On May 12, the A-share market experienced minor overall fluctuations, with major indices showing mixed performance. The STAR Composite Index reached another historic high, while the ChiNext Index edged slightly higher. The Shanghai Composite Index, Shenzhen Component Index, and BSE 50 Index were marginally lower. Over 4,000 stocks declined, with a total trading volume of 3.27 trillion yuan.
Sectors such as non-metallic materials, communication equipment, sports, and power grid equipment were relatively active. In contrast, cloud services, aerospace equipment, aquaculture, and energy metals were among the biggest decliners.
Wind real-time monitoring data indicated that the utilities sector saw a net inflow of over 5.4 billion yuan in main capital. Non-bank financials, real estate, construction and decoration, and communications also recorded net inflows exceeding 1 billion yuan each. The machinery and equipment sector has now seen net inflows for ten consecutive days. Conversely, electronics experienced a net outflow of over 9.7 billion yuan in main capital, non-ferrous metals saw an outflow of over 7.9 billion yuan, and computers had an outflow exceeding 4 billion yuan. Defense and military industry, food and beverage, and basic chemicals each recorded net outflows of more than 2 billion yuan.
On an individual stock level, Zhongji Innolight Co.,Ltd. and China Greatwall Technology Group both attracted net main capital inflows of over 3 billion yuan. Founder Technology Group saw an inflow exceeding 2.2 billion yuan, while Shanzi High-Tech, Feilihua Quartz Glass Co., Ltd., and ten other stocks also recorded net inflows of more than 1 billion yuan each.
Regarding market highlights, Zhongji Innolight Co.,Ltd. saw its stock price surge 8.28% today, closing at 1,017.99 yuan. This makes it the fifth stock in the current market to reach the thousand-yuan level, the second in the history of the ChiNext board, and the tenth in A-share history. Its total market capitalization reached approximately 1.13 trillion yuan, making it the first company in the optical module industry to surpass the trillion-yuan market cap threshold.
First-quarter results showed that Zhongji Innolight Co.,Ltd. achieved revenue of 19.496 billion yuan, a year-on-year increase of 192.12% and a sequential increase of nearly 50%. Its non-GAAP net profit was 5.718 billion yuan, up 264.56% year-on-year and nearly 60% sequentially.
In a recent institutional research meeting, the company stated that clients have provided demand guidance for 2026-2027, with some key clients already planning for 2028 demand. Capital expenditures are expected to increase further in 2028, with a broader range of product types and higher quantities required. However, Zhongji Innolight Co.,Ltd. noted that this does not yet fully reflect the 2028 demand, as many clients have not yet provided guidance. This demand is expected to become clearer over time. The company anticipates significant growth in demand for both 800G and 1.6T products throughout this year and expects to maintain a trend of increasing shipment volumes in the coming quarters.
Jiangsu Hengrui Pharmaceuticals Co.,Ltd. saw its A-shares and H-shares surge immediately after the afternoon session opened. Its A-shares, which were slightly down at the midday break, hit the daily limit-up within approximately seven minutes of the afternoon opening. Its H-shares briefly spiked over 16% in seconds.
The catalyst was an announcement made by Jiangsu Hengrui Pharmaceuticals Co.,Ltd. during the midday break, stating it had entered into a global strategic collaboration and licensing agreement with Bristol-Myers Squibb (BMS). The partnership aims to jointly advance 13 early-stage projects covering oncology, hematology, and immunology.
According to the agreement, BMS will make payments to Jiangsu Hengrui Pharmaceuticals Co.,Ltd. totaling up to $950 million. This includes a $600 million upfront payment, a $175 million first anniversary payment, and a conditional $175 million second anniversary payment in 2028. The potential total transaction value could reach approximately $15.2 billion, factoring in the exercise of co-development project options and the achievement of corresponding development, registration, and commercialization milestones for all projects.
Looking ahead, Datong Securities pointed out that the market may face a pattern of "consolidation and increased differentiation." From a market perspective, the focus is shifting from "liquidity-driven thematic investing" to a "performance verification" phase, where earnings have become the core criterion for capital allocation. Currently, the "domestic computing power" theme exhibits the strongest short-term momentum, with core sub-sectors like optical modules/CPO and computing infrastructure showing relatively high earnings certainty. Supported by the long-term logic of "domestic substitution" and "great power competition," the STAR and ChiNext boards are still expected to lead the market.
Huatai Securities believes that while current market activity is high, signals from event-driven factors, overseas catalysts, and earnings verification all point to narrowing short-term upside potential. The firm suggests adopting a trading range mindset during this dense event window, moderately reducing positions, and focusing on sector rotation. The AI supply chain remains a clear mid-term thematic play, warranting an overweight stance. However, internal rotation is advised, shifting moderately from AI hardware sectors like semiconductors, which have seen significant gains, to segments within the broader AI chain that offer improved value, such as lithium batteries and energy storage.
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