SMIC (00981) stated that the proportion of specialty memory in its output has increased quarter-over-quarter. At an earnings briefing on May 15th, SMIC indicated that it has not observed any loosening in the memory market. This could be due to the faster-than-expected development of the AI industry compared to the company's previous quarter's forecasts, or it might be that inventory held by memory distributors has not yet been released and may even be increasing further, though this is speculative without substantial data support. Across the broader market the company operates in, capacity for specialty memory has been squeezed. Many IDM manufacturers that previously produced specialty memory have ceased production, leading to tight supply in both general and specialty markets. "SMIC is building relevant capacity. Our advantage lies in flexibility. When developing specialty memory capacity, approximately 90% of the equipment and processes are compatible with existing logic circuits. Only about 10% of specialized equipment needs to be added to switch an entire production line. The current challenge is that existing production lines for logic circuits, MCUs, etc., are already operating at full capacity, making it impossible to switch capacity directly. Therefore, we can only gradually convert a portion of our output to specialty memory based on overall capacity expansion. This work is progressing steadily. Essentially, the proportion of specialty memory is higher each quarter than the last, but it still remains in a state of undersupply," said a relevant SMIC executive. Related Hong Kong stocks involved in memory chips include: SMIC (00981), Hua Hong Semiconductor (01347), Gigadevice (03986), and Montage Technology (06809).
【Market Outlook】 WTI crude oil futures settled at $104.03 per barrel, down 0.34%. Overnight, U.S. stocks closed lower. The Dow Jones Industrial Average fell 322.24 points, or 0.65%, to close at 49,363.88. The S&P 500 index dropped 49.44 points, or 0.67%, to 7,353.61. The Nasdaq Composite declined 220.02 points, or 0.84%, to 25,870.71. Most large-cap tech stocks fell, with Google and Amazon dropping over 2%. Some optical communication concept stocks strengthened, with Astera Labs rising over 13%, Credo Technology and Maxlinear up over 8%, AXT gaining over 6%, and Ciena rising over 3%. Popular Chinese concept stocks were mixed. The Nasdaq Golden Dragon China Index edged down 0.01%. MYS Intelligent surged over 7%, and Himax Technologies gained over 6%. The Hang Seng Index ADR rose, with the proportional calculation closing at 25,805.48 points, up 7.63 points or 0.03% from the Hong Kong market close. The front-month WTI crude oil futures contract on the New York Mercantile Exchange fell $0.35 to settle at $104.03 per barrel, a decline of 0.34%. The front-month COMEX gold futures contract dropped $72.60, or 1.59%, to settle at $4,485.4 per ounce.
【Key Focus】 U.S. Treasury yields breached the 5% mark, triggering another global bond sell-off. The yield on the 30-year U.S. Treasury note broke through the 5% barrier, reaching its highest level since 2007. Government bond yields in Japan, the U.K., and other countries also surged sharply, as a bond market sell-off swept across global markets ahead of the new Federal Reserve Chair taking office. Kevin Walsh is scheduled to be sworn in as Chair of the U.S. Federal Reserve on May 22nd. This bond market turmoil undoubtedly presents his first "stress test" upon assuming the role. Market expectations currently lean towards inflation control being the Fed's priority, severely limiting room for monetary easing in the short term. The prevailing view is that there will be no rate cuts this year, with the possibility of further hikes. Yangtze Memory Initiates IPO Tutoring, with CITIC Securities and China Securities as Sponsors. According to a filing on the China Securities Regulatory Commission website, Yangtze Memory Holdings Co., Ltd. has registered for IPO tutoring with the Hubei Securities Regulatory Bureau, planning an initial public offering and listing. The tutoring sponsors are CITIC Securities and China Securities. EU Considers Stockpiling Fertilizers to Stabilize Food Prices; May Implement Joint Procurement and Establish Minimum Inventory Mechanisms. As conflicts in the Middle East increase pressure on agriculture and potentially push up European food prices, the European Union is studying options to secure fertilizer supplies and boost local production capacity within Europe. On Tuesday (May 19th), the European Commission stated in a press release on its official website that it will evaluate options to ensure the supply of key fertilizers and inputs. These may include establishing seasonal or minimum inventories and, where appropriate, implementing joint procurement mechanisms. Phancy (06682) Enters Strategic Cooperation with HUANXI MEDIA (01003); Plans to Sign $20 Million API Service Framework Agreement and Subscribe to 731 Million HUANXI MEDIA Shares. On May 19, 2026 (after market close), Phancy International entered into a subscription agreement with HUANXI MEDIA, whereby Phancy International conditionally agreed to subscribe for 731 million shares of HUANXI MEDIA at a price of HK$0.275 per share. On May 19, 2026 (after trading hours), the company's wholly-owned subsidiary, Phancy International Limited, entered into a Large Model API Service Framework Agreement with HUANXI MEDIA regarding API services. Under this agreement, Phancy International will provide various large model API services to HUANXI MEDIA for a total fee of $20 million (approximately HK$157 million based on an exchange rate of 1 USD to 7.85 HKD). The fee will be calculated based on the Token consumption when HUANXI MEDIA and its subsidiaries apply AI in film and television production. The agreement is valid for two years. HUANXI MEDIA will prepay the service fee to Phancy International's designated entity within five business days of receiving the payment notice from the group. Bilibili (09626) Reports First-Quarter Adjusted Net Profit Up 62% Year-on-Year; Gross Margin Rises for 15th