To The Moon

Yesterday's market sentiment was excessively exuberant. While A-shares managed to maintain strong volatility today, the Hong Kong market, which inherently follows trends, saw profit-taking emerge at the slightest disturbance, resulting in a gap-down correction and a closing decline of 0.94%. According to CCTV News, U.S. Secretary of State Rubio stated that the U.S. government's threat towards Greenland was to 'purchase' it from Denmark, downplaying the notion of a military seizure. However, President Trump and his team are reportedly discussing various acquisition plans, including purchase, establishing a free association agreement, and military means, aiming to complete the process within the current term and viewing it as a national security priority. On January 6th, China's Ministry of Commerce announced the strengthening of export controls on dual-use items to Japan. China's dual-use export control list covers over 800 items, ranging from chemicals, electronics, and sensors to equipment and technologies used in shipping and aerospace sectors. Adding further today, the Ministry of Commerce initiated an anti-dumping investigation into imports of Dichlorosilane (DCS) originating from Japan. Related domestic substitution DCS concept stock Dongyue Group (00189) saw a slight increase of 1.4%. Given the emergence of new control measures, funds did not continue to follow through today, leading to a collective adjustment in the large financial sector, which had surged strongly yesterday. However, the autonomous driving stocks highlighted in yesterday's sector focus performed relatively well overall, with Xidi Zhijia (03881) rising nearly 8% and Youjia Innovation (02431) gaining nearly 5%. Domestically, according to media reports, U.S. tech giant Meta's $2 billion acquisition of Chinese AI startup Manus is facing uncertainty. Sources familiar with the matter revealed that relevant departments of China's Ministry of Commerce are assessing whether the transaction violates China's technology export control regulations. Naturally aligning with these controls, the market focus shifted towards domestic substitution, primarily in the chip sector today. Concurrently, asset integration occurred in the domestic lithography machine field: Shanghai Micro Electronics Equipment (SMEE) subsidiary Xinshang Weizhuang fully acquired Weiyao Industrial, clarifying its positioning further. The company focuses on equipment like packaging lithography machines, has delivered its 500th stepper lithography machine, and successfully independently developed its first 350nm stepper lithography machine. Naxin Micro (02676), recently included in the Hong Kong Stock Connect, capitalized on the opportunity, surging over 13%; Huahong Company (01347) recently announced plans to acquire a 97.4988% stake in Huali Microelectronics for 8.268 billion yuan and raise matching funds of up to 7.556 billion yuan. This transaction substantially resolves the同业 competition between Huahong Company and Huali Microelectronics at the 65/55nm and 40nm nodes. Post-integration, Huahong Company will add a monthly capacity of 38,000 wafers at 65/55nm and 40nm, further enhancing its 12-inch wafer foundry capacity scale. It rose 5% today; packaging concept stock ASMPT (00522) gained over 6%. News of price increases in memory chips continues to circulate. This morning, the topic '1 box of memory modules is comparable to an apartment in Shanghai' trended online. Jensen Huang's speech at CES 2026 yesterday further reinforced the long-term demand outlook for memory chips. Overnight, U.S. optical communication concept stocks Lumentum surged over 11% and Coherent rose over 4%. Related stocks Cambridge Technology (06166) increased over 4%, Yangtze Optical Fibre and Cable (06869) gained nearly 7%, and Tianyue Advanced (02631), a global leader in silicon carbide substrates which has successfully developed 12-inch semi-insulating/conductive substrates and entered NVIDIA's packaging supply chain, rose over 3%. SpaceX has constructed a massive final assembly workshop, Gigabay, at its Starship base to accelerate Starship production, targeting an annual capacity of 1,000 Starships. The commercial space theme mentioned yesterday continued to develop, with the January Zhiton gold stock Junda Shares (02865) rising over 6% again today; Ingdan Innovation (00400): The research institute, based on authorization for AMD's next-generation core chips, has developed two self-developed products for the commercial satellite internet field and high-bandwidth special detection fields, officially launching them to the market. It rose over 8% again today. From a sector perspective, the main focus of fund attacks today was the innovative drug direction, with numerous research reports recommending it. The primary logic includes overseas interest rate cuts entering a channel, active biopharma M&A potentially injecting further vitality into biotech, driving a gradual recovery in the R&D end; CDMO order intake has recovered to rapid growth since the second half of 2024, with a substantive transformation in 2025 earnings. Key stocks include Asymchem (06821), Tigermed (03347), Akeso (09926), and WuXi Biologics (02269), all gaining over 6%; even stronger was Rongchang Biotechnology (09995), whose official WeChat account published Phase I/II clinical data for its self-developed PD-1/VEGF bispecific antibody RC148 as a first-line