On July 2, Tianshu Zhixin (09903.HK) declined 14.53% in regular trading, trading at 672.5 HKD/share, with turnover of HKD 551 million. The sharp drop was driven by a broad-based semiconductor sector selloff combined with intense profit-taking pressure following the stock's massive prior rally.

The semiconductor sector experienced a collective sharp decline on the same day, with peers including SMIC down 6.49%, Hua Hong Grace down 6.97%, GigaDevice down 9.68%, Montage Technology down 7.06%, and Biren Technology down 10.54%. The sector-wide downturn amplified selling pressure on Tianshu Zhixin given its elevated valuation at approximately 60x price-to-book ratio while still unprofitable.

The stock had hit an all-time high of 887.50 HKD on June 25 before entering violent oscillation, including a 13.75% single-day plunge on June 26. Despite Macquarie initiating coverage with an Outperform rating and a 1240 HKD target price, and JPMorgan raising its target to 920 HKD, short-term profit-taking sentiment overwhelmed bullish institutional calls, triggering concentrated selling.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)