Ahead of July 13, Chengchang Technology, Aerospace Electronics

On the weekend, multiple technology-related positive catalysts were released in a concentrated burst. Commercial aerospace and domestically developed computing power both received major catalysts. The overall market sentiment has a basis to recover, and in the short term, indices are mainly expected to trade sideways.

Thematic capital is likely to flow more clearly into the hard-tech sector, and there will be a relatively pronounced divergence in relative strength among sectors.

Micron’s large-scale expansion in the US for memory chips brings negative pressure that suppresses the storage-memory sector. At elevated levels, there is disagreement pressure for compute-and-integration systems; capital is more inclined toward subdivided aerospace and upstream computing-power targets. Smaller-cap thematic names are likely to be more active than weighty blue chips.

Stocks held:

Chengchang Technology

It covers two main lines: commercial aerospace onboard chips and domestic semiconductor substitution. Breakthroughs in Long March rocket fuel technology drive an upward demand trend in the satellite industry chain. Domestically driven computing-power self-replacement also benefits domestic chip production capacity release. On Monday, it is likely to follow the attention of the two major technology themes and attract capital focus.

XD Aerospace Electronic

Its main business is related to rocket supporting components. It directly benefits from the landing of the new Long March rocket technology. It is a low-position supporting stock within the aerospace sector. With thematic catalysts, it tends to track the aerospace sector’s movements and there is an expectation of a “late follow-up” rally.

Risk warning

Good news on the news front may see price-opening execution followed by a high-open-and-fade pattern. The switching rhythm between high- and low-position names within the sector can be fast. Overseas memory expansion also brings competitive pressure to the supply chain. Technology-theme volatility is relatively large. Investors should be mindful of short-term pullback risks caused by capital divergence. The above content is only a logical整理 of news catalysts and does not constitute any investment advice.