The "Pre-Increase King" of A-shares is born! Shannon Chip Innovation's Q1 net profit surged by 87 times, and the Semiconductor Equipment ETF (561980) soared 5.7%!

Samsung’s prices rise again by 30% in the second quarter, and the storage industry unexpectedly reveals an “earnings pre-increase king.” The Semiconductor Equipment ETF (561980) soars more than 5.7%!

On April 8, the semiconductor equipment sector surged across the board. As of the time of publication, the China Merchants Semiconductor Equipment ETF (561980) jumped more than 5%. Among the constituent weight stocks, InnoLaser, NAURA, and AMT surged by 7%; Changchuan Technology and SMIC rose by more than 6% and 4%; Cambricon, Naura Pioneer Technology, and Hygon Information all followed suit collectively. On the fund flows side, the ETF has received net inflows of roughly RMB 70 million for three consecutive trading days, showing clear signs of aggressive accumulation.

The immediate trigger for this round of market action is likely the continued delivery of performance in the storage industry chain beyond expectations. On the evening of April 7, Shanxun Chuangxin released its 2026 first-quarter performance forecast, expecting attributable net profit of RMB 1.14 billion to RMB 1.48 billion, up 6714.72% to 8747.18% year over year. After deducting non-recurring gains and losses, net profit is expected to increase year over year by up to 9713.23% at the highest, ranking temporarily as A-share’s “earnings pre-increase king” for the first quarter.

The company clearly stated that the blowout growth in earnings was driven by strong growth in demand for generative AI application scenarios, with continued price increases for enterprise storage products, leading to ongoing improvement in profitability. Even more astonishing is that Shanxun Chuangxin’s single-quarter profitability in 2026 Q1 has already exceeded more than twice its 2025 full-year attributable net profit of RMB 544 million.

Meanwhile, storage giants are still stepping up price increases. Samsung Electronics doubled the average DRAM price in the first quarter and raised it again by 30% in the second quarter, covering all product categories including HBM, servers, and general-purpose DRAM. SK hynix previously said that its entire 2026 HBM capacity has been sold out, with DRAM and NAND inventories left at only 4 weeks. TrendForce data shows that in the second quarter, DRAM contract prices are expected to rise another 58%-63% quarter over quarter, while NAND Flash contract prices are surging by 70%-75%.

The price-increase effect is accelerating its transmission from storage to the entire industry chain. From international IDMs such as Infineon and Texas Instruments, to domestic leading manufacturers such as GigaDevice and Puren, companies have been issuing concentrated pricing adjustment notices, signaling that the industry is shifting from price competition to the profit-repair phase.

Analysts believe that this round of price-hike wave is jointly driven by supply-side cost pressure and rising AI demand. In areas where domestic substitution rates for equipment, materials, and other categories increase, benefits are expected to be among the first to materialize.

The China Merchants Semiconductor Equipment ETF (561980) tracks CSI Semiconductor Index. Equipment and materials account for over 80%. In addition, it also holds about 20% in leading integrated circuit design and manufacturing companies. The top ten weighted holdings cover industry leaders such as InnoLaser, NAURA, SMIC, Cambricon, Hygon Information, and others. Since 2020, the cumulative increase has exceeded 234%, showing high upside beta, and it is expected to benefit fully from the storage large-cycle and the wave of domestic substitution.

It is reported that the index’s top-ten concentration is far higher than that of similar indices such as STAR Market chip, semiconductor materials equipment, and other categories. With stronger cyclic transmission characteristics, it may show even greater elasticity in the new round of semiconductor upcycle.

Risk warning: Funds involve risk; invest with caution.