Jiwei Index fell 1.07%, Apple plans to settle South Korea's antitrust lawsuit for 580 million yuan

As of the close of August 25, the three major A-share indices closed mixed today. The Shanghai Composite Index fell 0.36% to 3373.58 points; the Shenzhen Component Index rose 0.02% to 13669.41 points; and the ChiNext Index rose 0.63% to 2701.60 points. The two markets had a total turnover of 942 billion yuan, and northbound funds had a small net inflow of 1.739 billion yuan today.

From the perspective of the market, new stocks under the registration system, liquor, and digital currency sectors are at the top of the list of gains, while agricultural planting, national defense and military industry, and papermaking sectors performed poorly. 1,588 stocks in the two cities rose, and 2,259 stocks fell. Among them, 50 stocks rose by the daily limit, and 19 stocks fell by the daily limit.

Today, the market sentiment was divided. The first batch of new stocks under the GEM registration system still performed well on the second day of listing. Only one of the 18 stocks fell, and C Jinchun, which had the largest increase, closed up 76.87%. In addition, there were 10 non-listed new stocks that rose by 20%, all from the GEM, among which Tianshan Bio and Jianrui Woneng successfully achieved two consecutive gains under the 20% system.

The semiconductor sector fell slightly. Jiwei.com selected 112 semiconductor companies from the fields of electronic components, materials, equipment, design, manufacturing, IDM, packaging and testing, and distribution for statistics, and their total market value fell by 1.48%.

Among the 112 semiconductor companies, the market value of 38 companies increased, among which Yingtang Intelligent Control, National Technical, Gomeng New Materials, Xiaocheng Technology, and Huacan Optoelectronics had the largest increases; the market value of 74 companies decreased, among which Walt Gas, Yaguang Technology, BDStar, Will Semitek, and Zhenhua Technology had the largest decreases.

In terms of capital inflow/outflow, according to statistics from Eastmoney, the main capital of the semiconductor sector had a net outflow of 4.992 billion yuan, and the market performance was slightly poor. In addition, brewing, tourism, home appliances, medical care, and security had the highest net inflow, while electronic components, agriculture, forestry, animal husbandry, fishery, securities, aerospace, and medicine had the highest net outflow.

Essence Securities analyzed that the new 20% daily price limit rule can further enhance the liquidity of GEM stocks, and the market should give these liquidity a certain premium. Therefore, the expansion of the daily price limit will bring more benefits to the GEM. From the Science and Technology Innovation Board to the GEM and then to other A-share sectors in the future, it is expected that the 20% daily price limit system may be gradually rolled out with the implementation of the registration system reform. The concentrated listing of the first batch of companies will not have a significant impact on market liquidity. The market will still mainly present a "volatile upward" pattern for some time to come. Under this logic, the pro-cyclical sector will have a performance of compensatory and repair nature. At the same time, we also need to pay attention to the fact that the recovery is still slow, the style may not be one-sided, and the opportunities of cyclical stocks are also structural, and we should also look for alpha and cyclical growth stocks.

Global News

In the U.S. stock market, as of Monday (August 24), the Dow Jones Industrial Average was at 28,000 points, up 1.35%; the S&P 500 was at 3,431.28 points, up 1%; and the Nasdaq Composite was at 11,379.72 points, up 0.6%.

Most of the popular Chinese concept stocks rose, with Alibaba at $276.02, up 3.84%, and JD.com at $76.18, up 1.6%. Both stocks hit record closing highs. Other popular Chinese concept stocks include Baidu at $122.88, up 0.35%; NetEase at $492.89, up 1.63%; Sina at $40.82, up 1.97%; and Sina Weibo at $34.79, up 2.96%.

The Philadelphia Semiconductor Index rose 21.04 points, or 0.96%, to 2,219.37.

The Philadelphia Semiconductor Index components rose more than fell, with the top gainers being Marvell, up 3.75%, Cree Technology, up 2.58%, and Micron Technology, up 2.58%; the top losers were Monolithic Power Systems Inc, down 1.70%, AMD, down 0.87%, and Lam Research, down 0.68%.

Analysts at JPMorgan Chase believe that in stark contrast to the dot-com bubble, technology companies are now performing well in terms of balance sheet and cash flow, and the rise in technology stocks is benefiting from strong earnings expectations. As the public health crisis continues, people's dependence on the Internet continues to rise, and technology stocks have been leading the rally in recent months, and this round of rebound is expected to continue. Investors are advised to increase their holdings of technology stocks, and more room for growth is expected in the future.

