1. Report Industry Investment Rating No information provided. 2. Core Viewpoints of the Report - In the week from 02.23 - 03.01, the mid - level economic performance showed differentiation. The rising Middle - East situation led to significant price increases in cyclical resources such as crude oil, chemical, shipping, and non - ferrous metals. The construction industry's resumption of work was stronger than the same period in the lunar calendar, possibly supported by the warming of real - estate sales and the early implementation of fiscal funds in 2026. The AI computing power industry's prosperity center continued to move up, while the traditional commodity consumption was under pressure [4]. 3. Summary According to the Table of Contents 3.1 Upstream Resources: Soaring Crude Oil Chain Prices and Significant Increase in Non - ferrous Metal Prices - **Oil and Chemicals & Shipping**: Due to the escalating Middle - East situation after the US - Israel air strike on Iran on 2026.02.28, the threat to the safety of crude oil transportation in the Strait of Hormuz led to significant disruptions in global crude oil supply. As of 03.03, the Brent crude oil futures settlement price increased by 12.3% compared to 02.27, and the domestic chemical product price index rose by 4.8%. The crude oil transportation index (BDTI) and refined oil transportation index (BCTI) increased by 43.9% and 54.0% respectively [7]. - **Coal**: As of 02.28, the ex - works price of Qinhuangdao Port's Q5500 steam coal was 751 yuan/ton, with a week - on - week increase of 4.0%. The increase was mainly due to the uncertainty of coal supply from Indonesia and the rise in international coal prices [8]. - **Non - ferrous Metals**: As of 02.27, the COMEX gold price increased by 3.3% week - on - week. Industrial metals such as SHFE copper and aluminum also saw price increases. Small metals like black tungsten, molybdenum, and cobalt rose by 6.5%, 2.1%, and 13.1% respectively, driven by AI capital expenditure [10]. 3.2 Technology & Manufacturing: Increasing Growth Rate of Technology Hardware Prosperity and Fast Post - Festival Resumption of Work - **Electronics**: Driven by AI infrastructure demand, the prosperity of technology hardware continued to grow. In January 2026, South Korea's semiconductor export volume (TTM) reached 183.82 billion US dollars, a year - on - year increase of 28.8%, and the export volume of memory chips reached 128.53 billion US dollars, a year - on - year increase of 44.1%. As of 02.27, the average prices of DRAM DDR4 and DDR5 increased by 1.9% and 3.8% respectively [20]. - **Infrastructure and Real - Estate Chain**: Steel prices fluctuated slightly. As of 02.28, the prices of rebar and hot - rolled coils changed by - 0.3% and + 0.6% week - on - week respectively. The apparent consumption of rebar increased by 25.5% compared to the same period in the lunar calendar. As of 02.27, the blast furnace operating rate increased by 0.6% week - on - week and 2.2% compared to the same period in the lunar calendar. Building material prices fluctuated slightly. As of 02.26, the average price of domestic float glass increased by 1.2% week - on - week, and the inventory increased by 26.5% compared to the same period in 2025. As of 02.28, the national cement price index decreased by 0.4% week - on - week, and the cement shipping rate increased by 9.0% compared to the same period in 2025 [23][27]. 3.3 Downstream Consumption: Strong Post - Festival Real - Estate Sales and High Tourism Prosperity Year - on - Year - **Real - Estate**: As of the week of 03.01, the commercial housing transaction area of 30 large and medium - sized cities increased by 55.4% compared to the same period in the lunar calendar of 2025. The second - hand housing transaction area of 10 key cities increased by 14.5% compared to the same period in 2025. After the new policy in Shanghai, the real - estate sales consultation heat increased significantly [31]. - **Durable Goods**: In March 2026, the production plan of household air conditioners decreased by 6.1% year - on - year. The domestic sales and export production plans decreased by 1.5% and 7.1% respectively. In February 2026, the inventory warning index of Chinese automobile dealers was 56.2%, a year - on - year decrease of 0.7% and a month - on - month decrease of 3.2% [39]. - **Beverages**: As of 2026.02.28, the wholesale reference prices of original and bulk Feitian Moutai increased by 0.3% and 0.0% respectively. As of 2026.02.27, the retail prices of Chinese milk and yogurt increased by 0.1% and 0.0% respectively [41]. - **Pigs & Planting**: As of 03.01, the national price of live pigs (inner ternary) decreased by 6.8% week - on - week. As of 02.28, the domestic spot weekly average prices of soybeans, soybean meal, wheat, and corn increased by 0.0%, 0.5%, 0.1%, and 0.5% respectively. The weekly average prices of CBOT soybeans and corn increased by 1.1% and 3.7% respectively [43]. - **Service Consumption**: As of the week of 03.01, the domestic movie box office decreased by 63.1% compared to the same period in the lunar calendar of 2025. From 02.22 - 02.28, the average congestion degree of Shanghai Disneyland was 75%, a 32.3% increase compared to the same period in 2025 [51]. 3.4 Logistics and People Flow: Significantly Increased Freight Prosperity Compared to the Same Period in the Lunar Calendar and Post - Festival Recovery of Port Throughput - **Passenger Transport**: As of the week of 03.01, the subway passenger volume of 10 major cities increased by 77.0% week - on - week and decreased by 10.3% year - on - year. The Baidu Migration Scale Index increased by 7.4% week - on - week and 130.8% year - on - year. The number of domestic flights increased by 3.9% week - on - week and 21.6% year - on - year, and 27.0% compared to the same period in 2019. The number of international flights decreased by 1.4% week - on - week and recovered to 93.8% of the same period in 2019 [53]. - **Freight Transport**: As of the week of 03.01, the national highway and railway freight volumes increased by 26.0% and 3.2% respectively compared to the same period in the lunar calendar of 2025. The national postal express pick - up and delivery volumes increased by 21.9% and 32.8% respectively compared to the same period in 2025 [59]. - **Maritime Transport**: As of 02.27, the SCFI index increased by 6.5% compared to before the festival. The Baltic Dry Index (BDI) increased by 2.7% compared to before the festival. As of the week of 03.01, the cargo throughput and container throughput of Chinese ports increased by 25.5% and 12.3% respectively compared to the same period in the lunar calendar of 2025 [61].

