Financial attention
Macroeconomics
1. CCTV News: 2024 is the year of Sino Kazakhstan tourism. The Sino Kazakhstan Khorgos International Border Cooperation Center built across the border between China and Kazakhstan has attracted more and more tourists for border tours, cross-border tours and shopping tours. From January to May, the number of people entering and exiting the cooperation center exceeded 2 million, a year-on-year increase of 148%.
2. Xinhuanet: As of May 31, 3248 China Europe (Central Asia) trains had been operated at Khorgos railway port, up 1.9% year on year; The Alashankou Railway Port has 3171 China Europe (Central Asia) freight trains, a year-on-year increase of 17.3%.
3. CCTV News: On June 2nd, the Chang'e-6 probe successfully landed in the pre selected landing area of the Antarctic Aitken Basin on the far side of the moon. The Chang'e-6 mission will continue to use the sampling method of Chang'e-5, using two sampling methods: drilling and surface sampling, to obtain samples at different levels and depths, and conduct scientific exploration synchronously on the far side of the moon.
4. Kiel Globalization Center in Germany: Currently, the demand for electric vehicles in Europe is significantly declining, and imposing tariffs on electric vehicles from China will lead to continued price increases and further suppress demand, which will have a significant negative impact on the electrification transformation of the European automotive industry. German brand cars exported from China to the European Union will also be affected.
Stock market inventory
1. Last Friday, the Shanghai Composite Index closed down 0.16% at 3086.81 points, down 0.07% for the week; The Shenzhen Component Index closed down 0.22% at 9364.38 points, down 0.64% for the week; The ChiNext Index closed down 0.44% at 1805.11 points, down 0.74% for the week.
2. Last Friday, the Hang Seng Index closed down 0.83% at 18079.61 points, down 2.84% for the week; The Hang Seng Technology Index closed down 1.65% at 3690.76 points, down 2.86% for the week; The state-owned enterprise index closed down 1.09% at 6392.58 points, down 3.22% for the week.
3. Finance afternoon tea: The delisting intensity of the A-share market is constantly upgrading. In May, 6 listed companies announced their termination of listing; Nine companies have announced receipt of prior notice to terminate their stock listing. The five listed companies that were delisted last week all hit financial delisting targets. Zhengyuan Shares became the first non ST share with a face value refund within the year.
4. First Financial: As of the end of May, the new public offering market has had a monthly issuance scale of over 100 billion units for three consecutive months, with a fundraising scale of 484.938 billion yuan this year, which has improved compared to the same period in the previous two years. The proportion of newly launched equity products is less than 20%, the lowest in nearly three years. Supported 80% of the newly issued market's bond base and dominated the top 20 of the newly issued market.
5. CITIC Construction Investment: Since the end of March, silicon material prices have rapidly declined, mainly due to the rapid accumulation of industry inventories. The situation of silicon material enterprises stopping production for maintenance and delaying production has significantly increased since May. It is expected that the silicon material production will be around 1.9 million tons in 2024. However, even with the increase in the number of industry maintenance and technological upgrades, the silicon material supply will still be relatively surplus compared to demand this year. Before there is a non-linear growth on the demand side that exceeds expectations, it is expected that the silicon material price will remain stable at the L-shaped bottom for a long time.
6. SF Holdings: The company recently received a notice from the China Securities Regulatory Commission regarding the filing of overseas issuance and listing of SF Holdings Co., Ltd. We plan to issue no more than 625497800 overseas listed ordinary shares and list them on the Hong Kong Stock Exchange.
7. Tianqi Lithium Industry: On May 31st, the participating company SQM announced that it had signed a partnership agreement with Codelco (National Copper Corporation of Chile). We plan to merge Codelco's subsidiary Minera Tarar into SQM's subsidiary SQM Salar to develop SQM's current activities and subsequent sales of lithium, potassium, and other products in the Atacama Salt Lake area leased from Corfo.
8. Lanqi Technology: Since the beginning of this year, the demand for memory interface chips has achieved a recovery growth, and the industry expects the downstream penetration rate of DDR5 to continue to increase in the next two years. With the continuous penetration of DDR5 downstream, it is expected that the shipment volume of the second and third generation RCD chips of the company's DDR5 will significantly increase in 2024 compared to the previous year.
9. Zhongji Xuchuang: There is strong demand for 800G products, and it is expected to continue to increase in quantity; The 1.6T product is currently in the market introduction stage and is expected to gradually increase in quantity from the second half of this year to next year.
10. Sanfangxiang: Chairman Bian Huiliang proposed to repurchase company shares for 30-50 million yuan, with the repurchased shares intended for equity incentives.
11. Qunxing Toys: The actual controller of the company, Wang Sanshou, is cooperating with the Beijing public security organs to assist in the investigation. As of now, the company has not received any written notice from the public security organs to assist in the investigation of specific matters involved, nor is it aware of the specific matters involved in the assistance investigation.