In Europe, as of Monday (August 24), the UK FTSE 100 index closed at 6104.73 points, up 1.71%; the German DAX index closed at 13066.54 points, up 2.36%; and the French CAC 40 index closed at 5007.89 points, up 2.28%.

In the Asia-Pacific region, as of the close of August 25, the Hang Seng Index was at 25,512.48 points, down 0.15%; the Nikkei was at 23,296.77 points, up 1.35%; and the South Korean Composite Index rose 1.58%.

Stock News/A Shares

Han's Laser - On August 24, Han's Laser released its 2020 semi-annual report. The company achieved revenue of 5.16 billion yuan, a year-on-year increase of 8.99%; net profit attributable to shareholders of listed companies was 623 million yuan, a year-on-year increase of 64.26%. The PCB business achieved revenue of 874 million yuan, a significant year-on-year increase of 106.82%. In addition, the company's semiconductor industry laser packaging and testing equipment has entered the supplier sequence of many leading companies in the packaging and testing industry, and has gradually obtained customer orders.

Mingyang Circuit - On August 24, Mingyang Circuit released its 2020 semi-annual report, achieving operating income of 631 million yuan, a year-on-year increase of 13.84%; net profit attributable to shareholders of the listed company was 83.0538 million yuan, a year-on-year increase of 24.66%; net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 66.2741 million yuan, a year-on-year increase of 53.88%; basic earnings per share was 0.30 yuan.

Youyan New Materials - On August 25, Youyan New Materials disclosed its semi-annual report. The company achieved a total operating income of 5.09 billion in the first half of 2020, a year-on-year increase of 31.9%; realized a net profit attributable to the parent of 66.476 million, a year-on-year increase of 65%; earnings per share was 0.08 yuan. During the reporting period, the company's gross profit margin was 4.3% and the net profit margin was 1.3%. 

Stock News/Other

Apple - Apple plans to settle South Korea's antitrust lawsuit for 580 million won. According to the Wall Street Journal Chinese website, Apple Korea has proposed a package worth 100 billion won (about 580 million yuan) to settle the lawsuit filed by the country's antitrust officials against Apple for unfair business practices.

Samsung - According to foreign media reports, Samsung demonstrated their 3D chip packaging technology in the middle of this month, and the latest foreign media reports show that Samsung has accelerated the deployment of this technology. The accelerated deployment is because Samsung seeks to compete with TSMC in advanced chip packaging starting next year. According to foreign media reports, Samsung's 3D chip packaging technology is called "eXtended-Cube", or "X-Cube" for short. It was demonstrated in the middle of this month and can already be used in 7nm process technology.

Microsoft - According to Market Watch, a news website under Dow Jones, on the 21st, Microsoft is accelerating its overseas business and hopes to reach more service agreements with foreign governments to provide cloud infrastructure software. After the news was announced, Microsoft's stock price rose by 1% after the US stock market. Microsoft signed the Department of Defense Joint Enterprise Defense Infrastructure (JEDI) cloud computing contract with the US Pentagon in October last year. The contract is worth up to US$10 billion for a period of 10 years. However, the progress of JEDI's work has been temporarily shelved due to legal challenges from its competitor Amazon.

Jiwei.com has launched the Jiwei Semiconductor Industry Index!

Jiwei Semiconductor Industry Index, referred to as Jiwei Index, is a stock index launched by Jiwei.com to reflect the overview and operating status of the semiconductor industry in the securities market, and to help investors track the development of the semiconductor industry and use investment tools.

Jiwei.com observed and counted the overall performance of China's "core" listed companies in the A-share market over the past period of time, and referred to the company's total assets and revenue scale. It selected 30 companies from the sample library of 112 Jiwei.com semiconductor companies as components of the Jiwei Index.

The sample library covers all aspects of the semiconductor field, including electronic components, materials, equipment, design, manufacturing, IDM, packaging and testing, and distribution.

As of the close of August 25, the Jiwei Index closed at 4496.63 points, down 48.52 points from the previous trading day, a drop of 1.07%. (Since a large number of restricted shares on the Science and Technology Innovation Board have been released recently, Jiwei.com has made a small adjustment to the Jiwei Index. The trend of the adjusted index remains unchanged from the original index trend)