ab 10 February 2026 Powered by YES UBS Evidence Lab Global Research Memory's inflationary impact on cloud capex; deflationary impact on ODM/brand margins Global I/O Hardware AI demand taking memory into shortage well into 2027 We analyze UBS upgrade to the magnitude and duration of the memory cycle (link) for its impact on hyperscale capex, hardware BOM cost/margins and unit demand. UBS now forecasts DRAM pricing per Gb could increase 289% from 2025-27, surpassing the 89% rise in the 2017-2018 cycle and NAN ...

05 Feb 2026 10:03:49 ET │ 30 pages Vi e w p o i n t | China Equity Strategy Implications from Raw Material Price Hikes in China CITI'S TAKE Commodity prices have surged and seem to be consolidating at higher levels. This report analyzes the impact of higher commodity prices on various sectors in China. On the positive side, (i) basic material sector is the prime beneficiary particularly for aluminum, copper & lithium suppliers; (ii) gold jewelers to benefit from the rise in gold price; (iii) CCL players cou ...

When it comes to electronic devices, the technology sector is facing some major hurdles: Smartphone production from Apple, Qualcomm, Xiaomi, and ARM Holdings are all being reduced. ...

Here's the here's the piece that I think Qualcomm investors want to push on though, and that's the premium premiumization trend in the smartphone market. You and I have been talking about this for several quarters in China. Elsewhere, people have been going up market. Up market, we have Apple and Samsung at the top.They're big enough that they can pull some levers, charge people enough for phones to to still get their phones out. To what degree might some of these other Chinese OEMs be able to do something ...

Company Overview - Sunny Optical issued a positive profit alert for 2025, projecting net profit between RMB4,588.6 million and RMB4,723.5 million, representing a 70.0% to 75.0% year-on-year increase, with the mid-point exceeding estimates by 32%–35% [1] - The profit increase is driven by improvements in smartphone mix and investment income from Goertek Optical, with adjusted net income expected to be RMB3.67 billion to RMB3.80 billion, a 5-9% beat compared to consensus estimates [1] Industry Context - The smartphone industry is expected to face challenges in 2026, with memory prices continuing to rise, leading to potential downward adjustments in global smartphone shipments and OEM's gross profit margins due to increased BOM costs [2] - Despite Sunny Optical's focus on higher-end Android models and a growing presence in Apple, a decline in global smartphone shipments and supply chain margin compression is anticipated [2] Strategic Developments - Sunny Optical filed for an IPO of its vehicle-related optical business, Sunny Smart Autotech, which includes automotive lenses, camera modules, LiDAR, HUD, and smart lamp businesses, aiming to attract strategic investors and enhance shareholder value [2] - A joint venture with Goertek Group was established, transferring equity interest in Shanghai OmniLight, which strengthens Sunny's supply capabilities within the AR ecosystem and allows for shared development costs [3] Market Sentiment - The market sentiment towards consumer electronics is expected to remain cautious due to ongoing memory supply consumption by AI capital expenditures, despite the positive profit alert from Sunny Optical [1] - The recent layoffs at Meta Reality Lab, which downsized by approximately 1,500 employees, may negatively impact Sunny Optical's near-term XR business, as the company has a higher revenue contribution from VR compared to AR/AI glasses [4]

龙华区景观。 受访单位供图 1月28日，深圳市龙华区第二届人民代表大会第六次会议召开，区长雷卫华代表区政府向大会作工作报 告，一组亮眼数据勾勒出龙华区经济社会发展的稳健轨迹，彰显主要经济指标稳中向好、量质齐升的良 好态势：2025年，龙华区预计地区生产总值超3300亿元，增长6%以上。预计完成固定资产投资近千亿 元，规模以上工业总产值超7200亿元，社会消费品零售总额超1400亿元。外贸进出口总额稳住5000亿元 体量。2026年龙华区将实施提质增效"十大计划"，全面建设"数智龙华"，推动多个产业集群产值突破千 亿，其中智能终端产业集群产值突破2000亿元。 回顾"十四五" 稳居全国城区第一梯队 规上工业总产值五年跨过两个千亿级台阶 报告全面回顾"十四五"及2025年工作成效，科学擘画"十五五"及2026年发展蓝图。龙华区在"十四五"期 间的发展交出高分答卷。实现综合实力跨越式提升，稳居全国城区第一梯队，先后获评全国影响力城 区、活力城区，跃居综合竞争力百强区第22位，战略地位实现历史性跃升，正加速成长为粤港澳大湾区 重要增长极。 五年来，龙华区发展成绩单亮点纷呈，多项核心数据斩获全国、全市第一，发展韧性与活 ...

