Investment Rating - The report maintains a "Buy" rating for the company [7]. Core Views - The company has shown steady growth in the first three quarters of 2025, with revenue reaching 27.071 billion yuan, a year-on-year increase of 2.28%, and a net profit of 1.223 billion yuan, up 14.61% year-on-year. However, the net profit for Q3 2025 saw a slight decline of 8.19% due to increased management expenses and insufficient new capacity conversion [1][2]. - The company is strategically positioned to benefit from the growth in AI PCB and optical communication sectors, with a focus on high-end PCB production and expansion into the optical chip and module markets [2][4]. - The company has a comprehensive investment plan of 1 billion USD for Multek to enhance high-end PCB capacity, aiming to capture market opportunities in AI servers [3][4]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 27.071 billion yuan, with a net profit of 1.223 billion yuan. Q3 2025 revenue was 10.115 billion yuan, showing a 2.82% year-on-year increase, while net profit decreased by 8.19% [1]. - The revenue from the new energy business for the first nine months of 2025 was 7.520 billion yuan, reflecting a growth of 22.08% and accounting for 27.78% of total revenue [2]. Business Segments - The soft board business benefited from increased demand for new consumer electronics, while the hard board business saw revenue and profit growth driven by AI demand for high-layer and HDI boards [2]. - The company is focusing on AI PCB and optical communication, with plans to expand its product offerings in optical chips and modules, leveraging the acquisition of Solstice Optoelectronics [2][4]. Future Outlook - The company is expected to achieve revenues of 42.060 billion yuan, 60.004 billion yuan, and 73.917 billion yuan in 2025, 2026, and 2027, respectively, with year-on-year growth rates of 14.4%, 42.7%, and 23.2% [4]. - The net profit forecast for the same years is 2.197 billion yuan, 6.042 billion yuan, and 8.011 billion yuan, with significant growth rates of 102.4%, 175.0%, and 32.6% [4].

Group 1 - The core viewpoint of the article is that China Galaxy has given a "recommended" rating to Dongshan Precision (002384.SZ) based on its stable revenue growth and ongoing merger and acquisition activities [1] - Dongshan Precision's revenue has shown steady growth, although the net profit attributable to the parent company in Q3 was affected by mergers, acquisitions, and the launch of new factories [1] - The company is progressing smoothly with its merger and acquisition activities and is planning to issue H-shares for listing [1] Group 2 - The article highlights the booming secondary market for biomedicine, with overseas licensing deals in the sector reaching $80 billion this year [1] - There is a contrast noted between the hot secondary market and the cooling fundraising environment in the primary market for biomedicine [1]

Core Viewpoint - Dongshan Precision experienced a 5.06% increase in stock price, reaching 69.08 CNY per share, with a trading volume of 3.697 billion CNY and a turnover rate of 3.96%, resulting in a total market capitalization of 126.527 billion CNY [1] Company Overview - Dongshan Precision Manufacturing Co., Ltd. is located in Suzhou, Jiangsu Province, and was established on October 28, 1998, with its listing date on April 9, 2010 [1] - The company's main business includes the manufacturing and service of precision sheet metal parts and precision castings, as well as precision electronic manufacturing and flexible circuit board design, production, and sales [1] - The revenue composition of the main business is as follows: electronic circuit products 65.23%, touch panels and LCD display modules 17.98%, precision component products 13.93%, LED display devices 1.69%, and others 1.17% [1] Shareholder Information - Ruifeng Fund's Ruifeng Growth Value Mixed A (007119) entered the top ten circulating shareholders of Dongshan Precision in the third quarter, holding 21.3417 million shares, accounting for 1.54% of circulating shares [2] - The estimated floating profit for this fund today is approximately 71.0679 million CNY [2] - Ruifeng Growth Value Mixed A was established on March 26, 2019, with a latest scale of 16.839 billion CNY, achieving a year-to-date return of 56.69% and a one-year return of 52.03% [2] Fund Manager Performance - The fund managers of Ruifeng Growth Value Mixed A are Fu Pengbo and Zhu Lin [3] - Fu Pengbo has a cumulative tenure of 16 years and 285 days, with a total fund asset scale of 18.666 billion CNY, achieving the best fund return of 429.69% during his tenure [3] - Zhu Lin has a cumulative tenure of 6 years and 215 days, with the same total fund asset scale, achieving the best fund return of 87.28% during his tenure [3]

