Key Points - The report highlights a selection of stocks for July, including companies such as Binjiang Group (002244.SZ) and SF Holding (002352.SZ) as part of the recommended investment portfolio [1] - The establishment of China Fusion Energy Co., Ltd. marks a significant step in the commercialization of fusion energy in China, with a capital increase of 11.5 billion yuan from seven state-owned enterprises [2][7][9] - The fusion company aims to develop fusion energy through a phased approach, focusing on magnetic confinement Tokamak technology, with the goal of achieving commercial application [8][10] - The report discusses the acquisition plan by GoerTek to purchase 100% equity of Mega Precision Technology Limited and Channel Well Industrial Limited for approximately 9.5 billion yuan, which is expected to enhance the company's performance [3][12][13] - The report emphasizes the strong competitive position of the target companies in the precision metal components sector, which is crucial for high-tech industries [14]

Group 1 - Counterpoint Research reports that global PC shipments are expected to grow by 8.4% year-on-year in Q2 2025, marking the largest increase since the peak demand during the pandemic in 2022 [1] - The growth in Q2 2025 is attributed to the countdown to the end of Windows 10 support, the rise of AI PCs, and early inventory purchases due to anticipated changes in tariff policies [1] - Major companies such as Lenovo, Apple, and ASUS have seen their shipment volumes increase by over 10%, further solidifying their dominant positions in the global market [1] Group 2 - As of June 30, 2025, the top ten weighted stocks in the CSI Consumer Electronics Theme Index account for 51.02% of the index, including companies like Luxshare Precision, SMIC, and BOE Technology Group [2] - The CSI Consumer Electronics Theme Index tracks 50 publicly listed companies involved in component production and consumer electronics brand design and manufacturing [2] - The Consumer Electronics ETF closely follows the CSI Consumer Electronics Theme Index, with various fund options available for investors [2]

Group 1 - A total of 12 stocks received buy ratings from institutions today, with Baolingbao, Puluo Pharmaceutical, and Xinyuanwei being newly covered by institutions [1] - Among the stocks rated, the average increase was 1.14%, outperforming the Shanghai Composite Index, with notable gainers including Xinyuanwei, Shantui, and Hanyi, which rose by 5.56%, 4.41%, and 4.09% respectively [1] - The stocks with the largest declines included Jinbo Biological, Baofeng Energy, and Miao Exhibition, which fell by 2.14%, 1.70%, and 1.60% respectively [1] Group 2 - The newly rated stocks include Puluo Pharmaceutical with a strong buy rating from Huachuang Securities, and Baolingbao with an increase rating from Guotai Haitong [2] - The target price for Puluo Pharmaceutical is set at 22.00 yuan, while Baolingbao has a target price of 16.30 yuan [2] - Other stocks receiving buy ratings include Miaokelan Duo, Tielong Logistics, and Gole Technology, with target prices of 33.00 yuan, 7.09 yuan, and unspecified respectively [2]

Core Viewpoint - Goer Group plans to acquire 100% equity of two wholly-owned subsidiaries of Lianfeng Commercial Group for approximately HKD 10.4 billion (about RMB 9.5 billion), which has attracted significant attention from the capital market [2][3]. Group 1: Acquisition Details - The targeted companies for acquisition are Hong Kong Miya Precision Technology Co., Ltd. and Changhong Industrial Co., Ltd., both of which have established a strong presence in the precision metal structure component sector [2][4]. - The two companies are expected to generate a combined revenue of approximately HKD 9.11 billion (unaudited) in 2024 [4]. Group 2: Strategic Rationale - The acquisition is aimed at enhancing Goer Group's vertical integration capabilities, improving competitiveness in the precision structure component field, and deepening cooperation with leading industry clients [4]. - By integrating the acquired companies, Goer Group can achieve full-process vertical integration from material procurement to product assembly, thereby reducing costs and improving production efficiency [5]. Group 3: Financial Performance - In the previous year, Goer Group reported a total revenue of RMB 100.95 billion, a year-on-year increase of 2.41%, and a net profit attributable to shareholders of RMB 2.665 billion, a year-on-year increase of 144.93% [4]. - The three core business segments—precision components, smart acoustic systems, and smart hardware—contributed revenues of RMB 15.05 billion, RMB 26.30 billion, and RMB 57.20 billion, respectively, accounting for 14.9%, 26.05%, and 56.66% of total revenue [5]. Group 4: Leadership and Market Position - The leader of Goer Group, Jiang Bin, previously held the title of the richest person in Shandong, but his family's wealth has decreased by over RMB 30 billion compared to its peak [6][10]. - Jiang Bin proposed a share buyback of between RMB 500 million and RMB 1 billion earlier this year, indicating confidence in the company's future development [11].