12. New stock subscription: This week, there were no new stock subscriptions.
13. Restricted shares lifted: A total of 88 restricted shares were lifted, with a total of 3.572 billion shares lifted and a market value of 50.974 billion yuan lifted. Among them, Zhaowei Electromechanical ranked first on the lifting ban list with 7.988 billion yuan, while Shilanwei and Happy Home ranked second and third with 4.66 billion yuan and 4.316 billion yuan respectively.
Wealth Focus
1. CCTV News: In recent years, with the shift in consumer attitudes among young people, the popularity of high-quality and cost-effective cultivated diamonds has surged, even surpassing natural diamonds. In April, the market share of cultivated diamonds in the United States has reached 56.8%, while natural diamonds have declined to 43.2%. The international jewelry industry has also sparked a wave of cultivating diamond sales.
2. CCTV Finance: Recently, the National Assembly of the Swiss Federal Assembly passed a proposal to increase the tuition fees for foreign students. According to this proposal, the tuition fees for foreign students will be increased by at least three times. At the beginning of this year, the Swiss Federal Council decided to reduce the budget originally planned for education, research, and innovation by 500 million Swiss francs (approximately 4 billion yuan).
Industry observation
1. Cui Dongshu: In April, the preliminary statistics of sales of domestic car companies in some overseas regions reached 184000, a year-on-year increase of 57% and a month on month decrease of 12%; From January to April, the sales of domestic brands in overseas markets reached 720000 units, a year-on-year increase of 57%, and the retail performance was very good. The international cost-effectiveness of fuel vehicles has improved, and the export of new energy vehicles has surged. In addition, Russia has contributed nearly 800000 yuan in growth, resulting in a strong increase in both the quantity and average price of car exports.
2. CCTV Finance: Popular tourist destinations in the Mediterranean region are experiencing soaring tourism prices and record high temperatures, with more and more tourists choosing destinations with fewer tourists and cooler weather. This summer, the number of tourists planning to visit Brussels, Belgium increased by 73% year-on-year, the number of tourists planning to visit Munich, Germany increased by 63%, Zurich, Switzerland increased by 59%, Warsaw, Poland increased by 55% and Amsterdam, Netherlands increased by 54%, respectively.
3. Civil Aviation Administration of China: In 2023, the completed passenger transportation volume was 619.5764 million, a month on month increase of 146.1%. There are 5206 scheduled flight routes, and international scheduled flights are available to 57 countries.
4. CCTV Finance: It is expected that the scale of China's humanoid robot industry will exceed 20 billion yuan by 2026. In the current era of the explosion of generative artificial intelligence technology, humanoid robots are highly likely to achieve unexpected growth in the future.
5. Zhengzhou City, Henan Province: Establish a special support fund for the high-quality development of micro dramas, which will be included in the annual financial budget arrangement, to achieve full industry chain support and rewards for micro dramas. Within 3 years from the year of tax payment, support the local beneficiary finance to provide corresponding proportion of tax payment funds as rewards based on their contribution to local finance, depending on the situation. From the 4th to the 6th year, support the local beneficiary finance to provide corresponding proportion of tax funds as rewards.
6. Meijingwang: Recently, the second section of the 3.5 million kilowatt photovoltaic project in Midong, Xinjiang, the world's largest single photovoltaic project undertaken by China Electric Power Construction, was successfully connected to the grid. The total installed capacity of the project is 3.5 million kilowatts, with an annual available hours of 1740 hours and an estimated annual power generation of 6.09 billion kilowatt hours, equivalent to the annual electricity consumption of 3 million households. Among them, the installed capacity of the second section of the project is 1.5 million kilowatts.
7. CCTV News: China's first heavy-duty railway refueling station, the Batuta refueling station of the National Energy Group, has officially entered commercial operation. The station is equipped with the world's first low-temperature resistant automatic refueling and hydrogenation robot independently developed and manufactured by China, as well as a high flow rate hydrogenation machine. It can achieve continuous operation and high flow rate automatic hydrogenation all day under the lowest temperature of minus 25 degrees Celsius.
8. Xinhua News Agency: Pfizer's global R&D team has released long-term follow-up results of the targeted drug "third-generation anaplastic lymphoma kinase (ALK) inhibitor". In the third-generation ALK inhibitor treatment group, 60% of ALK positive advanced non-small cell lung cancer patients did not experience disease progression or death after 5 years of treatment. Compared with the first generation ALK inhibitors, patients treated with third-generation ALK inhibitors had an 81% lower risk of disease progression or death, and a 94% lower risk of brain metastasis progression.
Insight Economics
1. CCTV News: On June 1st, the voting stage for the 2024 Indian People's Court (Lower House of Parliament) election came to an end. The results of the export poll have been released, and all major polls predict that the ruling party led by Indian Prime Minister Modi, the Indian People's Party, and the party led National Democratic Alliance, will win the vast majority of seats in the election, and the Indian People's Party will gain an overwhelming victory.
2. Xinhua News Agency: On June 1st, the World Health Assembly passed a package of amendments to the International Health Regulations (2005) to ensure that all countries establish comprehensive and sound public health systems, and strengthen global prevention, monitoring, and response capabilities to public health emergencies such as pandemics.
