GMT EIGHT - OPPORTUNITIES IN CHINA

China Telecom Corporation (00728) announced its first quarter financial results, with a net profit attributable to shareholders of 7.35 billion yuan, a decrease of 17.1% year-on-year.

China Telecom (00728) released its first quarter report for 2026, with the group achieving operating revenue of RMB 131.967 billion (same unit below), a decrease of 2.6% year-on-year; the company's net profit attributable to shareholders was RMB 7.35 billion, a decrease of 17.1% year-on-year; basic earnings per share were RMB 0.08.

How steep is the increase in memory prices? Japan's flash memory giant Kioxia has seen its market value rise from 43rd place to top ten in just half a year.

Kioxia Holdings Corp., the company that produces NAND flash memory as its core product, has made its debut into the top ten largest market value companies in Japan. The continuous rise in NAND flash memory prices has significantly boosted the company's stock price.

ByteDance launches 3D creation tool Seed3D 2.0 for large models.

On April 23, ByteDance officially released a higher precision new generation 3D large model - Seed3D 2.0. It is reported that the model adopts the MoE architecture, uses sparse expert routing to control the inference computing amount while expanding the model parameter quantity and resolution, enabling the model to generate richer texture details and more precise metal-roughness boundaries. Currently, the Seed3D 2.0 technical report has been published, and the API has also been launched on the Volcano Engine.

Wall Street veteran Adrian: The risk of war is far from over, but the US stock market will not return to its March lows.

As Trump's statements about the imminent end of the war repeatedly fluctuate, and peace talks evolve into a game of brinkmanship surrounding the key waterway of the Strait of Hormuz, Yadeini expressed that he anticipates this war will limit market gains until the conflict is resolved.

Hope for the resumption of the Strait of Hormuz is dashed! The US-Iran standoff escalates, US military says mine-clearing will take 6 months.

The game between the US and Iran for control of the Strait of Hormuz is still ongoing.

The US Department of State requires American citizens in Iran to depart immediately.

The Consular Affairs Bureau of the U.S. Department of State posted on social media on the 22nd, stating that as Iran has announced the partial reopening of its airspace, U.S. citizens in Iran should depart immediately. The post advised U.S. citizens to follow local media for the latest updates on the situation and consult commercial airlines for information on flights out of Iran. Additionally, U.S. citizens can travel overland to Armenia, Azerbaijan, Turkey, and Turkmenistan, but should avoid traveling to regions adjacent to Afghanistan, Iraq, or Pakistan.

Iran seizes two ships passing through the Strait of Hormuz, causing the price of Brent oil to rise by 3% and return to above $100.

After Iran detained a container ship, the United States maintained a naval blockade, causing the price of Brent crude oil to rise to above $100 per barrel.

Tesla: working hard to launch intelligent driver assistance technology in the Chinese market as soon as possible.

On April 23rd, Tesla announced that the company has obtained approval for its advanced driver assistance system in the Netherlands in April, which is crucial for approval in other EU countries. At the same time, the company is working hard to launch the advanced driver assistance system in the Chinese market as soon as possible.

HK Stock Market Move | Chongqing Sokon Industry Group Stock(09927) rose over 6% in early trading. The company plans to repurchase 1-2 billion yuan worth of A shares and plans to increase capital and expand shares in its subsidiary, Land Electric Technology.

Sally (09927) rose more than 6% in early trading, up 4.56% as of press time to HKD 83.7, with a turnover of HKD 62.3647 million.

The price is too expensive, I can't afford it! The largest customer Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR has given up on the latest lithography equipment from ASML Holding NV ADR (ASML.US) until 2029.

TSMC (TSM.US) stated that in order to save costs, they will postpone using ASML's most advanced chip lithography equipment for mass production until after 2029, which may pose a threat to the manufacturer of this expensive equipment.

AI storage demand continues to surge! SK Hynix's Q1 profits soar five times, revenue surpasses 5 trillion Korean won for the first time.

SK Hynix's first-quarter profit surged significantly due to the sharp increase in prices of artificial intelligence storage chips.

Texas Instruments Incorporated (TXN.US) continues its recovery momentum! Q1 performance is in full bloom, with data center revenue soaring by 90%. Q2 guidance surpasses market expectations.

Benefiting from the surge in data center and industrial equipment spending, Texas Instruments provided unexpectedly strong performance guidance. The company also announced strong first quarter earnings.

Tesla, Inc. (TSLA.US) Q1 profits exceed expectations, free cash flow unexpectedly turns positive, Musk announces plans to "significantly increase investment", with a target of producing one million Optimus vehicles per year.

