Investment Rating - The investment rating for the company is "Outperform the Market" [6] Core Views - The company's short-term profitability is under pressure, with a significant decline in revenue and net profit in the first half of 2025. Revenue reached 1.704 billion yuan, down 25.42% year-on-year, and the net profit attributable to shareholders was -147 million yuan, down 141.59% year-on-year [1][2] - The company has entered the mass production and delivery phase for its L-PAMiD product series, which is the first in the industry to achieve a fully domestic supply chain. The WiFi7 module products have also achieved large-scale production and stable shipments [3][6] - The company is expected to see a stabilization and recovery in gross margins as cost reduction points emerge, with production capacity ramping up and operational efficiency improving [2][3] Financial Performance Summary - In the first half of 2025, the company's revenue from RF discrete devices was 899 million yuan (down 29.01% year-on-year), accounting for 53% of total revenue, while RF module revenue was 756 million yuan (down 21.79% year-on-year), accounting for 44% [2] - The company's gross margin decreased to 28.75%, down 13.4 percentage points year-on-year, with R&D expenses reduced by 17.5% to 407 million yuan [1][2] - The financial forecast for 2025-2027 has been adjusted, with net profit estimates revised down to 444 million yuan, 749 million yuan, and 955 million yuan for 2025, 2026, and 2027 respectively [3][5] Key Financial Metrics - The company is projected to achieve revenues of 4.494 billion yuan in 2025, with a slight increase of 0.1% year-on-year. The net profit for 2025 is expected to be 444 million yuan, reflecting a 10.4% increase from 2024 [5][25] - The earnings per share (EPS) for 2025 is estimated at 0.83 yuan, with a PE ratio of 101.6 [5][25] - The company's EBIT margin is projected to be 11.2% in 2025, with a return on equity (ROE) of 4.2% [5][25]

Core Insights - The consumer electronics industry is showing signs of recovery, with 80 out of 101 companies reporting revenue growth year-on-year, and 35 companies achieving over 20% growth [1] - Industrial Fulian leads the sector with significant revenue and profit growth, achieving 360.76 billion yuan in revenue and 12.11 billion yuan in net profit for the first half of 2025, marking a year-on-year increase of 35.58% and 38.61% respectively [2] - The emergence of "dark horse" companies is notable, with several firms reporting revenue growth exceeding 50%, particularly those focused on AI applications [4] Industry Performance - The consumer electronics sector has 22 companies with revenues exceeding 10 billion yuan, with notable performances from companies like Luxshare Precision and Hikvision, which reported revenues of 124.50 billion yuan and 41.82 billion yuan respectively [3] - A total of 14 companies reported net profit growth exceeding 100%, with Qianfang Technology and Silan Micro achieving remarkable increases of 1287.12% and 1162.42% in net profit [5] AI Impact - AI technology is driving new growth points in the consumer electronics industry, with products like AI smartphones and smart home devices gaining traction [6] - The short-term effects of AI-related investments are evident, particularly for companies that have early adopted AI technologies [6] Market Disparities - Despite the overall recovery, there is a clear divergence within the industry, with 16 companies reporting a decline in net profit exceeding 30% [7] - Companies like AOC Technology and OFILM have reported losses, with AOC's net profit dropping to -0.49 billion yuan from a profit of 0.05 billion yuan in the previous year [7] Competitive Landscape - The competitive environment is intense, with leading companies capturing a significant market share, making it challenging for smaller firms to compete effectively [8]

Core Viewpoint - The stock of Zhaosheng Microelectronics has shown a mixed performance in 2023, with a year-to-date decline of 4.06% but a recent recovery in the last five, twenty, and sixty trading days, indicating potential investor interest and market volatility [2]. Group 1: Stock Performance - As of August 27, Zhaosheng Microelectronics' stock price increased by 2.07% to 85.96 CNY per share, with a trading volume of 5.85 billion CNY and a turnover rate of 1.54%, resulting in a total market capitalization of 459.84 billion CNY [1]. - The stock has experienced a 5.89% increase over the last five trading days, a 13.70% increase over the last twenty days, and a 21.00% increase over the last sixty days [2]. Group 2: Financial Performance - For the first half of 2025, Zhaosheng Microelectronics reported a revenue of 1.704 billion CNY, representing a year-on-year decrease of 25.42%, while the net profit attributable to shareholders was -147 million CNY, a significant decline of 141.59% [2]. - The company has distributed a total of 884 million CNY in dividends since its A-share listing, with 265 million CNY distributed over the past three years [3]. Group 3: Shareholder and Institutional Holdings - As of June 30, 2025, the number of shareholders for Zhaosheng Microelectronics was 85,200, a decrease of 0.67% from the previous period, with an average of 5,263 circulating shares per person, which increased by 0.67% [2]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited held 9.1102 million shares, a decrease of 278,400 shares, while E Fund's ChiNext ETF and Huatai-PB's CSI 300 ETF also showed changes in their holdings [3].