Summary of Key Points from the Conference Call Industry Overview: China’s Economic Performance Economic Growth - Q4 2025 real GDP growth slowed to **4.5% y-o-y**, down from **4.8% in Q3** [1] - Nominal GDP growth increased slightly to **3.8% y-o-y** in Q4 from **3.7% in Q3**, with the GDP deflator improving to **-0.7% y-o-y** from **-1.1%** [1] Industrial Production - Industrial production (IP) growth rose to **5.2% y-o-y** in December from **4.8% in November**, driven by a **6.6% y-o-y** increase in exports [1][8] - Manufacturing sector output growth increased to **5.7% y-o-y** in December, while mining and utility sectors saw declines [9] Retail Sales - Retail sales growth decelerated sharply to **0.9% y-o-y** in December from **1.3% in November**, indicating weak consumer demand [22] - Full-year retail sales growth was marginally up to **3.7% in 2025** from **3.5% in 2024**, with a notable drop in H2 [23] Fixed Asset Investment (FAI) - FAI growth plunged to **-16.0% y-o-y** in December from **-11.1% in November**, marking the lowest since the onset of COVID-19 [14] - The property sector continued to be a significant drag, with FAI in this sector down **-36.3% y-o-y** in December [27] Key Concerns and Policy Responses Domestic Demand Slowdown - Beijing is increasingly concerned about the significant slowdown in domestic demand, prompting a new round of fiscal and financial policy easing measures [3] - Interest rates were cut by **25 basis points** on various lending facilities to stimulate demand [3] Population and Consumption - The newborn population fell to **7.92 million** in 2025, the lowest since 1949, contributing to weak domestic consumption growth [4][5] - The household savings rate increased to **32.0%** in 2025, indicating a shift towards saving rather than spending [7] Future Outlook - The current economic conditions suggest that the worst may be yet to come, particularly in retail and investment sectors [2] - Policymakers may need to implement more comprehensive measures to stabilize growth and support the property sector [3] Sector-Specific Insights Automotive Sector - Auto output growth dipped to **-2.8% y-o-y** in December, with domestic demand remaining weak despite a surge in exports [12] - Passenger car sales saw a **-32.0% y-o-y** collapse in early January 2026, indicating ongoing challenges [2] Property Market - Property investment growth fell to **-36.3% y-o-y** in December, with new home sales also deeply negative [27] - Average home prices continued to decline, with a **6.1%** drop in existing home prices for the year [28] Export Challenges - Despite a strong performance in December, China's export sector is expected to face headwinds in 2026, particularly due to tariffs imposed by Mexico [13] Conclusion - The economic landscape in China is characterized by slowing growth, weak domestic demand, and significant challenges in the property and retail sectors. Policymakers are expected to take further actions to stimulate the economy, but the effectiveness of these measures remains uncertain.

Core Viewpoint - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions, highlighting the inherent risks involved in trading [3]. Group 1 - The analysis is intended solely for informational purposes and should not be interpreted as professional investment advice [3]. - There is a clear disclaimer regarding the lack of any stock, option, or similar derivative positions in the companies mentioned, indicating a neutral stance [2]. - The article expresses the author's personal opinions and does not reflect the views of any affiliated organization [4].

Core Viewpoint - The article highlights the exceptional customer service provided by Shandong Mobile in helping elderly customers adapt to new technology, showcasing the company's commitment to user needs and satisfaction [1][3]. Group 1: Customer Service Excellence - An elderly customer, Mr. Guo, received personalized assistance from a staff member, Xiaocui, who patiently guided him in using a new smartphone and offered her contact information for future help [1]. - Xiaocui went above and beyond by visiting Mr. Guo's home to assist him with connecting to Wi-Fi for video calls, demonstrating a high level of dedication and care [1]. - Mr. Guo expressed his gratitude by praising Xiaocui's service to the branch manager, emphasizing the importance of such attentive customer support [1]. Group 2: Company Commitment - Shandong Mobile's service promises include a commitment to efficiently respond to customer needs, which is reflected in the daily operations of their service centers [1]. - The company emphasizes that customer satisfaction is a priority, with real actions taken to ensure users feel supported and connected [1].

Core Insights - Taiwan Semiconductor Manufacturing Company Limited (TSM) reported fourth-quarter 2025 earnings per share (EPS) of $3.14, reflecting a 40.2% year-over-year increase and surpassing Zacks Consensus Estimates by 11.4% [1] - TSM's net revenues for the fourth quarter reached $33.73 billion, a 25.5% increase year-over-year, also exceeding Zacks Consensus Estimates by 1.4% [1] Financial Performance - Revenue distribution by platform in Q4 2025: high-performance computing (55%), smartphone (32%), Internet of Things (5%), automotive (5%), digital consumer electronics (1%), and other segments (2%) [2] - Wafer revenues by technology: 5nm technology contributed 35%, 3nm contributed 28%, and 7nm contributed 14% to total wafer revenues [3][4] - Geographical revenue contributions: North America (74%), China (9%), Asia Pacific (9%), Japan (4%), and EMEA (4%) [5] - Gross margin was 62.3%, an increase of 330 basis points year-over-year; operating margin was 54%, expanding 500 basis points; net profit margin was 48.3%, up 520 basis points [5] Balance Sheet & Cash Flow - As of December 31, 2025, cash and cash equivalents were $97.59 billion, up from $90.11 billion as of September 30, 2025; inventories were $9.16 billion, down from $9.46 billion; accounts receivable decreased to $8.96 billion from $10.08 billion [6] - Long-term debt decreased to $32.25 billion from $34.15 billion in the previous quarter; free cash flow was NT$368.60 billion [7] Guidance - For Q1 2026, TSM expects revenues between $34.6 billion and $35.8 billion, with a Zacks Consensus Estimate of $32.52 billion; gross profit margin is anticipated to be between 63% and 65%, and operating profit margin between 54% and 56% [8]