Amlogic Shanghai Co Ltd

The AI semiconductor sector has moved from a phase where any tangential connection drove gains into a period of separating substance from hype and verifying earnings. After hitting a record high of 7,808.44 points, the CS Artificial Intelligence Index pulled back sharply, with the maximum drawdown from its low of 5,261.89 points since July 1 reaching 32.61%. Wind data shows that as of October 8, the 50 constituent stocks had fallen an average of 7.45% for the year, with 34 of them down, accounting for 68%. Gains were concentrated in core computing power hardware segments: Accelink Technologies rose 117.31%, Sharetronic Data Technology rose 95.09%, and Montage Technology rose 67.56%, while H&T Intelligent Control fell 54.92%, Geovis Technology fell 49.17%, and Ecovacs Robotics fell 39.48%. The sector's average price-to-earnings ratio stood at 77.01 times, with 45 companies posting positive earnings and profitable companies accounting for 90% of the total. On the capital flow front, the net outflow of main funds has not changed, with net outflows of 21.294 billion yuan, 24.002 billion yuan, and 137.349 billion yuan over the past 5, 20, and 60 trading days respectively. As of October 8, the sector's first third-quarter earnings forecast was released, with Amlogic projecting revenue of 7.080 billion to 7.180 billion yuan and net profit of 1.260 billion to 1.310 billion yuan, representing a net profit increase of 80.58% to 87.74%.

On the first trading day after the National Day holiday, the technology sector came under pressure. The underlying index of STAR 50 ETF Ping An, the SSE STAR 50 Constituent Index, fell 3.21 percent as of 10:43 a.m. on October 9, 2026. The previous trading day, the index had already dropped nearly 5 percent, breaking below its annual line and prior lows. Constituent stocks were mixed, with Amlogic rising 4.87 percent to lead gains, Transsion Holdings up 3.51 percent, and Western Superconducting Technologies up 2.28 percent. Allist Pharmaceuticals led declines with a drop of 9.25 percent, Shengyi Electronics fell 8.05 percent, and Yuanjie Technology declined 8.03 percent. On the news front, STAR Market companies released a dense batch of announcements on October 8, covering earnings forecasts, share buybacks, and major orders. On the earnings side, Amlogic issued a third-quarter earnings forecast, projecting net profit for the first three quarters of this year at 1.26 billion to 1.31 billion yuan, up 80.58 percent to 87.74 percent year on year. On the buyback side, preliminary statistics showed that more than 30 STAR Market buyback progress announcements appeared that evening, with total repurchased amounts exceeding 3.2 billion yuan.

On the evening of October 8, multiple listed companies on the Shanghai and Shenzhen stock exchanges released positive announcements. Amlogic issued its performance forecast for the first three quarters of 2026, expecting net profit attributable to owners of the parent company of 1.26 billion to 1.31 billion yuan, up 80.58% to 87.74% year on year, with third-quarter net profit expected at 649 million to 699 million yuan, up 222.67% to 247.52% year on year. The company preliminarily estimates that annual operating revenue this year is expected to exceed 10 billion yuan. Dongyue Silicone expects net profit for the first three quarters of 547 million to 567 million yuan, compared with only 2.8567 million yuan in the same period last year, mainly benefiting from rising product prices and lower unit production costs. Xingyun Technology expects net profit for the first three quarters of 240 million to 290 million yuan, turning from loss to profit year on year, with computing power business, especially server sales, achieving explosive growth. Midea Group announced that as of September 30, 2026, it had cumulatively repurchased 123 million A-shares, accounting for 1.61% of total share capital, with a total payment of 9.94 billion yuan. The purpose of this buyback plan has been changed to cancellation and capital reduction. Hua Hong Hongli announced that Guosheng Group subscribed for 6.127 billion yuan of new registered capital in Hua Hong Group in cash, raising its shareholding from 15.29% to 41.66%, and its indirect shareholding in the company through Hua Hong Group and Hua Hong International rose from 3.75% to 10.22%. In addition, Huada Jiutian invested 149 million yuan to acquire 9.269142 million shares of Xinxingji, Jianyan Institute received a tender offer from Hanqi Investment for 9.9% of its shares, Zhucheng Technology plans to invest no more than 409 million yuan to build a southwest headquarters base project for communication connectors, Hangyu Technology plans to invest about 600 million yuan in an aero-engine gas turbine ring forging project, Bright Laser Technologies plans to invest about 1 billion yuan to build a high-end metal additive manufacturing industrial base project, and Zhibang Home Furnishing plans to increase capital by 200 million yuan and invest in a smart manufacturing base project in Thailand.

Amlogic announced that it expects net profit attributable to owners of the parent for the first three quarters of 2026 to be between 1.26 billion yuan and 1.31 billion yuan, up 80.58% to 87.74% year on year. For the third quarter, it expects net profit attributable to owners of the parent of 649 million yuan to 699 million yuan, up 222.67% to 247.52% year on year and up 48.36% to 59.79% quarter on quarter. The company said the change in performance was mainly because shipments of smart set-top box SoC chips remained first in the world, smart TV SoC chips continued to be adopted by mainstream global terminal brands, the product mix was optimized, and main business revenue grew steadily.

