The 720 Samsung Elec, SMIC, Shengyi Tech, Wiwynn, Japan Banks, Sumitomo Electric, Food & Life, India IT Services, China Matt...

Equity Research 21 September 2026 | 7:21AM HKT

The 720: Samsung Elec, SMIC, Shengyi Tech, Wiwynn, Japan Banks, Sumitomo Electric, Food & Life, India IT Services, China Matters, Asia FX

In Focus | Samsung Electronics Michael Snaith | Samsung Electronics – Positive View on Tight Memory and Stronger LTAs – Buy (on Goldman Sachs (Asia) L.L.C.

CL). Following a virtual group meeting with management, we maintain our 12m TP of Caleb Chan | W490,000 for common shares and W360,000 for preference shares, driven by an Goldman Sachs (Asia) L.L.C.

increasingly tight memory supply-demand environment. Management expects 2027 market conditions to be tighter than 2026 as unmet demand rolls over, while incremental capacity remains strictly focused on HBM, structurally constraining conventional DRAM expansion. Additionally, longer-duration and highly binding long-term agreements backed by meaningful prepayments should enhance long-term demand visibility, financial stability, and capex discipline. Strong HBM-related demand is also keeping 4nm foundry capacity tight, helping to offset near-term margin headwinds in the mobile division where the company is prioritizing market share over profitability. Giuni Lee

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Greater China Tech | SMIC, Shengyi Tech, Wiwynn, Lingyi, Kematek, Transsion

SMIC – Strong AI Demand Driving 2H26 Growth – Buy. We maintain Buy on SMIC with 12m TPs of HK$153 for H-shares and Rmb257.9 for A-shares, projecting robust 2H26 revenue growth of 12% HoH and 27% YoY. The firm delivered the strongest 2Q26 sequential revenue growth among the global top 10 foundries, benefiting from China’s surging generative AI demand and supply chain localization that are filling capacity for both advanced AI chips and mature nodes. We expect utilization rates to stay above 95% in 2H26, with tight capacity preventing ASP downward trends and new wafer pricing taking effect in 3Q26 to support gross margins despite rising depreciation. Allen Chang

Shengyi Tech – AI CCL Growth and Capacity Expansion – Buy (on CL). We maintain our positive view and 12m TP of Rmb249, expecting the company to capture significant market share within an AI CCL TAM projected to reach US$47.5bn by 2028. Benefiting from rising global AI server demand and a product mix upgrade, we forecast 3Q26 revenue to grow 59% YoY and 16% QoQ to Rmb13bn, with gross margins sustaining above 30%. Furthermore, we model a 33% net income CAGR for

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2026-30E, supported by AI CCL price increases, specification upgrades toward M9 and above products, and new capacity ramps in Thailand and China. Allen Chang

Wiwynn – August revenue beat and AI capacity expansion – Buy. We raise our 12m TP to NT$3,777 following a strong August revenue print that came in 27% ahead of our estimates, driven by robust general server demand from US cloud providers and ramping ASIC AI servers. We increase 2026-2028E net income by 3-7% and revenues by 5-8% to reflect this accelerating demand, and expect sequential top-line growth to continue through year-end as new GPU-powered AI server racks enter mass production in 4Q26. To support this product expansion and diversify production sites across the US, Mexico, and Malaysia, we estimate 2026 capex will reach NT$44bn and remain elevated through 2028. Allen Chang

Lingyi – Smartphone ramp and new tech to drive growth following 2Q miss – Buy. We maintain our Buy rating but lower our 12m TP to Rmb18.1 from Rmb21.2 following a 2Q26 revenue miss…