【Market Analysis】 Strictly speaking, yesterday's market decline was a natural correction following excessive crowding in the tech sector. Such adjustments typically do not alter the upward trend. For instance, the leading memory stock, Da Pu Wei (301666.SZ), resumed trading and still rose nearly 9%, indicating sentiment has recovered. Therefore, the market's rise today is logical, with the Hong Kong market up 0.86%. The US-Iran situation remains stagnant, with both sides posturing. As long as conflict does not erupt, news of nearing agreements is constant, and the market has grown numb to it. The market continues its own course. A key method to identify the market's main direction is the continuous emergence of positive catalysts for that sector. Clearly, AI is that direction. On May 22, the National Development and Reform Commission explicitly stated at a press conference that it would guide domestic large models to intensify adaptation to domestic computing power chips. This move aims to ensure the independent, controllable, secure, and stable development of artificial intelligence. The domestic supply chain continues to strengthen. Last night, SMIC (00981) announced it received approval from the China Securities Regulatory Commission for its share issuance to acquire assets. Simultaneously, it announced plans to issue A-shares to five shareholders, including the National Integrated Circuit Industry Investment Fund Co., Ltd., to acquire their combined 49.00% stake in its controlling subsidiary, SMIC Northern Integrated Circuit Manufacturing (Beijing) Co., Ltd. This long-awaited move is finally materializing, removing constraints. As a May top stock pick, it surged nearly 8% today. ILUVATAR COREX (09903), SMART-CORE (02166), and MONTAGE TECH (06809) all gained over 6%. Meanwhile, Changxin Technology's STAR Market IPO will be reviewed on May 27, and Yangtze Memory has initiated IPO tutoring, further stimulating GIGADEVICE (03986), which surged nearly 13%. Although NVIDIA did not rise, many companies serving as "picks and shovels" (providing foundational support) within the NVIDIA ecosystem experienced sharp gains. The catalyst was a comprehensive Bill of Materials (BOM) teardown report on NVIDIA's next-generation Rubin rack by Morgan Stanley analyst Howard Kao. The report indicates that a Rubin rack procured from an ODM costs approximately $7.8 million, nearly doubling the ~$3.99 million cost of the previous-generation GB300 rack. This value leap is not solely driven by the core GPU. Among the downstream components covered, PCB content value saw the most significant increase, soaring 233% compared to GB300, followed by MLCCs (+182%), ABF substrates (+82%), power supplies (+32%), and liquid cooling components (+12%). The PCB sector exploded. Zhitong's May top pick, Shenghong Technology (02476), surged over 16% again; Kingboard Laminates (01888) rose over 15%; leading equipment maker Han's Laser (03200) gained nearly 5%. Huaqin Technology (03296), included in the Shanghai-Hong Kong and Shenzhen-Hong Kong Connect securities list starting May 21, rose over 12%. Large models also contributed positively. KNOWLEDGE ATLAS (02513) announced on May 22 the provision of its GLM-5.1-highspeed API to select enterprise clients. The model's output speed reaches 400 tokens/s, setting a new global speed record for large model APIs among manufacturers, leading to a surge of nearly 27% today. MINIMAX-W (00100) also rose nearly 16%. Monetization of large models is underway; OpenAI generated $5.7 billion in revenue in the first quarter. Anthropic's recent growth rate has surpassed its competitors. In Q2, Anthropic expects revenue to double to nearly $11 billion, with an expected operating profit of $600 million. Related application-side stocks like FANZHI INTELLIGENCE (06682) rose over 11%, while HUIJU TECH (01729) and XUNCI (03317) gained over 6%. The State Council Information Office held a press conference this morning on the 4th China International Supply Chain Expo. This expo will feature an AI zone for the first time. UBTECH (09880) announced its role as the official exclusive humanoid robot partner for the 4th expo. UBTECH's new full-size humanoid robot, Walker C1, became the expo's first official "silicon-based spokesperson," performing functions like intelligent guided tours, reception, information consultation, and hosting interactions. On May 20, UBTECH founder Zhou Jian announced via Weibo the launch of the consumer-grade humanoid robot brand UWORLD. The "consumer-grade humanoid robot" scenario primarily targets individuals and families. Recently, UBTECH formally signed a strategic cooperation agreement with Hitachi (China) Ltd. to jointly develop intelligent solutions for different production scenarios. With multiple positive catalysts, the stock surged 10%. Yesterday, Tesla's FSD entry into China continued to fuel the Physical AI theme, with sector leader WUYISHIJIE (06651) surging over 28% today. Youjia Innovation (02431), securing an order for 200 unmanned logistics vehicles, surged over 23%. Cao Cao Mobility (02643), backed by Geely Group, deeply participated in the product definition and R&D of China's first native Robotaxi prototype, Eva Cab, which debuted at the 2026 Beijing Auto Show. Its deeply customized Robotaxi is set for mass production in 2027, with a target of 100,000 cumulative deployments by 2030. The company also plans to deploy 100 Robotaxis in Shanghai in 2026 and aims to capture over 15% of the global autonomous mobility market share. Share buybacks also served as a key catalyst. The company plans to repurchase shares in the open market using up to HK$200 million of its own funds within one year starting May 14, 2026. The stock surged over 18%.

