Artificial Intelligence▼
China AI Stocks’ 1,000%-Plus Profit Gains Fail to Revive Rally
China’s artificial intelligence companies are poised to deliver robust earnings, but elevated expectations after a months-long rally are raising the bar for tech stocks to climb further. A number of companies along the chip supply chain have flagged profit surges easily topping 1,000% in their preliminary reports, yet stock moves have been mixed, suggesting investors have already priced in exponential earnings growth. The CSI 300 Information Technology Index, which tracks semiconductor and electronic component makers listed on the mainland, has retreated recently after gaining 80% in the June quarter, and its valuation has risen to 36 times one-year forward earnings from 28 times in April. Shares of Shannon Semiconductor Technology Co. dropped by the daily limit of 20% after it flagged earnings growth of more than 2,000%, while Shenzhen Techwinsemi Technology Co. slumped by the daily limit of 10% following a forecast of as much as 5,600% in net income growth for the first half. Memory chipmaker Shenzhen Longsys Electronics Co. flagged a profit increase topping 62,200%, and although its shares rose 10% on the day, they have since erased all gains.
Bloomberg·41dRead more ▾
Semiconductors▼impact 4
Demingli hits limit-down for second straight day as memory concept stocks plunge
Memory leader Demingli opened at limit-down again during the call auction on July 16, marking its second consecutive limit-down day, with its latest market capitalization at 135.24 billion yuan. Tianshan Electronics fell over 10 percent, while Montage Technology, Shannon Semiconductor, GigaDevice, and Longsys were among the leading decliners. Earlier, Demingli released its first-half earnings forecast, projecting revenue of 16 billion to 18 billion yuan, a year-on-year increase of 289.39 percent to 338.06 percent, and net profit attributable to shareholders of 5.7 billion to 6.5 billion yuan, a surge of 4,932.74 percent to 5,611.02 percent. However, second-quarter net profit is expected to decline 5.74 percent to 29.65 percent quarter-on-quarter. Overnight, US memory chip stocks tumbled, with Micron Technology, SanDisk, and Western Digital all dropping over 8 percent, while South Korea's SK Hynix and Samsung Electronics also fell sharply. BOCOM International noted that memory price increases slowed marginally in June, but maintained its view that the industry supply shortage will persist at least through the fourth quarter of 2027.
公开信息·42dRead more ▾
300475.CS▼
Bank Stocks Buck the Downtrend While Memory Chip Sector Tumbles
China's A-share market saw all three major indices decline in the morning session on July 13, with the Shenzhen Component Index and the STAR Composite Index both falling more than 2%. Over 4,500 stocks across the market ended in the red. The memory chip sector suffered a sharp pullback, with Demingli hitting its daily limit down, Shannon Core Innovation plunging 19.93%, and Puya Semiconductor and Beijing Junzheng both dropping over 11%. Bank stocks bucked the trend and moved higher, with Bank of Suzhou surging over 6%, Bank of Ningbo rising over 4%, and Industrial and Commercial Bank of China and Bank of Communications gaining more than 2%. The total dividends of 41 banks for the 2025 fiscal year exceeded 645.6 billion yuan, setting a new record. The traditional Chinese medicine sector saw a short-term spike, with Longshen Rongfa hitting its 20% daily limit up and Tianmu Pharmaceutical reaching its 10% daily limit up. The State Council recently approved the 15th Five-Year Plan for the Revitalization and Development of Traditional Chinese Medicine.
中国基金报·45dRead more ▾
Shannon Semiconductor: First-Half Net Profit Expected to Rise 2,117.54%–2,434.34% Year-on-Year
Shannon Semiconductor disclosed its earnings forecast, expecting net profit attributable to the parent company for the first half of 2026 to be between 3.5 billion and 4 billion yuan, representing a year-on-year increase of 2,117.54% to 2,434.34%. During the reporting period, the memory chip industry maintained high prosperity, with prices of related products rising steadily compared to the same period last year. The company's comprehensive gross margin for its electronic component distribution business improved year-on-year, driving a significant increase in profitability. Meanwhile, the company's proprietary brand 'Haipu Storage' continued to advance its related business and entered the large-scale sales phase.
