Brokerage Morning Meeting Highlights | Calculating Storage and Driving Growth: Reassessment of the Value of the Packaging Test Industry

Yesterday, the market rebounded throughout the day, with the Shanghai Composite Index rising over 1%. The ChiNext index performed strongly, while the Sci-Tech Innovation 50 Index surged over 4%. The total turnover of the Shanghai and Shenzhen stock exchanges was 2.39 trillion yuan. In terms of sectors, concepts related to computing power hardware, pharmaceuticals, agriculture, and advanced packaging were active. On the downside, the film and theater chain concept collectively adjusted. By the close, the Shanghai Composite Index was up 1.41%, the Shenzhen Component Index was up 2.44%, and the ChiNext Index was up 3.14%. At today's brokerage morning meeting, China Securities Co., Ltd. stated that the synergy of computing storage and light will lead to a reassessment of the value of the packaging and testing industry; Huaxi noted that the pig cycle turning point is nearing and that the pig sector is bottoming out at valuation lows; Huatai remarked that the differentiation of energy storage IRR across provinces is key, with mechanisms being crucial. China Securities Co., Ltd.: The synergy of computing storage and light will lead to a reassessment of the packaging and testing industry. Compared to the global development trajectory of advanced packaging processes, mainland Chinas advanced packaging technology is currently experiencing a rapid increase in the penetration rate of CoWoS technology. Since mainland China's wafer foundries have yet to mass-produce mid-stage processes such as RDL, OSAT manufacturers have made layouts in the 2.5D/3D/CoWoS fields. OSAT manufacturers that can first achieve mass production and complete capacity expansion are expected to gain a first-mover advantage and capture a significant market share. However, as industry development trends evolve, the importance of mainland China's wafer foundries in advanced packaging cannot be overlooked, as Foundries' advantages in front-end technology and equipment capacity can help them catch up or even overtake in the iteration of advanced packaging technologies. Huaxi: The pig cycle turning point is nearing, and the pig sector is bottoming out at valuation lows. The phased recovery of domestic pig prices in early July 2026 is a seasonal impulse rebound formed by the resonance of short-term factors, rather than the fundamental support for a new upward turning point in the pig cycle. This rebound peaked and fell back in late July, with the futures contract hitting a new low since its listing, accompanied by a counter-current growth in the overall output of leading enterprises in July compared to June. The confirmation of a genuine trend turning point requires meeting two conditions: a continuous decline in breeding stock over multiple quarters and a simultaneous decrease in the number of pigs. According to the current destocking pace, it is most likely to occur between the fourth quarter of 2026 and the first half of 2027. Huatai: Differentiation of energy storage IRR across provinces is key. The new energy storage industry is in a critical window for transitioning from "policy-driven to market-driven." The differentiation of policies across provinces determines the profitability of energy storage plants. Taking 100MW/200MWh 2h lithium iron phosphate independent energy storage as the benchmark asset, the all-investment IRR has been calculated under the same framework for 11 regions: The provincial IRR for 2026 YTD ranges from 0.9% (Xinjiang) to 8.0% (Inner Mongolia), spanning over 7 percentage points; the electricity price mechanism (price difference, compensation, charge/discharge frequency) rather than construction costs is the core variable determining the differences in inter-provincial returns. Layouts should follow the primary lines of "mechanism stability" and "cost advantages." This article is reproduced from "Financial Associated Press," GMTEight editor: Chen Siyu.