Core Viewpoint - On August 25, 2023, brokerage firms provided target prices for listed companies, with notable increases in target prices for companies in the agriculture, coal mining, and construction materials sectors, indicating potential investment opportunities in these industries [1][2]. Target Price Increases - The companies with the highest target price increases were: - Longping High-Tech (隆平高科) with a target price increase of 38.75% to 14.00 CNY [2] - Xinji Energy (新集能源) with a target price increase of 37.40% to 9.00 CNY [2] - Beixin Building Materials (北新建材) with a target price increase of 36.57% to 36.90 CNY [2] Brokerage Recommendations - A total of 163 listed companies received brokerage recommendations on August 25, with notable mentions: - Shede Liquor (舍得酒业) received 4 recommendations [4] - Shuiyang Co. (水羊股份) and Marubi Biotechnology (丸美生物) each received 3 recommendations [4] Rating Adjustments - One company had its rating upgraded: - Guodian Power (国电电力) was upgraded from "Hold" to "Buy" by Huayuan Securities [5] - Three companies had their ratings downgraded: - Minhe Livestock (民和股份) from "Buy" to "Hold" [6] - Chifeng Gold (赤峰黄金) from "Buy" to "Hold" [6] - Silan Microelectronics (士兰微) from "Buy" to "Hold" [6] First-Time Coverage - Seven companies received first-time coverage with positive ratings: - Ganhua Science and Technology (甘化科工) received a "Buy" rating from Dongwu Securities [7] - Wangneng Environment (旺能环境) received a "Buy" rating from Xinda Securities [7] - Yingliu Co. (应流股份) received an "Increase" rating from Shanxi Securities [7] - New Clean Energy (新洁能) received an "Increase" rating from Industrial Securities [7] - Weijian Medical (稳健医疗) received a "Buy" rating from Northeast Securities [7]

Group 1: Financial Performance - In 1H2025, the company achieved operating revenue of 1.704 billion yuan, a year-on-year decrease of 25.42% [1] - The net profit attributable to the parent company was -147 million yuan, a year-on-year decline of 141.59% [1] - The non-recurring net profit attributable to the parent company was -151 million yuan, a year-on-year decrease of 142.77% [1] - In 2Q2025, the company reported operating revenue of 948 million yuan, a year-on-year decrease of 13.43% but a quarter-on-quarter increase of 25.43% [1] - The net profit attributable to the parent company in 2Q2025 was -101 million yuan, with the loss margin expanding quarter-on-quarter [1] - The gross profit margin for 1H2025 declined to 28.75% due to high wafer costs and increased depreciation [1] Group 2: Business Model and Product Development - The company is deepening its Fab-Lite operating model, with the revenue share of RF front-end modules increasing from 36.34% in the previous year to 44.35% [2] - The company has successfully validated its first domestically supplied L-PAMiD product and has entered the mass production and delivery phase [2] - The WiFi 7 module has achieved large-scale production and stable shipments, while automotive-grade UWB chips have entered mass production [2] - The 6-inch filter production line has achieved mass production of duplexers and quadplexers, with integrated self-produced filters being successfully introduced to multiple brand customers [2] - The 12-inch production line has rapidly increased capacity to 5,000 wafers per month and has entered a stable production phase with high product yield [2] - As production volume increases and operational efficiency improves, the high-cost issues due to low capacity utilization are expected to gradually ease, leading to a stabilization and recovery of product gross margins [2] Group 3: Future Projections - The company projects revenues of 4.22 billion yuan, 5.21 billion yuan, and 5.86 billion yuan for the years 2025, 2026, and 2027, respectively [3] - The net profits attributable to the parent company are expected to be -58 million yuan, 405 million yuan, and 743 million yuan for the years 2025, 2026, and 2027, respectively [3] - Corresponding PE ratios for 2026 and 2027 are projected to be 111.92 and 61.03 times, respectively [3]