证券时报·48dRead more ▾
300475.CS▲impact 4
Xiangnong Xinchuang expects first-half net profit of 3.5 billion to 4.0 billion yuan, up over 21 times year-on-year
Xiangnong Xinchuang released its first-half performance pre-increase announcement, expecting net profit of 3.50 billion to 4.00 billion yuan, a year-on-year increase of 2117.54% to 2434.34%. Securities Times Data Treasure statistics show that the stock closed at 271.00 yuan today, up 1.13%, with a daily turnover rate of 9.65%, trading volume of 11.919 billion yuan, and a 2.55% increase over the past five days. In terms of capital flows, main funds saw a net inflow of 1.384 billion yuan today, and a net inflow of 1.883 billion yuan over the past five days. The latest margin trading balance was 7.215 billion yuan, of which the financing balance was 7.207 billion yuan, up 6.67% from the previous trading day, while the financing balance has cumulatively decreased by 1.40% over the past five days.
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300475.CS▲
Multiple Companies on Shanghai and Shenzhen Exchanges Release Positive Announcements on the Evening of July 10
Several listed companies on the Shanghai and Shenzhen stock exchanges released significant positive announcements on the evening of July 10. Tuojing Technology plans to acquire 82.97% equity in Wuxi Shangji and other assets through a combination of share issuance and cash payment, along with raising supporting funds. Trading of its shares will resume on July 13. Sanfu New Materials intends to invest 15 million yuan to participate in establishing a joint venture engaged in the research, development, and production of high-end electronic copper foil. He Zhenya, the controlling shareholder of Dynamic Power, plans to transfer 9% of his shares to Hongmian Science and Technology Innovation. The controlling shareholder will change to Hongmian Science and Technology Innovation, and the actual controller will change to Chen Zhimao. Trading of its shares will resume on July 13. CITIC Securities expects its net profit attributable to the parent company in the first half of the year to be 23.343 billion yuan, a year-on-year increase of 69.59%. Shannon Chuangxin expects its net profit attributable to the parent company in the first half of the year to be between 3.5 billion and 4 billion yuan, a year-on-year increase of 2,117.54% to 2,434.34%. Power Diamond expects its net profit attributable to the parent company in the first half of the year to be between 80 million and 93 million yuan, a year-on-year increase of 208.71% to 258.88%. Sichuan Gold expects its net profit attributable to the parent company in the first half of the year to be between 390 million and 450 million yuan, a year-on-year increase of 86.94% to 115.7%. China Molybdenum expects its net profit attributable to the parent company in the first half of the year to be between 15.5 billion and 16.5 billion yuan, a year-on-year increase of 78.76% to 90.29%. Rongjie Shares expects its net profit attributable to the parent company in the first half of the year to be between 900 million and 1.1 billion yuan, a year-on-year increase of 956.84% to 1,191.69%. Rike Chemical plans to acquire 70.75% equity in Genyuan New Materials, adding a new energy battery electrolyte material business. Trading of its shares will resume on July 13. Shaanxi Blower Power plans to acquire the remaining 36.06% equity in Qinfeng Gas. After the transaction, it will hold 100% of Qinfeng Gas. Trading of its shares will resume on July 13. FiberHome Communications plans to raise no more than 2.913 billion yuan through a private placement and also plans to acquire 60% equity in Fujikura FiberHome for 500 million yuan. A controlling subsidiary of Dongyangguang has signed a computing power service contract worth between 13 billion and 15 billion yuan. Unisplendour expects its net profit in the first half of the year to be between 1.91 billion and 2.32 billion yuan, a year-on-year increase of 83.5% to 122.89%.
Eastmoney·48dRead more ▾