CITIC Securities: Expected overall performance of the electronic industry to improve in the second quarter of 2026.

Guosen Securities research report stated that the overall performance of the electronics industry is expected to be good in the second quarter of 2026. Among them, storage and CCL benefiting from price increases performed the best. Companies in the AI direction such as storage, PCB, and power related companies are seeing continued high prosperity. Companies in the direction of independent controllable Fab and packaging testing have continuously improved operating rates and clear price increase momentum. The expectations for the volume of semiconductor equipment and domestic computing power are also continuing to improve along with financial report improvement. In other directions, consumer electronics companies like Apple and Huawei have performed well. IC design companies with combined storage business and companies with strong performance logic for new products are also standing out. Overall, promising sub-sectors with relatively bright performance expectations include storage, CCL, independent controllable computing power, advanced manufacturing, power, equipment leaders, fruit chain leaders, and IC design companies with combined storage. Looking ahead to the second half of 2026, the turnaround point for domestic semiconductor equipment and domestic computing power is clear, while the performance of power-related, PCB, and storage in the global AI trend continues to be strong. All five directions are still favorable. The AI industry chain market is starting to diverge, with the supply chain orders and trends in consumer electronics optics, glass substrates, and other areas gradually becoming clear, indicating confidence in the sector's future performance.