How strong was the afternoon rebound?

  • On 4 November, the SSE STAR 50 Index rose nearly 10% and the ChiNext Index gained more than 6%. Turnover on the Shanghai and Shenzhen exchanges reached 2.04 trillion yuan, up 334.3 billion yuan from the previous trading day, and more than 4600 stocks rose across the market.
  • The semiconductor supply chain was a major focus of the rebound, with Naura Technology, Huafeng Test & Control and others hitting their daily upper limits. Stocks related to innovative drugs, computing hardware and robotics also performed well, although some individual stocks continued to fall and market themes rotated quickly.

What did institutions buy and sell in disclosed trades?

  • The report said institutional participation was lower than on the previous trading day: 29 stocks on the trading disclosure lists recorded institutional net buying or selling exceeding 10 million yuan, with net purchases in 12 and net sales in 17.
  • Institutions made net purchases of 767 million yuan in Quectel and 581 million yuan in Piotech, whose shares rose 9.31% and 20%, respectively, that day.
  • Institutional trading in semiconductor stocks was mixed: Jiangfeng Electronics and Jinhaitong each hit their daily upper limits but saw institutional net sales of approximately 140 million yuan and 168 million yuan, respectively. Dongshan Precision rose 7.04%, while institutions sold a net approximately 1.064 billion yuan.

How is Piotech's equipment portfolio changing?

  • Piotech's revenue is centered on PECVD thin-film deposition equipment, while it is expanding into equipment such as ALD and three-dimensional integration equipment. Advanced packaging and three-dimensional stacking require bonding equipment for processes such as aligning and bonding wafers or chips, creating applications for its related products.
  • The company proposes to acquire a 100% stake in Wuxi Shangji by issuing shares and paying cash, while raising supporting funds. Wuxi Shangji focuses on PVD equipment and is also developing CVD and dry-etching equipment. Its 12-inch PVD equipment has been delivered to leading wafer fabs, and its 12-inch dry-etching equipment has completed development and received customer orders.
  • Yole forecasts that the global 2.5D/3D advanced packaging market will reach 28 billion US dollars in 2029. Market expansion provides room for equipment demand to grow, but Piotech's acquisition remains at the proposal stage.

What business foundations support Quectel's growth?

  • Quectel centers its business on communication modules and combines antennas, software platforms and AI algorithms to provide Internet of Things solutions. The report says its solutions have been commercialized in applications such as AI toys and AI glasses, while its robotics solutions have also been deployed in multiple fields.
  • According to the company's third-quarter report, revenue for the first three quarters of 2026 was 23.799 billion yuan, up 33.13% year on year. Net profit attributable to the parent company was 1.212 billion yuan, up 65.21% year on year, with profit growing faster than revenue.