Consecutive Quarter; Monthly Active Users Surpass 376 Million. Bilibili (09626) announced its 2026 first-quarter results. Total net revenues reached RMB 7.47 billion ($1.08 billion), a year-on-year increase of 7%. Advertising revenue was RMB 2.59 billion ($375 million), up 30% year-on-year. Gross profit was RMB 2.77 billion ($402 million), a 9% increase year-on-year. The gross margin was 37.1%, up from 36.3% in the same period of 2025. Net profit was RMB 202 million, turning a profit compared to a loss in the prior year. Adjusted net profit was approximately RMB 585.4 million, an increase of 62% year-on-year. KE Holdings (02423) Releases First-Quarter Results; Adjusted Net Profit Up 15.7% to RMB 1.611 Billion. KE Holdings (02423) announced its 2026 first-quarter results. The group's total transaction value was RMB 711.7 billion, a decrease of 15.6% year-on-year. Net revenue was RMB 18.9 billion, down 19% year-on-year. Net profit was RMB 1.255 billion, an increase of 46.7% year-on-year. Adjusted net profit was RMB 1.611 billion, up 15.7% year-on-year. The company repurchased approximately $195 million worth of stock in the first quarter, an increase of about 40% year-on-year. ZTO Express (02057) Reports First-Quarter Net Profit of RMB 2.1564 Billion, Up 5.7% Year-on-Year; Parcel Volume Grows 13.2%. ZTO Express (02057) announced its 2026 first-quarter results. Revenue was RMB 13.282 billion, an increase of 22.0% year-on-year. Net profit was RMB 2.1564 billion, up 5.7% year-on-year. Adjusted net profit was RMB 2.377 billion, a 5.2% increase year-on-year. Adjusted basic earnings per ADS attributable to ordinary shareholders were RMB 3.01. Chifeng Gold (06693) Adjusts Subscription Price for New H Shares to HK$29.82 Under Special Authorization. Chifeng Gold (06693) announced that, according to the terms of the Strategic Investment Agreement, if the completion of the proposed investment occurs on or after the 2025 ex-dividend date (May 19, 2026), the total subscription price must be adjusted downward. As the proposed investment will not be completed before the 2025 ex-dividend date, the total subscription price will be reduced from approximately HK$9.386 billion to about HK$9.272 billion. The subscription price per share will be adjusted from HK$30.19 to HK$29.82 (rounded to the nearest HK$0.01), assuming no change in the total number of issued H shares from the date of this announcement to the record date for the 2025 dividend. The adjusted subscription price of HK$29.82 per share represents a discount of approximately 29.1% to the closing price of HK$42.08 per H share on March 18, 2026 (the last trading day prior to the date of the Strategic Investment Agreement). Lianlian DigiTech (02598) Obtains Category 3D Payment License from Dubai Financial Services Authority. Lianlian DigiTech (02598) announced that the group has obtained a Category 3D Payment License issued by the Dubai Financial Services Authority. This license authorizes the company to conduct regulated activities across the entire Dubai International Financial Centre, including providing or operating payment accounts, executing payment transactions, issuing payment instruments, arranging for another person to receive money services, providing account information services, and providing payment initiation services. MINIEYE (02431) Signs Unmanned Logistics Vehicle Procurement and Long-Term Cooperation Agreement. MINIEYE (02431) announced that the company recently formally signed an "Unmanned Logistics Vehicle Procurement and Long-Term Cooperation Agreement" with Danyang High-tech Zone Industrial Development Co., Ltd. of Jiangsu Province. According to the agreement, the group will achieve scaled delivery using the second-generation mapless version of its unmanned vehicles, marking a significant milestone breakthrough in the commercialization and regional market expansion of the group's unmanned logistics vehicle business. New Stock Grey Market | UISEE (01511) Grey Market Closes Up 0.08%; Profit of HK$2.5 Per Board Lot. UISEE (01511) is scheduled to list in Hong Kong on Wednesday, May 20th. As of the close of grey market trading, the indicative price was HK$60.35, up 0.08% from the offer price of HK$60.30. Based on a board lot of 50 shares and excluding handling fees, the profit per board lot is HK$2.5. New Stock Grey Market | TOPCNC (07688) Grey Market Closes Up Over 47%; Profit of HK$1,261 Per Board Lot. TOPCNC (07688) is scheduled to list in Hong Kong on Wednesday, May 20th. As of the close of grey market trading, the indicative price was HK$39, up 47.78% from the offer price of HK$26.39. Based on a board lot of 100 shares and excluding handling fees, the profit per board lot is HK$1,261.
【Stock Spotlight】 TRIGIANT (01300): Successfully Integrated into Core Supply Chain of Global Leading Memory Giant. On May 18th, TRIGIANT announced that its wholly-owned subsidiary, Jiangsu Trigiant Technologies Co., Ltd., leveraging its high-end R&D platform as a National Enterprise Technology Center, has achieved a key technological breakthrough in its core feeder (signal cable) products. With leading performance, stable quality, and a stringent quality control system, the group successfully passed overseas cooperation channels and has been integrated into the core supply chain of a global top-tier memory leader. The related products will strongly support the company's scaled layout and business expansion in the AI Data Center field. The first customer cooperation order has been officially secured and is scheduled for delivery within the current month, with ample room for subsequent expansion. The group expects continuous volume growth to achieve a scaled breakthrough. This strategic cooperation holds significant industry milestone importance, fully demonstrating that the comprehensive strength of the group's core products has reached internationally advanced levels, formally establishing its position as a core supplier to overseas tech giants. It also lays a solid foundation and marks a critical step for the group's global in-depth expansion in the AIDC business.
Comments