Group 1: Spring Festival Tourism - The Spring Festival travel demand significantly increased due to a 9-day extended holiday, with average daily cross-regional passenger flow up by 6.0% year-on-year during the first 24 days of the Spring Festival travel period [7][10] - Domestic average daily tourism volume and revenue during the Spring Festival increased by 5.7% and 5.5% year-on-year, respectively, recovering to 111.7% and 121.6% of the levels seen in 2019 [10][12] - Despite the increase in volume, the average daily spending per tourist was 149.8 yuan, down 11.3% year-on-year, indicating a need for improvement in consumer spending willingness [10][12] Group 2: Downstream Consumption - New home sales in 30 major cities increased by 47.7% compared to the same period last year, with first-tier cities seeing an 84.0% increase [18][21] - The average price of live pigs decreased by 0.9% week-on-week, attributed to a still ample supply [22][23] - The release of new real estate policies in Shanghai is expected to effectively stimulate pent-up housing demand [18] Group 3: Technology and Manufacturing - The prices of DRAM memory chips remained high, with average prices for DDR3, DDR4, and DDR5 increasing by 0.3%, 0.0%, and 0.1% respectively compared to pre-holiday levels [24][25] - The revenue of the semiconductor industry in Taiwan continued to grow rapidly, with storage sector companies seeing a year-on-year revenue increase of approximately 200% [24][25] - Lithium carbonate prices rose by 5.8% and lithium hydroxide prices by 5.1% due to increased expectations for downstream energy storage demand [26] Group 4: Upstream Resources - Coal prices increased slightly by 0.7% week-on-week, with port inventories continuing to decline [29][31] - Industrial metal prices showed a strong fluctuation, with copper and aluminum prices on the Shanghai Futures Exchange rising by 1.1% and 1.5% respectively [32][33] - International industrial metal prices also experienced upward trends due to expectations of interest rate cuts and geopolitical tensions [32][33]

