The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this Application Proof, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this Application Proof. Application Proof of Rayson HI-TECH(SZ) Co., Ltd. 深圳市晶存科技股份有限公司 (A joint stock company incorporated in the People's Republic of China wi ...

Core Viewpoint - Despite market volatility and geopolitical tensions, certain stocks and sectors are thriving, particularly those benefiting from AI infrastructure and tariff dynamics [2]. Group 1: Century Aluminum (CENX) - Century Aluminum is positioned to benefit from tariff-driven pricing advantages, selling at inflated prices in the U.S. market while avoiding costs associated with imported aluminum [4]. - The Supreme Court's ruling on IEEPA has not affected Section 232 tariffs, reinforcing investor confidence in the current pricing environment [5]. - Century Aluminum has a Zacks Rank 1 (Strong Buy), with earnings estimates increasing by 42% for this year and 64% for next year, alongside projected sales growth of nearly 30% this year and 15% next year [6]. - The stock trades at approximately 8.3x forward earnings, below its 10-year median of 15.4x, indicating reasonable valuation despite the commodity business's cyclical nature [7]. - CENX is trading near multi-year highs, suggesting strong investor interest in the tariff-driven theme [9]. Group 2: Ciena (CIEN) - Ciena is benefiting from the AI infrastructure buildout, with its optical networking solutions becoming critical for high-speed data transmission [10]. - The stock has a Zacks Rank 1 (Strong Buy), supported by broad upward revisions to profit estimates [11]. - Ciena's shares have more than doubled in the past six months, with a forward earnings multiple of approximately 60.6x, reflecting strong earnings growth expectations of 53% annually over the next three to five years [12]. - The stock continues to reach new all-time highs, indicating strong underlying demand despite elevated valuation levels [13]. Group 3: Micron Technology (MU) - Micron Technology is a key player in the AI infrastructure buildout, particularly due to a structural shortage in high-bandwidth memory (HBM) [15]. - The demand for HBM has surged, positioning Micron to benefit from pricing strength and improving margins, with earnings expected to grow by 334% this year and 50% next year [16][18]. - Micron has a Zacks Rank 1 (Strong Buy), with sales projected to grow by 109% this year and 36% next year, while trading at a forward earnings multiple of 12.3x [18]. - The stock has shown a consistent pattern of consolidation followed by breakouts, reinforcing its status as a leading momentum name [17]. Group 4: Investment Themes - The stocks of CENX, CIEN, and MU are driven by diverse factors such as AI infrastructure demand, optical networking bottlenecks, and tariff-driven pricing, indicating a healthy market environment [20]. - Momentum strategies are effective in aligning with capital flows, but require disciplined risk management and a structured approach to investment [21]. - Strong trends in the market often persist longer than expected, particularly when supported by real earnings power and macroeconomic tailwinds [22].

2 March 2026 | 5:01AM EST Equity Research Micron Technology Inc. (MU): 2Q Preview: Expect another strong quarter driven by pricing upside, with HBM4 ramp in focus Key stock takeaways: We expect investors to continue to focus on the level of industry undersupply in DRAM and NAND, and the duration of pricing growth in these markets. Following continued pricing momentum, we expect strong upside to Street (Visible Alpha Consensus Data) estimates, with additional upward estimate revisions in the May quarter. We ...

Core Viewpoint - Micron Technology, Inc. is gaining attention on Wall Street due to DRAM shortages and rising DDR5 prices, leading to a positive outlook for the semiconductor memory market [1]. Group 1: Market Dynamics - DRAM shortages are intensifying, with significant price increases expected in Q1, indicating that supply growth in 2026 will not alleviate the current shortages [2]. - DDR5 spot pricing has increased by 30% year-to-date and is currently 130% above January contract prices, with mainstream DRAM pricing potentially doubling while remaining over 10% below current spot prices [2]. Group 2: Pricing Trends - There is confidence that mainstream prices may approach high teens ASP per GB, as buyers are already paying close to that level [3]. - The pricing momentum suggests that memory makers, including Micron, will benefit from the ongoing AI infrastructure cycle [3]. Group 3: Analyst Insights - Morgan Stanley analyst Joseph Moore raised Micron's price target to $450.00 from $350.00 while maintaining an "Overweight" rating, reflecting optimism about the company's prospects [1].

