Today, the electronics sector led the overall market, receiving a net inflow of over 85.2 billion yuan in main funds throughout the day, topping the list among the 31 primary Shenwan industries by a significant margin in terms of fund attraction! Dongshan Precision Manufacturing Co.,Ltd. received a net inflow of 4.493 billion yuan in main funds, ranking first on the A-share fund attraction list!

Regarding popular ETFs, Huabao Electronic ETF (515260), which covers hot concepts like PCB, MLCC, and chips, saw its intraday price surge up to 7.27%, closing up 7.16% with a daily turnover of 122 million yuan, indicating active trading.

Notably, the premium for Huabao Electronic ETF (515260) soared in the final trading session, with a closing premium rate as high as 0.87%, reflecting stronger buying pressure! In fact, this ETF had seen continuous net inflows over the previous three trading days, totaling 25.52 million yuan! Over a longer period, it has attracted a cumulative 174 million yuan in the last 20 trading days, reflecting capital's positive outlook on the sector's future performance and active positioning.

Among its component stocks, PCB leader Shengyi Technology Co.,Ltd. hit a record high. Alongside Dongshan Precision Manufacturing Co.,Ltd., Silan Microelectronics Co.,Ltd., and Sanan Optoelectronics Co.,Ltd., these four stocks all reached the daily limit-up. MLCC concept stock Sanhuan Group Co.,Ltd. rose over 18%, China Resources Microelectronics Limited gained over 13%, and Lens Technology Co.,Ltd. advanced over 11%.

Key Drivers Behind the PCB Rally

The significant rally in the PCB sector, part of the AI hardware supply chain, is primarily driven by two major trends. The first is an expansion wave, with 13 PCB leading companies, including Shennan Circuits Co.,Ltd. and Shengyi Technology Co.,Ltd., announcing capacity expansion plans, with total planned investments nearing 59 billion yuan. The second is a price hike wave, with key PCB raw materials like electronic cloth, copper foil, PPE resin, and copper-clad laminates experiencing continuous price increases. Analysis indicates that driven by both rising raw material costs and AI demand, the profit recovery logic for the PCB industry is clear. Leading companies with technological barriers and capacity advantages are expected to benefit from industry-wide price increases and market share gains.

Broad Exposure Within the ETF

It is worth noting that the underlying index for Huabao Electronic ETF (515260) not only includes PCB concept stocks like Shengyi Technology Co.,Ltd. but also MLCC concept stock Sanhuan Group Co.,Ltd. and semiconductor wafer concept stock NSIG Silicon Co.,Ltd. Regarding MLCCs, Murata has issued a price increase notice, with comprehensive price hikes for AI server and high-end automotive-grade MLCC products starting July 1st, ranging from 10% to 40%. For semiconductor wafers, three global wafer giants—Shin-Etsu Chemical, SUMCO, and GlobalWafers—simultaneously issued price increase notices in May, initiating a second round of price hikes this year.

Institutional Outlook on the Sector

Securities analysis suggests that in the context of AI industrialization, as the mainstay of computing power infrastructure, key segments within the electronics sector such as computing chips, semiconductor memory, PCBs, and passive components are facing unprecedented innovation opportunities. The number of listed companies and the range of products in the electronics sector are also continuously expanding, fostering diverse industrial chains and investment themes, allowing investors to find multiple investment opportunities within the sector.

Looking ahead, analysis is optimistic that "price hikes + AI + domestic substitution" could become a strong thematic thread running throughout the year for the electronics sector. The industry's positive momentum is expected to continue, with AI remaining the biggest driving force. There is firm confidence in the overall future performance of the electronics sector.

An Overview of the Fund

Huabao Electronic ETF (515260) and its feeder funds track the CSI Electronic 50 Index, heavily weighting the semiconductor and consumer electronics industries. It aggregates exposure to hot industries like AI chips, automotive electronics, 5G, and printed circuit boards (PCBs). Its top holdings include stocks such as Luxshare Precision Industry Co.,Ltd., Cambricon Technologies Corporation Limited, Foxconn Industrial Internet Co.,Ltd., and Semiconductor Manufacturing International Corporation. Additionally, this ETF is eligible for margin trading and is a Stock Connect security, making it an efficient tool for gaining one-click exposure to core assets in the electronics sector.

As of the end of May, the size of Huabao Electronic ETF (515260) was 841 million yuan, making it the largest ETF among the two ETFs tracking the same underlying index in the market.