Core Viewpoint - The article highlights the continuation of technology and resource prosperity, indicating a potential turning point for domestic demand, driven by AI infrastructure investment and signs of recovery in consumer spending [2]. Group 1: Economic Indicators - Global technology hardware demand remains strong, with a temporary slowdown in storage chip price increases, yet prices remain high [2]. - Resource prices are experiencing localized increases, particularly in chemical products with significant supply constraints, while non-ferrous metal supply remains tight [2]. - Consumer recovery shows some positive signs, with high-end liquor prices stabilizing and progress in real estate policies, suggesting a potential stabilization in domestic demand [2]. Group 2: Downstream Consumption - High-end liquor prices, such as Moutai, have increased by 3.9% for original and 3.0% for bulk, likely due to pre-Spring Festival gifting demand [3]. - Real estate transactions in 30 major cities decreased by 23.1% year-on-year, with first-tier cities seeing a drop of 41.6% [3]. - Retail sales of passenger cars fell by 22.0% year-on-year, indicating ongoing pressure in the durable goods sector [3]. Group 3: Technology & Manufacturing - Storage price increases have slowed, with DRAM prices showing mixed trends; DDR4 prices decreased by 1.3% while DDR5 prices increased by 1.4% [4]. - Chemical product prices remain strong, with PX and PTA prices increasing by 5.2% and decreasing by 0.4%, respectively [4]. - Coal prices rose by 1.0% due to a brief cold snap, while industrial metal prices experienced significant volatility influenced by changes in Federal Reserve leadership [4]. Group 4: Logistics and Transportation - Passenger transport demand remained stable before the holiday, with a slight decrease of 0.2% in major cities [5]. - Freight logistics demand increased, with highway truck traffic and railway freight volume rising by 4.8% and 2.3% year-on-year, respectively [5]. - Port throughput showed a rebound, indicating a potential recovery in export activity [5].

Group 1 - Micron Technology will build a new NAND factory in Singapore, investing approximately $24 billion over the next ten years [1] - The new facility will provide 700,000 square feet of cleanroom space and is expected to start production in the second half of 2028, driven by demand from AI and data center applications [1] - WSTS forecasts that the global semiconductor market will grow by 26.3% in 2026, reaching $975 billion, with storage and logic ICs being the main growth drivers [3] Group 2 - TSMC expects capital expenditures for 2026 to be between $52 billion and $56 billion, an increase of 27% to 37% compared to 2025 [2] - Micron's capital expenditure plan for fiscal year 2026 is set to increase from $18 billion to approximately $20 billion, focusing on enhancing HBM capacity and 1-gamma product supply [2] - The cleanroom industry is expanding due to increased investments in high-tech industries, with a trend towards consolidation and scale among service providers [3]

Investment Rating - The industry investment rating is "Overweight" [8] Core Insights - Micron Technology plans to invest $24 billion in a new NAND factory in Singapore over the next ten years, with the facility expected to provide 700,000 square feet of cleanroom space and commence production in the second half of 2028. This investment is driven by the growing demand for NAND technology due to the rapid expansion of artificial intelligence and data center applications [2][3] - The World Semiconductor Trade Statistics (WSTS) forecasts that the global semiconductor market will grow by 26.3% in 2026, reaching $975 billion, with storage and logic ICs being the main growth drivers [5] - The cleanroom industry is experiencing expansion due to increased investments in high-tech industries, which are essential for its development. The demand for cleanroom engineering services is rising, leading to a concentration and scaling of the industry, with leading companies gaining stable market shares [5] Summary by Sections Micron Technology's Investment - Micron Technology is set to build a new NAND factory in Singapore, with an investment of $24 billion over the next decade. The groundbreaking ceremony took place on January 27, 2026, and the factory is expected to help meet the growing demand for NAND technology driven by AI and data centers [3] Semiconductor Market Forecast - WSTS predicts a 26.3% increase in the global semiconductor market size in 2026, reaching $975 billion. The growth is primarily driven by storage and logic ICs, which are expected to grow by 39.4% and 32.1%, respectively [5] Cleanroom Industry Dynamics - The cleanroom industry is benefiting from the growth in high-tech investments, leading to increased demand and market expansion. The characteristics of cleanroom projects, such as large investment scales and short implementation cycles, are driving industry consolidation and differentiation among companies [5]

