Core Viewpoint - Apple is expected to face a similar increase in memory prices in Q2 2026 as in Q1, and the company plans to leverage its strong bargaining power to secure chip supply while absorbing cost pressures to gain market share, later compensating for losses through its services business [2][3][5]. Group 1: Memory Price Trends - Analysts predict that memory prices for low-power DRAM supplied to Apple have nearly doubled recently, with Samsung and SK Hynix increasing prices by over 80% and approximately 100% respectively [3][5]. - Apple's memory pricing negotiations have shifted from biannual to quarterly, indicating ongoing price increases, with Q2 2026 expected to see similar price hikes as Q1 [5][7]. Group 2: Financial Implications - The rising memory costs are anticipated to be a focal point in Apple's upcoming earnings call, potentially impacting stock prices across the industry more significantly than Apple or its suppliers [7]. - The overall profitability of memory suppliers like Samsung and SK Hynix is expected to improve in Q1 due to the price increases, marking a recovery from previous industry downturns [7]. Group 3: Pricing Strategy for New Products - Despite the cost pressures, Apple aims to maintain the starting price of the new iPhone 18 in the second half of 2026 to support marketing efforts [9]. - Unlike previous years, Apple has only completed memory price negotiations for the first half of the year, reflecting the current memory crisis and indicating potential price increases with the launch of new products [9]. Group 4: Supply Chain Risks - Apple has recognized that supply chain risks are spreading beyond memory and T-glass, with potential shortages in other components due to the booming demand for AI server infrastructure [10]. - The sharp rise in memory prices is attributed to a supply-demand imbalance, driven by significant investments from major tech companies in AI infrastructure, while suppliers are focusing on more profitable HBM products [10].

Group 1: Market Overview - The Hang Seng Index closed at 27,127, up 1.35% for the day and 5.84% year-to-date [1] - The Hang Seng Financial Index rose by 2.51% for the day and 5.88% year-to-date, indicating strong performance in the financial sector [2] - Southbound capital recorded a net sell of 635 million HKD, with notable sell-offs in China Mobile, Zijin Mining, and SMIC, while Tencent and Longi Green Energy saw significant net buying [3] Group 2: Company Analysis - Sanofi - Sanofi's collaboration with Pfizer on the 707/PF'4404 (PD-1/VEGF) has advanced rapidly, with plans to initiate four global Phase III clinical trials by 2026 covering five major indications [4] - The dual antibody PD-(L)1/VEGF is expected to become a cornerstone in next-generation tumor immunotherapy, with Sanofi leveraging its internal pipeline for competitive advantage [5] - Sanofi's robust pipeline includes multiple candidates, with the potential for early assets to be licensed out as clinical data matures [6] Group 3: Financial Projections - The target price for Sanofi is set at 37.43 HKD, based on a DCF model with a WACC of 10.11% and a perpetual growth rate of 2.0% [7] - The company is estimated to have net cash of approximately 13 billion HKD, supporting its growth and development initiatives [7]

Group 1 - The South Korean Composite Stock Price Index opened higher at 5171.85 points, up 1.71% following a significant rise the previous day [1] - LG Energy Solution surged over 7%, while major companies like Hyundai Motor, Samsung Electronics, and SK Hynix also saw gains [2] - SK Hynix met two-thirds of Nvidia's HBM4 demand, and Samsung and SK Hynix doubled the prices of low-power DRAM supplied to Apple in Q1, with increases of over 80% and approximately 100% respectively [2] Group 2 - The Nikkei 225 index fell below 53,000 points, declining by 0.74%, raising concerns about corporate profitability due to the yen's rebound [3] - Major automotive and pharmaceutical companies, including Toyota, Mazda, and Sumitomo Pharma, experienced declines of over 3% [3] - The Bank of Japan's meeting minutes indicated a consensus among members to consider further interest rate hikes if the economic outlook aligns with expectations, while maintaining a loose monetary policy environment [3]