Tesla (TSLA.US) announced its first quarter financial report for 2026 after the closing bell on April 22nd, Eastern Time, stating that global demand for electric vehicles is recovering and its performance exceeds analysts' average expectations.

Zhong International Xuchuang reclaims the top spot in public offering heavy positions. Technology stocks may be entering a "Darwinian moment."

With the completion of the disclosure of the first quarter reports of public offering funds, the data of the top ten stocks with the heaviest positions in the funds have officially emerged. Calculated by holding market value, the top ten stocks with the heaviest positions in active equity public offering funds in the first quarter are Jiashan Zhichuang, Ningde Times, New Yisheng, Tencent Holdings, Guizhou Maotai, Easte Precision, Zijin Mining, Alibaba Group-W, Wuhan Mingde, and Lixun Precision. "Technology" remains the core keyword in the allocation of public offering funds in the first quarter. Jiashan Zhichuang retains its position as the top stock with the heaviest position, and excellent performance funds all focus on technology themes, with many technology stocks being increased by public offering funds. In addition, the emerging forces of artificial intelligence in Hong Kong stocks have also risen rapidly, contributing significantly to the net value of heavily positioned funds. Several public offering fund managers emphasized in their first quarter reports that artificial intelligence is still the most important structural theme in current asset pricing. Whether it is the overseas computing power supply chain or domestic AI demand-driven, the high prosperity of the technology sector is still highly valued. Against the background of generally pressured technology trends in overseas markets, the structural changes in the A-share technology sector have become more and more evident. According to Tang Xiaobin of Guangfa Fund, if the period from 2023 to 2025 is a time of flourishing AI technology, valuation bubbles, and homogenized competition, then 2026 will officially enter the "Darwinian moment" of survival of the fittest.

Samsung Electronics: Net profit for the first quarter was 4.03 trillion Korean won, compared to market estimates of 3.04 trillion Korean won.

Intel's stock price rose 1.8% in after-hours trading after Musk announced that Tesla would adopt Intel's 14nm chip manufacturing technology.

Tesla has raised its capital expenditure forecast for 2026 to over $25 billion, up from the previous forecast of over $20 billion.

Tesla's first-quarter revenue increased by 16% year-on-year, driven by an increase in vehicle deliveries.

Tesla's revenue in the first quarter of 2026 increased by 16% year-on-year, mainly driven by the increase in car deliveries. Revenue from energy generation and storage businesses decreased by 12% year-on-year, while revenue from services and other businesses increased significantly by 42% year-on-year. Tesla is expected to begin mass production of Cybervan autonomous taxis, Tesla semi-trucks, and the large-scale energy storage battery Megapack3 in 2026. The company anticipates that profits from hardware business growth will be accompanied by increased profits from artificial intelligence, software, and fleet-related businesses. Car delivery volume and average selling price: the company stated that the increase in car deliveries and the rise in the average selling price of vehicles have both contributed to revenue growth. Service business and fully autonomous driving income: Gross profit from services and other businesses increased, combined with sales of FSD software and an increase in subscription users, supporting the company's profitability. Decline in energy business revenue: Lower revenue from energy generation and storage businesses has weighed on overall revenue growth. The current overall rating for Tesla stock in the market is a hold; institutional ratings are distributed as follows: 24 firms rating it as strong buy/buy, 21 as hold, and 9 as sell/strong sell. The average rating for the automotive industry as a whole is buy. The median target price for Tesla in the next 12 months on Wall Street is $420, which represents approximately 8.7% upside from the closing price of $386.42 on April 21. The stock's current 12-month forward P/E ratio is 176 times, compared to 215 times three months ago.

US Stock Market Move | Philadelphia Semiconductor Index rose for the 16th consecutive day to set a new record. Micron Technology, Inc. (MU.US) surged over 3.5%.

Philadelphia Semiconductor Index rose more than 1% in intraday trading, rising for the 16th consecutive trading day, setting a record for consecutive gains in history.

"Combining software and hardware" breaks through the AI competition! Alphabet Inc. Class C (GOOGL.US) Cloud Next conference unveiled the "full set" of AI intelligence agents, with self-developed TPU 8t/8i making a simultaneous appearance.

In the increasingly fierce competition in artificial intelligence (AI), Google is trying to regain the technological high ground through a strategy of "combination of software and hardware".

Tesla, Inc. (TSLA.US) is about to release its financial results. What the market cares about is not just the performance itself, but also AI, Robotaxi, Siasun Robot&Automation, and SpaceX.

Both long-term investors focusing on Tesla's growth prospects and speculators focused on short-term excess alpha returns generally believe that Tesla's first quarter financial data has taken a back seat in importance.