Group 1: Downstream Consumption - The price of live pigs has increased by 2.4% week-on-week, driven by improved winter demand, with the current price at 13.03 yuan/kg as of January 18 [8] - The retail sales of passenger cars have significantly declined, with a year-on-year drop of 32% for the period from January 1 to January 11, 2026, primarily due to high base effects from early 2025 and the phasing out of tax exemptions for new energy vehicles [20] - The real estate market continues to face pressure, with a year-on-year decrease of 30.5% in transaction area for commercial housing across 30 major cities as of January 18 [19] Group 2: Technology & Manufacturing - The AI hardware sector remains robust, with a year-on-year increase of 38.5% in PCB exports in December 2025, and significant price increases in DRAM memory, with DDR4 and DDR5 prices rising by 8.3% and 10.1% respectively [23][24] - The construction materials sector shows slight improvements, with rebar and hot-rolled coil prices increasing by 1.2% and 1.5% week-on-week as of January 16, 2026 [28] - The automotive manufacturing sector is experiencing a rebound in production rates, with a 7.6% increase in half-steel tire production and a 4.9% increase in full-steel tire production as of January 15 [40] Group 3: Upstream Resources - Coal prices have decreased by 0.6% week-on-week, attributed to relatively high temperatures and a slower increase in daily consumption by power plants, with the current price at 557 yuan/ton as of January 16 [49] - Industrial metal prices have slightly adjusted, with copper and aluminum prices down by 0.6% and 1.7% respectively, reflecting ongoing supply disruptions and high prices impacting downstream demand [53] Group 4: Logistics and Passenger Flow - Passenger transport demand is showing marginal growth, with metro passenger volume in major cities increasing by 2.2% week-on-week and 2.8% year-on-year as of January 18 [60] - International flight operations have seen a week-on-week increase of 4.8%, recovering to 85.6% of the levels seen in 2019, while domestic flights have decreased by 8.7% year-on-year [62]

Core Viewpoint - The semiconductor capital expenditure is expected to benefit cleanroom construction, with China's State Grid planning a fixed asset investment of 4 trillion yuan during the 14th Five-Year Plan, representing a 40% increase compared to the previous plan [4]. Semiconductor Capital Expenditure - TSMC anticipates a capital expenditure of $52 to $56 billion in 2026, an increase of 27% to 37% from 2025's $40.9 billion. In Q4 2025, TSMC's revenue is projected to grow by 20.5% year-on-year and 1.9% quarter-on-quarter, with a net profit increase of 35% year-on-year and 11.8% quarter-on-quarter [2]. - ChangXin Technology plans to raise 29.5 billion yuan through an IPO, focusing on upgrading DRAM manufacturing lines and R&D for advanced technologies [2]. - Micron Technology's capital expenditure for fiscal year 2026 is set to rise from $18 billion to approximately $20 billion, aimed at enhancing HBM capacity and supply capabilities for 1-gamma products [2]. - Tongfu Microelectronics intends to raise no more than 4.4 billion yuan for storage chip testing and packaging, as well as capacity enhancement in emerging applications [2]. Cleanroom Industry Benefits - Yaxing Integrated's parent company reported a consolidated revenue of 9.5 billion New Taiwan dollars (approximately 2.1 billion yuan) in December, marking a year-on-year increase of 165.2% and a month-on-month increase of 11.7%. The consolidated revenue for Q4 reached 25.08 billion New Taiwan dollars (approximately 5.54 billion yuan), reflecting a year-on-year increase of 133.7% [3]. - Yaxing Integrated's revenue is expected to account for 37% of its parent company's revenue in 2024 and 26% in the first three quarters of 2025 [3]. - New contracts signed by Yaxing Integrated include a project worth 3.16 billion yuan in April 2025 and another worth 1.58 billion yuan in July 2025 [3]. State Grid Investment - The State Grid's fixed asset investment is projected to reach 4 trillion yuan during the 14th Five-Year Plan, a 40% increase from the previous plan. This investment aims to enhance system regulation capabilities and support large-scale development of new energy storage [4]. - China Power Construction has completed over 65% of large and medium-sized hydropower station construction in China, holding a 90% market share in the design of pumped storage power stations and 78% in construction [4]. - China Energy Engineering possesses key technologies in various energy sectors, with a price-to-book ratio of 0.95, indicating a 41% percentile over the past decade [4]. Government Actions - The State Council has initiated actions to clear overdue payments to enterprises, aiming to expedite the issuance of special bonds to support this effort [5]. - As of Q3 2025, major construction state-owned enterprises have varying debt-to-asset ratios, with China Power Construction at 80.2% and China Railway Construction at 79.1% [5]. - The 2026 Nuclear Fusion Energy Technology and Industry Conference has commenced, focusing on integrating innovation, industry, finance, and talent [5].

