HK Stock Market Move | Power semiconductor sector leads gains; industry profitability improved markedly in Q3; institutions are bullish on AIDC driving a demand increase in the tens of billions.

The power semiconductor sector led the gains. As of press time, Hua Hong Grace Semiconductor (01347) rose 13.48% to HK$67.35; SICC Co., Ltd. (02631) rose 12.67% to HK$43.76; INNOSCIENCE (02577) rose 10.67% to HK$28; BASICSEMI (09971) rose 4.57% to HK$32.94. On the news front, recently, the third-quarter reports of A-share listed companies in the third-generation semiconductor industry chain have basically been fully disclosed. The substrate segment is the upstream of the silicon carbide industry chain and also the segment with the most prominent earnings recovery elasticity in this round. SICC Co., Ltd. reported third-quarter revenue of RMB646 million, up 102.89% year on year, and net profit attributable to shareholders of RMB85.8329 million, a substantial improvement on a quarter-on-quarter basis. IDM and power device manufacturers continued to show divergent trends, with SiC modules being the core source of incremental growth for some companies. China Securities Co., Ltd. pointed out that the explosive growth of AIDC is driving power semiconductors into a new demand cycle. From the perspective of technological iteration, SiC power devices are highly suited to the technological trend of high-voltage direct current conversion and are one of the core components of power supply units. According to estimates, under the explosive growth of AIDC plus technological iteration, it is expected to bring incremental demand for SiC power devices of the tens of billions by 2030.