Jiangsu Hengrui Pharmaceuticals (01276) released its financial results for the first quarter, with a net profit attributable to shareholders of 2.282 billion RMB, an increase of 21.78% year-on-year.

Hengrui Pharmaceutical (01276) announced that in the first quarter of 2026, the group achieved operating income of 8.141 billion yuan (same unit), an increase of 12.98% year-on-year; net profit attributable to shareholders of the listed company was 2.282 billion yuan, an increase of 21.78% year-on-year; and basic earnings per share were 0.34 yuan.

NEW ORIENTAL-S (09901) The net profit attributable to shareholders in the third quarter increased by 45.3% year-on-year to 1.268 billion US dollars.

New Oriental Education & Technology Group Inc. (09901) announced that as of the third quarter ending on February 28, 2026, its net revenue increased by 19.8% year-on-year to $1.4173 billion. Operating profit increased by 44.8% to $1.803 billion. Net profit attributable to shareholders of New Oriental increased by 45.3% to $1.268 billion.

The net inflow of funds from the south today was 4.89 billion yuan. In terms of Shanghai-Hong Kong Stock Connect, CNOOC and Pinduoduo received net inflows of 355 million Hong Kong dollars and 331 million Hong Kong dollars respectively; Changfei Optic Fiber Cable had the highest net outflow amount of 491 million Hong Kong dollars; In terms of Shenzhen-Hong Kong Stock Connect, SMIC and Geely Auto received net inflows of 333 million Hong Kong dollars and 332 million Hong Kong dollars respectively; Alibaba-W had the highest net outflow amount of 1.008 billion Hong Kong dollars.

Brent crude rose by 1% during the day and is now at 99.49 US dollars per barrel.

The trading volume of Shanghai and Shenzhen stock markets exceeds 2.5 trillion yuan, an increase of 136.2 billion yuan compared to the same time the previous day.

During the exploration phase, mining company Silver Bow Mining (SBMT.US) has revised its terms for the US IPO and plans to raise $50 million.

Mining company Silver Bow Mining, still in the exploration phase, revised the terms of its upcoming initial public offering (IPO) on Tuesday, planning to raise $50 million by issuing 4.3 million shares.

Ophthalmology biotechnology company Tarsier Pharma (TARX.US) applies to go public in the United States, aiming to raise $35 million.

Tarsier Pharma, a biotechnology company focusing on ophthalmic diseases, submitted a filing to the U.S. Securities and Exchange Commission (SEC) on Tuesday, planning to raise up to $35 million through an initial public offering (IPO).

Xinhua Commentary: The signal of stabilization is strengthening, further consolidating the foundation for the high-quality development of the real estate sector.

The warmth of the property market in "gold three silver four" is beginning to show, and the market's expectations are undergoing positive changes. A series of signals indicate that the real estate market, led by first-tier and hot second-tier cities, is stabilizing and gaining strength, with industry confidence entering a continuous recovery channel. This is not simply a rebound, but a momentum of bottoming out and warming up after a deep adjustment in the real estate market. From adjusting and optimizing the housing provident fund policy to the normalization of the coordination mechanism for urban real estate financing, from the exchange of old houses for new ones to the increase in efforts to acquire existing commercial housing for use as affordable housing, the more precise and powerful policy measures implemented this year have laid a solid foundation for the high-quality development of the real estate industry. The stable and healthy development of the real estate market is related to economic operation and social welfare. Against the background of the continuous promotion of new urbanization, optimization and adjustment of existing stock, achieving a higher level of "having a place to live," is a requirement for the sustainable development of the economy and society. Looking ahead to the goals of the "14th Five-Year Plan," accelerating the transformation with more precise and powerful measures, balancing short-term market stability with long-term sound mechanisms, can truly promote high-quality development of the real estate industry.

Li Ning (02331): In the first quarter, Li Ning's sales points achieved a double-digit growth in retail sales turnover on the entire platform year-on-year.

Li-Ning (02331) announced that as of the first quarter ending March 31, 2026, retail sales of Li-Ning outlets (excluding Li-Ning YOUNG) on the entire platform achieved mid-single-digit growth year-on-year. In terms of channels, offline channels (including retail and wholesale) achieved mid-single-digit growth, with retail (direct operation) channels achieving growth in the range of 10%-20%, while wholesale (franchise dealers) channels achieved low single-digit growth; e-commerce virtual store business achieved high single-digit growth.

