April 1 Investment Safety Tip: 20CM Two-Continuous Limit Up Popular Stock Warns of Risks; Indirectly holds 1.64% equity in Zhang Xue's motorcycle company

Intro: Caixin Related News Network (CI Financial) April 1 investment risk warning spearhead. Recently, the following potential risk events in A-share and overseas markets have been observed. In terms of domestic economic information, they include: 1) Wuhan traffic police reported that multiple “Luobo Kuaisu” vehicles suddenly stopped while driving; initial judgment is a system malfunction; 2) The price of silicon wafers has recently been stable but trending weakly; it is expected that in the next month, silicon wafer production schedules will be lowered. For companies, key items to watch include: 1) Hongchang Technology’s announcement of two consecutive 20CM limit-up boards; a fund it co-invested holds 5.5046% equity in Zhang Xueji Locomotive, with only limited impact on the company; 2) Zhongli Group’s 2024 Q1, H1, and Q3 reports disclosed operating revenue inaccurately and received a regulatory warning letter. For overseas markets, key items to watch include: 1) Iran and the United States have released signals indicating a willingness to promote conflict resolution, and international oil prices fell on Tuesday; 2) Warren Buffett said the stock market valuation still lacks appeal.

Economic Information

1. On the evening of March 31, multiple “Luobo Kuaisu” vehicles in Wuhan suddenly “came to a standstill” while traveling. Wuhan traffic police stated that the preliminary judgment is a system malfunction; there were no casualties, and the cause of the incident is under further investigation.

2. Shanghai crude oil continuous main contract once fell by more than 11%, with the lowest at 662.10 yuan per barrel.

3. Market 18X silicon wafer price is 0.98-1.00 yuan per piece; 210RN silicon wafer price is 1.05-1.13 yuan per piece; 210N silicon wafer price is 1.25-1.33 yuan per piece. At present, silicon wafer prices are temporarily stable, but there is still room for downside in the short term. March silicon wafer output increased by 16.35%, improving versus the expectation at the beginning of the month. In recent days, integrated companies have shown signs of reducing production; it is expected that next month’s silicon wafer production schedules will be lowered. Market foundry outsourcing order volume has increased somewhat, with a more concentrated trend. Silicon wafer companies’ inventory has begun to decrease. After battery companies confirmed their production schedules for March, demand has been stronger than supply, causing the silicon wafer segment to shift toward inventory reduction. (Shanghai Metals Market)

4. A report released by the CFM flash memory market on March 31 said that, due to the sharp price increase in the early period, channel customers’ resistance to high-priced storage products has been gradually strengthening, making actual trades difficult. On the spot trading side, traders want to recoup funds and realize profits; on the trading side, there has been a relatively large sell-off of lower-end DDR4 memory sticks, further pressuring and weighing on the channel market. This week, DDR4 memory sticks led declines among channels, especially 8GB/16GB DDR4 memory sticks, whose price drop reached as much as 25%; other capacities fell in the roughly 10% range. Channel SSDs also saw a modest decline. Compared with this year’s first quarter, contract prices for original equipment manufacturer (OEM) servers and PC NAND and DRAM all rose by a doubling-like rate. It is expected that in the second quarter, contract prices for mobile will make a large catch-up increase. Contract prices for server and PC DRAM are both expected to rise by more than 30%. The average selling prices for eSSD and cSSD will rise by more than 30% and 50%, respectively.

Company Warnings

1. Hongchang Technology (two consecutive 20CM limit-ups): a fund jointly invested holds 5.5046% equity in Zhang Xueji Locomotive, with limited impact on the company.

2. Zhongli Group: operating revenue disclosures in the 2024 Q1, H1, and Q3 reports are inaccurate, and it has been issued a regulatory warning letter.

3. Farsun (Fangsheng): the company’s business does not involve fiber optics or specialty fiber optics; there is no situation of restructuring or being acquired through a backdoor listing.

4. Hanghua Shares: shareholders plan to reduce their holdings by no more than 3.00% in total.

5. Jinmu Technology: a shareholder holding more than 5% plans to reduce its holdings by no more than 3%.

6. Nanda Environment: multiple shareholders plan to reduce their holdings in total by no more than 2.74%.

7. Sine (Sinus) Electrical: shareholders plan to reduce their holdings in total by no more than 2.55% of the company’s shares.

8. Chuangchuang Turf (共创草坪): shareholders plan to reduce their holdings in total by no more than 1.0%.

9. Western Materials: the controlling shareholder, Xi Bei Nonferrous Metals Research Institute, plans to reduce its holdings by no more than 1% of the company’s shares.

