A-share Evening Highlights | Up as much as 1500%! A cluster of positive earnings news tonight

Evening Highlights 1. Positive earnings news tonight! Up as much as 1500% forecast; multiple companies report positive third-quarter results. Importance: On the evening of October 13, another batch of A-share companies disclosed earnings pre-increase announcements, with 3 companies expecting net profit growth of more than 5x for the first three quarters. Among them, Fuchun Dye and Weave Group expects net profit for the first three quarters to increase by 1348%-1519% year-on-year, Baoding Technology expects net profit for the first three quarters to increase by 537%-614% year-on-year, and SigmaStar Technology expects net profit for the first three quarters to increase by 663.13%-697.75% year-on-year. CMSC believes that during the third-quarter earnings disclosure window, the allocation approach should shift from long-term potential to current-period earnings realization, and in the short term, priority should still be given to areas where third-quarter earnings are expected to grow strongly or improve, such as the AI industry chain, resource products, mid-to-high-end manufacturing, pharmaceuticals, securities, and textile manufacturing. 2. Who is selling during the tech pullback? Insurance funds reiterate "long-term investment" and do not comment on short-term fluctuations. Importance: Regarding this round of tech stock adjustment, are insurers the main sellers? Insurance industry insiders said that market fluctuations cannot simply be attributed to the trading behavior of insurance funds. Several insurance asset management institution insiders were unwilling to comment on short-term market fluctuations and reiterated the stance of "long money, long-term investment" in insurance asset management. Regarding claims that insurance asset management institutions "chase rallies and sell declines," industry insiders said that position adjustments in equity investment are normal operations. Why are tech stocks under pressure, with institutional funds maintaining large-scale net outflows every day? A recent Zhongtai research report pointed out that insurance and "fixed income +" funds significantly increased their equity allocation ratio in the second quarter, with a considerable portion of the newly added positions entering tech. Such funds usually focus on absolute returns and drawdown control. After buying at relatively high levels, once a tech decline triggers net value, risk control, or redemption constraints, selling will appear passive, continuous, and insensitive to price. 3. South Korean funds once again increased positions against the trend in China's hard tech; which stocks do they favor most? Importance: Data from the Korea Securities Depository and Settlement Institute show that over the past month, South Korean funds net bought $1.2461 million of CSOP ChiNext ETF. Although the ChiNext Index has fallen considerably recently, Korean funds have very low willingness to sell, with only $11,800 in selling over the past month. In addition, multiple Hong Kong-listed semiconductor names also received counter-trend increases, with Semiconductor Manufacturing International Corporation and Hua Hong Grace Semiconductor receiving net buys of $1.0437 million and $637,200 respectively from South Korean investors over the past month. Multiple hard tech names in the A-share market are also favored by South Korean investors. PCB company Aoshikang Technology and optical module leader Zhongji Innolight received net buys of $1.3405 million and $588,100 respectively from Korean funds over the past month. Among them, Zhongji Innolight also pulled back significantly over the past month, but Korean funds sold only $7,200, maintaining a firm holding stance. In addition, Montage Technology, Kingsemi Co., Ltd., Semiconductor Manufacturing International Corporation, and several other semiconductor names also received net buys from South Korean investors over the past month. 