Hangzhou Chang Chuan Technology Co Ltd

The A-share market, amid volatile adjustments, is seeing a concentrated wave of dividend distributions. On July 28 alone, 20 listed companies carried out ex-rights and dividend payments, distributing a total of approximately 10.7 billion yuan in cash. Among them, China Railway Construction paid out 4.074 billion yuan, Huayu Automotive Systems paid 3.153 billion yuan, and Huaneng Mengdian paid 1.724 billion yuan. Several brokerages, including Guolian Minsheng, Dongxing Securities, and Cinda Securities, also distributed dividends exceeding 100 million yuan each. Meanwhile, within the month, nine companies have disclosed their 2026 interim dividend plans, with total proposed payouts exceeding 25 billion yuan. Zijin Mining leads with a proposed payout of 11.136 billion yuan, while Hikvision and CATL plan to distribute 5.041 billion yuan and 6.493 billion yuan respectively. Most companies reported strong first-half earnings, with some posting significant net profit growth, providing support for the dividends. Additionally, Shanghai Airport's controlling shareholder has proposed raising the interim cash dividend payout ratio to around 55 percent, and Changchuan Technology is expected to carry out its first interim dividend since listing.

On July 24, the semiconductor equipment concept sector in the A-share market bucked the trend and was active. PNC Process Systems hit its daily limit up in a straight line, Torrens surged over 12 percent, and stocks such as Qiangyi, Changchuan Technology, NAURA Technology Group, and Kingsemi moved higher in tandem. A report from SEMI forecasts that global semiconductor equipment sales will increase 23.2 percent year-on-year to 165.9 billion US dollars in 2026, and the market size will reach a record high of 229.5 billion US dollars in 2028, driven by expansion of AI infrastructure and investments in advanced logic chips and high-bandwidth memory. China Galaxy Securities believes that the global semiconductor sector's pullback since July has been mainly due to factors such as capital deleveraging and profit-taking, and risks have now been largely released. It recommends focusing on areas like advanced packaging, wafer foundry, semiconductor equipment, and materials. Industrial Securities points out that the domestic memory industry chain still has enormous room for development and capital expenditure, upstream equipment and material companies are facing development opportunities, and the industry's gross margin is likely to trend upward during the capital expenditure upcycle. Sinolink Securities states that overseas semiconductor equipment delivery times have extended to 12 to 24 months and prices have started to rise. Expansion by leaders such as Samsung, SK Hynix, and Micron is constrained by equipment supply bottlenecks. Domestic semiconductor equipment companies, leveraging technological progress, efficient delivery, and cost advantages, are seeing accelerated opportunities for overseas verification and order landing, and are expected to go global and open up incremental space.

The Shenzhen electronics sector's first-half 2026 earnings previews are full of highlights, with 56 companies projecting median attributable net profit growth exceeding 50%, and 37 of them exceeding 100%. The semiconductor industry performed especially well, with 15 companies projecting median attributable net profit growth over 50%, and 13 over 100%. TCL Technology expects attributable net profit of 3.7 billion to 3.92 billion yuan, up 96% to 108% year-on-year, with subsidiary TCL CSOT net profit exceeding 3.8 billion yuan. Tongfu Microelectronics expects attributable net profit of 1.6 billion to 1.8 billion yuan, up 288.26% to 336.80%, benefiting from AI computing power buildout and accelerated localization. Wus Printed Circuit expects attributable net profit of 2.83 billion to 3 billion yuan, up 68.17% to 78.28%, with its Thailand subsidiary turning profitable in the second quarter on a single-quarter basis. Changchuan Technology expects attributable net profit of 900 million to 1 billion yuan, up 139.38% to 167.38%, with sales of product lines such as digital testers growing significantly. Konfoong Materials International expects attributable net profit of 480 million to 560 million yuan, up 89.99% to 121.65%, with revenue from semiconductor precision components continuing to grow. Dapu Microelectronics expects operating revenue to increase by 474.73% to 541.56% year-on-year, with attributable net profit of 1.2 billion to 1.35 billion yuan, swinging from a loss to a substantial profit, and its 122-terabyte capacity QLC SSD has achieved commercial deployment.

Hikvision's chairman proposes a cash dividend of 5.5 yuan per 10 shares to all shareholders, with the total interim cash dividend reaching 5.041 billion yuan, up from 3.666 billion yuan in the 2025 interim period. Hithink RoyalFlush plans to distribute 2 yuan per 10 shares, totaling approximately 151 million yuan, a significant increase from 54 million yuan in the same period last year. The controlling shareholder of Shanghai Airport proposes raising the 2026 interim cash dividend payout ratio to around 55 percent. Changchuan Technology and Yiwu China Commodity City each announced their first-ever interim dividend plans since listing. Industry insiders point out that improving corporate earnings, long-term capital's preference for high dividends, and ongoing regulatory guidance on dividend distribution are jointly driving this wave of interim dividends.

As of July 13, 45 ChiNext-listed companies have released their first-half earnings previews. Among them, 37 forecast profit growth and 4 expect to turn profitable, bringing the combined positive ratio to 91.11 percent. Based on the median estimated net profit growth, 25 companies are projecting increases exceeding 100 percent. Longsys leads with a surge of 68,298.99 percent, followed by Fushine Pharmaceutical and Tianhua New Energy in second and third place with gains of 2,845.50 percent and 2,578.97 percent respectively. Stocks expected to double their earnings are concentrated in sectors such as electronics, power equipment, and computing, with 9, 4, and 3 names respectively. In terms of market performance, these doubling stocks have risen by an average of 85.93 percent year-to-date. Xingyun Technology, Changchuan Technology, and Han's CNC led the gains, surging 359.82 percent, 247.92 percent, and 183.69 percent respectively.

According to statistics from Securities Times Data Treasure, 12 ChiNext-listed companies have released their first-half earnings forecasts. Among them, 9 companies reported profit growth, 2 reported profits, and the proportion of companies with profit growth reached 75%. Fushine Pharmaceutical posted the highest median net profit growth estimate at 2,845.50%, while Fuman Microelectronics and Changchuan Technology recorded median growth of 379.59% and 122.47%, respectively. Companies such as EVE Energy, Silverage Technology, and Sanrui Intelligent saw growth exceeding 50%, spanning sectors including pharmaceuticals and biotech, electronics, and electrical equipment.

Chinese hardware technology stocks face a critical earnings season as investors question whether the record rally in the chip-heavy STAR 50 Index can be sustained. The index has surged 64% this quarter, driven by AI infrastructure spending and Beijing's support for homegrown tech champions, but earnings estimates have risen only about 4%, leaving it trading at a record 69 times forward earnings. Fund managers warn that sentiment may be near a temporary peak, with money already rotating into niche AI supply-chain areas. Early earnings previews have been positive, with Satellite Chemical projecting up to 155% first-half profit growth and Hangzhou Chang Chuan Technology expecting net income to at least double. Analysts at Goldman Sachs and Morgan Stanley remain bullish on mainland-listed shares, citing stronger earnings performance and a higher concentration of hardware tech names compared to Hong Kong.