Core Insights - Dongshan Precision's stock increased by 5.06% to 69.08 CNY per share, with a trading volume of 3.65 billion CNY and a turnover rate of 3.92%, resulting in a total market capitalization of 126.53 billion CNY [1] Company Overview - Dongshan Precision Manufacturing Co., Ltd. is located in Suzhou, Jiangsu Province, and was established on October 28, 1998, with its IPO on April 9, 2010 [1] - The company's main business includes manufacturing and servicing precision sheet metal parts and precision castings, as well as flexible circuit board design, production, and sales [1] - Revenue composition: electronic circuit products 65.23%, touch panels and LCD modules 17.98%, precision components 13.93%, LED display devices 1.69%, and others 1.17% [1] Fund Holdings - According to data, one fund under GF Fund has a significant holding in Dongshan Precision [2] - GF Electronic Information Media Stock A (005310) reduced its holdings by 186,700 shares in Q2, maintaining 4.84 million shares, which accounts for 6.23% of the fund's net value, making it the largest holding [2] - The fund has realized a floating profit of approximately 16.12 million CNY as of today [2] Fund Performance - GF Electronic Information Media Stock A (005310) was established on December 11, 2017, with a current scale of 919 million CNY [2] - Year-to-date return is 39.21%, ranking 985 out of 4218 in its category; the one-year return is 37.5%, ranking 1013 out of 3875; and since inception, the return is 204.78% [2]

Investment Rating - The report maintains a "Buy-A" investment rating with a target price of 79.22 CNY for the next six months [4][7]. Core Insights - The company reported a revenue of 27.071 billion CNY for Q3 2025, a year-on-year increase of 2.28%, and a net profit of 1.223 billion CNY, up 14.61% year-on-year [1]. - The company is seizing opportunities in the AI market, with significant investments planned in high-layer circuit boards and optical modules, including a proposed investment of up to 59.35 billion CNY for acquiring Solstice Optoelectronics [2]. - The company has established a strong position in the industry by accumulating high-quality customer resources across various sectors, including consumer electronics and new energy vehicles, enhancing its core competitiveness [3]. Financial Projections - Revenue projections for 2025 to 2027 are 41.992 billion CNY, 52.826 billion CNY, and 63.496 billion CNY, respectively, with net profits expected to be 2.419 billion CNY, 4.865 billion CNY, and 6.203 billion CNY [4][12]. - The company is expected to achieve a 60 times price-to-earnings ratio for 2025, indicating strong growth potential [4].

截至发稿，东山精密市值为1204亿元。 每经头条（nbdtoutiao）——中国创新药，今年海外授权已卖出800亿美元！对话创东方投资合伙人卢 刚：生物医药二级市场火热，一级市场为何募资遇冷？ （记者 王晓波） 每经AI快讯，东山精密（SZ 002384，收盘价：65.75元）发布公告称，2025年10月22日，东山精密接受 中信证券等投资者调研，公司董事、执行总裁单建斌等人回答了投资者提出的问题。 2025年1至6月份，东山精密的营业收入构成为：计算机和通信和其他电子设备制造占比98.83%，其他 业务占比1.17%。 ...

Core Viewpoint - Suzhou Dongshan Precision Manufacturing Co., Ltd. held a performance briefing for Q3 2025, discussing business segment performance, strategic projects, and capital operations, with participation from 392 investment institutions [1][2][5] Group 1: Business Performance - The company reported a mixed performance across its business segments in Q3 2025, with revenue growth but profit decline due to insufficient new capacity conversion and increased management expenses [3] - Softboard business saw revenue growth driven by demand for new consumer electronics, but profits did not increase due to underutilization of new capacity in Thailand [3] - Hardboard business benefited from strong demand for high-layer and HDI boards driven by AI, resulting in both revenue and profit growth [3] - Touch display business remained stable despite project delays, while LED business showed slight improvement year-on-year through strategic adjustments [3] - Precision manufacturing faced a decline in operating profit due to lower capacity utilization from client delays [3] Group 2: Strategic Projects - The company is actively expanding its AI PCB and new energy vehicle businesses, with a focus on order and customer expansion [3] - The GMD acquisition in the new energy vehicle sector is progressing as planned, with internal structure adjustments anticipated post-acquisition [3][4] - The Thai factory is expected to gradually release capacity starting in the second half of 2026, following successful client validation [4] Group 3: Capital Operations - The company is advancing its plans for a Hong Kong stock listing, with board approval obtained for related proposals, pending shareholder review [4]

