Lower third-quarter deliveries weighed on revenue and profit, but gross margin and customer payments remained resilient. JPMorgan expects deliveries to recover in the fourth quarter and has raised its earnings forecasts for 2027–2028.
The RatingDog manufacturing PMI edged lower, while output reached its highest level since April; companies’ inventory building diverged from trends in employment and selling prices, and the deployment of fiscal funds is key to a broader investment recovery.
In the third quarter of 2026, higher coal prices and lower thermal coal costs offset weaker sales volumes, driving a 24% quarter-on-quarter increase in Yankuang’s net profit attributable to shareholders. JPMorgan expects earnings to continue growing in the fourth quarter, but cautions investors to watch for lower coking coal prices and capital expenditure pressure.
Tigermed’s growth in newly signed orders in the first three quarters exceeded its full-year target set at the start of the year, but its third-quarter gross margin fell quarter on quarter. JPMorgan believes higher prices on new contracts will improve margins only as older contracts are gradually replaced.
In the third quarter of 2026, revenue growth picked up in both of the company’s major businesses, but gross margin declined and cash flow weakened. JPMorgan believes improving power semiconductor prices and demand for railway maintenance could support future performance.
Morgan Stanley estimates that at least about seventy percent of the 800 billion yuan market stabilization facility remains unused, but the outcome of the policy meeting, US stock performance and A-share valuations still influence when the market bottoms.
As of September 2026, manufacturing investment fell 2.1% year on year, while nominal industrial output grew 8.2%, widening the gap between their growth rates to negative 10.3 percentage points. Morgan Stanley believes slower capacity expansion and profit growth help reduce risks in the industrial and financial systems, although earnings trends vary across industries.
In the third quarter of 2026, the company’s revenue and net profit exceeded Morgan Stanley’s forecasts by 14% and 27%, respectively. Higher volumes and prices for optical products drove growth, but gross margin fell from the second quarter.
Microsoft, Google and Amazon have all signaled higher capital spending in 2027, while Meta also plans to maintain an aggressive investment pace. Morgan Stanley is optimistic about cloud semiconductor demand but points to computing-capacity delivery bottlenecks and cash-flow pressure.
Asia’s average manufacturing PMI for 9–October was higher than in 7–August. Excluding China, new orders were near an eight-month high, and the export recovery spread from technology products to non-technology products; China’s domestic demand remained weak.
Faster attacks are driving more automation and intelligence sharing in security operations. Morgan Stanley believes in-house capabilities will complement vendor tools, but whether tool consolidation can lead to greater customer spending remains an open question.
The Nasdaq fell 5.3% in October, and US CCC-rated credit spreads widened to their highest level in four years; meanwhile, Treasuries rose and market sentiment indicators continued to signal risk appetite. Morgan Stanley maintains its overweight in global equities through the US and favors investment-grade credit.
Morgan Stanley has raised its forecast for global electricity consumption in 2030 again, and believes grid bottlenecks, demand for around-the-clock power and changes in electricity prices will reshape the distribution of returns across the power value chain.
A modest rebound in Hong Kong’s Hong Kong dollar loan-to-deposit ratio, together with US rate pricing nearing a level Nomura considers reasonable, prompted the bank to reduce its position; it still believes the market overestimates the extent of Hong Kong liquidity tightening.
Fresenius and Wuxi Bio have signed an exclusive development agreement covering the next decade. Nomura believes the agreement will help support long-term demand for services, but a more significant financial contribution depends on the success of the candidates and subsequent manufacturing arrangements.
Third-quarter revenue in 2026 rose nearly forty percent year on year, while improved capacity utilization narrowed the gross loss margin; the return to net profit was mainly due to fair-value gains. Nomura expects new contract prices to turn the gross margin on 300 mm silicon wafers positive in 2027.
Nomura lowered its confidence in shorting the US dollar against the offshore renminbi from the highest level of 5 to level 4 and revised its year-end exchange-rate target from 6.50 to 6.55; it still expects the renminbi’s medium-term appreciation trend to continue if additional intervention is limited.
Guangdong has rolled out a plan to expand consumption, construction machinery exports grew faster than domestic sales in the first three quarters, and a commercial space agreement covers the overseas delivery of an entire constellation; earnings and order conversion timelines differ across the relevant sectors.
Arista’s third-quarter revenue and earnings per share both exceeded market consensus, and its fourth-quarter guidance was also above expectations. Bernstein is focused on its share of AI networking, enterprise IT spending, and the company’s outlook for 2027.
