Core Insights - The fund managed by renowned fund manager Xie Zhiyu has made significant adjustments in its third-quarter report, indicating a strong focus on AI computing power sectors [1][3] - The fund has increased its positions in leading companies such as Zhongji Xuchuang, Lanke Technology, Beifang Huachuang, and Dongshan Precision, which are key players in optical modules, high-speed interconnect chips, semiconductor equipment, and PCBs [1][3] - Conversely, companies like Haida Group, Perfect World, and Pengding Holdings have been removed from the top ten holdings, suggesting a strategic shift in investment focus [1] Fund Performance - The XQ He Run Mixed A fund rose by 36.16% in Q3, significantly outperforming the benchmark return of 13.84% [2] - Year-to-date, the fund has increased by 39.63%, ranking in the top 35% among 4,503 similar products [2] - The fund's total assets increased by 3.127 billion yuan, reaching 24.982 billion yuan, with a stock position ratio of 90.28% as of the end of Q3 [3] Investment Strategy - The XQ He Yi fund also saw a rise of 30.89% in A shares and 30.69% in C shares during Q3, with a total asset growth of 2.7 billion yuan, reaching 18.679 billion yuan [5] - The fund's stock position ratio stood at 91.21% at the end of Q3, indicating a strong commitment to equity investments [5] - Xie Zhiyu noted that the rapid growth in AI sectors has led to market volatility, with concerns about the sustainability of demand growth amid changing macroeconomic conditions [5][6] Market Trends - The overseas computing power sector, particularly in optical modules and PCBs, remains a key driver of market growth, despite investor concerns about the long-term sustainability of demand [5] - The Chinese market has shown resilience due to strong fundamentals in technology and high-end manufacturing, with breakthroughs in domestic computing power boosting semiconductor equipment shipments [6] - The Hong Kong market has underperformed in Q3, influenced by fluctuations in the Hong Kong dollar and increased competition in sectors like e-commerce and new energy vehicles [6]

Group 1 - The core point of the article is the performance and changes in the top holdings of the Zhonghang Opportunity Leading Mixed Fund, which reported a net value growth rate of 119.56% over the past year [1] Group 2 - The fund's top ten holdings saw the addition of new stocks: Yuanjie Technology, Guangku Technology, and Dongshan Precision [1] - The fund increased its position in Yingweike by 12.65 million shares, making it the largest holding [1] - The previous top holdings, Changxin Bochuang, Shijia Photon, and Founder Technology, were removed from the top ten [1] Group 3 - Significant increases in holdings include: - Yingweike (increased by 364.09% to 16.13 million shares, valued at 1.29 billion) - Xinyi Sheng (increased by 332.17% to 3.51 million shares, valued at 1.285 billion) - Zhongji Xuchuang (increased by 338.67% to 3.12 million shares, valued at 1.26 billion) - Shenghong Technology (increased by 502.27% to 4.25 million shares, valued at 1.214 billion) - Tianfu Communication (increased by 539.34% to 6.98 million shares, valued at 1.171 billion) - Hudian Co. (increased by 669.13% to 9.94 million shares, valued at 730 million) - Dekeli (increased by 312.55% to 5.64 million shares, valued at 683 million) [1]

Group 1 - The core viewpoint of the article is the performance update of the Xingquan Helun Mixed Fund, which reported a net value growth rate of 37.98% over the past year [1] - The fund's top ten holdings saw the addition of new stocks including Zhongji Xuchuang, Lanke Technology, Beifang Huachuang, and Dongshan Precision, while stocks like Haida Group, Perfect World, Pengding Holdings, and Meihua Biotechnology were removed from the list [1] - The largest holding in the fund is Luxshare Precision, which has a holding ratio of 8.41% and a market value of 21.01 billion [1] Group 2 - The fund's adjustments in holdings include a reduction of 15.38% in Luxshare Precision, a decrease of 6.69% in Jingchen Co., and a reduction of 3.47% in Juhua Co. [1] - New entries in the top ten holdings include Zhongji Xuchuang with 3.9096 million shares valued at 1.578 billion, and Lanke Technology with 8.9494 million shares valued at 1.385 billion [1] - The detailed changes in the top ten holdings reflect strategic shifts in the fund's investment approach, indicating a focus on emerging technology and precision manufacturing sectors [1]