Core Insights - The demand for memory, particularly DRAM, HBM, and NAND storage, significantly exceeds supply, benefiting companies like Micron, Western Digital, and SanDisk [2][3][16] Company Summaries Micron Technology - Micron is experiencing a substantial increase in revenue, with a reported $13.6 billion, a nearly $5 billion increase from the previous year, and anticipates $18.7 billion in the next quarter [7] - The company is shifting focus from low-margin consumer memory to higher-margin enterprise customers and is sold out for all of 2026, indicating strong demand [6] - Micron's stock has shown significant growth, with a market cap of $444 billion and a gross margin of 45.53% [4] Western Digital - Western Digital is a leader in advanced 3D NAND flash memory, crucial for AI workloads and data centers, and has seen its stock rise over 50% as of early February 2026 [8][10] - The company announced a $4 billion share repurchase, signaling confidence in its future performance [10] - Western Digital's market cap stands at $96 billion, with a gross margin of 42.68% [10] SanDisk - SanDisk, now independent after separating from Western Digital, is thriving in the NAND technology market, with a reported 31% increase in revenue and a 64% increase in data center revenue [11][13] - The company anticipates an additional billion or more in revenue next quarter, reflecting strong demand for its products [13] - SanDisk's stock has surged nearly 150% year-to-date, with a market cap of $88 billion and a gross margin of 34.81% [12][14] Industry Trends - The memory market is currently experiencing a significant upswing after years of depression, driven by overwhelming demand in the AI sector [15] - Only a few companies are positioned to meet the increasing demand for memory and storage, suggesting a prolonged cycle of growth for these stocks [15]

Core Insights - Kioxia's Executive Chairman, Stacy Smith, emphasizes the company's strategic focus on meeting the growing demand for AI memory solutions, indicating a strong outlook for the memory market driven by advancements in artificial intelligence [1] Group 1: Business Strategy - Kioxia is positioning itself to capitalize on the increasing demand for memory products specifically tailored for AI applications, highlighting a proactive approach to market trends [1] - The company is likely to invest in research and development to enhance its memory technologies, ensuring they remain competitive in the rapidly evolving AI landscape [1] Group 2: Market Outlook - The demand for AI memory is expected to surge, with Kioxia anticipating significant growth opportunities in this sector [1] - Smith's insights suggest that the memory market will experience robust expansion as AI technologies become more integrated into various industries [1]

Core Viewpoint - The earnings reports from ASML Holding and SK Hynix indicate a strong alignment in the microchip industry, with ASML showing robust orders growth while SK Hynix is optimistic about future production capabilities [1] Group 1: ASML Holding - ASML Holding reported unexpectedly strong growth in orders, suggesting a positive outlook for the microchip equipment sector [1] - The company's performance reflects increasing demand for microchip manufacturing equipment, which is critical for the production of advanced semiconductors [1] Group 2: SK Hynix - SK Hynix announced plans to enhance its production capabilities, indicating confidence in the recovery of the memory chip market [1] - The company's strategy may lead to increased output, aligning with the growing demand for memory chips in various applications [1]

Core Viewpoint - Micron Technology, Inc. (NASDAQ: MU) is experiencing a significant stock rally, with projections indicating potential price targets between $385 and $535 by mid-2026, suggesting a 30% to 80% upside from current levels [2][3]. Group 1: Stock Performance and Projections - Micron's stock has gained momentum as 2025 approaches its end, with a breakout to new highs indicating a continuation of the upward trend [2]. - The base case projection suggests an additional upside of approximately $135 from the breakout area, while the bull case indicates a potential 115% gain for investors [3]. - Analyst targets suggest the stock could exceed $350 before mid-2026, with long-term forecasts potentially leading to bullish revisions in upcoming quarters [3][6]. Group 2: Market Sentiment and Analyst Activity - The rally in Micron's stock was initially driven by strong earnings results for the first quarter of fiscal 2026, but ongoing analyst sentiment is playing a crucial role in sustaining the momentum [5]. - December saw numerous price target increases and at least one upgrade from analysts, aligning with the positive trend in the stock [5]. - The consensus Buy rating from 37 analysts reflects firming sentiment, with a 30% increase in the consensus price target following the FQ1 release [6]. Group 3: Technical Indicators - While there are signs that the rally could be cooling off, such as an overbought stochastic, the Moving Average Convergence Divergence (MACD) indicates that bullish control remains strong [4]. - Analysts and institutional trends support the accumulating market, providing incentives for retail investors to engage [4].