Hybrid demand resurgence impacts pure electric sales! Tesla, Inc. (TSLA.US) loses ground in California headquarters, Q1 registrations plummet by 24%

As more and more consumers turn to hybrid electric vehicles, Tesla's registration volume in California, its headquarters and a long-time leader in electric vehicle penetration in the United States, has seen a significant decline.

"Hardware veterans" and "chip czar" simultaneously promoted, Apple Inc. (AAPL.US) reveals its trump card in the AI competition: SoC.

Apple promotes chip leader Johnny Srouji, signaling that Apple will accelerate the self-development of chips for all devices.

Chairman of the China Securities Regulatory Commission Wu Qing: Increase efforts to support the deep integration of Beijing's technological innovation and industrial innovation, and promote the reform of the Science and Technology Innovation Board, the Growth Enterprise Market and other reforms to take effect in Beijing.

According to the Beijing News, on the morning of April 21st, the Beijing Municipal Party Secretary Yin Li conducted research on "thoroughly implementing the spirit of General Secretary Xi Jinping's important speech during his inspection of Beijing, solidly promoting the good start of the capital's financial opening during the '14th Five-Year Plan' period", and attended a financial work symposium. Li Yunze, the Director of the China Banking and Insurance Regulatory Commission, and Wu Qing, the Chairman of the China Securities Regulatory Commission, along with Vice Secretary and Mayor Yin Yong of the Municipal Party Committee, also attended. Wu Qing pointed out that the China Securities Regulatory Commission will resolutely implement the deployment of the Central Committee and the State Council, based on the needs of the capital's economic and social development, further strengthen the role of the capital market, and help the capital to start the '15th Five-Year Plan' well. They will intensify support for the deep integration of Beijing's technological innovation and industrial innovation, promote the implementation of reforms such as the Science and Technology Innovation Board and the Growth Enterprise Market in Beijing. They will strive to effectively operate the Beijing Stock Exchange, and better build it as a base to serve innovative small and medium-sized enterprises. They will enrich investment and financing tools and products, support Beijing companies in accelerating their optimization and strengthening through mergers and acquisitions, debt issuance, public offering REITs, and other means. They will support more capital market service institutions in expanding their businesses in Beijing, and promote the trial implementation of more open capital market policies in Beijing. They will deepen collaborative cooperation, jointly prevent and resolve risks in key areas, and continuously strengthen the defense network for the financial security of the capital.

Japanese and Korean stock markets opened.

The Nikkei 225 index opened at 59104.11 points in the morning, down 0.41%. The South Korea composite stock price index opened relatively flat at 6387.57.

"Trump extends ceasefire fails to conceal negotiation deadlock, gold stabilizes after the largest two-week drop."

The price of gold has experienced its biggest drop in over two weeks, following President Trump's announcement to extend the ceasefire with Iran. Diplomatic talks between the two countries have been canceled.

SpaceX is stepping up its AI programming track: plans to acquire Cursor for $60 billion or pay $10 billion for collaboration.

SpaceX will acquire the artificial intelligence programming startup Cursor for $600 billion later this year, or pay $100 billion for cooperation between the two parties.

Vanguard Group increases its holdings in US Treasury Bonds against the trend: A yield of over 4.25% is considered a "golden opportunity", betting on the Fed cutting interest rates this year.

After the Iran conflict pushed up yields, the Vanguard Group bought a large amount of US Treasury bonds.

ASMPT (00522) announced its first-quarter performance, with a profit of approximately 324 million Hong Kong dollars from continuing operations, a 70.8% decrease from the previous quarter and a 192.9% increase year-on-year.

ASMPT (00522) announced its performance for the first quarter of 2026, with revenue from continuing operations at HK$3.97 billion (US$5.08 billion), exceeding the median sales forecast. Sales increased by 0.2% from the previous quarter and by 32.0% year-on-year.

WTI crude oil broke through $91 per barrel, rising 0.45% intraday.

Trump announced an extension of the ceasefire with Iran International oil prices surge and then fall, with Brent oil dropping below $100.

The President of the United States, Donald Trump, stated on social media that the United States will extend the ceasefire arrangement with Iran until Iran and Pakistan come up with a "unified solution" and complete the relevant negotiations.

SpaceX cautioned in its IPO filing: Space AI project technology has not been verified, and commercial prospects are uncertain.