Core Insights - The XINGQUAN Flexible Allocation Mixed Fund (LOF), managed by Xie Zhiyu and Xie Yiran, reported a net value growth rate of 43.58% over the past year [1] Fund Holdings Summary - New additions to the top ten holdings include: - Zhongji Xuchuang (300308) with 2.58 million shares valued at 1.042 billion [1] - Lanke Technology (688008) with 4.92 million shares valued at 761 million [1] - Dongshan Precision (002384) with 9.14 million shares valued at 653 million [1] - CATL (300750) with 1.57 million shares valued at 629 million [1] - Significant changes in existing holdings: - Innovent Biologics (01801) increased by 4.81 million shares (42.97%) to 16.01 million shares valued at 1.408 billion [1] - JuHua Co. (600160) increased by 1.09% to 25.23 million shares valued at 1.009 billion [1] - A decrease in holdings for: - Jingchen Technology (6880889) by 5.85% to 8.96 million shares valued at 996 million [1] - SMIC (00981) by 31.54% to 12.11 million shares valued at 880 million [1] - Exited from the top ten holdings: - Xiaomi Group-W, Kingdee International, Lens Technology, Alibaba-W [1]

Market Performance - The Co-Packaged Optics (CPO) concept increased by 2.65%, ranking 6th among concept sectors, with 100 stocks rising [1] - Notable gainers include Jinzi Ham, Shengyi Technology, and Jingwang Electronics, which reached the daily limit, with increases of 10.06%, 10.00%, and 10.00% respectively [1][9] - The top decliners were Zeceng Electronics, Jiayuan Technology, and Xunjiexing, with decreases of 4.45%, 4.44%, and 4.41% respectively [1] Capital Inflow - The CPO concept sector saw a net inflow of 8.118 billion yuan, with 62 stocks receiving net inflows, and 27 stocks exceeding 1 billion yuan in net inflow [2] - Industrial Fulian led the net inflow with 1.915 billion yuan, followed by Shenghong Technology, Xinyi Sheng, and Dongshan Precision with net inflows of 910 million yuan, 632 million yuan, and 631 million yuan respectively [2][3] Stock Performance - The stocks with the highest net inflow ratios included Jinzi Ham (29.86%), Jingwang Electronics (17.58%), and Pengding Holdings (12.68%) [3] - Industrial Fulian had a daily increase of 8.19% with a turnover rate of 1.18% and a net inflow of 1.915 billion yuan [3][4] - Shenghong Technology and Xinyi Sheng also performed well with increases of 10.14% and 8.31% respectively [3][4]

Market Performance - The component sector increased by 6.04% on October 27, with Shenghong Technology leading the gains [1] - The Shanghai Composite Index closed at 3996.94, up 1.18%, while the Shenzhen Component Index closed at 13489.4, up 1.51% [1] Top Gainers - Shenghong Technology (300476) closed at 340.32, up 10.14% with a trading volume of 690,400 shares and a transaction value of 22.707 billion [1] - Jingwang Electronics (603228) closed at 70.17, up 10.00% with a trading volume of 505,500 shares and a transaction value of 3.461 billion [1] - Shengyi Technology (600183) closed at 64.35, up 10.00% with a trading volume of 726,900 shares and a transaction value of 4.545 billion [1] Other Notable Performers - Other significant gainers included: - Shengjie Electronics (688183) at 96.83, up 8.87% [1] - Dongshan Precision (002384) at 74.47, up 7.69% [1] - Pengding Holdings (002938) at 56.47, up 6.87% [1] Market Capital Flow - The component sector saw a net inflow of 2.584 billion from main funds, while retail funds experienced a net outflow of 999 million [2] - The main funds' net inflow and retail funds' net outflow indicate a shift in investor sentiment towards larger institutional investments [2] Individual Stock Fund Flow - Shenghong Technology had a main fund net inflow of 1.016 billion, while retail funds saw a net outflow of 357 million [3] - Jingwang Electronics experienced a main fund net inflow of 656 million, with retail funds showing a net outflow of 418 million [3] - Dongshan Precision had a main fund net inflow of 627 million, while retail funds had a net outflow of 545 million [3]

