Core Insights - The storage market has entered a "super bull market" phase, surpassing historical highs from 2018, driven by surging demand for AI and server capacity [1] - Storage prices are expected to rise significantly, with projections indicating a 40%-50% increase by Q4 2025 and another 40%-50% increase in Q1 2026, followed by an approximate 20% rise in Q2 2026 [1] Price Trends - The price of 64GB RDIMM storage has surged from $255 in Q3 2025 to $450 in Q4 2025, with expectations to reach $700 by March 2026 [2] - A price increase to $1,000 within this year is plausible, which would be nearly double the 2018 peak price of $1.00/Gb [2] Cost Structure Changes - The ongoing rise in storage prices is fundamentally altering the Bill of Materials (BoM) for hardware manufacturers [3] - In the iPhone 17 Pro Max, storage now accounts for over 10% of the BoM, up from approximately 8% in the iPhone 12 Pro Max [3] - For flagship models with 16GB-24GB LPDDR5X memory and 512GB-1TB UFS 4.0 storage, storage costs may exceed 20% of the BoM [3] - Major manufacturers like Samsung and SK Hynix are shifting production capacity towards high-margin server DDR5 storage, leading to a rapid contraction in supply of older technologies like LPDDR4 and eMMC [3] Supply Outlook - DRAM production is projected to increase by 24% year-on-year in 2026, but despite rising capital expenditures, it will take time to meet demand [4]

Core Viewpoint - The integrated circuit industry in Xiamen is positioned as a pillar industry, with a target to exceed a total output value of 100 billion yuan by 2025, supported by various government policies and strategic initiatives [6][25]. Industry Development Status and Value Chain Distribution - China's integrated circuit industry has rapidly developed, with production increasing from 261.4 billion units in 2020 to 359.3 billion units in 2021, a year-on-year growth rate of 37.42%. By 2024, production is expected to reach 451.4 billion units, with a compound annual growth rate of approximately 14% over five years [1][3]. - The integrated circuit value chain includes upstream (semiconductor IP, EDA, materials and equipment), midstream (chip design, manufacturing, and testing), and downstream (applications in IoT, consumer electronics, 5G communication, and automotive electronics) [3][4]. Xiamen's Integrated Circuit Industry Policy Environment - The integrated circuit industry is a key component of Xiamen's "4+4+6" modern industrial system, with multiple policies released to support its development, including measures for talent cultivation and technological innovation [6][9]. - Xiamen's industrial policies aim to enhance the industry ecosystem, with a focus on core technology research and development, and have resulted in a steady increase in the number of graduates and high-end talents supported by the government [24][25]. Current Status of Xiamen's Integrated Circuit Industry Chain - The industry chain in Xiamen is primarily concentrated in the midstream, with over 23,000 design companies and fewer than 10 testing companies. The application sectors, particularly IoT and communication, have the highest number of enterprises [10][19]. - The total output value of Xiamen's integrated circuit industry is projected to reach 40 billion yuan by 2024, reflecting a growth rate of 17.99% [19]. Trends in New Registrations and Talent Development - The number of newly registered integrated circuit design and manufacturing companies in Xiamen has been declining, with only 6 new registrations in 2025, indicating a trend towards consolidation and specialization among existing firms [20]. - The number of graduates and high-end talents supported by the integrated circuit development fund has increased from 902 in 2022 to 1,345 in 2024, highlighting the government's commitment to talent development in this sector [24]. Future Prospects and Planning for Xiamen's Integrated Circuit Industry - Xiamen aims to establish itself as a global hub for integrated circuit research and manufacturing by 2030, with significant investments planned for high-end chip manufacturing facilities [25][28]. - The city plans to leverage cross-strait cooperation and innovation platforms to enhance the competitiveness and sustainability of its integrated circuit industry [25][28].

Core Insights - The storage market has entered a "super bull market" phase, surpassing the historical peak of 2018, with prices expected to rise by 40%-50% by Q1 2026 and an additional 20% by Q2 2026 [1] Price Trends - The price of 64GB RDIMM memory has significantly increased from $255 in Q3 2025 ($0.50/Gb) to $450 in Q4 2025 ($0.88/Gb), with expectations to reach $700 by March 2026 ($1.37/Gb) [1] - There is a possibility that the price of this product could reach $1000 ($1.95/Gb) within the year, which would exceed the 2018 peak of $1.00/Gb [1] Smartphone Impact - For flagship smartphones equipped with 16GB-24GB LPDDR5X memory and 512GB-1TB UFS 4.0 storage, the rising storage costs may account for 20% or more of the Bill of Materials (BoM) [1] Supply Forecast - Counterpoint forecasts a 24% year-on-year increase in DRAM production by 2026, but it will still take time to meet the demand [1]

