<div id="readability-page-1"><div>The CSRC website shows that Yangtze Memory, principally engaged in 3D NAND flash memory chips and solutions, has launched its IPO process. CITIC Securities and China Securities have submitted listing tutoring filings.Chip stocks outperformed this morning. SMIC (00981.HK) +6.150 (+8.978%) Short selling $1.01B; Ratio 12.660% last traded at HKD74, up 8.03%, with turnover of 113 million shares, involving HKD8.24 billion.HUA HONG SEMI (01347.HK) +9.800 (+8.405%) Short selling $627.57M; Ratio 20.811% last traded at HKD126.7, up 8.66%, with turnover of 24.8882 million shares, involving HKD3.071 billion.GIGADEVICE (03986.HK) +72.000 (+11.960%) last traded at HKD671, up 11.46%, with turnover of 2.3396 million shares, involving HKD1.554 billion.CLSA published a research report stating that GIGADEVICEs niche DRAM business will continue to benefit from suppliers capacity expansion, while customized memory products will begin contributing meaningful revenue from 2026 onward. The broker raised its earnings forecasts and lifted its H-share TP to HKD782.3 from HKD538, reiterating an Outperform rating.The report noted that GIGADEVICEs niche DRAM business recorded strong growth in 1Q26, with related revenue rising more than 1x QoQ, accounting for one-third of total revenue (reaching RMB1.4 billion). The broker expects suppliers niche DRAM capacity to achieve moderate YoY growth in 2026 and continue expanding in 2027. On pricing, the company expects prices to continue rising throughout 2026 and remain at relatively high levels in 2027.The broker also said customized memory products will start contributing meaningful revenue in 2026, with applications in automotive cockpits, AI PCs and robotics at the edge. In addition, the listing of Changxin Memory Technologies may boost Chinas memory industry, particularly investor sentiment toward GIGADEVICE.CLSA raised its 2027 and 2028 EPS forecasts for the group by 25% and 27%, respectively. In terms of H-share valuation, the broker values the company at 45x its 2027 forecast PE, representing a 12.5% premium to the average of domestic and overseas peers. It believes such valuation is justified given its position as a leading niche memory manufacturer and as one of the few listed memory companies in the Hong Kong market, offering scarcity value. (ad/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-19 16:25.)</div></div>

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Yangtze Memory has initiated its A-share IPO process, positively impacting market sentiment. Chip stocks surged, with SMIC up 8%, HUA HONG SEMI rising 8.4%, and GIGADEVICE jumping 11.9% after CLSA raised its target price. CLSA's report highlights GIGADEVICE's strong growth in niche DRAM and forecasts significant revenue contributions from customized memory products starting in 2026, justifying a premium valuation.

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HUA HONG SEMI

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Guotai CSI All Share Integrated Circuit ETF

China Southern CSI Semiconductor Industry Custom ETF

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CITIC Securities Co., Ltd.

CITIC SEC

Hua Hong

SMIC HK SDR 5to1

Yangtze Memory Launches A-Share IPO Process, Boosting Market Sentiment; SMIC , HUA HONG SEMI  Up 8%; GIGADEVICE Jumps 11% as CLSA Raises TP