Group 1 - The core focus of several fund managers in Q3 has been on PCB leading stocks, particularly East Mountain Precision, with notable increases in holdings by prominent funds [2][3] - The fund "Yongying Technology Smart Select" has shown significant performance, with a year-to-date return exceeding 200%, and has heavily invested in the PCB sector and optical module leaders [3][5] - Fund managers have expressed confidence in the A-share market, highlighting the potential for further asset allocation towards equity due to favorable domestic fiscal and monetary policies [10][11] Group 2 - Fund managers have adjusted their portfolios, with some reducing holdings in optical module leaders while increasing investments in the robotics industry [6][7] - The "Yongying Technology Smart Select" fund has seen its net asset value growth rate approach 100%, leading to a substantial increase in fund size from 11.66 billion to 115.21 billion [12] - There is a growing interest in Hong Kong stocks, with funds increasing their positions in companies like Alibaba and various biotech firms, reflecting a dual focus on technology and recovery sectors [9]

Market Overview - The A-share market opened positively on October 27, with major indices closing higher: Shanghai Composite Index up 1.04%, Shenzhen Component Index up 1.26%, and ChiNext Index up 1.54%, approaching the 4000-point mark [1][3] - The total market turnover reached 1.58 trillion yuan, showing a significant increase compared to the previous day, with over 3700 stocks rising [3] Sector Performance - Key sectors that performed well included telecommunications, steel, non-ferrous metals, and electronics, with notable gains in controllable nuclear fusion, Fujian local stocks, and storage chips [3][7] - The non-ferrous metals sector was particularly active, with stocks like Antai Technology and Xiamen Tungsten hitting the daily limit, while other companies like Dongfang Tantalum and Zhongtung High-tech also saw significant increases [10][12] Notable Stocks - In the Hong Kong market, Baidu Group led the gains with a rise of over 5%, contributing to a 1.02% increase in the Hang Seng Index [3][4] - Fujian local stocks saw a collective surge, with Haixia Innovation hitting the daily limit and other stocks like Fujian Cement and Zhangzhou Development also performing strongly [7][8] Upcoming Events - The 2025 Financial Street Forum is set to open in the afternoon of October 27, with key financial leaders expected to deliver speeches, which has generated market anticipation for potential policy announcements [5][6] Strategic Insights - Recent signals of easing tensions in US-China relations and the release of the "14th Five-Year Plan" are expected to enhance market risk appetite and provide a clearer growth path for A-shares through technological breakthroughs and industrial upgrades [4][6]