Group 1: Financial Performance - The company's softboard business experienced growth in Q3 2025 due to increased demand from new consumer electronics models, but profit did not grow due to insufficient capacity conversion in Thailand [2] - The hardboard business benefited from AI demand for high-layer and HDI boards, leading to increased revenue and profit [2] - Overall revenue increased, but profit did not grow primarily due to insufficient new capacity conversion and increased management expenses [2] Group 2: Business Development and Strategy - The first phase of capacity for Multek's AI PCB-related orders is expected to be ready by Q2 2026, with production ramp-up starting in Q3 2026 [2] - The company is actively expanding its domestic customer base in the new energy vehicle sector, with stable overseas shipments and gradual volume growth [3] - The acquisition of GMD is progressing as planned, and post-acquisition, the company will adjust its internal structure and optimize production capacity based on market dynamics [3] Group 3: Future Outlook - The softboard business in the Thailand factory has completed major customer validation, with production capacity expected to gradually release starting in H2 2026 [3] - The company is actively and orderly advancing the overall progress of its Hong Kong listing, with relevant proposals approved by the board on October 15, 2025 [3]

Market Performance - On October 23, A-shares experienced a collective decline, with the Shanghai Composite Index dropping by 0.69% during the session [1] - Sectors such as coal, petrochemicals, and ports showed positive performance, while communication equipment and engineering machinery faced significant declines [1] Consumer Electronics Sector - The Consumer Electronics ETF (159732) fell by 1.1%, with notable declines in component stocks such as Dalian Technology down 6.18%, Jinghe Integration down 4.87%, and Dongshan Precision down 4.66% [1] - Some individual stocks showed activity, with Heertai rising by 5.24% and Shunluo Electronics increasing by 2.84% [1] Industry Outlook - By July 2025, China's smartphone shipments are projected to reach 24.454 million units, reflecting a year-on-year growth of 10.3% [3] - Global PC shipments are expected to hit 69.914 million units in Q3 2025, marking an 8.21% year-on-year increase and a 10.58% quarter-on-quarter growth [3] - 2026 is anticipated to be a pivotal year for the foldable screen market, with rumors of Apple's foldable product potentially stimulating market discussions and demand [3] - New wearable devices launched this year are also expected to contribute to market recovery [3] ETF Information - The Consumer Electronics ETF (159732) tracks the Guozheng Consumer Electronics Index, primarily investing in 50 A-share listed companies involved in the consumer electronics industry, with a focus on electronic manufacturing, semiconductors, and optical electronics [3]

Market Overview - The Shanghai Composite Index rose by 0.22% on October 23, with 21 out of the 28 sectors experiencing gains, led by coal and oil & petrochemicals, which increased by 1.75% and 1.53% respectively [1] - The sectors that saw declines included telecommunications and real estate, with decreases of 1.51% and 0.99% respectively [1] - The electronic sector fell by 0.67% [1] Capital Flow Analysis - The net outflow of capital from the two markets was 33.733 billion yuan, with six sectors experiencing net inflows [1] - The coal sector had the highest net inflow of capital, amounting to 1.465 billion yuan, coinciding with its 1.75% increase [1] - The media sector also saw a net inflow of 362 million yuan, with a daily increase of 0.90% [1] Electronic Sector Performance - The electronic sector had a net outflow of 5.435 billion yuan, with 194 stocks rising and 270 stocks falling [2] - Among the stocks in the electronic sector, 141 experienced net inflows, with eight stocks seeing inflows exceeding 100 million yuan [2] - The top three stocks with the highest net inflows were Shenghong Technology (645 million yuan), Demingli (562 million yuan), and SMIC (536 million yuan) [2] Electronic Sector Outflow Details - The electronic sector's outflow was led by Industrial Fulian, with a net outflow of 577 million yuan, followed by Zhaoyi Innovation and Dongshan Precision with outflows of 396 million yuan and 384 million yuan respectively [3] - Other notable stocks with significant outflows included Haiguang Information, Changying Precision, and Tongfu Microelectronics [3]