Investment Rating - The report maintains a rating of "Accumulate" for the company [5] Core Views - The company has shown a quarter-on-quarter revenue increase of 25% in Q2, with improved capacity utilization on the 6/12 inch production lines, indicating a potential stabilization and recovery in gross margin [1][4] - The company is positioned as a leading player in the domestic semiconductor RF chip market, having completed the transition to a Fab-Lite operating model, which is expected to unlock a high-end RF front-end market worth hundreds of billions [4] Financial Summary - For 2023, the projected revenue is 4,378 million yuan, with a year-on-year growth rate of 19.1%. The net profit attributable to shareholders is expected to be 1,122 million yuan, reflecting a growth rate of 5.0% [15] - The revenue for H1 2025 is reported at 1,704 million yuan, a year-on-year decrease of 25.42%, with a net loss attributable to shareholders of 147 million yuan [11][12] - The gross margin for Q2 2025 is reported at 26.95%, down 4.06 percentage points from the previous quarter, primarily due to increased competition and depreciation costs [9][10] Production Capacity and Product Development - The 6-inch production line has successfully ramped up production of various RF components, including duplexers and integrated filters, with the L-PAMiD product entering mass production [3][4] - The 12-inch production line has achieved a monthly production capacity of 5,000 chips, with efficient utilization rates, and is gradually moving towards mass production of second-generation technology platforms [4] Market Position and Future Outlook - The company is expected to achieve net profits of 425 million yuan, 766 million yuan, and 1,103 million yuan for the years 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 100.6, 55.9, and 38.8 [4][15] - The report emphasizes the potential for the company to capture significant market share in the high-end RF front-end market, driven by its technological advancements and production capabilities [4]

Group 1 - The stock of Zhuosheng Microelectronics (卓胜微) closed at 84.45 yuan on August 25, with a slight decline of 0.33% [1] - A block trade occurred, involving a total of 23,700 shares and a transaction amount of 2.0015 million yuan, with a premium rate of 0.00% [1] - Over the past three months, the stock has seen a total of three block trades, amounting to 46.4095 million yuan [1] Group 2 - In the last five trading days, the stock has increased by 5.31%, with a net inflow of 8.7552 million yuan from main funds [1]

