BIHUAHO@EC2612A

CLSA Reiterates Outperform Ratings and Target Prices for Semiconductor Companies

HUA HONG SEMI to Release FY2026 Q1 Earnings on May 14 After-Market (BJT), Forecast Revenue HKD 5.167 B, EPS HKD 0.1386

Morgan Stanley Maintains Huahong Semiconductor 'In-Line' Rating

US Orders Multiple Chip Equipment Companies to Halt Shipments to HuaHong's Factories

CLSA Reports Resurgence in Analog Chip Demand, Upside for SMIC and Hua Hong

HuaHong Semiconductor Reports Revival in Demand for Mature Chip Processes in 2025 Annual Report

Huahong Semiconductor to Hold Annual General Meeting in 2026

Nomura Raises Semiconductor Manufacturing Company Huahong Target Price to HKD 116.00

Huahong Company Announces Pricing Strategy Adjustments to Boost Average Selling Prices

Huahong Company's Collaboration with STMicroelectronics on 40nm MCU Progressing Smoothly

Huahong Semiconductor's Acquisition of Huaile Micro Acquired CSRC's Approval

Huahong Semiconductor Receives Shanghai Stock Exchange Approval for Share Issuance Acquisition Plan

Huahong Semiconductor Announces Annual Profit and Suggests Name Change

HuaHong Announces Revenue Growth and Profit Decline for 2025 Without Dividend Distribution

Hong Kong Chip Stocks Open Lower: Gigadevice Down Over 5%, Huahong Semiconductor Follow Lower

HUA HONG SEMI to Release FY2025 Earnings on March 26 Pre-Market (BJT), Forecast Revenue HKD 18.75 B, EPS HKD 0.3215

Morningstar Maintains Semiconductor Manufacturing International's Fair Value Estimate at HKD 34

HuaHong Group Develops 7 Nanometer Chip Technology Ready for Production

Morgan Stanley Upgrades Semiconductor Company Huahong

Shanghai Huayaoxin Semiconductor Co., Ltd. Established with Registered Capital of 1 Billion Yuan

ASIA PIONEER

EASYHOLD GROUP

RONGZUN INT’L H

SFSY NEW MAT

CENTRALCHINA MT

HAITIAN ANTENNA

TOMO HOLDINGS

HENGDELI

WT GROUP

160 HEALTH

01357

01347

09992

159516

588170

159546

During intraday trading on May 8, Hong Kong's three major indices fluctuated lower, with both the Hang Seng Index and the Hang Seng Tech Index falling more than 1%. Affected by the sharp drop in US chip stocks overnight and geopolitical risks, Hong Kong's semiconductor sector plunged collectively, with HUA HONG SEMI and SMIC seeing significant declines. Meanwhile, market funds showed a clear shift from high to low valuations and structural gaming. AI application concept stocks performed actively, with MEITU surging more than 14%; toy trend leader POP MART rose more than 5% against the trend, driven by position adjustments by well-known investors, with extremely active trading

- On May 8, Hong Kong's major stock indices experienced declines, with the Hang Seng Index reflecting overall weakness.  
- Semiconductor stocks were heavily impacted following a drop in the Philadelphia semiconductor index and concerns over AI chip supply, while companies like Meitu and Pop Mart saw significant gains.  
- The lithium battery sector also faced downward pressure, with notable drops from Tianqi Lithium and Ganfeng Lithium, despite Xiaomi's stock rising amid strong profit expectations.

