An analysis of the broader market reveals that last night was a feast for US tech stocks, with the Nasdaq index surging over 3%. However, the Hong Kong market fell by 1.4% today. The positive catalyst of US-Iran peace talks has largely been priced in for the short term. Iranian Foreign Minister Araghchi stated that the negotiations would be divided into two phases. The first phase will discuss ending hostilities, reopening the Strait of Hormuz, unfreezing Iran's frozen assets, and post-war reconstruction. Subsequently, negotiations will continue for 60 days to reach a final agreement, which will then address Iran's nuclear issue and the lifting of sanctions. Although the US and Iran have confirmed a memorandum of understanding on reopening the Strait of Hormuz, with formal signing scheduled for this Friday, the extent to which the agreement will be adhered to remains uncertain, and it will still take time for the shipping supply chain to normalize. Consequently, the sector that strengthened yesterday is adjusting again.
On the eve of the Federal Reserve's interest rate meeting, US asset management giant PGIM stated that it expects the Fed to raise interest rates three times this year. PGIM indicated that, having failed to meet its inflation target for over five consecutive years, the Fed may need to tighten policy to rebuild its credibility in fighting inflation. This news led to weakness in non-ferrous metals and related sectors.
Market interest continues to flow towards hot themes. For instance, as discussed in yesterday's sector focus, leading MLCC industry players like Samsung Electro-Mechanics and Murata are significantly expanding production capacity. According to Citrini Research statistics, spot and distributor prices for consumer-grade MLCCs have risen 20% to 40% from previous levels. Mentioned yesterday, the Hong Kong-listed second-tier pure-play MLCC concept stock, Tianli Holdings Group (HKEX: 00117), rose over 4% again today.
The materials end of the supply chain also saw activity today. Dysprosium oxide is a critical material for manufacturing automotive-grade and AI server MLCCs, with high-end MLCCs requiring high-purity dysprosium oxide of 99.999% (5N) purity. The investment thesis for Jinli Permanent Magnet (HKEX: 06680) was reinforced, with its shares rising nearly 5% today. Another stock, Xian Dao Intelligent (HKEX: 00470), in the supercapacitor equipment space, surged over 11%.
It is reported that AMD has reached an agreement with Austrian PCB manufacturer AT&S. Under the agreement, AT&S will invest up to 2 billion euros in Malaysia to expand the capacity of its Kulim plant. The PCB theme continues to develop, with Kingboard Laminates Holdings Ltd (HKEX: 01888) rising over 7% again. Related to the PCB precision processing field, TIANGONG INT'L (HKEX: 00826) also surged nearly 9%. The company has successfully developed 304B7 powder metallurgy high-boron steel material (2% boron content) through industrial means for the first time domestically, which is expected to be widely used in key parts of nuclear fusion and fission devices in the future.
There were rumors of price increases for upstream electronic cloth today. China National Building Material (HKEX: 03323) saw its Taishan Fiberglass Special Fiber Cloth project commence construction, and its Taiyuan base successfully ignited two production lines. Jushi's Huaian zero-carbon fiberglass manufacturing base successfully ignited a production line for 100,000 tons of electronic fiberglass and 390 million meters of electronic cloth annually. The second phase of Jushi's Jiujiang intelligent manufacturing base, a 200,000-ton annual production line project, is now fully operational. The stock rose nearly 3% today.
The copper foil sector was also hot in the A-share market today. In Hong Kong, the recycling concept stock Dongjiang Environmental (HKEX: 00895) was targeted: the company is deeply involved in the resource utilization of industrial hazardous waste and the recovery of rare and precious metals. Its resource-based products like fireworks-grade copper oxide, high-purity copper hydroxide, anhydrous copper chloride, basic copper chloride, and precious metals like refined bismuth, tellurium, electric lead, and antimony oxide lead the market in quality. High-end products like nano-scale basic copper sulfate are now in full production. The stock soared over 39% today.
Yesterday also mentioned the chemical sector's PTFE/fluorosilicone integrated leader, Dongyue Group (HKEX: 00189): a global leader in polytetrafluoroethylene (PTFE) capacity, with a high market share in PVDF lithium battery binders, operating dual fluorosilicone businesses. It rose over 13% again today.
Nvidia plans to raise $25 billion through a bond issuance, its first in five years. Money is never too much, similar to Contemporary Amperex Technology Co., Ltd. (HKEX: 03750); as long as it can make profits, there will be investors. It seems the AI theme will continue to burn through cash. As the core carrier for on-device AI, AI PCs will benefit from both the PC replacement cycle and AI application dividends, making it one of the consumer electronics segments with stronger growth certainty. Gartner analysts predict AI PC shipments will reach 143 million units in 2026, accounting for 55% of the entire PC market. Lenovo Group (HKEX: 00992) and the recommended stock Lens Technology (HKEX: 06613) are fully enjoying these benefits.
On June 15th, the June recommended stock AAC Technologies (HKEX: 02018) announced that its SRG (surface relief grating) diffractive waveguide lens for AI glasses has successfully passed tests by several global leading terminal customers, securing mass production agreements. Some projects have entered the batch ramp-up stage, with a large-scale shipment window expected in the second half of 2026. Additionally, its self-developed dexterous robotic hand solution, developed with a customer, has achieved mass production and shipments, with annual revenue exceeding 100 million yuan this year. The stock rose over 5% today.