Group 1 - On January 9, Shengke Communication's stock rose by 3.94%, with a trading volume of 535 million yuan [1] - The financing data shows that on the same day, the company had a financing buy amount of 34.99 million yuan and a financing repayment of 51.35 million yuan, resulting in a net financing buy of -16.36 million yuan [1] - As of January 9, the total balance of margin trading for Shengke Communication was 358 million yuan, with a financing balance of 352 million yuan, accounting for 1.28% of the circulating market value, which is above the 60th percentile level over the past year [1] Group 2 - As of September 30, the number of shareholders for Shengke Communication reached 13,300, an increase of 85.46%, while the average circulating shares per person decreased by 45.68% [2] - For the period from January to September 2025, Shengke Communication achieved an operating income of 832 million yuan, a year-on-year increase of 2.98%, and a net profit attributable to shareholders of 9.37 million yuan, a year-on-year increase of 112.30% [2] - In terms of institutional holdings, as of September 30, 2025, Hong Kong Central Clearing Limited was the fifth largest circulating shareholder with 3.13 million shares, while other notable shareholders included the Jiashi Shanghai Stock Exchange Science and Technology Innovation Board Chip ETF and Dongfang Alpha Advantage Industry Mixed A [2]

Core Viewpoint - Baidu's Kunlun Chip is set to go public, marking a significant move in the Chinese semiconductor industry as it aims to capitalize on the growing demand for AI and computing power [1][4][9]. Group 1: Company Background and Development - Kunlun Chip, originally part of Baidu's AI chip division, was spun off in 2021 with an initial valuation of 13 billion RMB [1][6]. - The chip development began in 2011, with significant milestones including the launch of the first Kunlun chip in 2018, which achieved a computing power of 260 Tops [2][3]. - By 2024, the third generation of Kunlun chips is expected to be mass-produced, targeting various industries such as finance, energy, and education [3]. Group 2: IPO Details and Market Position - Kunlun Chip has submitted a listing application to the Hong Kong Stock Exchange, indicating a strong push towards an IPO [4][5]. - The company has attracted a diverse range of investors, including major firms like BYD and various venture capital funds, reflecting its status as a unicorn from inception [6][7]. - Analysts predict that Kunlun Chip's sales could reach 3.5 billion RMB in 2025 and 6.5 billion RMB in 2026, highlighting its growth potential [7]. Group 3: Competitive Landscape and Strategic Importance - The current IPO wave in the semiconductor sector, particularly for AI chips, has created a competitive environment that Baidu aims to leverage with Kunlun Chip [8][9]. - Baidu's CEO has emphasized the strategic benefits of the IPO, including enhanced market perception and improved financial resource allocation [7]. - The anticipated valuation of Kunlun Chip could significantly impact Baidu's overall market value, with estimates suggesting a potential worth of 22 billion USD for Baidu's stake post-IPO [9].

Core Viewpoint - Futian District aims to become a "vibrant window of Chinese-style modernization" during the 14th Five-Year Plan period, with significant emphasis on economic growth and development as it prepares for the APEC meeting in 2026 [3][4]. Economic Development - In 2025, the economic output of Futian is expected to exceed 600 billion yuan, with the district achieving the highest GDP per unit area, tax revenue, total import and export volume, and financial value added in Shenzhen [3][4]. - The financial sector in Futian is projected to see its value-added growth reach a nine-year high, with both total output and growth expected to rank first in the city [4]. Industrial Strategy - Futian is focusing on a "CBD + Sci-Tech Zone" strategy, aiming to establish two trillion-yuan, eight hundred-billion-yuan, and four hundred-billion-yuan industrial clusters, while promoting new industries such as new energy, smart terminals, and software services [5][6]. - The district is also enhancing its existing clusters in biomedicine and semiconductors, which are expected to grow significantly [4]. Governance and Quality of Life - The district plans to achieve higher levels of governance, civilization, and public welfare, aiming to create a modern governance model suitable for a mega-city [5][6]. - Efforts will be made to ensure equitable and high-quality public services, enhancing the overall quality of life for residents [6]. Environmental Initiatives - Futian aims to become a model for harmonious coexistence between humans and nature, with plans to establish a near-zero carbon demonstration area [6]. APEC and International Cooperation - The district is leveraging the upcoming APEC meeting in 2026 to position itself as a hub for international cooperation and innovation, with plans to develop the Xiangmi Lake New Financial Center and other key projects [8][9]. - A "Joint Policy Package 2.0" will be introduced to enhance collaboration with the Hong Kong Science and Technology Innovation Park, focusing on integrating innovative policies and resources [9].

