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2026-10-12 12:52:45 Citi published a research report stating that after meeting with more than 60 European and US institutional investors over the past two weeks, it found that US investors are mainly focused on AI optics development due to concerns over potential FCC restrictions, and currently prefer US optical companies over Chinese peers. Among hardware names, ZJ INNOLIGHT (03308.HK) attracted the most attention. In addition, long-term investors are also showing rising interest in LENOVO GROUP (00992.HK) as an alternative investment target to Neoclouds. The broker noted that supply chains in Taiwan and Mainland China have differing expectations regarding the use of PTFE in NVIDIA Corporation (NVDA.US)'s Vera Rubin Ultra. Investors generally agree that 2027 capacity expansion will be constrained by lead times of about 24 months. Amid intensifying competition and tight upstream material supply, execution of specification upgrades and market share gains will be key. Meanwhile, European long-term investors have become more interested in XIAOMI-W (01810.HK). Citi believes most of the negative impact brought by market sentiment has already been reflected in the stock price performance, and expects Xiaomi's fundamentals to have bottomed out in 3Q26. In addition, LUXSHARE ICT (02475.HK) has also bottomed out technically. Citi is optimistic about the stable performance of its communications business, while new capital investment into businesses may bring re-rating opportunities. In the semiconductor sector, ASMPT (00522.HK) is benefiting from AI-driven demand for advanced packaging, while opportunities in TCB and photonics remain intact. Strong orders in 1Q27 may provide support. Citi also reminded that market liquidity may be drained ahead of YMTC's listing between the end of this year and early next year, weighing on semiconductor stocks. However, this may also provide buying opportunities for Chinese semiconductor equipment makers and MONTAGE TECH (06809.HK). In the software sector, among Citi-rated stocks, only KINGDEE INT'L (00268.HK) attracted investor attention, mainly due to its steady transition from SaaS to AI. However, its share price suggests investors remain unconvinced about its long-term targets. (gc/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |