The electronics sector led the market gains yesterday (July 9th), attracting a net inflow of over 89.8 billion yuan in main funds throughout the day, ranking first among the 31 Shenwan primary industries by a significant margin.
The Huabao E-ETF (515260), which covers popular areas like semiconductors and PCBs, saw its on-market price soar 8.16%, with a daily turnover of 111 million yuan, a 16% increase from the previous day, strongly reclaiming its 5-day, 10-day, and 20-day moving averages.
Constituent stocks surged with a wave of limit-up gains. Six stocks, including Dongshan Precision, Gigadevice Semiconductor Inc. (SHSE: 603986), Shennan Circuits, Changdian Technology, and Tongfu Microelectronics, hit the daily limit-up. Changchuan Technology rose over 17%, while Montage Technology gained more than 15%. Other stocks like NSIG, SMIC, AMEC, and Nexchip also posted significant gains.
On the news front, interim earnings forecasts for companies in the AI industry chain continue to be released densely, covering segments like AI servers and memory chips. Overall, companies with greater earnings elasticity are primarily concentrated in AI hardware.
The leading memory chip company in the A-share market, Gigadevice Semiconductor Inc. (SHSE: 603986), reported the most astonishing performance growth, expecting its first-half net profit attributable to shareholders to be approximately 6.9 billion yuan, a year-on-year increase of about 1,099%.
Foxconn Industrial Internet expects its first-half 2026 net profit attributable to shareholders to be between 23.4 billion yuan and 24.4 billion yuan, representing growth of 93% to 101%.
Fundamentally, among the 50 constituent stocks of the Huabao E-ETF's (515260) underlying index, as of July 9th, eight listed companies have disclosed their 2026 interim earnings forecasts.
Among them, memory chip leader Longsys expects to achieve a first-half 2026 net profit attributable to shareholders between 9.2 billion yuan and 11 billion yuan, a year-on-year increase of 62,204% to 74,394%, currently ranking first.
Looking ahead, Soochow Securities pointed out that July marks the intensive disclosure window for interim earnings forecasts, with business momentum being the core pricing factor. The AI hardware industry chain, primarily covered by the electronics sector, is one of the directions where positive momentum clues are concentrated for the 2026 interim reports.
Key Themes for the Electronics Sector
The Huabao E-ETF (515260) and its feeder funds (Class A: 012550, Class C: 012551) passively track the CSI Electronic 50 Index, heavily weighting the semiconductor and consumer electronics industries.
It aggregates popular concepts such as PCBs, MLCCs, glass substrates, memory chips, and semiconductor equipment. Its top holdings include Luxshare Precision, Cambricon, Foxconn Industrial Internet, and SMIC, among others.
Data shows that the Huabao E-ETF's (515260) underlying index is deeply linked to global tech giants. As of the end of June, the weightings of the Apple, NVIDIA, and Google supply chains were 31.00%, 25.55%, and 18.98% respectively, positioning it to potentially benefit from the industrial expansion and technological innovation of these tech behemoths.
As of the end of June, the Huabao E-ETF (515260) had an asset size of 1.109 billion yuan, making it the larger of the two ETFs tracking the same underlying index in the market.
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ETFs do not charge sales service fees. Subscription and redemption agents may charge commissions of up to 0.5%, which include relevant fees charged by stock exchanges and registration institutions. On-market trading fees are subject to the actual charges by securities firms.
The Huabao E-ETF passively tracks the CSI Electronic 50 Index. The index's base date is December 31, 2008, and its release date is July 22, 2009. The composition of the index's constituent stocks is adjusted according to its compilation rules, and its back-tested historical performance does not indicate future performance.
Stocks and index constituents mentioned in this article are for illustrative purposes only. Descriptions of individual stocks do not constitute any form of investment advice nor represent the holdings information or trading trends of any fund managed by the fund manager.
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