monotherapy and second-line combination therapy for non-small cell lung cancer. With promising data, its stock surged nearly 13%. Notably, equipment provider SenSong International (02155), 'selling shovels during a gold rush,' rose over 6%. The price increase theme also performed well today. On January 7th, the DCE coking coal futures contract hit the limit-up, reporting 1,164 yuan/ton, a gain of 7.98%; the coke futures contract rose 6.7% to 1,752 yuan/ton. The background is a video conference on thermal coal supply guarantees held by the Yulin city government this morning, which reported that, following a document jointly issued by the National Development and Reform Commission and five other ministries, 26 out of 52 coal mines with capacity increases were removed from the supply guarantee list and had their capacity reduced by 19 million tons due to inadequate implementation of thermal coal supply guarantees for 2024-2025; the capacity increases for the remaining 26 mines were temporarily retained, with the state to adjust the list based on the signing and fulfillment of 2026 thermal coal medium- and long-term contracts. Key beneficiaries included China Dynamics (01277), China Success Resources (00639), China Coal Energy (01898), and Yankuang Energy (01171), all up over 5%. Also, in the paper sector, recently, packaging paper companies represented by Nine Dragons, Shanying, Lee & Man, and Rongcheng have conducted large-scale shutdowns for maintenance, actively contracting capacity; white cardboard and cultural paper manufacturers including Bohui, APP, International Paper, and Asia Symbol collectively announced price increases. Leader Nine Dragons Paper (02689) rose nearly 9%, hitting a new high since last year; other stocks like Lee & Man Paper (02314) gained nearly 7%. The CSRC website showed that China Everbright Environment (00257) has filed for listing guidance with the Shenzhen Bureau, initiating the process for an A-share listing. A joint symposium on the power and energy storage battery industry was held by multiple departments today. Participating companies indicated that the main content revolved around 'anti-involution' in the industry, including controlling capacity, managing price wars, and protecting patents. The meeting reflects regulatory concerns about恶性竞争 in the industry, especially against the backdrop of overcapacity and intensifying price wars. Since 2025, the power battery industry has faced supply-demand imbalances due to an expansion wave, with some companies engaging in low-price dumping to seize market share, and frequent patent disputes. This meeting may pave the way for subsequent policy intervention. Related stocks: Ganfeng Lithium (01772), Tianqi Lithium (09696), GCL Technology (03800), CALB (03931). Yangtze Optical Fibre and Cable (06869): AI Computing Demand Drives Accelerated Fiber Optic Industrialization, Overseas Business Continues Expansion. The company recently announced the issuance of 70 million new H shares, with net proceeds of approximately HK$2.229 billion. Its Q3 revenue was 3.891 billion yuan, up 16.27% year-on-year and 11.46% quarter-on-quarter, while net profit attributable to shareholders was 174 million yuan, down 10.89% year-on-year but up 20.75% quarter-on-quarter. Review: 80% of the funds from this placement will be used for overseas business development. The optical interconnection component business (including MPO, AOC, high-speed copper cables) laid out through subsidiary Changxin Bochuang has become a strong growth driver, with revenue scaling up significantly. Benefiting from North American AI data center construction, the company's overseas business continues to expand. Overseas revenue increased from approximately 398 million yuan in 2014 to about 4.121 billion yuan in 2024, accounting for 33.79% of total operating revenue. In the Philippines, YOFC helped deploy over 7,000 km of optical cables, building more than 1,600 base stations and covering 2.7 million people, boosting the internet penetration rate to 73.6%; in Indonesia, it assisted in deploying over 14,000 km of optical cables, covering over 1.1 million households in more than 70 cities; in Peru, it undertook the National Broadband Project, helping complete the installation of over 9,800 km of optical cables and more than 1,500 base stations, serving over 1 million people. Fiber optic industrialization is accelerating. The company's G.654.E fiber technology is globally leading, with the number one market share globally and deployment scale exceeding one million core kilometers. YOFC's multi-core fiber technology is also noteworthy, having conducted field trials with China Mobile and China Unicom, and successfully piloted the first domestic data center multi-core fiber solution in Tianjin. In the smart automotive field, YOFC launched an 'all-optical smart vehicle' solution, including a 50Gbit/s in-vehicle optical fiber communication system, an erbium-ytterbium co-doped fiber amplifier for lidar, and distributed optical fiber battery monitoring technology. Building on its traditional optical fiber preform and fiber business, the company is developing high-value-added products like multi-mode and hollow-core fibers while actively diversifying. AI computing demand is driving the acceleration of fiber optic industrialization, with看好 opportunities for the industrialization of hollow-core fiber in data center scenarios in 2026.