According to a company document, SpaceX has warned investors that its ambitions to build a space artificial intelligence data center and establish human settlements on the moon and Mars rely on unproven technologies and may not be commercially viable. The business risks listed in this document, submitted before SpaceX's initial public offering, have not been previously reported. As the company prepares for what could be the largest IPO in history, this document provides a more cautious evaluation of its future than the vision recently portrayed by billionaire CEO Elon Musk in the past few weeks. US securities law requires that prospectuses include risk factors to inform investors of potential risks and protect the company from future legal liability. "Our initiatives to develop orbital AI computing and industrialization projects in orbit, on the moon, and beyond are in the early stages, involving significant technical complexity and unproven technologies, and may not be commercially viable," SpaceX said in a section of the S-1 document excerpt seen by Reuters. The document notes that any future AI orbital data center will operate in a "harsh and unpredictable space environment, facing a variety of unique space-related risks that could lead to failures or malfunctions".

Cook appears at Apple employee meeting, attempting to calm speculation about the reasons for the former CEO's resignation.

Tim Cook, who will step down as CEO of Apple later this year, told employees that he is "healthy" and plans to serve as executive chairman for the long term. Cook made the remarks at a meeting with all employees. Prior to this, Apple announced that the CEO position would be transferred to hardware chief John Ternus on September 1. The two executives held this meeting at the Steve Jobs Theater at Apple's headquarters in Cupertino, California, discussing topics such as artificial intelligence, product plans, and design. "I am excited to continue to serve at Apple in the role of executive chairman," said the 65-year-old Cook. "I am healthy and energetic, and I plan to serve in the new position for the long term."

Spot gold fell below $4770 per ounce, down 1.08% on the day.

Middle East conflict impacts overall situation unaffected, Halliburton (HAL.US) delivers better-than-expected results thanks to Latin America and Europe.

Halliburton's first-quarter report released on Tuesday showed that despite the impact of conflicts in the Middle East on some of its businesses, strong demand in Latin America and European markets helped its overall profits exceed market expectations.

Muyuan Foods (02714) recorded a net loss of 1.215 billion yuan in the first quarter.

Muyuan Group (02714) announced that in the first quarter of 2026, its operating income was 29.894 billion yuan, a year-on-year decrease of 17.10%; net loss attributable to the company's shareholders was 1.215 billion yuan, compared to a profit of 4.491 billion yuan in the same period last year; basic loss per share was 0.22 yuan.

Fuyao Glass Industry Group (03606) net profit attributable to parent in the first quarter was 1.7115 billion yuan, a year-on-year decrease of 15.68%.

Fuyao Glass (03606) announced that in the first quarter of 2026, its operating income was 10.413 billion yuan, a year-on-year increase of 5.08%; net profit attributable to shareholders of the listed company was 1.7115 billion yuan, a year-on-year decrease of 15.68%; basic earnings per share were 0.66 yuan.

China United Network Communications (00762) recorded a first-quarter profit attributable to shareholders of 4.885 billion yuan, a year-on-year decrease of 17.6%.

China Unicom (00762) released the financial and operating indicators for the first quarter of 2026, with operating revenue reaching 102.8 billion yuan (same below), a year-on-year decrease of 0.5%; pre-tax profit of 6.114 billion yuan, a year-on-year decrease of 19.54%; net profit attributable to equity holders of the company 4.885 billion yuan, a year-on-year decrease of 17.6%.

Top institutions such as TOK, and GOMVO unanimously warn that oil prices do not yet reflect the most serious supply interruption in history, and the impact of the Strait of Hormuz may be severely underestimated.

Multiple top market analysts have stated that the conflict in Iran has effectively blocked the Strait of Hormuz, causing the most serious interruption of oil supply in history, yet current oil prices do not fully reflect this impact.

Omdia: India's smartphone shipments in the first quarter of 2026 fell by 5% year-on-year to 30.9 million units.

In the first quarter of 2026, due to the soft seasonal demand and the cautious channel inventory strategy, the shipment volume of smartphones in India decreased by 5% year-on-year to 30.9 million units.

Middle East warfare cannot suppress the narrative of the "AI bull market"! GPUs no longer dominate computing power, and the wave of intelligent agents is igniting the CPU and storage.

The narrative of AI computing power investment is shifting from "competition focused on AI GPU/ASIC computing power" to "AI intelligent agent-driven artificial intelligence full-stack system". In this shift of AI narrative, CPU and storage chips may be the biggest winners.

Latest

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Legal information: Net profit in the first quarter was 22.4758 million yuan, a year-on-year decrease of 18.28%.

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Iceberg Cold and Hot: Net profit in the first quarter was 21.1868 million yuan, a year-on-year decrease of 27.84%.

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Haitian Rui Sheng: Net profit in the first quarter was 8.403 million yuan, a year-on-year increase of 2161.14%.

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Supor: Net profit in the first quarter increased by 1.68% year-on-year.

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Ningxin Optics: Net profit for the first quarter of 2026 was 46.13 million yuan, a year-on-year decrease of 17.10%.

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