Summary of Dongshan Precision (002384.SZ) 3Q25 Earnings Call Company Overview - **Company**: Dongshan Precision (DSBJ) - **Ticker**: 002384.SZ - **Date of Report**: 21 Oct 2025 Key Financial Results - **Revenue**: Rmb 10.1 billion, up 3% YoY and 21% QoQ, in line with Citi estimates but missed Bloomberg estimates by 4% [1][3] - **Gross Margin**: 14.1%, down 0.5 percentage points YoY, missed Citi estimates by 2 percentage points [1][3] - **Operating Profit**: Rmb 603 million, down 19% YoY but up 50% QoQ, missed estimates by 34% and 37% [1][3] - **Net Profit**: Rmb 465 million, down 8% YoY; adjusted net profit was Rmb 414 million, down 16% YoY [1][3] - **Operating Margin**: 6.0%, down 1.6 percentage points YoY, but up 1.2 percentage points QoQ [1][3] Reasons for Missed Expectations 1. **iOS Business Impact**: Delay in new model purchases and pull-in effect from 2Q [1] 2. **Increased Administrative Expenses**: Up Rmb 118 million YoY, likely due to new asset acquisitions [1] 3. **Thailand Factory Ramp-Up**: Impact on overall performance [1] Upcoming Earnings Call Focus Areas - Breakdown of 3Q25 business performance [2] - Orders for Apple products in 3Q25 and expected upgrades for 2H26 [2] - Updates on precision component plants and new NEV products for 2026 [2] - Progress in humanoid robot business [2] - LED business updates [2] - Acquisition progress in optical transceiver business [2] Valuation and Investment Outlook - **Target Price**: Rmb 99.00, representing a potential upside of 44.9% from the current price of Rmb 68.33 [4] - **Market Capitalization**: Rmb 125.154 billion (approximately US$ 17.578 billion) [4] Valuation Methodology - SOTP (Sum of the Parts) method applied: - 15x P/E for DSBJ's original business 2026 net profits - 30x P/E for optical transceiver business due to market share gains - 15x P/E for backplane PCB business in line with tier-1 peers [11] Key Risks 1. **Slower Progress in FPC Modules**: Potential delays in gaining market share from overseas competitors [12] 2. **Tesla Business Growth**: Risks associated with competition in the China NEV market [12] 3. **Optoelectronic Business Losses**: Continued weak demand and competition [12] 4. **Material Costs**: Rising costs could impact margins [12] 5. **Geopolitical Risks**: US-China relations may affect operations [12] This summary encapsulates the critical financial metrics, reasons for performance misses, future focus areas, valuation outlook, and associated risks for Dongshan Precision as discussed in the 3Q25 earnings call.

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Insights - The company reported a revenue of 27.071 billion yuan for the first three quarters of 2025, representing a year-on-year growth of 2.28%. The net profit attributable to shareholders was 1.223 billion yuan, up 14.61% year-on-year, with gross and net profit margins of 13.79% and 4.52%, respectively [2][4]. - In Q3 2025, the company achieved a revenue of 10.115 billion yuan, a year-on-year increase of 2.82% and a quarter-on-quarter increase of 21.10%. The net profit attributable to shareholders was 465 million yuan, down 8.19% year-on-year but up 53.99% quarter-on-quarter, with gross and net profit margins of 14.11% and 4.60%, respectively [2][4]. - The company is focusing on expanding its high-end optical module production following the acquisition of 100% of Solstice Optoelectronics for a consideration of up to 629 million USD, aiming to meet the demand for 1.6T optical modules from top global tech clients [8]. - The company is also investing up to 1 billion USD in high-end printed circuit board (PCB) projects to capture the growing demand from AI server markets, enhancing its product structure and solidifying its leading position in the PCB sector [8]. - The company expects to achieve net profits of 2.399 billion yuan, 5.669 billion yuan, and 6.427 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 50.19, 21.24, and 18.74 [8]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved a total revenue of 27.071 billion yuan, with a year-on-year growth of 2.28%. The net profit attributable to shareholders was 1.223 billion yuan, reflecting a year-on-year increase of 14.61% [2][4]. - In Q3 2025, the company reported a revenue of 10.115 billion yuan, a year-on-year increase of 2.82% and a quarter-on-quarter increase of 21.10%. The net profit attributable to shareholders was 465 million yuan, down 8.19% year-on-year but up 53.99% quarter-on-quarter [2][4]. Business Developments - The company is advancing its AI-related business, with significant growth in its soft board main business and increased revenue from hard board operations driven by strong AI demand. The new energy business also saw steady growth, with sales revenue of approximately 7.520 billion yuan for the first three quarters of 2025, a year-on-year increase of about 22.08% [8]. - The acquisition of Solstice Optoelectronics is expected to enhance the company's capabilities in high-end optical modules, while investments in high-end PCB projects aim to capitalize on the surging demand from AI technology [8]. Future Outlook - The company maintains a "Buy" rating, anticipating improvements in operational efficiency and profitability, particularly in its new energy and optical display businesses. The strategic acquisitions and investments are expected to open new growth avenues, potentially leading to rapid revenue growth [8].