over 70 billion yuan net inflow into stock ETFs in the past week, indicating confidence among smart money [3] Group 2 - Current valuation of the Shanghai Composite Index is around 13.6 times, approaching a "reasonable" level, suggesting that further declines could present buying opportunities [3] - Market sentiment indicators have dropped to yearly lows, and the financing guarantee ratio has returned to early August levels, indicating that panic selling may have subsided [3] - Long-term investors are advised to focus on undervalued assets, particularly in sectors like domestic computing power, innovative pharmaceuticals, and industries benefiting from supply-demand improvements due to "anti-involution" policies [4] Group 3 - Companies that can leverage China's manufacturing advantages for global pricing power are expected to thrive, with predictions that 2026 will be a significant year for Chinese enterprises going global [4] - High-dividend assets are recommended as a stabilizing force in a volatile market, with attention on cyclical dividends (coal, chemicals) and potential dividends (railways, environmental protection) [4] - Analysts predict a "low volatility slow bull" market for A-shares in 2026, with Goldman Sachs estimating a 30% upside for the Chinese stock market by 2027 [4]

Summary of Conference Call Records Industry Overview - The focus is on the technology sector, particularly the storage segment, which has experienced significant price declines recently. The market is currently volatile, but opportunities are emerging, especially in areas like AI, cloud testing, edge AI, and domestic alternatives for 2026 [1][2][3]. Key Insights and Arguments - **Market Timing**: Historical data suggests that entering the market in December is typically favorable, as sentiment tends to improve in January or after the Spring Festival [1][2]. - **NVIDIA's Performance**: NVIDIA's latest financial results exceeded expectations, with strong Q3 performance and positive Q4 guidance. The demand for 2026 is expected to be well-supported [1][4]. - **Valuation Concerns**: Leading companies in the sector are currently valued below 1x PEG, with some as low as 0.5x PEG, indicating that concerns about market bubbles are premature [1][4]. - **North American Cloud Providers**: There is no immediate concern regarding leverage risks among North American cloud providers, as the U.S. economy is not in recession [1][4]. Investment Opportunities - **A-Share Investment Targets**: Focus on sectors such as optical modules, PCBs, and server motherboards. For instance, Zhongji Xuchuang is noted for its attractive valuation [1][4]. - **Storage Industry Dynamics**: The storage industry is facing challenges due to rising costs impacting downstream demand and price pressures from original manufacturers. However, AI server demand is expected to drive storage growth, with North American CSP customers showing low price sensitivity [1][5]. Future Projections - **DRAM and NAND Flash**: There are no new expansion plans for DRAM; most capacity increases are from upgrading existing facilities. NAND flash capital expenditure guidance remains stable, focusing on production shifts rather than total capacity growth [3][6]. - **Price Trends**: The upward price trend in storage is expected to continue for a longer period, with no immediate reversal anticipated. The first quarter of 2026 is projected to see positive price growth, with a potential second wave of recovery following the release of financial reports [3][6]. Additional Considerations - **Cost Impact on Devices**: Rising storage prices could significantly affect the cost structure of mid-range devices, with storage costs accounting for approximately 20% of the total cost for mid-range smartphones [5]. - **Market Adjustments**: The recent adjustments in the storage sector are attributed to profit-taking amid tech stock corrections, rather than fundamental changes in demand or supply [3][6]. This summary encapsulates the key points from the conference call, highlighting the current state and future outlook of the technology and storage sectors.