Market Overview - The South Korean Composite Stock Price Index opened higher, reporting 5171.85 points, an increase of 1.71% from the previous close of 5084.85 points [2][3] - The trading volume reached 68.79 million shares, with a market capitalization of 961.35 trillion won for Samsung Electronics and 593.32 trillion won for SK Hynix [3][4] Key Stock Performances - LG Energy Solutions surged over 7.47%, while Hyundai Motor and Samsung Electronics also saw gains of 2.56% and 1.82% respectively [4] - SK Hynix met two-thirds of NVIDIA's HBM4 demand, indicating strong performance in the semiconductor sector [4] Pricing Trends - Samsung and SK Hynix have doubled the prices of low-power DRAM supplied to Apple compared to the previous quarter, with increases exceeding 80% and approximately 100% respectively [4] - This price hike reflects a shift in Apple's procurement strategy due to supply constraints, potentially impacting future negotiations [4] Trade Relations and Economic Impact - Former President Trump threatened to impose tariffs on South Korean imports due to unmet agreements, which could weaken the competitiveness of South Korean exporters in the U.S. market [5][6] - The potential tariffs may particularly affect the automotive sector, raising concerns about the ability of South Korean chip manufacturers to receive favorable treatment under U.S. semiconductor tariff frameworks [6] Japanese Market Update - The Nikkei 225 index fell below 53,000 points, declining by 0.74%, with significant drops in automotive and pharmaceutical stocks, including Toyota and Mazda, both down over 3% [7][8] - The Bank of Japan's meeting minutes indicated a consensus among members to continue a loose monetary policy, even if interest rates are raised in the future [8]

Report Summary 1. Investment Rating - No investment rating for the industry is provided in the report. 2. Core Viewpoints - The global economy has passed its peak and is on a downward trend due to consecutive wrong policies in the US [4]. - The US's return to the Monroe Doctrine and global contraction will have a profound and disruptive impact on major asset classes such as the global economy, US Treasuries, US stocks, the US dollar, precious metals, and industrial metals [3]. 3. Summary by Related Catalogs Global Economic News - Bridgewater Associates founder Ray Dalio warns that the US is like a powder keg on the verge of civil war, having deeply entered the "pre - collapse stage" and at risk of entering the sixth stage marked by the collapse of the existing order [1]. - Emerging market stock and bond ETFs have seen a total of $6.83 billion in capital inflows, with Chinese - related ETFs being the most favored. $1.65 billion flowed into the Chinese market last week [1]. - Guoxing Aerospace has deployed the Tongyi Qianwen Qwen3 large - model to the "Star Computing" Plan 01 group space computing center, the world's first deployment of a general large - model to an orbiting satellite [1]. - Microsoft has released its second - generation self - developed AI chip Maia 200, marking significant progress in its self - developed chip field [1]. - NVIDIA CEO Jensen Huang announced the launch of the server CPU "Vera" to solve the CPU bottleneck in the AI supply chain [1]. - If the imbalance between supply and demand of memory chips persists until the first half of 2027, it may be an opportunity for Chinese manufacturers to narrow the technological gap [1]. - Samsung and SK Hynix doubled the price of low - power DRAM supplied to Apple in Q1, and prices may rise further in the second half of the year [1]. - Zijin Mining acquired Allied Gold for $28 billion, with Allied Gold having 533 tons of gold resources as of the end of 2024 [1]. Global Economic Logic - The US is facing a high risk of civil war, and the global political order has entered a chaotic period, bringing great uncertainty to the global economy [2]. - There are speculations about the possibility of a "Plaza Accord 2.0", and the uncertainty of the Fed is expected to peak from July to November 2026, which may lead to a "flight from US assets" [2]. - The Fed will cut interest rates by 25 basis points in December and purchase $40 billion in short - term bonds monthly, restarting the expansion of its balance sheet [2]. - The decline in gambling revenue in Las Vegas is similar to the early warning signal before the 2008 financial crisis [2]. - The US will adjust its economic relations with China and revive its economic autonomy [2]. - The K - shaped differentiation of consumers in the US is intensifying, with high - income consumers maintaining spending while middle - and low - income families are cutting back [2]. - TSMC's capital expenditure in 2026 is expected to be between $52 billion and $56 billion, a significant increase of 27% - 37% year - on - year, indicating the continued AI boom [2]. - SpaceX hopes to achieve full rocket reusability this year, which will reduce the cost of space access by 100 times [2].