Core Viewpoint - The article highlights the significant acquisition by GoerTek, which plans to acquire two precision manufacturing companies for approximately HKD 10.4 billion, marking its largest acquisition to date. This move is seen as a reflection of the current merger and acquisition trend in the market [1][2][3]. Group 1: Acquisition Details - GoerTek has reached a preliminary agreement to acquire all shares of Mia Precision Technology and Changhong Industrial, both subsidiaries of Hong Kong Lianfeng, for about HKD 10.4 billion [3]. - The acquisition aims to enhance GoerTek's vertical integration capabilities and strengthen its competitiveness in the precision component sector, driven by increasing demands from AI and smart hardware [4]. - The combined revenue of Mia Precision and Changhong is projected to be approximately HKD 9.11 billion in 2024, which would represent nearly 10% of GoerTek's total revenue if the acquisition is completed [5]. Group 2: Company Background - GoerTek was founded by a couple from Shandong, Jiang Bin and Hu Shuangmei, who started with a microphone factory over 20 years ago and have since grown the company into a global leader in acoustic and smart hardware, achieving annual revenues exceeding CNY 100 billion [1][8]. - The company has a history of significant growth, particularly after becoming a key supplier for Apple, which contributed to its rapid revenue increase, surpassing CNY 10 billion in 2013 [10]. Group 3: Industry Trends - The article notes a surge in merger and acquisition activities, with over 2,000 disclosed transactions in the first half of the year, totaling more than CNY 1.4 trillion, indicating a robust market for M&A [12][13]. - Major companies are actively seeking strategic acquisitions to enhance their capabilities and market positions, as seen in recent high-profile deals across various sectors, including technology and pharmaceuticals [14][15].

Core Viewpoint - Goer Micro, a provider of intelligent sensing and interaction solutions, has received approval for its IPO application on the Hong Kong Stock Exchange, highlighting its growth and market position in the sensor industry [2][32]. Group 1: Company Overview - Goer Micro was established in October 2017 and is headquartered in Qingdao, Shandong. The company specializes in sensors, SiP (System in Package), and sensing interaction modules, particularly focusing on acoustic sensors [5][10]. - In 2024, Goer Micro's revenue is projected to exceed 4.5 billion RMB, making it the largest intelligent sensing interaction solution provider in China and the fourth largest globally [5][10]. - The company has shipped over 5 billion sensors and serves 126 direct customers, including the top nine smartphone manufacturers [8][10]. Group 2: Financial Performance - Goer Micro's revenue for 2022, 2023, and 2024 was 3.12 billion RMB, 3.00 billion RMB, and 4.54 billion RMB, respectively, with net profits of 326 million RMB, 289 million RMB, and 309 million RMB [10][12]. - The company's gross margins for the years 2022 to 2024 were 18.5%, 17.2%, and 19.0%, respectively, indicating a positive trend in profitability [12]. - Revenue from sensors accounted for 81.4% of total revenue in 2022, decreasing to 69.7% in 2023, but rebounding to 78.5% in 2024 [14]. Group 3: Market Position and Clients - Goer Micro's major clients include Xiaomi, Samsung, and Goer Group, with revenue from the top five clients constituting approximately 75.5% to 80.5% of total revenue over the past few years [21][22]. - The company has maintained a long-term strategic relationship with a leading American multinational technology company, which has significantly contributed to its revenue [21][22]. Group 4: Research and Development - As of March 2025, Goer Micro employs 753 R&D personnel, with an average industry experience of over 10 years, and holds 1,825 patents, including 738 invention patents [19]. - The company plans to continue developing high-performance sensors and expand its range of solutions to maintain its competitive edge in the consumer electronics sector [39]. Group 5: Supply Chain and Costs - The primary cost of Goer Micro's intelligent sensing interaction solutions is materials, with chips accounting for approximately 40% to 48% of total costs [25]. - The company has established long-term strategic partnerships with key suppliers, ensuring the sustainability of its supply chain [31].

Investment Rating - The report maintains a "Buy" rating for the company, with a previous rating also being "Buy" [2][4][6]. Core Views - The company is planning a significant equity acquisition to expand its precision structural components business, which is expected to create synergies with the listed company and enhance its competitive edge in the precision structural components sector [4][6][9]. - The acquisition is valued at approximately RMB 95 billion, funded by the company's own cash reserves, which are sufficient to cover the acquisition costs [9]. - The report projects the company's net profit for 2025, 2026, and 2027 to be RMB 3.64 billion, RMB 4.21 billion, and RMB 5.07 billion respectively, with corresponding P/E ratios of 22.6, 19.5, and 16.2 [6][8]. Financial Summary - The company's revenue is projected to grow from RMB 98.57 billion in 2023 to RMB 139.20 billion in 2027, with a compound annual growth rate (CAGR) of approximately 19.2% from 2025 to 2027 [8][10]. - The EBITDA is expected to increase from RMB 4.92 billion in 2023 to RMB 10.09 billion in 2027, indicating a strong growth trajectory [8][10]. - The report anticipates a significant recovery in net profit growth, with a forecasted increase of 144.9% in 2024, followed by steady growth rates of 36.6% and 15.6% in the subsequent years [8][10].