Group 1: 卓胜微 (300782 CH) - The company has shifted from profit to loss in 1H25, with revenue in 2Q25 at RMB 948 million, down 13% year-on-year, and losses of RMB 101 million and RMB 147 million for 2Q25 and 1H25 respectively [1] - Management expects cost pressure to approach its peak as production capacity increases, with signs of cost reduction and improved efficiency emerging [1] - Revenue forecasts for 2025 and 2026 have been lowered to RMB 4.17 billion and RMB 5.17 billion respectively, with EPS estimates adjusted to RMB 0.05 and RMB 1.15 [1] Group 2: 哔哩哔哩 (BILI US) - The company reported 2Q25 revenue of RMB 7.3 billion, a 20% year-on-year increase, with adjusted net profit of RMB 560 million, slightly above expectations [2] - Game revenue surged 60% year-on-year driven by the success of "三谋", while advertising revenue also grew by 20% due to increased traffic and AI technology applications [2] - The target price has been raised to USD 32, reflecting a potential upside of 34.7% [3] Group 3: 途虎 (9690 HK) - The company’s performance in the first half of 2025 met expectations, with revenue growth driven by improved market share and profit margins [6] - The target price has been adjusted to HKD 25, indicating a potential upside of 31.2% [6] - The company is expected to maintain double-digit revenue growth and stable profit margins despite industry uncertainties [6] Group 4: 先声药业 (2096 HK) - The company achieved a 15% revenue growth and a 21% increase in adjusted net profit in 1H25, driven by a 26% growth in innovative drug revenue [7][8] - Management has updated guidance for 2025-2027, expecting over 15% growth in revenue and adjusted net profit [8] - The target price has been raised to HKD 16.40, reflecting a positive outlook on the company’s growth trajectory [8] Group 5: 恒瑞医药 (1276 HK) - The company reported a 16% revenue growth in 1H25, with innovative drug sales growing over 25% [9][10] - The company plans to repurchase shares worth approximately RMB 10-20 billion, contingent on achieving specific sales growth targets [9] - The target price has been set at HKD 70.40, indicating a potential downside of 9.4% [10] Group 6: 速腾聚创 (2498 HK) - The company’s laser radar sales increased over sixfold year-on-year in 2Q25, with expectations for peak deliveries in the second half of the year [11][12] - The gross margin for the robot business reached 41.5%, contributing to an overall gross margin increase to 27.7% [12] - The target price is maintained at HKD 41.89, reflecting confidence in the company’s growth potential [12] Group 7: 亿纬锂能 (300014 CH) - The company’s battery shipments reached 50 GWh in the first half of 2025, a 46% year-on-year increase, with revenue growing 30% to RMB 28.2 billion [13][14] - Focus is on improving profitability in the energy storage segment, with expectations for recovery in margins [13] - The target price is set at RMB 56.51, indicating a potential upside of 16.5% [14] Group 8: 名创优品 (9896 HK) - The company’s revenue grew 21.1% year-on-year in the first half of 2025, with a 23.1% increase in 2Q25, exceeding previous guidance [15][16] - The management has raised the full-year revenue growth guidance to over 25% [16] - The target price has been increased to HKD 48.70, indicating a potential upside of 24.7% [16] Group 9: 李宁 (2331 HK) - The company reported a 3.3% revenue growth in the first half of 2025, with net profit declining 11% year-on-year [17][18] - Management maintains a cautious outlook for the third quarter, citing challenges in the operating environment [17] - The target price is set at HKD 16.28, reflecting a potential downside of 10.1% [18] Group 10: 友邦保险 (1299 HK) - The new business value grew 14% year-on-year, primarily driven by contributions from Hong Kong and Thailand [19][20] - The company aims for a compound annual growth rate of 40% in new business value from new regions between 2025 and 2030 [19] - The target price is maintained at HKD 84, indicating a potential upside of 14.4% [20] Group 11: 恒基地产 (12 HK) - The company’s revenue fell 18.8% year-on-year in the first half of 2025, with core net profit down 44.4% [21][22] - The target price has been adjusted to HKD 25.90, reflecting a cautious outlook on the company’s performance [22] - The rental income remained stable, with a slight decline of 2.8% [22] Group 12: 越秀服务 (6626 HK) - The company’s revenue remained stable with a 0.1% year-on-year increase, while net profit decreased by 13.7% [23][24] - The company maintains a high dividend payout ratio of 50% [23] - The target price has been slightly adjusted to HKD 4.20, indicating a potential upside of 38.2% [24] Group 13: 中国电力 (2380 HK) - The company’s profit increased by 0.7% year-on-year, outperforming market expectations [25][26] - The company plans to adjust its installation targets for wind and solar power due to new policies [25] - The target price has been slightly lowered to HKD 3.75, maintaining a buy rating [26]