Wavelength Optoelectronics announced that it has received an indictment from the Third Branch of the Shanghai People's Procuratorate. The company, Chairman Huang Shengdi, and two other individuals, four people in total, have been charged with suspected smuggling of goods prohibited from import and export by the state. The amount involved is 20.1085 million yuan, and the alleged acts occurred between August 2023 and April 2025. The company stated that the lawsuit is not expected to have a material impact on its ability to continue as a going concern, that production and operations are currently normal, and that the outcome of the judgment remains uncertain. In after-hours announcements the same day, Guanghui Energy projected net profit for the first three quarters of 2026 at 2.70 billion to 2.80 billion yuan, up 166.83 percent to 176.71 percent year on year. Amlogic projected net profit for the first three quarters at 1.26 billion to 1.31 billion yuan, up 80.58 percent to 87.74 percent year on year, and preliminarily estimated that full-year operating revenue is expected to exceed 10 billion yuan. Dongyue Silicone Materials projected first-three-quarter net profit to increase by 19,050 percent to 19,750 percent year on year. In addition, as of September 30, CATL had spent 3.303 billion yuan repurchasing 0.2482 percent of its A-shares. Times New Material Technology signed a wind turbine blade sales contract worth 4.394 billion yuan. Xiongshu Technology plans to acquire no more than 80 percent equity in Shenzhen Xinyuan New Materials with cash.

On the evening of October 8, multiple A-share companies disclosed earnings guidance for the first three quarters of 2026. Dongyue Silicon Materials expects net profit attributable to shareholders of the listed company to be between 547 million yuan and 567 million yuan, compared with 2.8567 million yuan in the same period last year, a year-on-year increase of 19,048% to 19,748%. Dongyue Silicon Materials said the sharp expected increase in performance was mainly driven by improvements in the market environment and industry supply-demand dynamics, higher prices for its main products, a year-on-year decline in industrial silicon procurement prices, an overall reduction in unit production costs, and a higher consolidated gross margin. In the same period last year, losses were caused by the July 20 fire accident, so the current period's profit indicators are not comparable with those of the same period last year. Benchuan Intelligence expects net profit for the first three quarters to be between 96 million yuan and 144 million yuan, a year-on-year increase of 190.24% to 335.36%. Guanghui Energy expects net profit to be between 2.7 billion yuan and 2.8 billion yuan, a year-on-year increase of 166.83% to 176.71%, with third-quarter net profit of between 1.42 billion yuan and 1.52 billion yuan, up 795.08% to 858.12% year on year. Amlogic expects net profit for the first three quarters to be between 1.26 billion yuan and 1.31 billion yuan, a year-on-year increase of 80.58% to 87.74%, with third-quarter net profit of between 649 million yuan and 699 million yuan, up 222.67% to 247.52% year on year and up 48.36% to 59.79% quarter on quarter, and preliminarily estimates that annual operating revenue this year is expected to exceed 1 billion yuan. Yonghe Shares expects net profit to be between 760 million yuan and 860 million yuan, a year-on-year increase of 61.96% to 83.27%. Xingyun Technology expects net profit to be between 240 million yuan and 290 million yuan, turning from a loss to a profit year on year.

Guanghui Energy expects net profit attributable to shareholders of the listed company for the first three quarters of 2026 to be between 2.70 billion yuan and 2.80 billion yuan, up 166.83% to 176.71% year on year. On the same day, several listed companies disclosed earnings forecasts for the first three quarters. Dongyue Silicone Materials expects net profit of 547 million yuan to 567 million yuan, up 19,050% to 19,750% year on year. Ben Chuan Intelligent expects net profit of 96 million yuan to 144 million yuan, up 190.24% to 335.36%. Amlogic expects net profit of 1.26 billion yuan to 1.31 billion yuan, up 80.58% to 87.74%. Dinglong shares expects net profit of 840 million yuan to 860 million yuan, up 61.72% to 65.57%. Yonghe shares expects net profit of 760 million yuan to 860 million yuan, up 61.96% to 83.27%. In company news, Xiongshu Technology is planning to acquire no more than 80% equity in Shenzhen Xinyuan New Materials by cash, with the overall valuation of 100% equity of the target company tentatively set at no more than 800 million yuan. Lianjian Technology plans to acquire equity in Zhejiang Huazhou Intelligent Equipment by cash of no more than 325 million yuan and obtain 51.10% equity through capital increase. The Phase III clinical trial of RAY1225 injection, a Class 1 innovative peptide drug independently developed by Zhongshan Rui Chuang, a holding subsidiary of Zhongsheng Pharmaceutical, in overweight or obese participants has obtained top-line analysis data and met the primary endpoint. In buybacks, Andeli plans to repurchase no less than 120 million yuan and no more than 180 million yuan of company shares, and Huaming Equipment plans to repurchase no less than 150 million yuan and no more than 250 million yuan, both for employee stock ownership plans or equity incentives. On the capital side, trading public information on October 8 showed that Zhongshi Technology received net institutional seat buying of 332 million yuan, accounting for 9.93% of total turnover. OGAWA received net institutional seat buying of 98.4992 million yuan, accounting for 12.62% of total turnover.