Group 1: Fund Positioning Insights - In Q2 2025, the scale of actively managed funds declined again, with redemption pressure remaining high [3] - Hong Kong stock positions reached a new high, but the pace of increase slowed and divergences emerged [3] - The configuration of innovation and entrepreneurship showed a reversal, with the ChiNext index's position regaining upward momentum [3] - There was a noticeable increase in allocation towards growth sectors and large financials, while dividend configurations narrowed [3] - The trend of diversification and market capitalization sinking continued [3] Group 2: Industry Performance - The steel industry showed a performance increase of 34.0% over the past year, leading among industries [1] - The communication sector experienced a significant annual growth of 51.5%, indicating strong market dynamics [1] - The banking sector lagged with a slight decline of -0.2% in January, but showed a recovery of 30.3% over the year [1] Group 3: Company-Specific Insights - Kuaishou (01024.HK) is expected to achieve revenues of 140.6 billion, 154.5 billion, and 166.6 billion RMB from 2025 to 2027, with a net profit growth of 11%, 27%, and 14% respectively [5] - Bilibili (09626.HK) is projected to generate revenues of 30 billion, 32.9 billion, and 36.2 billion RMB from 2025 to 2027, with a year-on-year growth of 12%, 9%, and 10% [8] - GoerTek (002241.SZ) plans to acquire two precision manufacturing companies for approximately 95 billion RMB, enhancing its vertical integration capabilities [9] - Kingsoft (03888.HK) is forecasted to have revenues of 11.4 billion, 12.9 billion, and 14.6 billion RMB from 2025 to 2027, driven by dual growth from office and gaming sectors [10] - Chow Tai Fook (01929.HK) reported a 1.9% decline in same-store sales for FY2026Q1, with expectations for improvement due to strong e-commerce growth [11]

Core Viewpoint - Goer Group (歌尔股份) is planning its largest acquisition to date, aiming to enhance its competitiveness in the precision structural components sector by acquiring two wholly-owned subsidiaries of Luen Fung Commercial Holdings Limited for approximately HKD 104 billion (around RMB 95 billion) [1][2]. Acquisition Details - The acquisition involves 100% equity of Mega Precision Technology Limited and Channel Well Industrial Limited, with an estimated combined revenue of HKD 91.1 billion for the fiscal year 2024 [1][2]. - This transaction is expected to strengthen Goer Group's capabilities in precision structural components and improve its business scale and profitability [1][3]. Strategic Importance - The acquisition is part of Goer Group's strategy to deepen vertical integration and solidify partnerships with leading industry clients, driven by increasing demands for high-performance materials in emerging smart hardware products [3][4]. - The target companies are recognized for their competitive edge in precision metal structural components and have established long-term collaborations with industry leaders [3][4]. Financial Performance - In 2024, Goer Group's revenue from precision components is projected to be RMB 15.051 billion, accounting for 14.90% of total revenue, which is the lowest among its main business segments [4]. - The company has shown stable financial performance, with revenue surpassing RMB 1 trillion in 2022 and expected to return to over RMB 1 billion in 2024 [7]. Recent Developments - Goer Group has been actively expanding through acquisitions, including a recent purchase of a micro-nano optical technology company for RMB 795 million [6]. - The company is also preparing for the IPO of its subsidiary, Goer Microelectronics, which has shown significant growth in revenue and profit [10].

Core Viewpoint - Goer Technology is transitioning from a single acoustic module company to a comprehensive consumer electronics platform, as evidenced by its recent acquisition plans and IPO application for its microelectronics division [1][3]. Group 1: Acquisition Details - Goer Technology announced a preliminary agreement to acquire 100% equity of Mia Precision Technology and Changhong Industrial for approximately HKD 10.4 billion (around RMB 9.5 billion) to enhance its competitiveness in precision structural components [1]. - The acquisition aims to deepen vertical integration and strengthen partnerships with leading clients, implicitly referring to major players like Apple [1][3]. - Mia Precision and Changhong are key suppliers for Apple's metal structural components, particularly in the smartwatch segment, indicating a strategic alignment with Apple's product development [3][4]. Group 2: Market Position and Strategy - The acquisition reflects a broader trend in the supply chain where Apple encourages strategic acquisitions among core suppliers to streamline operations and reduce costs [2][4]. - Goer Technology has established itself as a supplier for various companies in the AI glasses and wearable device market, positioning itself favorably for future collaborations with Apple [3][4]. - The company aims to evolve into a subsystem integrator for Apple, similar to Luxshare Precision, thereby solidifying its status as a core supplier [7]. Group 3: Financial Performance and Future Outlook - In 2023, Goer Technology reported a revenue of RMB 98.57 billion, a decline of 6.03% year-on-year, with a net profit of RMB 1.09 billion, down 37.80%, highlighting the impact of reduced orders from Apple [7][8]. - Despite past challenges, including a significant drop in stock price, the company is expected to recover and achieve a revenue of RMB 100.95 billion in 2024, with a net profit of RMB 2.67 billion, reflecting a growth of 144.93% [8]. - The acquisition is anticipated to fill technological gaps in precision metal components, enhancing Goer Technology's competitive edge in high-value products like AI glasses and wearables [8].