Market Pulse

MEITU

HUA HONG SEMI

POP MART

Guotai CSI Semiconductor Material Equipment Theme ETF

ChinaAMC SSE STAR Semiconductor Material & Equipment Thematic ETF

Guotai CSI All Share Integrated Circuit ETF

TRACKER FUND

CSOP HS TECH

SMIC

GIGADEVICE

ILUVATAR COREX

MONTAGE TECH

Montage Technology

XL2CSOPHYNIX

XL2CSOPSMSN

Sandisk

CHINA SHENHUA

CSEC/China Shenhua

XUNCE

BIDU-SW

Baidu

MARKETINGFORCE

Deutsche Bank AG

TIANQI LITHIUM

GANFENGLITHIUM

Ganfeng Lithium

CATL

XIAOMI-W

Goldman Sachs

KUAISHOU-W

TENCENT

HSBC HOLDINGS

HSBC

BABA-W

Alibaba

YOFC

Hua Hong

SMIC HK SDR 5to1

Sandisk - WI

POP MART HK SDR 20to1

BIDU-SWR

Deutsche Bank AG Subscription Rights

Deutsche Postbank AG

CATL HK SDR 30to1

Xiaomi Corporation

XIAOMI-WR

Xiaomi HK SDR 2to1

GS Hldg R

KUAISHOU-WR

Tencent

TENCENT-R

Tencent HK SDR 10to1

Tencent Holdings Limited

AIA-R

AIA Group

HSBC 5xShortSG241213

HSBC Holdings Plc

BABA-WR

Alibaba HK SDR 5to1

Hong Kong Stocks Intraday | Three Major Indices Fluctuate and Weaken, Semiconductor Sector Plunges, AI Applications and POP MART Buck the Trend

The HSI closed up 412 points at 26,626, reflecting a positive trend in Hong Kong equities, driven by gains in major stocks like KUAISHOU-W and HUA HONG SEMI. The market turnover reached HKD312.489 billion. Notable performers included JOHNSON ELEC H, which soared 20%, and TECHTRONIC IND, gaining 10.3% after a target price increase by JPM. Overall, the market showed strong performance across various sectors, including technology and automotive stocks, amidst favorable external market conditions.

AASTOCKS News

HSI Closes Up 412 pts; KUAISHOU-W, HUA HONG SEMI Surge; JOHNSON ELEC H Soars 20%

06082

06809

00669

00087

00857

01171

00883

01898

01088

BIREN TECH(06082) rose 14.8%, with a trading turnover 1.0 Billion HKD, and a year-to-date rose 198.7%. MONTAGE TECH(06809) rose 11.19%, with a trading turnover 1.7 Billion HKD, and a year-to-date rose 234.5%. PETROCHINA(00857) fell 8.48%, with a trading turnover 3.4 Billion HKD, and a year-to-date rose 27.6%. YANKUANG ENERGY(01171) fell 6.73%, with a trading turnover 974.1 Million HKD, and a year-to-date rose 52.8%.

Top Gainers&Losers

BIREN TECH

TECHTRONIC IND

SWIRE PACIFIC B

PETROCHINA

YANKUANG ENERGY

CNOOC

CHINA COAL

Top 5 HK Stock Gainers/Losers (>100B) (5.7)

688347

STECH

00HSI

The HSI rose 410 points to 26,623 at midday, driven by positive US market performance and strong earnings from AMD boosting chip stocks. The HSTECH gained 3.1%, with notable surges in KUAISHOU-W and HUA HONG SEMI, both up over 7%. Major stocks like TENCENT and BABA-W also saw gains, while turnover reached HKD165.774 billion. The overall market sentiment remains optimistic amid potential peace talks between the US and Iran.

Hang Seng TECH Index

Hang Seng Index

HSI Up 410 pts at Half Day; HSTECH Gains 3%; KUAISHOU-W  and HUA HONG SEMI Surge Over 7%

SOXL

CLSA has reaffirmed its High-Conviction Outperform rating on LQKJand Outperform ratings on GIGADEVICE, SMIC, and HUA HONG SEMI. The report includes target prices for these stocks: LQKJ at RMB209.6, GIGADEVICE at RMB399.5, SMIC at RMB152, and HUA HONG at RMB177.5 for A shares, with respective performances noted. Short selling data indicates significant activity in SMIC and HUA HONG SEMI.

Direxion Semicon Bull 3X

CLSA's Ratings and TPs for CN Semis (Table)

06166

06869

01729

Hong Kong's optical communication stocks surged before midday trading, with Yangtze Optical Fibre and Cableincreasing over 8.5%, Hua Hong Semiconductorrising more than 7%, Cambridge Technologyclimbing nearly 7%, and Huiju Technologyadvancing over 6%.

CoinLive

TIME INTERCON

STOCKS | Hong Kong Optical Communication Stocks Surge Before Midday

01698

The Hang Seng Tech Index rose over 3% intraday, while the Hang Seng Index increased by 1.54%. Kuaishou surged over 7%, Hua Hong Semiconductor climbed more than 6%, and Tencent Music, Kingsoft, and Baidu all gained over 5%.