10. Marubi Bio (丸美生物): the company’s net profit for 2025 is expected to decrease year over year by 27.63%.

11. Hongye Futures (弘业期货): the company’s net profit for 2025 is 3.9927 million yuan, down 86.61% year over year.

12. Longyuan Electric Power: the company’s net profit for 2025 is 4.526 billion yuan, down 28.78% year over year.

13. Huangshi Group: it has revised downward its performance forecast; it expects a net loss of 420 million to 490 million yuan for 2025.

14. Linggang Shares (凌钢股份): the company’s net profit for 2025 is a loss of 1.557 billion yuan.

15. Three Gorges Energy: the company’s net profit for 2025 is 3.669 billion yuan, down 39.94% year over year.

16. Zhenjiang Shares (振江股份): the company’s net profit decreased by 37.48% year over year.

17. Wanbangde: uncertainty exists both in the progress and results of clinical trials for innovative drugs and in the future market competition landscape for products.

18. Shutai Shen: multiple in-development projects are innovative biological products and face various risks, such as clinical trial progress potentially not meeting expectations.

19. Galaxy Electronics: a subsidiary, Tongzhi Electromechanical, was convicted of the crime of accepting bribes, and was sentenced to a fine of 3 million yuan.

20. Sword God Shares (神剑股份): the revenue related to the company’s commercial aerospace business accounts for less than 1% of the company’s operating revenue in 2025.

21. Hangjin Technology (航锦科技): UltraQing Digital Intelligence (超擎数智) is no longer included in the scope of the consolidated financial statements.

22. ST Cuihua: the company’s subsidiary added loans whose overdue principal exceeds 118 million yuan.

Overseas Warnings

1. On the evening of March 31, U.S. President Donald Trump said in the White House that the U.S. would end its war with Iran within “two to three weeks,” and that an agreement could be reached with Iran before then. Trump said the war with Iran will not last “for too long.” He also said that other countries could reopen the Strait of Hormuz.

Iranian President Pezeshkiyan said that Iran is willing to end the war, but on the condition that its demands are met, especially obtaining assurances that it will not be subjected to aggression again.

Because Iran and the United States have released signals indicating a willingness to promote conflict resolution, international oil prices fell on Tuesday. WTI for May dropped 1.5%, and the settlement price was 101.38 USD per barrel. The May Brent contract, which expired on Tuesday, rose 4.9%, and the settlement price was 118.35 USD per barrel. The more actively traded June Brent contract fell, with the settlement price at 103.97 USD per barrel.

2. Warren Buffett said that the stock market’s valuation still lacks appeal; if the market experiences a major drop, Berkshire Hathaway will use cash. Apple is still Berkshire Hathaway’s largest single investment project, and selling Apple stock is too early.

3. On March 31, the Islamic Revolutionary Guard Corps of Iran issued a warning to the U.S. government and relevant companies, saying that, in view of the fact that the U.S.-Israel launched attacks rely on “information and communication technology and artificial intelligence companies” in the U.S., effective immediately, “major companies participating in terror activities of the U.S. and Israel in this region will become lawful targets for the Revolutionary Guard Corps.”

In its announcement, the Revolutionary Guard Corps listed 18 companies, most of which are U.S. high-tech companies, including: Cisco, HP, Intel, Oracle, Microsoft, Apple, Google, Meta, IBM, Dell, Palantir Technologies, Nvidia, JPMorgan Chase, Tesla, General Electric, and Boeing.

The announcement said that, starting at 8:00 p.m. Tehran time on April 1, “whenever Iran suffers a terror attack, the relevant facilities of the above companies will be targeted.”

4. Citigroup lowered its target price for Micron Technology from $510 to $425.

5. As fighting in the Middle East drives up U.S. gasoline prices, living costs for middle- and low-income households in the U.S. increase, and the risk of an economic recession rises accordingly. The “Walmart Recession Signal” (WRS) index tracked by veteran strategist Jim Paulson is nearing its all-time high, indicating that economic slowdown or recession may be coming. And the last time this index rose to this level was during the 2008 to 2009 financial crisis.

6. On the 31st, memory chip maker Kioxia again issued the latest notice of production stoppage to customers, announcing that some traditional FloatingGate 2DNAND and the third-generation BiCSFLASH products will gradually exit the market. Previously, Kioxia had announced the stoppage of small-capacity TSOP packaged products. According to the notice, the last customer forecast order cutoff date for these products is September 30, 2026, while the final shipment cutoff time is December 31, 2028.

7. Last week, Iran attacked Qatar’s largest liquefied natural gas (LNG) facility, damaging its helium production line, and rebuilding may take several years. As QatarEnergy informed customers of force majeure, helium prices have surged significantly. According to an industry source that supplies helium to Samsung, Samsung Electronics and SK Hynix currently have about 4 to 6 months of helium inventory. A South Korean government official said that, as the location of some of the world’s largest chip manufacturers (including Samsung Electronics and SK Hynix), South Korea currently has enough helium inventory to last through the first half of the year.

A vast amount of information and precise interpretation—available in the Sina Finance app