【Sector Focus】 On May 22, US President Trump stated that the Environmental Protection Agency is delaying the implementation of commercial and household refrigerant regulations set by the Biden administration to "substantially reduce consumer spending." The Biden administration's 2023 regulations impose strict usage limits on hydrofluorocarbons (HFCs) starting in 2026. HFCs, widely used in refrigerators and air conditioners, are a type of greenhouse gas. Trump, at an event at the White House on the 21st, called the Biden administration's restrictions on HFC-containing refrigerants "costly and unnecessary." This directly benefits leading refrigerant producer Dongyue Group (00189) and indirectly benefits Midea Group (00300), Hisense Home Appliances (00921), and TCL Electronics (01070).

【Stock Spotlight】 Meig Smart (03268): Mass Production and Delivery of AI Modules; Q2 Shipments Accelerate. Recently, the company became the first in the industry to officially commence mass production and delivery of 77 TOPS AI modules. In Q1, Meig Smart reported revenue of 928 million yuan, down 6.97% year-over-year, with net profit attributable to shareholders of 46.6547 million yuan, up 0.76% year-over-year. Non-GAAP net profit was 47.4754 million yuan, up 5.95% year-over-year. Analysis: Meig Smart is the first company globally to achieve large-scale commercial deployment of 5G smart modules in new energy vehicles. Following its pioneering development and successful large-scale deployment of 48 TOPS high-computing smart modules, the SNM980, with its powerful 77 TOPS AI computing power, has achieved mass production and delivery, marking another technological leadership in edge AI. The company's profitability improved. While main operating revenue declined year-over-year, core profit indicators showed steady growth, especially the significant increase in non-GAAP net profit. Gross margin rose 20.36% year-over-year, and net margin increased 8.3% year-over-year. The company locked in memory chip supplies early, stocking up at low prices in 2025 to cover 2026 orders, resulting in significantly better gross margins than peers. It holds approximately 29% global market share in high-computing smart modules, ranking first. Driven by both edge AI and automotive sectors, it first defined the Automotive Module 4.0 standard, launching 24-700 TOPS AI BOX and automotive-grade heterogeneous hardware platforms. New product SRM949 (Qualcomm QCM6650): a 5G cabin connectivity AI module, positioning in smart cockpits and edge AI inference. With self-developed agents + large models, it enters high-value-added scenarios like robotics and industrial automation. The proportion of high-computing AI modules and automotive modules continues to increase, with unit prices 3-5 times higher and gross margins 10-15 percentage points higher than standard modules. Strong overseas FWA demand: 5G broadband replacing fiber in Japan/Europe/North America, with order visibility exceeding 12 months. The company's order backlog/customer demand remains positive, with Q2 shipments accelerating. Global layout: Overseas revenue reached 1.4 billion yuan in 2025 (up 74% year-over-year), accounting for 37.4% of total, with batch shipments of FWA products in Japan/Europe/North America. Setting up EMS capacity in Vietnam/Malaysia/Mexico mitigates geopolitical risks, with R&D in China and global delivery. The company focuses on exploring AI deployment for high-computing modules, 5G communication technology upgrades, and business expansion in segments like vehicle networking and smart hardware, while strengthening R&D layout and supply chain integration across multiple regions. As internationalization accelerates, its revenue performance in overseas markets like North America, Japan, and Europe has improved significantly. With sustained positive order backlog and customer demand, the proportion of high-computing AI modules in overall business will continue to rise, accelerating the extension of AI capabilities to the cloud.