TME-SW

Tencent Music

KINGSOFT

STOCKS | Hang Seng Tech Index Rises Over 3% Amid Broad Gains in Hong Kong Stocks

688008

03986

CLSA has reiterated its High-Conviction Outperform rating on MONTAGE TECH, citing strong demand for CPUs as a key driver. The report highlights that AMD's positive results and guidance indicate a shift in AI data center infrastructure, expanding the market for server CPUs. GIGADEVICE, SMIC, and HUA HONG SEMI also received Outperform ratings due to rising demand and favorable market conditions in the semiconductor sector. MONTAGE TECH is expected to benefit significantly from this trend, while GIGADEVICE and SMIC are positioned well in the memory and logic segments, respectively.

- CLSA's report reveals that Advanced Micro Devices, Inc. (AMD) exceeded expectations for 1Q26 and offered positive guidance for 2Q26.  
- The report notes a shift in the CPU to GPU ratio for AI data centers from 1:4 (or 1:8) to 1:1, potentially expanding the server CPU market to over USD 120 billion by 2030.  
- Various companies, including MONTAGE TECH and GIGADEVICE, are expected to benefit from strong demand in CPUs and rising memory prices, with the broker maintaining positive ratings for these stocks.

Guotai CES Semiconductor Chip Industry ETF

First Trust Nasdaq Food & Semicon

VanEck Semiconductor ETF

SPDR S&P Semicon

GTJA Allianz SSE STAR Chip Design Thematic ETF

Invesco PHLX Semiconductor ETF

iShares Semiconductor ETF

Invesco Semiconductors ETF

Direxion Daily AMD Bull 2X Shares

ChinaAMC Guozheng Semiconductor Chip ETF

GTJA Allianz CSI All Share Semiconductors & Semiconductor Equipment ETF

GraniteShares 2x Long AMD Daily ETF

CLSA Reiterates High-Conviction Outperform on MONTAGE TECH ; GIGADEVICE , SMIC , HUA HONG SEMI  Rated Outperform

688981

Hong Kong stocks rose, with the Hang Seng Index (HSI) closing at 26,213, up 315 points or 1.2%. Market turnover reached HKD304.7 billion, despite a net outflow of HKD8.565 billion from southbound funds. Chip stocks surged, driven by strong global demand, with notable gains from AMD and local firms like SMIC and HUA HONG SEMI. The market breadth improved, with 1,182 stocks rising. Banking stocks also saw gains, while short selling accounted for 17.8% of turnover. Spot gold increased nearly 3.1% to USD4,700 per ounce.

Abrdn Gold ETF Trust

Sprott JR Gold Miners ETF

Us Gbl GLD & Met

Pro Ultr GLD

ChinaAMC CSI SH-SZ-HK Gold Industry Equity ETF

Direxion Daily Gold Miners Bull 2X

Roundhill Gold Miners Weeklypay ETF

YieldMax Gold Miners Opt Inc Strgy ETF

VanEck Junior Gold Miners ETF

iShares MSCI Global Gold Miners

ChinaAMC Gold ETF

SPDR GOLD TRT

VanEck Gold Miners ETF

GLOBAL X Gold Explorers

SPDR Gold Minishares

HK Stocks Rise with Turnover HKD304.7 Billion but Southbound Funds Net Outflow HKD8.565 Billion; Chip Stocks Surge

01989

09868

02050

01880

MONTAGE TECH(06809) rose 16.78%, with a trading turnover 1.9 Billion HKD, and a year-to-date rose 200.9%. DELTON(01989) rose 14.5%, with a trading turnover 657.1 Million HKD, and a year-to-date rose 198.8%. CHINA COAL(01898) fell 4.54%, with a trading turnover 531.0 Million HKD, and a year-to-date rose 37.3%. YOFC(06869) fell 4.07%, with a trading turnover 5.4 Billion HKD, and a year-to-date rose 319%.

- The Hang Seng Index rose by 1.22%, with a year-to-date increase of 2.3%.  
- Key stocks like Lanki Technology (06809) saw a significant rise of 16.78%, leading to a total annual increase of 200.9%.  
- In contrast, Zhongmei Energy (01898) decreased by 4.54%, while Zhangfei Optical Fiber (06869) fell by 4.07%, despite their year-to-date gains of 37.3% and 319%, respectively.

BIHUAHO@EC2612A(28991.HK)