On July 7, Shenghong Technology fell 3.24% in regular trading, trading at HKD 260.6 per share, with turnover of HKD 195 million.

The decline reflects the continued aftershock from reports that Samsung Electronics and SK Hynix are demanding upstream PCB substrate manufacturers lower prices for the second half of the year. The news initially triggered a sector-wide sell-off on July 2, when Shenghong Technology plunged over 13% in a single session. Selling pressure has yet to fully dissipate as market confidence in the previous quantity-and-price-rise thesis has been shaken.

According to reports, Samsung and SK Hynix had accepted average substrate price increases of 3%-4% earlier this year in response to raw material cost pressures, but with gold and copper prices stabilizing, negotiations have shifted toward price reductions for the second half. If implemented, first-quarter price gains could be fully reversed.

The broader Electronic Components sector remains weak, with peers KB Laminates down 7.45%, Kingboard Holdings down 7.57%, and Lingyi iTech down 4.66%. Additionally, the stock had accumulated significant gains prior to the correction, with short-term profit-taking pressure persisting.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)