Growth-Oriented Financial Report Tracking — October 28, 2026

Personal view: The dual-driver logic—laser + optical communication—is sound. The company’s optical components business elevates it from a pure equipment supplier to an AI-driven optical interconnect play. Its earnings elasticity is exceptional; this is truly an impressive company. Following its February 2 annual report release, the stock surged 20% (the maximum daily limit for ChiNext/STAR Market stocks) the very next day, kicking off a major upward trend—and it has since become one of this year’s top-performing AI-related stocks. Yet despite staying firmly within the core ‘optical king’ group, we missed out on these high-leverage satellite stocks. Currently, similar to CCLs and PCBs, both sectors exhibit solid industry momentum. Their long-term trajectories are clear; in the near-to-medium term, their market rebound performance will hinge on whether China’s innovation-focused markets (ChiNext/STAR) stabilize—and how leading stocks across AI sub-sectors respond. Read. 8. Sugon (603019.SH) — High-End Computers / Computing Infrastructure Earnings: The company manufactures high-end computers and other IT equipment, ranking among China’s leading providers of computing infrastructure. Revenue for the first three quarters reached RMB 12.238 billion (+39% YoY); net profit attributable to shareholders totaled RMB 1.725 billion (+79% YoY). In Q3 alone, revenue amounted to RMB 4.773 billion (+61% YoY); net profit attributable to shareholders was RMB 753 million (+217% YoY), essentially flat sequentially (≈ +1%) versus Q2. Growth drivers: First, the national push for self-reliance in computing infrastructure: the company maintains full-stack capabilities across high-end computers, storage systems, liquid-cooled data centers, and security products—making it one of only a few domestic vendors capable of delivering end-to-end computing solutions. Second, its strategic shift from hardware-only sales toward integrated hardware + software + services: rising software contribution directly lifts gross margins—this explains why profit growth significantly outpaced revenue growth this quarter. Third, investment income from equity holdings in high-quality assets such as Hygon Information (RMB 264 million in Q3 net investment income, accounting for ~32% of total profit)—deepening its integration into China’s domestic chip ecosystem. Personal view: This report reflects genuine operational improvement in core businesses, augmented by investment gains. However, two key metrics—the sequential stagnation in quarterly profit and the high proportion of investment income—mean earnings growth cannot be linearly extrapolated. While computing infrastructure remains a long-term strategic direction, the company’s industrial positioning and business model are clearly inferior to upstream component suppliers. Pass. Read. II. Summary 1. Yesterday’s Recap: Market sentiment collapsed again during yesterday’s closing session. Top-performing stocks reporting strong earnings were dragged down en masse, all registering negative feedback. AI-adjacent tech stocks suffered a complete rout. 'Pharma King' released its earnings the night before last—investors remain optimistic about its fundamental growth prospects—but the market clearly didn’t embrace the report, evidenced by only a modest 2% opening gain followed by weakness. The vibrant energy seen after its interim report—complete with next-day涨停 (20% limit-up)—is gone. Overall, this report merits only an 'in-line' assessment on the data front, with guidance slightly above expectations. Going forward, order tracking remains critical. The report meets expectations—not exceeding them substantially—while long-term fundamentals and sectoral health remain unchanged. Though the market continues to decline, our stance isn’t pessimistic. We’ll now watch how core growth stocks perform once indices stabilize. Currently, the market revolves around one main theme and two secondary themes: the main theme is alpha-generating AI-adjacent technology subsectors; the secondary themes are CXO and the oil-related chain (shipbuilding + shipping). Other sectors remain unconvincing. 2. Today’s Summary: Among tonight’s eight earnings releases, two overarching drivers stand out: (1) the memory price-up cycle (e.g., Junzheng Group—DRAM/Flash/SRAM prices rising across the board); and (2) the AI compute hardware chain (e.g., Wusix, Nanya New Materials, and Jin’an Guoji for PCBs/copper-clad laminates; Sigrity and Fuhang Micro for chips; JPT and Sugon for equipment).

Q3 Earnings Forecast Surges Over 19,700%—Ranking #1 Across All A-Share Listed Companies!

Q3 Earnings Forecast Surges Over 19,700%—Ranking #1 Across All A-Share Listed Companies! 1. Dongyue Silicon Materials Upper bound of net profit growth: 19,700% Key highlights: A leading domestic producer of organic silicon materials, offering a full range of organic silicon monomers and downstream derivatives. Benefits from recovering silicon material prices and surging demand from downstream sectors including new energy and photovoltaics. 2. Fuxiang Pharmaceuticals Upper bound of net profit growth: 785.00% Key highlights: A core domestic supplier of pharmaceutical intermediates, specializing in antibacterial APIs and intermediates. Actively expanding into CDMO services; dramatic turnaround driven by low base period. 3. Xingyun Technology Upper bound of net profit growth: 500.98% Key highlights: Dual-business model centered on 'cross-border digital trade + AI computing power.' Explosive growth in AI server sales; backlog of long-term framework orders for computing power exceeds RMB 15.4 billion; achieved profitability after prior losses. 4. Benchuan Intelligent Upper bound of net profit growth: 335.36% Key highlights: A specialized printed circuit board (PCB) manufacturer focusing on communications equipment, industrial control, and automotive electronics. Ramp-up of advanced HDI and high-layer-count PCB capacity. 5. Silan Integrated Circuits Upper bound of net profit growth: 247.08% Key highlights: A specialty-process foundry serving power devices, analog ICs, and MEMS. Strong demand for automotive-grade and industrial-grade wafer manufacturing driving sustained capacity utilization improvements. 6. Tongze Kangwei Upper bound of net profit growth: 198.40% Key highlights: A Guangzhou-based broadband connectivity terminal enterprise, primarily producing 5G/4G FWA CPE and industrial routers. Ranked seventh globally among 5G FWA CPE suppliers, with leading market share in Africa and other overseas markets. 7. Huahai Pharmaceuticals Upper bound of net profit growth: 190.00% Key highlights: A leading Chinese exporter of pharmaceutical formulations, especially strong in cardiovascular APIs and formulations. Steady volume growth in the U.S. market, backed by rich pipelines covering both innovative and generic drugs. 8. Guanghui Energy Upper bound of net profit growth: 176.71% Key highlights: An integrated energy enterprise spanning coal, natural gas, and coal chemical industries. Vertically integrated upstream-downstream operations benefit from recovering energy prices and expanded production & sales volumes. 9. Hongfuhan Upper bound of net profit growth: 144.93% Key highlights: Specializes in precision functional components and thermal management solutions for consumer electronics, plus automation equipment. Possesses core technologies in precision die-cutting, stamping, and composite materials; has entered the robotics sector. 10. Qipai Technology Upper bound of net profit growth: 143.59% Key highlights: One of the largest domestic semiconductor packaging & testing firms in South China. Masters key processes including FC flip-chip, SiC high-power device molding, and GaN RF packaging for 5G base stations; turned profitable in Q3 year-on-year. 11. China Jushi Upper bound of net profit growth: 110.00% Key highlights: The undisputed global leader in fiberglass, holding the world’s largest production capacity for both direct roving and electronic cloth. Benefits from resurgent downstream demand in wind power, new-energy vehicles, and electronic communications.

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