A-share Pre-market Briefing | U.S. memory and optical communications sectors continue to strengthen; PCB industry chain Q3 net profit surges year-on-year

Pre-market Highlights 1. Nasdaq closes up 1.18%; memory and optical communications sectors continue to strengthen Type: Market | Sentiment impact: Positive The three major U.S. stock indices closed collectively higher, with the Nasdaq up 1.18%, the S&P 500 up 0.6%, and the Dow up 0.03%. The memory and optical communications sectors continued to strengthen, with Western Digital up more than 6%, SanDisk and Seagate Technology up more than 3%, Coherent up more than 6%, Lumentum up more than 5%, and Marvell Technology up more than 4%. Most of the "Magnificent Seven" rose, with Tesla up 4.04%, Amazon up 1.61%, Apple up 0.93%, and Nvidia up 0.90%, while Microsoft fell 0.24% and Meta Platforms fell 1.64%. Oracle expanded cooperation with Google, Intel, Nvidia and others, with Oracle up 3.56%, Intel up 3.6%, and Cerebras up more than 10%. 2. Shanghai issues action plan for next-generation intelligent manufacturing; equipment industry scale targeted at RMB200 billion by 2028 Type: Industry | Sentiment impact: Positive The Shanghai Municipal Commission of Economy and Informatization issued the "Shanghai Action Plan for Accelerating the Development of Next-Generation Intelligent Manufacturing." The plan proposes that by 2028, the scale of the AI-empowered new intelligent manufacturing equipment industry should exceed RMB200 billion, and the scale of the intelligent manufacturing system integration industry should reach RMB100 billion. The plan calls for the development and promotion of physical AI equipment, the cultivation of single-point implementation service providers such as corpus services, digital twins, and AI Agents, as well as system integration service providers with full-domain capabilities spanning processes, equipment, and software. 3. TSMC plans to raise CoWoS advanced packaging prices by 10% to 20% Type: Industry | Sentiment impact: Neutral TSMC is considering raising the price of its CoWoS advanced packaging services by 10% to 20%. As AI chip demand expands from GPUs to server CPUs and customized AI chips, advanced packaging capacity is tightening, and related cost pressures may be passed on to chip design companies. CoWoS is the advanced packaging capacity segment through which TSMC undertakes AI chip orders. 4. Several companies disclose Q3 reports; net profit in memory and PCB industry chains surges year-on-year Type: Industry | Sentiment impact: Neutral Q3 reports are entering a disclosure period. Several companies in the memory and PCB industry chains reported sharp year-on-year net profit growth: Ingenic Semiconductor's Q3 net profit rose 2,595% year-on-year and 61% quarter-on-quarter, with sales revenue from its memory chip product line continuing to grow substantially; Nanya New Material Technology rose 1,296% year-on-year and 218% quarter-on-quarter; Goldenmax International rose 1,031% year-on-year and 105% quarter-on-quarter; Founder Technology Group rose 327% year-on-year and 80% quarter-on-quarter, with average selling prices and sales volumes of its PCB business increasing. In the same period, Wuliangye Yibin's Q3 net profit fell 48% year-on-year, with the company citing weak market demand and lower product sales. Investment Calendar October 28October 29: Federal Reserve FOMC meeting Institutional Views 1. Huafu Research: The pace of domestic demand recovery is limited, services consumption is flat, the property market's "Silver October" fell short of expectations, and external demand shows structural resilience. 2. Sinolink: Equity ETFs and northbound funds saw notable inflows, while margin financing continued to show large net outflows. 3. Huayuan Research: Physical AI kicks off the next stage, with general-purpose models extending into the physical world and accelerating the iterative evolution of embodied intelligence. Positive/Negative Outlook 1. Fed FOMC announces interest rate decision Type: Policy Focus Michelle of JPMorgan Asset Management: The Fed will not raise rates this week, but may signal a hawkish stance in December; U.S. Treasury returns could reach 7% to 8% over the next 12 months. 2. Physical AI drives upgrade of edge hardware Type: Market Discussion Sinolink: AI is moving into reality, and Physical AI is driving edge hardware into an upgrade cycle. 3. Gold pricing outlook Type: Institutional Commentary Morgan Stanley: Gold's hedging role needs to be repositioned; metals remain the preferred asset class, with a target price of US$5,000 per ounce for Q2 2027. Announcement Briefs Positive Announcements 1. Gree Electric Appliances, Inc. of Zhuhai: Jinghai Internet, a shareholder holding more than 5%, plans to increase its stake by RMB600 million to RMB1.2 billion. 2. Shenwu Energy Saving: Its controlling subsidiary won the bid for and signed the EPC contract for the Kashgar grid-forming energy storage power station project, with a total contract price tentatively set at RMB717 million. 3. Zbit Semiconductor, Inc.: Plans to pay Wuhan Xinxin a capacity-binding advance payment of RMB173 million. Negative Announcements 1. Jiangsu Chengxing Phosph-Chemicals: Terminates construction of two projects of Xuanwei Phosphorus Power and makes an asset impairment provision of RMB29.1491 million. 2. Suzhou Maxwell Technologies: Terminates the issuance of convertible corporate bonds to unspecified targets. 3. Shanghai Supezet Engineering Technology Corp., Ltd.: The stock may face delisting risk because its market value is below RMB300 million; eleventh risk warning.