AI and Semiconductor Market - OpenAI has secured deals to purchase approximately 40% of the global raw, undiced DRAM wafer output until 2029, indicating a significant demand for advanced memory chips to support AI infrastructure and data centers globally [2][7] - Moore Threads Technology has emerged as a competitor to Nvidia in the AI chip market, completing a successful IPO in China with shares increasing by as much as 500%, aiming to reduce reliance on Nvidia's hardware [3][7] Global EV Market - The electric vehicle market is experiencing a slowdown, with Asian battery and car manufacturers adjusting strategies due to softening demand, high production costs, and slower consumer adoption [4][7] - Ford Motor Company is recalling over 270,000 electric and hybrid vehicles in the U.S. due to a parking function issue, which poses a roll-away risk [5][7] Japan's Corporate Landscape - Japan is undergoing significant corporate governance reforms, leading to a record $350 billion in mergers and acquisitions, indicating a shift towards improved shareholder returns and profitability [6][7] - Companies and households in Japan are reevaluating their financial strategies following a recent rate hike by the Bank of Japan [8][7] American Airlines Loyalty Program Changes - American Airlines will no longer offer AAdvantage miles or Loyalty Points for basic economy fares starting December 17, 2025, aligning its policy with competitors and impacting budget travelers [9][7]

Summary of Micron Technology Inc. (MU) Conference Call Company Overview - **Company**: Micron Technology Inc. (MU) - **Industry**: Semiconductor, specifically focusing on DRAM and NAND memory products Key Financial Highlights - **Quarterly Revenue**: Reported revenue of $13.64 billion, exceeding Goldman Sachs (GS) estimate of $13.17 billion and Street estimate of $13.00 billion [3] - **Gross Margin**: Achieved a gross margin of 56.8%, significantly higher than GS's 53.1% and Street's 52.2% [3] - **Non-GAAP EPS**: Reported non-GAAP EPS of $4.78, surpassing GS's estimate of $4.15 and Street's estimate of $4.01 [3] - **DRAM Revenue**: $10.81 billion, above GS's $10.57 billion and Street's $10.45 billion [3] - **NAND Revenue**: $2.74 billion, exceeding GS's $2.53 billion and Street's $2.47 billion [3] Market Dynamics - **Supply Constraints**: Ongoing supply constraints are expected to persist through 2026, with limited bit growth of just 20% anticipated for that year [1] - **Price Trends**: Contract prices for HBM, conventional DRAM, and NAND have risen significantly due to robust demand and supply prudence [1] - **CapEx Guidance**: FY26 CapEx is expected to be $20 billion, up from a previous expectation of $18 billion, indicating an acceleration in fab construction and production plans [7] Future Outlook - **Guidance for 2Q**: Micron provided guidance for FY2Q revenue at $18.7 billion, well above GS's $13.68 billion and Street's $14.46 billion [7] - **Gross Margin Guidance**: Non-GAAP gross margin guidance of 68.0%, significantly higher than GS's 54.9% and Street's 55.3% [7] - **Non-GAAP EPS Guidance**: Expected non-GAAP EPS in the range of $8.22 to $8.62, with a midpoint of $8.42, far exceeding GS's $4.52 and Street's $4.97 [7] Strategic Initiatives - **HBM Market Share**: Micron aims to capture approximately 20% of the high-margin HBM market, which is projected to grow from a $35 billion TAM in 2025 to over $100 billion by 2028 [1][6] - **Product Roadmap**: Continued execution on the HBM product roadmap is expected, with production volume shipments of HBM4 beginning in 2QCY26 [6] Investment Rating and Price Target - **Current Rating**: Neutral-rated on the stock due to balanced risk/reward at current levels [1][10] - **Price Target**: Raised price target to $235 from $205, based on a 15X multiple applied to the normalized EPS estimate of $15.65 [9] Risks and Considerations - **Market Risks**: Potential risks include pricing retracement in HBM in 2026 due to the qualification of additional suppliers like Samsung, which could impact pricing dynamics [10] - **Execution Risks**: Continued execution on the HBM roadmap and market share gains against competitors like Samsung and SK Hynix are critical for maintaining growth [9] Conclusion - Micron Technology Inc. is positioned for growth driven by strong demand and supply constraints in the semiconductor market, particularly in DRAM and NAND sectors. The company’s strategic initiatives and robust financial performance suggest a positive outlook, although potential risks remain that could affect pricing and market dynamics.