4. Are memory stocks cheap enough to buy? Morgan Stanley's latest warning: the top of the cycle is the most dangerous. Importance: Morgan Stanley's latest report pointed out that although tight supply and demand, rising prices, and improving profits still provide strong support for the industry, as stock prices have risen sharply and earnings expectations have been revised upward in a concentrated manner, optimistic expectations for memory stocks have already been fully priced in, and further upside faces a test. The core contradiction is that the stronger the fundamentals of the memory industry, the easier it is to underestimate the risk of a cycle top. 5. Goldman Sachs third-quarter net revenue of $18.679 billion, up 23% year-on-year; equities trading revenue surged 72%. Importance: Goldman Sachs announced third-quarter 2026 results, with net revenue of $18.679 billion, up 23% year-on-year; net profit of $5.294 billion, up 29% year-on-year; diluted earnings per share of $17.01, up 39% year-on-year. By business segment, Global Banking & Markets net revenue was $13.458 billion, up 32% year-on-year, of which equities net revenue was $6.441 billion, up 72% year-on-year; Asset & Wealth Management net revenue was $5.051 billion, up 14% year-on-year; Platform Solutions net revenue was $170 million, down 72% year-on-year. Opportunities in Advance The editor has sorted through investment opportunities drawing market attention, with chips among those in focus. 1. Huawei officially announces major progress: Kirin 9050 series chips have been successfully mass-produced. On October 13, Huawei held a Kirin chip technology exchange meeting at its Shanghai Lianqiu Lake R&D Center. Xu Songyu, head of Huawei's semiconductor business wireless terminal chip product management department, introduced Huawei's first Kirin 9050 series using logic folding technology, and revealed that the 2027 Kirin chip has entered the testing phase, with current test results meeting expectations. For the industry chain, Zheshang said that large model training continues to expand, and inference demand is being released at an accelerating pace along with growth in user scale, call frequency, and token consumption. It is expected that by 2029, China's general-purpose GPU market will reach RMB 715.3 billion, of which the domestic general-purpose GPU market will reach RMB 222.1 billion. Limited supply of overseas advanced chips, combined with continuous improvement in the performance and ecosystem of domestic products, plus bulk adoption of domestic computing power by internet giants, is accelerating the shift of domestic computing power demand toward local manufacturers. In addition, the following sectors are also worth watching: 2. Shipbuilding | Three departments: By 2028, the number of new-energy inland waterway vessels will double compared with 2025. 3. Energy storage | Shanghai: By 2030, new-type energy storage installed capacity will reach 3 million kilowatts. 4. Green ammonia | China's first ship-to-ship green ammonia bunkering was completed in Zhoushan, Zhejiang. Positive and Negative Announcements from Listed Companies For positive announcements, the editor reminds readers to watch China Tungsten and Hightech Materials' third-quarter net profit forecast increase of more than 2x, etc.; for negative announcements, note that Shenzhen Xinyuren Technology's actual controller Yang Zhiming has been placed under investigation, etc. Positive Announcements 1. China Tungsten and Hightech Materials: Expects net profit for the first three quarters to increase 219%-241% year-on-year, with PCB micro-drill business achieving both volume and price increases. 2. Shenzhen Fastprint Circuit Tech: Expects net profit for the first three quarters to increase 204%-227% year-on-year, with full order backlog in the optical module mSAP substrate business. 3. Inspur Electronic Information Industry: Net profit for the first three quarters is expected to increase 156%-177% year-on-year, with strong server market demand. 4. Qinghai Yanhu Industry: Net profit for the first three quarters is expected to increase 88%-92% year-on-year, with lithium carbonate production capacity rising sharply year-on-year. 5. Power Construction Corporation of China, Ltd (POWERCHINA): Signed the contract for Belgrade Metro Line 1 in Serbia, amounting to approximately RMB 12.526 billion. Negative Announcements 1. Shenzhen Xinyuren Technology: The company and actual controller Yang Zhiming were placed under investigation on October 13. 2. *ST Xi'an Tourism: The real estate company is being sued, with the amount involved at RMB 39.949 million. 3. BeiJing StarNeto Technology: Suspended from procurement qualifications across the military, which will have a certain impact on operations in the short term. 4. Shandong Xinhua Pharmaceutical: Board secretary Cao Changqiu plans to reduce holdings by no more than 83,300 shares. 5. Guizhou Xinbang Pharmaceutical: Fined RMB 23 million for the crime of corporate bribery. This article is reprinted from "Tencent Zixuangu." GMTEight editor: Li Fo.