Amlogic released its 2026 interim report. First-half net profit attributable to the parent was 611 million yuan, up 23.0% year on year. Operating revenue was 4.39 billion yuan, up 31.9% year on year. Net profit attributable to the parent after deducting non-recurring items was 560 million yuan, up 22.6% year on year. Net operating cash flow was negative 502 million yuan, an improvement of 20.6% year on year. Second-quarter operating revenue was 2.5 billion yuan, up 38.6% year on year, and net profit attributable to the parent was 438 million yuan, up 41.9% year on year. The company said its TV SoC chip market share has risen steadily, shipments grew nearly 30% year on year, and its high-end product series continued to accelerate adoption by leading end customers.

Over the past week, STAR Market companies have been sending a flurry of positive signals. More than 30 companies announced new share buyback plans or progress updates, over 20 disclosed their 2026 half-year earnings forecasts with most reporting upbeat results, and several others signed major contracts or revealed R&D breakthroughs. The semiconductor supply chain is showing a cluster of strong performances. Puya Semiconductor expects first-half net profit attributable to the parent of about 825 million yuan, a more than 19-fold increase year-on-year. Dosilicon expects between 640 million and 680 million yuan, swinging from a loss to a profit. Yuanjie Technology expects net profit attributable to the parent of 600 million to 650 million yuan, up about 12-fold. Lianxun Instruments expects 510 million to 580 million yuan, up over 8-fold. Amlogic expects about 608 million yuan, up 22 percent. China Micro Semicon expects about 165 million yuan, up 91 percent, covering segments from memory and optical chips to SoCs. In biopharma, OPM Biosciences expects revenue of about 450 million yuan, up roughly 1.5 times, and net profit attributable to the parent of about 124 million yuan, up around 229 percent. In new energy and new materials, Minmetals New Energy and Oulai New Materials both expect to swing from losses to profits in net profit attributable to the parent. In the low-altitude economy, AVIC UAS expects revenue of 1.58 billion to 1.68 billion yuan, a more than 2.6-fold increase. On the buyback front, Montage Technology plans to repurchase 300 million to 600 million yuan worth of shares. Kingsoft Office has set a buyback cap of 500 million yuan and has already repurchased about 75 million yuan. Segway-Ninebot has cumulatively repurchased about 220 million yuan. Hoymiles Power Electronics' buyback ratio has exceeded 1 percent. Baimtec Material completed about 100 million yuan in buybacks using over-raised funds. Wasion Information completed 50 million yuan in buybacks. Controlling shareholders of Puya Semiconductor and Biwin Storage have proactively proposed buybacks. Market participants say the intensive buybacks and positive earnings forecasts reflect the growing quality of hard-tech companies and the accelerating release of industrial clustering effects.

In early trading on July 24, the on-device AI concept was active, with Bocom Integrated Circuit surging to its daily limit up, while Actions Technology, Amlogic, and Rockchip were among the top gainers. On the news front, the Cyberspace Administration of China recently released the filing information for seven generative AI services designed for mobile on-device use. Related features from seven leading handset makers—Xiaomi, Huawei, OPPO, vivo, Apple, Samsung, and Nubia—have all passed official compliance reviews. A research note from Soochow Securities analyzed that competition in mobile AI is shifting from feature stacking to a system-level agent phase. As on-device AI evolves toward multimodal perception and system-level intelligent agents, on-device and cloud collaboration is expected to become the main path, continuously driving upgrades in computing power, storage, connectivity, power consumption, and heat dissipation for smartphones, AI glasses, and wearables. On-device hardware is likely to enter a new upgrade cycle. A Huatai Securities research note argued that the connectivity dividend of the 5G era drove volume and price increases for components like radio frequency, and AI terminal innovation may replicate this upgrade path, reshaping the value of chips, storage, heat dissipation, batteries, and radio frequency components.

Amlogic has disclosed its earnings forecast, estimating that net profit attributable to owners of the parent company for the first half of 2026 will be approximately 608 million yuan, representing a year-on-year increase of around 22.44 percent. Net profit for the second quarter is expected to be about 435 million yuan, up roughly 40.98 percent year-on-year and approximately 151.02 percent quarter-on-quarter. The company's main products continued to see volume growth, with its TV SoC chip market share steadily increasing and the introduction of high-end products accelerating. It also made reasonable adjustments to the pricing of its entire product line, achieving growth in both volume and price.