The brokerage sector saw some action today, as the "three-investment linkage" (investment banking, proprietary trading, and asset management) is gradually realizing returns. Benefiting from the marginal recovery of IPOs for dual-innovation enterprises, brokerage firms' investments in technology innovation have started to yield returns this year. There is optimism regarding the value re-rating potential from brokerages' direct investments and co-investments in tech innovation. Another point is that in late June this year, major A-share listed brokerages will hold their 2025 annual general meetings intensively. Many brokerages have listed market value management as a primary task for the board of directors this year, which is a historical first. Specifically, market value can be enhanced through share buybacks, equity incentives/employee stock ownership plans, shareholding increases, and mergers and acquisitions. Related stocks include industry leaders like CITIC Securities (HKEX: 06030), China International Capital Corporation Ltd (HKEX: 03908), and Huatai Securities (HKEX: 06886); as well as those with banking backgrounds like China Merchants Securities (HKEX: 06099), GF Securities (HKEX: 01776), and Everbright Securities (HKEX: 06178).
Production and sales data released by the China Association of Automobile Manufacturers show that in May 2026, heavy truck sales were 109,500 units, down 6.4% month-on-month but up 23.34% year-on-year. From January to May, heavy truck sales totaled 544,300 units, a cumulative increase of 23.34% year-on-year. China National Heavy Duty Truck Group sold 34,526 heavy trucks in May, ranking first in industry sales with a market share of 31.53%, up 3.97% month-on-month and 40.62% year-on-year.
It's no wonder Andre Juice (HKEX: 02218) has been performing strongly recently, due to positive news of a cross-border acquisition. Yesterday, the company announced it has signed a "Share Transfer Framework Agreement" with shareholders of Ningbo Yongqiang Technology Co., Ltd., intending to acquire control of the target company for a total consideration of 600 to 800 million yuan, entering the high-speed high-frequency and BT (a high-performance circuit board substrate material) substrate material market. However, this transaction is still in the preliminary due diligence stage, and specific terms require further negotiation. Today's price action reflected the news being priced in, with the stock surging then pulling back. The next wave may await actual deal closure. The stock rose nearly 26% today.
Focus on Key Sectors
The US power infrastructure is facing a structural bottleneck crisis. Transformer delivery lead times have surged to historical peaks, with prices rising significantly. According to Wood Mackenzie's Q2 2025 survey, the average delivery lead time for standard power transformers has reached 128 weeks, approximately two and a half years; the average lead time for generator step-up transformers is even longer at 144 weeks, with some special orders extending to four years. Demand from AI data centers, industrial electrification, and grid renewal is exploding simultaneously, but new capacity is not expected to come online until 2028. Nearly $2 billion in funds has already flowed into expanding North American transformer capacity, with new capacity from companies like Hitachi Energy and Siemens Energy expected to come online around 2028. Relevant Hong Kong-listed stocks: WASION HOLDINGS (HKEX: 03393), Weichai Power (HKEX: 02338), Shanghai Electric (HKEX: 02727).
Individual Stock Analysis
HANS CNC (HKEX: 03200): PCB Capacity Expansion Wave Sustains High Prosperity; Laser Drilling Machines Achieve Bulk Shipments. The company reported Q1 revenue of 1.955 billion yuan, up 103.69% year-on-year; net profit attributable to shareholders of 323 million yuan, up 176.53% year-on-year; gross margin increased by 11.81 percentage points year-on-year. The strong performance is primarily attributed to robust demand for AI server PCB equipment.
Analysis: HANS CNC is a global leader in PCB-specific equipment, with impressive financial performance and continuously improving profitability. In 2024, it held a 6.5% global market share in PCB equipment, ranking first in China's CPCA equipment list for 16 consecutive years. Its domestic market share in drilling equipment exceeds 30%, and over 35% in laser drilling; it serves 80% of the global top 100 PCB customers. High-end substitution is accelerating, with the company holding over 40% domestic market share in the AI server high-layer board segment, with prices only 60% of imported equipment. It leads globally in drilling: mechanical drilling precision reaches ±15μm; CO₂ laser drilling has broken the 35μm aperture limit; UV laser achieves 25μm precision machining. Delivery advantage: large-scale capacity +完善的 supply chain, with delivery cycles significantly shorter than European, American, and Japanese manufacturers. HANS CNC has supplied ultrafast laser drilling equipment to SLP companies like AKM Meadville and Compeq for 1.6T co-packaged optics applications, replacing Mitsubishi Electric's CO2 solutions with 12-month lead times, opening up space for domestic substitution. Global expansion: The company has established subsidiaries/service centers in Southeast Asia. Overseas revenue accounted for 13% in 2024, benefiting from capacity relocation. With PCB capacity expansion in Thailand/Vietnam, the company's localized services capture incremental markets. The company has initiated cooperation and validation with downstream mainstream manufacturers, completed sample deliveries to most, with some validation processes progressing rapidly. In 2025, the performance of its third-generation positioning system automated mechanical drilling machines, four-beam dual-table CO2 laser drilling machines, and automated shaping machines has further improved, significantly increasing equipment utilization rates in PCB manufacturing processes and reducing comprehensive production costs. Laser drilling machines have achieved bulk shipments. The laser drilling machine supporting its M9 solution has received Nvidia certification, with batch shipments expected in 2026. Benefiting from capacity expansion by leading PCB manufacturers, management expects the proportion of AI-related business revenue to increase from about 30% in 2025 to about 60% in 2026 (Shenghong Technology contributing 20%, other manufacturers 40%). HANS CNC has ample orders on hand and is in orderly production and delivery. The company is fully focused on the AI computing power industry chain while also laying out in advanced packaging, optical modules/CPO, and other frontier sectors. Related products have achieved batch supply to several leading AI computing power PCB companies. Strong AI demand is driving the PCB capacity expansion wave, sustaining high prosperity.
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