Brokerage Morning Meeting Highlights | Optimistic about the semiconductor industry trend, pay attention to the situation of component price increases.

Yesterday, the market collectively rebounded, with the ChiNext Index rising by over 5% and the Shenzhen Component Index rising by over 3.5%. The turnover of the Shanghai and Shenzhen stock markets was 3.03 trillion yuan, a decrease of 183.8 billion yuan from the previous trading day. In terms of sectors, there was a collective outbreak in the AI hardware sector, with the PCB concept continuing to rise, the CPO concept strengthening, and the MLCC concept becoming active again. At the close, the Shanghai Composite Index rose by 1.61%, the Shenzhen Component Index rose by 3.79%, and the ChiNext Index rose by 5.3%. At today's brokerage morning meeting, China Securities Co.,Ltd. stated that they are optimistic about the semiconductor industry trends and are paying attention to the situation of rising component prices; CITIC SEC believes that attention should be paid to other silicon companies leading in the shipment volume of 12-inch lightly doped silicon wafers; Huatai believes that a turning point in the photovoltaic component industry may gradually become apparent, with battery component and paste material leaders expected to be the first to see profit improvement. China Securities Co.,Ltd.: Optimistic about semiconductor industry trends, paying attention to the situation of rising component prices With the global economic cycle continuing to be confirmed, we are optimistic about semiconductor industry trends and are paying attention to the situation of rising component prices. SEMI has raised its full-year expectations and SK Hynix plans to triple its capacity by 2034, establishing a continued global semiconductor economic cycle. The global semiconductor equipment shipments in Q1 reached $36.55 billion, a year-on-year increase of 14%, setting a new quarterly high. Following the announcement of SK Hynix's plan to double its capacity for the next five years earlier this month, SK Group Chairman Chey Tae-won further revealed in a recent interview that if all planned construction proceeds as expected, SK Hynix's capacity will be three times the current level by 2034. Components are the direction with the greatest elasticity during this round of market trends. The global semiconductor equipment components are currently experiencing a rare chain-wide price increase. The pricing power of the semiconductor industry chain is shifting structurally from chip terminals to equipment and component tiers. Component companies have a smaller scale and higher fixed costs, with price increases directly translating into profits; at the same time, the production expansion cycle is as long as 12-18 months, with the worst supply elasticity. Emphasis is placed on the increasing demand for domestic alternatives and the logic of price increases brought about by extended delivery times from overseas suppliers for components such as valves, pipelines, ceramics, RF power supplies, GAS BOX, etc. CITIC SEC: Focus on other silicon companies leading in the shipment volume of 12-inch lightly doped silicon wafers As the silicon wafer price increase in Q2 2026 is expected to land as scheduled, it is anticipated that prices will continue to rise in the second half of the year both domestically and internationally. In terms of industry trends, the scarcity of heavily doped silicon wafers and overseas lightly doped silicon wafers is more apparent, and domestic lightly doped silicon wafers are also expected to benefit from overflow orders from overseas, leading to a state of global undersupply in the industry in the next two years. CITIC SEC recommends companies with a relatively high proportion of heavily doped silicon wafer products and suggests focusing on other silicon companies leading in the shipment volume of 12-inch lightly doped silicon wafers. Huatai: Turning point in the photovoltaic component industry may gradually become apparent, battery component and paste material leaders expected to be the first to see profit improvement On June 11, the Ministry of Industry and Information Technology's Science and Technology Department released the "Classification of Photovoltaic Products Part 1: Photovoltaic Modules (Draft for Approval)", which significantly raises the efficiency threshold for modules compared to the previous national standard draft for comments. Huatai expects that after the public consultation period (June 13-July 12), the subsequent approval, publication, and implementation processes will be promoted, which may lead to the first application of central state-owned enterprise module centralized procurement in the market. Huatai is optimistic that this move may accelerate the clearing of production capacity, benefiting high-efficiency battery components such as BC/HJT/TOPCon3.0, and second- and third-tier companies with outdated technology or tight funding are expected to gradually clear out. Based on the calculation of the scale of clearing products based on mainstream products/champion product efficiency, Huatai estimates a clearing scale of 327.6/153.6 GW, accounting for 33%/15%. Considering the expected relief of year-on-year pressure on the demand side of the photovoltaic sector in the second half of 2026, and market and administrative measures accelerating the clearing of the supply side, Huatai is optimistic that a turning point in the industry may gradually become apparent, with battery component and paste material leaders expected to be the first to see profit improvement. This article is reprinted from "CaiLian Press". Editor: Liu Jiayin.