3. CCTV News: The San Francisco Valley region located in Brazil is an important fruit production and export base. But since the beginning of this year, frequent rainfall has put many fruit plantations in trouble. The rainy weather in the past five months has not only led to a serious decline in fruit tree yield and frequent outbreaks of diseases and pests, but also resulted in problems with fruit quality.
Financial data
1. Last Friday, the onshore Chinese yuan closed at 16:30 against the US dollar at 7.2440, up 0.0207% and up 0.0097% for the week; The median price of the Chinese yuan was 7.1088, down 0.0000%, and up 0.0197% for the week.
2. New Third Board: Last week, two new listed companies were added with a transaction amount of 713 million, a decrease of 9.03% compared to the previous week. As of now, the total number of companies listed on the New Third Board has reached 6135.
3. Shanghai Environmental Exchange: Last week, the trading volume of carbon emission quota listing agreements in the national carbon market was 11900 tons, with a total transaction amount of 1.1545 million yuan and a closing price of 93.23 yuan/ton, a weekly decrease of 5.8%.
4. US stocks: Last Friday, the Dow Jones Industrial Average rose 1.51% to 38686.32 points, down 0.98% for the week; The S&P 500 index rose 0.80% to close at 5277.51 points, down 0.51% for the week; The Nasdaq fell 0.01% to 16735.02 points, down 1.10% for the week.
5. Europe: Last Friday, the German DAX30 index rose 0.01% to 18497.94 points, down 1.05% for the week; The French CAC40 index rose 0.18% to 7992.87 points, down 1.26% for the week; The FTSE 100 index in the UK rose 0.54% to 8275.38 points, down 0.51% for the week.
6. Gold: Last Friday, COMEX gold futures closed 0.79% lower at $2347.7 per ounce, up 0.54% for the week.
7. Crude oil: Last Friday, the settlement price of WTI crude oil futures fell 1.18% to $76.99 per barrel, a weekly decrease of 0.94%; Brent crude oil futures settled 0.29% lower at $81.62 per barrel, down 0.61% for the week.
Great Wall Securities: In the first quarter of 2024, global semiconductor sales increased by 15% year-on-year, with impressive storage performance at+86% year-on-year; Global semiconductor sales reached $137.7 billion, a year-on-year increase of 15%, with storage chips increasing by 86% and global semiconductor sales excluding storage increasing by 3% year-on-year. As terminal demand gradually recovers, the top 60 semiconductor companies worldwide have achieved revenue of $151.7 billion and net profit of $38.6 billion, consistent with changes in global semiconductor sales. The AI wave drove a 90% year-on-year increase in revenue for the storage sector in Q1 2024, with a 24Q2 increase in storage contract prices. In Q1 of 2024, the revenue of the storage sector increased by 90% year-on-year and 14% month on month, and the net profit both turned losses into profits, mainly benefiting from the demand for storage driven by AI.
Shanxi Securities: As the most standardized product in the semiconductor market, storage chips have strong substitutability among similar products and are greatly affected by the supply and demand relationship of the industry's prosperity. In addition, the current storage industry has formed a monopoly pattern, and leading manufacturers have relatively consistent pace in capacity planning and product pricing, resulting in stronger industry cyclicality. By reviewing the capital expenditure performance of the three major storage OEMs in the first three storage cycles, it can be seen that at the start of each upward storage cycle, the capital expenditure of the three major storage OEMs is either at a low point or has already experienced a reduction. At present, the capital expenditures of Micron and Hynix have once again reached a low level, and Samsung's capital expenditures are also expected to decrease. From the trend of capital expenditures, it is in line with the characteristics of an upward cycle initiation.
Open source securities: The storage chip sector is undergoing a comeback, and the niche sector may face a turning point, with broad potential for future recovery. From a trend perspective, the storage chip sector began to show signs of recovery in Q1 2024, mainly due to the recent rebound in demand for niche storage such as DDR3, and prices began to show an upward trend, driving the performance of various companies to recover. In absolute terms, the current revenue/performance/profitability data of the sector has not yet recovered to the level before the cyclical downturn, and there is still considerable room for repair in the future. The price increase in the storage chip sector is showing signs of prosperity, as evidenced by the rising revenue of Taiwanese factories. From a price perspective, the previous price increase of storage products was mainly concentrated on mainstream products, and the prices of niche products are still at historical lows. DDR3 prices are expected to increase by 20% in Q2 2024, and NOR and other products are also expected to rise. The performance and profitability of niche manufacturers are expected to continue to rise.
Huajin Securities: With the continuous release of AI application demand, the construction of "advanced storage capacity" is imperative, and storage chips may become a key investment object of the National Fund Phase III. The current expansion project of domestic storage factories is progressing in an orderly manner, and the crop utilization rate is also steadily increasing. Under the accelerated catalysis of the third phase of the National Fund, equipment and materials related to the storage industry chain are facing golden development opportunities, seizing the opportunity of industry cycle reversal. In the future, with the continuous increase in storage prices leading to an improvement in operating profit margins, leading storage manufacturers are expected to see a double click in performance and valuation, and there is significant room for industry rebound.