Top headlines today include the State Council's issuance of the "15th Five-Year Plan" carbon peak action plan, which outlines key tasks in five areas.
The action plan supports the local consumption of new energy, actively develops green power direct supply models like direct grid connections for new energy and nearby access to incremental distribution grids, and promotes integrated development of source-grid-load-storage. By 2030, pumped storage capacity is targeted to reach around 160 million kilowatts, new-type energy storage capacity aims for 300 million kilowatts, the national virtual power plant's maximum regulation capacity should exceed 50 million kilowatts, and power demand response capability should reach over 5% of the maximum electricity load. The plan also details key projects including inter-provincial power mutual assistance, clean coal consumption substitution, energy conservation and carbon reduction in key industries, low/zero-carbon heating/cooling and green lighting, zero-carbon transport corridor construction, and enhancing carbon peak and neutrality foundational capabilities.
Market Outlook: US Indices Rise; SanDisk Surges Over 7%
Overnight, the three major US stock indices closed higher. The Dow Jones Industrial Average rose 139.02 points, or 0.27%, to close at 52,487.41. The S&P 500 gained 60.93 points, or 0.81%, to finish at 7,543.64. The Nasdaq Composite jumped 336.24 points, or 1.3%, to end at 26,206.89. Most large-cap tech stocks advanced, with Meta up over 4%, and Broadcom and Tesla gaining over 3%. Semiconductor and memory sectors led gains, with SanDisk soaring over 7% and Western Digital up over 5%. Most precious metal stocks rose, with Americas Silver Corp. climbing nearly 6%. The Nasdaq Golden Dragon China Index closed up 0.56%, with most popular Chinese stocks rising; iQiyi surged over 8% and Alibaba gained nearly 2%. The Hang Seng Index ADR rose, calculated on a proportional basis to 24,189.41 points, up 159.23 points or 0.66% from the Hong Kong close. The NYMEX WTI crude oil front-month contract fell $1.71, or 2.33%, to settle at $71.81 per barrel. The COMEX gold front-month contract rose $50.20, or 1.23%, to settle at $4,132.60 per ounce.
Key Developments to Watch
Despite ongoing clear divisions within the Federal Reserve regarding future interest rate policy, traders in prediction markets broadly still lean towards the possibility of further Fed rate hikes this year. Currently, traders price in approximately a 54% chance of a Fed rate hike by year-end, slightly down from 56% the previous day. Meanwhile, the market expects about a 62% probability of a hike by July 2027, and close to an 80% chance by 2028.
For Apple, which adheres to an "on-device AI" strategy, a startup's latest achievement might soon unlock the iPhone's "AI intelligence" ceiling. Recent reports indicate that US startup PrismML has successfully compressed the 27-billion-parameter version of Alibaba's open-source large language model Qwen 3.6, enabling it to run on an iPhone 17 Pro. The company revealed that their "compressed model" developed for the iPhone can handle complex conversations, reasoning, fully autonomous intelligent tasks, and software programming. This open-source model will be available for download starting next Tuesday.
Memory chip giant Micron Technology announced on Thursday local time (July 9) that it plans to invest over $250 billion in the United States by 2035. This move aims to meet the unprecedented demand for memory chips driven by the rapid expansion of artificial intelligence (AI) infrastructure. Boosted by this news, Micron's stock surged 9% at the opening of US trading on Thursday.
UISEE Technology (01511) recently announced it has again successfully won an order for 7 unmanned vehicles from Xinjiang Airport (Group) Co., Ltd. To date, the company has deployed over 70 unmanned vehicles at Urumqi Tian Shan International Airport, forming the largest-scale unmanned vehicle fleet operating on airport aprons in mainland China.
Dongyue Group (00189) issued a positive profit alert, expecting net profit attributable to shareholders for the first half of the year to increase by over 31% compared to the same period last year. The board attributed this profit growth primarily to higher prices for several products compared to the previous year.
REPT BATTERO (00666) expects an interim net profit of approximately RMB 700 million to RMB 850 million, turning a profit year-on-year from a loss. The board stated the main reasons for the performance change are: increased shipment volume of battery products driving steady revenue growth; and improved gross profit margin due to economies of scale and continuous cost reduction and efficiency measures.
Zijin Mining Group (02899) expects first-half net profit attributable to shareholders of approximately $1.4 billion, an increase of about 169% year-on-year. The main reasons for the expected profit increase are: increased gold production, with mine-produced gold output rising to approximately 27 tonnes (first half of 2025: approximately 19 tonnes, excluding Porgera mine production); favorable market and acquisition factors, including higher year-on-year sales prices for mine-produced gold during the reporting period, and the positive contribution to group performance from the profitable operation of two producing gold mine projects, the Akyem mine in Ghana and the Reko Diq mine in Kazakhstan, which completed acquisition in April and October 2025, respectively, during the reporting period.