Macro Commentary - The speech by Powell at the Jackson Hole central bank conference was more dovish than expected, interpreted by the market as a signal for a potential rate cut in September. However, two regional Fed presidents later tempered this optimism, indicating that the decision would depend on economic data [2][4]. - Inflation in the U.S. is expected to rebound in August, with a potential impact on the unemployment rate due to a decrease in immigrant labor. If inflation rises less than the unemployment rate, a rate cut in September is likely; otherwise, it may be postponed to October [2][4]. - The Fed is anticipated to cut rates again in December and potentially two more times in the following year [2][4]. Company Analysis Bilibili (BILI US) - Bilibili reported Q2 2025 earnings with total revenue of RMB 7.34 billion, a 20% year-on-year increase, meeting expectations. Adjusted net profit reached RMB 562 million, exceeding consensus estimates by 8% due to better-than-expected control of sales expenses [5]. - For Q3 2025, revenue growth is expected to slow to 4% year-on-year, primarily due to high base pressure from mobile gaming. However, advertising and value-added services are projected to remain resilient [5]. Weishijia (856 HK) - Weishijia's H1 2025 revenue grew by 14% to HKD 45.5 billion, driven by strong demand for AI computing, with cloud revenue increasing by 68% year-on-year. Net profit rose by 36% to HKD 649 million [5]. - The target price has been raised to HKD 14.2, reflecting the increased contribution from AI-related business [5]. CSPC Pharmaceutical Group (1093 HK) - CSPC reported H1 2025 total revenue of RMB 13.3 billion, with core revenue declining by 25% year-on-year. The management expects a rebound in product sales in H2 2025, with at least 5% quarter-on-quarter growth anticipated [6][7]. - The company has completed six external licensing deals since late 2024 and expects to finalize two more significant deals in H2 2025, each exceeding USD 5 billion [7][9]. Li Ning (2331 HK) - Li Ning's revenue for H1 2025 was RMB 14.8 billion, a 3% year-on-year increase, slightly above expectations. However, net profit fell by 11% to RMB 1.74 billion, reflecting challenges in retail sales and increased discounts [11][13]. - The company maintains its FY 2025 guidance, expecting stable sales growth and high single-digit net profit margins, despite pressures from inventory and promotional costs [10][11]. Binjiang Service (3316 HK) - Binjiang Service reported a 12.2% increase in net profit for H1 2025, with total revenue up 22.7%. The basic property management segment showed strong growth, benefiting from improved collection rates and property fee increases [14][16]. - The company aims to achieve a 70% dividend payout ratio and plans to pursue inclusion in the Hong Kong Stock Connect by FY 2026 [16]. Zhaosheng Microelectronics (300782 CH) - Zhaosheng Microelectronics reported Q2 2025 revenue of RMB 948 million, a 25% quarter-on-quarter increase but a 13% year-on-year decline, indicating ongoing weak demand and competitive pressures [17]. - The company has adjusted its revenue forecasts downwards for 2025 and 2026 due to persistent pricing pressures and lower-than-expected demand [17].

Summary of Maxscend (300782.SZ) Conference Call Company Overview - **Company**: Maxscend (300782.SZ) - **Industry**: RF (Radio Frequency) modules and semiconductor manufacturing Key Points Industry and Company Performance - **RF Product Mix Upgrade**: The company is positively positioned due to an upgrade in its RF product mix and a leading market position post-2Q25 [1][2] - **Production Line Improvements**: The UT (Utilization) rate is improving in both 12-inch and 6-inch wafer production lines, driven by increased product offerings and customer base [2][3] - **Expansion into RF Modules**: Transitioning from discrete components to RF modules, including WiFi 7 modules, which are expected to enhance market competitiveness [1][2] Financial Performance - **2Q25 Revenue Miss**: Maxscend reported revenues of Rmb 948 million for 2Q25, reflecting a 25% increase QoQ but a 13% decrease YoY, falling short of estimates by 18% and 10% respectively [3][4] - **Gross Margin Decline**: Gross margin decreased to 27.0% in 2Q25, down from 41.4% YoY, attributed to increased competition and depreciation costs from new production lines [3][4] - **Net Loss**: The company incurred a net loss of Rmb 101 million in 2Q25, primarily due to slow revenue growth and higher operational costs [3][4] Earnings Revisions - **Earnings Forecast Adjustments**: Net income estimates for 2025-2027 were reduced by 90%, 15%, and 12% respectively, reflecting lower revenues and higher operational costs [9][10] - **Revenue Projections**: Revised revenue estimates for 2025 are now Rmb 5,465 million, a 4% decrease from previous estimates [10] Valuation and Price Target - **Target Price**: The 12-month target price is set at Rmb 85, based on a P/E multiple of 42x for 2026E earnings [15][19] - **Market Valuation**: The stock is currently trading at 41.9x 2026E P/E, indicating a fair valuation relative to the target [10][19] Risks and Challenges - **Market Competition**: The company faces fierce competition in a slow smartphone market, which may impact future growth [3][9] - **Operational Risks**: Risks include slower-than-expected product line expansion and pricing competition [16][17] Investment Thesis - **Market Position**: Maxscend is a local leader in RFFE (Radio Frequency Front End) with a diverse customer base across leading Android smartphone brands [17] - **Product Line Expansion**: The company is expanding its product offerings from switches and LNAs to larger markets such as PAs, filters, and receiver modules, which supports its growth strategy [17] Additional Insights - **Focus on Innovation**: The company is committed to developing innovative products to secure supply continuity and attract new customers [17] - **Long-term Growth Strategy**: Investments in R&D for RF modules are expected to support long-term growth despite current challenges [9][17] This summary encapsulates the key insights from the conference call, highlighting the company's performance, financial results, market position, and future outlook.