CXMT IPO lifts chip sector; SK hynix US IPO 7x oversubscribed | Daily News Recap

0709 ｜Dolphin Focus:

🐬 Macro/Industry

1. Per the National Bureau of Statistics, Jun CPI rose 1.0% YoY and fell 0.3% MoM; core CPI also +1.0% YoY. Food prices declined YoY while non-food edged higher, and services consumption remained resilient. PPI increased 4.1% YoY. Household demand is recovering slowly, which near term favors baijiu, retail, and services, while weak food prices cap agri names; an overall loose macro backdrop leaves room for further growth-support policies.

2. ChangXin Technology filed its prospectus and will open books on Jul 16, targeting RMB 29.5bn, the STAR Market's second-largest IPO. The company is the only domestic mass producer of DDR5 memory; H1 net profit surged over 22x YoY, and the chairman pledged not to reduce holdings for ten years, signaling long-term confidence. The IPO validates China's push for memory self-sufficiency and serves as a key catalyst for order conversion across the supply chain. HK-listed memory and semi equipment names rallied today, reinforcing the domestic substitution case for upstream materials and equipment.

🐬 Single Stocks

1.$SK Hynix(SKHY.US)

SK hynix's US ADR offering was over 7x oversubscribed, drawing broad participation from global sovereign funds and long-only tech capital. Based on Wed's Korea close of KRW 2.076mn, the raise is approx. $24.5bn, with proceeds fully earmarked for HBM capacity expansion. Despite a recent pullback in memory names, institutions are accumulating, underscoring the AI compute-driven structural tightness in HBM. The event lifts global memory chip valuations, benefiting Micron and Samsung, while highlighting the growth runway for domestic ChangXin and YMTC and aiding sentiment across HK's local memory supply chain.

2.$Apple(AAPL.US) $Broadcom(AVGO.US)

Apple announced a multi-year chip supply deal with Broadcom totaling over $30bn. Broadcom will produce 15bn RF and custom ASIC chips in the US and invest $1.5bn to expand its Colorado facility. The partnership covers wireless components for multiple iPhone and Mac generations and AI application-specific chips, securing core components for years. The sizable LT order book underpins Broadcom's earnings, lifting US RF chip and advanced packaging peers, while Apple's increased onshore production could accelerate global supply-chain reconfiguration, benefiting RF component ecosystems.

🐬 Top Gainers

A-shares: data processing & outsourcing; semiconductor materials & equipment; chipmakers.

HK: chipmakers; system software; telecom equipment.

US: drug retailers; oil & gas refining & marketing; energy equipment & services.

🐬 Watch Tomorrow

China Jun M2 money supply (YoY).

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