Zijin Gold International (02259) expects interim net profit attributable to shareholders of approximately $1.4 billion, an increase of about 169% year-on-year. The main reasons for the expected profit increase are: (1) increased gold production, with mine-produced gold output rising to approximately 27 tonnes (first half of 2025: approximately 19 tonnes, excluding Porgera mine production); (2) favorable market and acquisition factors, including higher year-on-year sales prices for mine-produced gold during the reporting period, and the positive contribution to group performance from the profitable operation of two producing gold mine projects, the Akyem mine in Ghana and the Reko Diq mine in Kazakhstan, which completed acquisition in April and October 2025, respectively, during the reporting period.
TCL Electronics (01070) issued a positive profit alert, expecting net profit attributable to shareholders for the first half of 2026 to be between approximately HK$1.48 billion and HK$1.65 billion, representing year-on-year growth of about 40% to 56%. The main reasons for the significant expected growth in adjusted net profit attributable to shareholders are: (i) the group further advanced the implementation of its "globalization" and "mid-to-high-end" strategies, achieving quality growth in its global business with a marked improvement in gross profit performance; and (ii) steadily enhanced overall profitability, with its TV business maintaining a leading global position and continuous improvement in product mix, further strengthened monetization capability of the high-margin internet business, and improved profitability in the small and medium-sized display business.
GigaDevice (03986) issued a pre-increase announcement, expecting first-half net profit attributable to shareholders of approximately RMB 6.9 billion, a year-on-year increase of approximately 1,099%. After deducting non-recurring items, net profit is expected to be around RMB 4.85 billion, up approximately 791% year-on-year.
Han's CNC Technology (03200) expects first-half net profit attributable to shareholders to increase by 241.85% to 279.84% year-on-year. The company announced an expected net profit attributable to shareholders of approximately RMB 900 million to RMB 1 billion for the period from January 1, 2026, to June 30, 2026. Currently, the large-scale deployment of computing infrastructure such as AI servers and high-speed network switches is providing momentum for structural growth in the PCB industry. The company is seizing investment opportunities brought by capacity expansion and new product R&D from leading industry customers. The revenue contribution from AI PCB-related solutions has increased significantly. High-value-added products such as high-precision back-drilling solutions for ensuring signal and power integrity in next-generation high-frequency, high-speed PCBs, high-end and mSAP process HDI drilling solutions, and high-precision forming solutions are seeing strong production and sales, further optimizing the company's revenue structure. Mid-2026 operating income grew over 100% year-on-year.
New Stock Grey Market: Jinghe Integrated (02249) Grey Market Closes Up Nearly 12%, Profit of HK$380 per Board Lot
Jinghe Integrated (02249) is scheduled to list in Hong Kong on Friday, July 10. At the close of grey market trading, the indicative price was HK$36.1, up 11.76% from the offer price of HK$32.3. For a board lot of 100 shares, this represents a profit of HK$380, excluding fees.
New Stock Grey Market: Binhu Shares (06745) Grey Market Closes Down 21.26%, Loss of HK$740 per Board Lot
Binhu Shares (06745) is scheduled to list in Hong Kong on Friday, July 10. At the close of grey market trading, the indicative price was HK$2.74, down 21.26% from the offer price of HK$3.48. For a board lot of 1,000 shares, this represents a loss of HK$740, excluding fees.
Stock in Focus: Tsugami (China) (01651): Key Machine Tool Beneficiary in AI Infrastructure Investment
Previously disclosed financials for Tsugami China show that for the 2026 fiscal year, the company achieved revenue of RMB 5.184 billion, a year-on-year increase of 21.6%; net profit attributable to shareholders was RMB 1.094 billion, a sharp increase of 39.9% year-on-year, with both revenue and profit reaching record highs. Notably, profit growth significantly outpaced revenue growth. The company's external thread grinding machine has received approval from Japan's Tsugami and will be applicable for producing core components of humanoid robots in the future. Currently, several of the company's machines can be used to process key core components for critical parts of humanoid robots, such as planetary roller screws, harmonic reducers, and planetary reducers. The humanoid robot industry is still in the exploratory R&D phase, and the company is awaiting the emergence of scaled market demand. In 2025, the company began receiving a significant number of orders for AI liquid cooling connectors. In 2026, the company started receiving many orders for ROSA and TOSA components for AI optical modules. As precision requirements for optical modules increase, the advantages of the company's sliding headstock lathes become more pronounced, allowing the company to gain more market share in this field. Future liquid cooling connectors will become more complex, driving an increasing demand for the number of machine tools required. AI data centers are expected to continue being a key driver of the company's performance growth. Daiwa Securities released a research report identifying Tsugami as one of the key machine tool beneficiaries in AI infrastructure investment. Demand for AI liquid cooling quick-disconnect connectors remains strong. Management indicated that annual orders for the 2026 fiscal year have reached approximately 1,000 units, with expectations to potentially double in the 2027 fiscal year, primarily driven by deployments related to Nvidia's GB300.
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