Core Viewpoint - The article highlights the growth in tourism and cultural activities during the New Year period, alongside the continuation of price increases in the technology sector, indicating a mixed performance in the macroeconomic landscape [3]. Group 1: Tourism and Cultural Activities - The New Year holiday saw a significant increase in travel demand, with an average daily cross-regional flow of 198 million people, up 19.5% year-on-year, and an average daily entry-exit figure of 2.205 million, up 28.6% year-on-year [4]. - Domestic tourism showed improvement, with average daily tourist numbers and revenue increasing by 5.2% and 6.3% respectively compared to the previous year, driven by enhanced service supply and flexible holiday arrangements [4]. - Shanghai Disneyland's congestion index rose by 128.8% year-on-year during the last week of 2025, indicating a surge in visitor numbers [4]. Group 2: Downstream Consumption - The price of live pigs increased by 3.9% as of December 28, driven by improved demand for New Year preparations [5]. - Real estate sales remain under pressure, with transaction volumes in 30 major cities down 26.0% year-on-year, and significant declines observed across first, second, and third-tier cities [5]. - Retail sales of passenger vehicles decreased by 12% year-on-year during the last week of December 2025, reflecting ongoing challenges in the durable goods sector [5]. Group 3: Technology and Manufacturing - The electronic industry continues to thrive, with prices for DRAM memory chips increasing by 2.6% to 7.1% across different types as of January 2 [6]. - Chemical raw material prices showed mixed performance, with PX prices rising by 6.4% while PTA prices slightly declined [6]. - Industrial metal prices have continued to rise due to supply disruptions and expectations of interest rate cuts, with coal prices stabilizing at a 0.9% increase [6].

Group 1 - The report highlights a significant improvement in the tourism and cultural sectors during the New Year holiday, with a notable increase in both domestic and international travel demand, with daily cross-regional personnel flow reaching 198 million, up 19.5% year-on-year [7][9] - The average daily inbound and outbound personnel during the New Year holiday reached 2.205 million, marking a 28.6% increase compared to the previous year, indicating a recovery in inbound tourism due to optimized policies [7][9] - Domestic tourism saw a daily average of 47.33 million tourists and a revenue of 28.26 billion yuan, reflecting a year-on-year increase of 5.2% and 6.3% respectively, driven by improved service supply in popular destinations [9][10] Group 2 - The report notes a rise in pig prices, with the national average price for pigs increasing by 3.9% week-on-week, attributed to improved demand from New Year stocking [19] - Real estate sales continue to face challenges, with transaction volumes in 30 major cities down 26.0% year-on-year, and significant declines observed across first, second, and third-tier cities [14][15] - The retail sales of passenger cars decreased by 12% year-on-year, indicating ongoing pressure in the durable goods sector, with rising inventory levels among dealers [15][16] Group 3 - The electronic industry remains robust, with DRAM memory prices increasing by 2.6% to 7.1% across different types, driven by AI infrastructure investments [21][22] - The construction materials sector is experiencing weak demand, with rebar and hot-rolled coil prices showing slight fluctuations, indicating a low-level oscillation in steel prices [23][27] - Chemical prices are mixed, with PX prices rising by 6.4%, while some other chemical prices have slightly declined, reflecting a tight supply-demand balance in the chemical industry [32][33] Group 4 - Coal prices have stabilized, with a week-on-week increase of 0.9%, and port inventories continuing to decline, suggesting increased downstream replenishment activity [36][37] - Industrial metal prices have continued to rise, with copper and aluminum prices increasing by 2.5% and 1.9% respectively, driven by supply concerns and strong global demand expectations [38][39]

Group 1 - Changxin Technology's IPO application has been officially accepted by the Shanghai Stock Exchange, aiming to raise 29.5 billion yuan for DRAM storage technology upgrades and capacity construction [1] - There is significant discussion regarding whether related stocks should be purchased following Changxin's IPO announcement, with some investors expressing concerns about market trends [1][5] - The focus should be on the actual participation of institutional investors rather than merely speculating on stock price movements [5][16] Group 2 - The importance of analyzing institutional inventory is highlighted, as it reflects the active trading behavior of large funds, which is a more reliable indicator than price trends alone [5][10] - Historical examples illustrate that stocks can experience significant price fluctuations, but the underlying institutional activity can provide clarity on whether to hold or sell [10][16] - The emergence of quantitative big data allows for a clearer understanding of institutional trading behaviors, moving away from reliance on intuition in stock trading [16]