Core Insights - The CES exhibition in the US catalyzed developments in the AI sector, while China's manufacturing PMI unexpectedly rebounded to 50.1% in December 2025, indicating a return to growth [1] - The A-share market experienced a strong start to the year, with the Shanghai Composite Index breaking the 4000-point mark and reaching a ten-year high of over 4100 points by the end of the week [1][2] - The defense, military, and media sectors performed well, while the banking and transportation sectors lagged behind [1] Weekly Market Review - All three major indices in the A-share market rose, with the Shanghai Composite Index increasing by 3.82%, the Shenzhen Component Index by 4.4%, and the ChiNext Index by 3.89% during the week from January 5 to 9 [2] - The average daily trading volume in the A-share market was approximately 2.85 trillion yuan, reflecting a 33.7% increase compared to the previous week [3] Sector Performance - The defense, military, media, non-ferrous metals, computer, and pharmaceutical sectors led the market with cumulative returns of 14.56%, 13.55%, 8.66%, 8.42%, and 7.7% respectively [3] - Conversely, the banking, transportation, oil and petrochemicals, agriculture, forestry, animal husbandry, and telecommunications sectors showed weaker performance, with cumulative returns of -1.88%, -0.03%, 0.17%, 0.99%, and 1.61% respectively [3] ETF Fund Flows - Over the last five trading days (December 31, 2025, to January 8, 2026), there was a cumulative net outflow of approximately 14.48 billion yuan from ETFs, with broad-based ETFs experiencing overall net outflows [3] - However, products related to the CSI 500 saw significant net inflows, indicating a divergence in industry-specific ETF subscriptions and redemptions [3] Future Outlook - Short-term opportunities may arise for consensus stocks that have adjusted, while long-term focus should be on sectors with lower heat and concentration but increasing attention and catalysts, along with potential improvements in long-term ROE [8] Industry Insights - In the rare metals sector, demand for copper is expected to grow due to monetary easing and accelerated AI and power grid infrastructure [9] - The domestic AI industry and semiconductor localization remain strong, with expectations for a new wave of high-end AI computing chip releases by 2026 [10] - The commercial aerospace sector in China is advancing, with improvements in reusable rocket technology and potential IPOs for core companies [11] - Chinese engineering machinery companies are increasing their overseas market share, with over 40% of revenue from international markets expected by 2024 [12]

Group 1 - NuScale Power aims to meet the upcoming demands for artificial intelligence energy with its small modular reactors, providing reliable and carbon-free nuclear power without straining the power grid [1] - The U.S. Nuclear Regulatory Commission approved NuScale's design for a 462-megawatt small modular reactor power plant, marking a significant milestone for the company [2] - NuScale's success hinges on its ability to rapidly scale revenue post-commercialization, with the current market capitalization at $5.6 billion, reflecting a nearly 65% decline from its peak value [3] Group 2 - Axcelis Technologies has seen a 180% increase in stock value over the past five years, despite a more than 50% drop from its all-time high reached in 2023 [5] - The company's primary revenue driver has been demand from the electric vehicle (EV) sector, which has slowed down since 2023, impacting stock price movements [6][7] - Axcelis is transitioning its focus from the EV industry to AI infrastructure, positioning itself as a contrarian investment opportunity due to its ion implantation technology [8]

Market Performance Overview - In 2025, only three out of eleven major market sectors outperformed the S&P 500: Communication services (+32%), Information technology (+23%), and Industrials (+18%) [2] - The information technology sector's performance was largely driven by semiconductor stocks, particularly memory and data storage companies, although these stocks have recently cooled off [2] - The industrials sector showed varied performance, with power generation and aerospace sub-groups performing well, while other areas lagged [2] Future Sector Predictions - Financials are expected to be the winners in the upcoming year, with optimism also surrounding utilities and healthcare following a rebound [3] - Lower interest rates could benefit the materials, real estate, and consumer discretionary sectors, while energy may face challenges due to increased production pressures from the White House [3] - Consumer staples stocks have become cheap, but their yields may not be sufficient to drive performance [3] Stock-Specific Insights - Procter & Gamble (NYSE: PG) has seen its stock decline from $180 to $138, with a current yield of 3%. The company is viewed as a dividend aristocrat, having increased its payout for 69 consecutive years [7][8] - Dollar General (NYSE: DG) performed well, with a 75% increase, benefiting from tariff concerns and consumer demand for affordable essentials [9][10]

Core Viewpoint - Alibaba's shares increased by over 5% following the U.S. government's approval for H200 GPU shipments to China, which is expected to enhance Alibaba's growth potential [1] Group 1: Company Impact - The clearance for H200 GPU shipments is anticipated to provide Alibaba with access to high-performing GPUs, potentially accelerating its growth trajectory [1] Group 2: Market Reaction - The market responded positively to the news, reflected in the more than 5% rise in Alibaba's stock price [1]