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.

Summary of the Conference Call for 卓胜微 Company Overview - **Company**: 卓胜微 - **Industry**: Semiconductor, specifically focusing on RF (Radio Frequency) products and related technologies Key Points and Arguments Financial Performance - **Q2 Revenue Growth**: Revenue increased by approximately 25% quarter-on-quarter, but the overall first half of the year was still considered a low season due to market competition and initial impacts from new production lines [2][4] - **Gross Margin**: Gross margin declined to 28.75%, with expectations for stabilization and recovery in the future [2][4] - **Debt and Cash Flow**: The company has a debt-to-asset ratio of about 30% and generated operating cash flow of 257 million yuan [2][4] - **R&D Investment**: R&D expenditure for the first half of the year was 407 million yuan, resulting in 200 new patents [5] Production and Inventory Management - **Inventory Levels**: Inventory increased to 2.757 billion yuan, a year-on-year growth of 1.53%, to support the ramp-up of the 12-inch production line [2][6] - **Production Capacity**: The 12-inch silicon-based technology platform has a monthly capacity of 5,000 wafers, with yield rates gradually improving [2][7] - **New Projects**: Both 6-inch and 12-inch production lines have achieved large-scale delivery [2][7] Market and Product Development - **Mobile Business**: The mobile business accounts for over 90% of total revenue, with significant achievements in the application of Wifi 7 modules in mobile devices [3][25][26] - **Product Launches**: The company has successfully launched AR products and Wifi wireless connection modules, both entering mass production [2][6] - **Future Product Focus**: The company is focusing on high-end products and exploring opportunities in AI and IoT [10][22] Legal and Competitive Landscape - **Patent Litigation**: The company has initiated patent lawsuits against Toyota in China and South Korea, with expectations for a conclusion by the end of the year [2][17] - **Industry Competition**: The competitive landscape remains intense, with some startups facing bankruptcy, but the company maintains confidence in its technological capabilities and industry positioning [13][24] Future Outlook - **Revenue and Profit Expectations**: The company has adjusted its revenue and profit expectations for 2025 due to market conditions and client planning adjustments, but aims for continued growth in the second half of the year [3][24] - **Capacity Utilization**: The 12-inch wafer production line is expected to reach saturation in Q3, with plans for gradual expansion thereafter [2][18] - **Acquisition Strategy**: The company is open to acquisitions, focusing on targets that can leverage its advanced technology to produce high-performance products [16] Social Responsibility - **Community Support**: The company has been actively involved in social welfare initiatives, including educational support and disaster relief, contributing over 30 million yuan to various causes [8][9] Additional Important Information - **Depreciation Impact**: Depreciation costs are expected to peak in the short term, with a reduction anticipated in Q3 as production efficiency improves [2][14] - **Supply Chain Challenges**: The company is facing supply chain issues, particularly with substrates, and is diversifying suppliers to mitigate risks [32] - **Technological Advancements**: The company is committed to continuous improvement in RF technology and is exploring new developments in low-power IoT processors [20][21] This summary encapsulates the key insights from the conference call, highlighting the company's financial performance, production capabilities, market strategies, and future outlook.

Core Viewpoint - The company reported a significant decline in revenue and net profit for the first half of 2025, with expectations for gradual recovery driven by new product launches and improved production efficiency [1][2][3] Financial Performance - In 1H25, the company achieved revenue of 1.704 billion yuan, a year-over-year decrease of 25.42%, and a net loss attributable to shareholders of 147 million yuan, a year-over-year decline of 141.59% [1] - In Q2 2025, revenue was 948 million yuan, down 13.43% year-over-year but up 25.43% quarter-over-quarter, with a net loss of 101 million yuan, reflecting a year-over-year decline of 164.35% [1] - The gross margin decreased by 4.06 percentage points to 26.95% due to increased competition and depreciation costs [1] Product Development and Market Outlook - The company is focusing on new product launches such as L-PAMiD and WiFi FEM to stabilize revenue amidst a challenging global smartphone market [2] - The first-generation self-produced RF switches and low-noise amplifiers have achieved stable output, with the second-generation technology platform gradually entering mass production [2] - The company is also developing new wireless connection products, including automotive ultra-wideband (UWB) chips, which are expected to contribute to revenue growth [2] Investment Recommendations - The target price is set at 101.00 yuan, maintaining a "buy" rating despite a downward adjustment in revenue and gross margin forecasts for 2025-2027 [3] - Projected revenues for 2025, 2026, and 2027 are 4.324 billion yuan, 4.999 billion yuan, and 5.868 billion yuan, respectively, with net profits of 52 million yuan, 486 million yuan, and 991 million yuan [3] - The company is valued at 12.5 times the 2025 price-to-sales ratio, reflecting its position as a leading domestic RF chip manufacturer [3]

Core Viewpoint - Jiangsu Zhaosheng Microelectronics Co., Ltd. is facing challenges in its performance due to industry demand fluctuations, but anticipates a recovery in gross margins in the future as production efficiency improves and new products are introduced [2][3]. Group 1: Financial Performance - In the first half of 2025, the company reported revenue of 1.703 billion yuan, a year-on-year decrease of 25.42% [2] - The net profit attributable to shareholders was -147 million yuan, a decline of 141.59% compared to the previous year [2] - The gross margin fell to 28.75% due to high costs from initial production phases and increased competition [2] Group 2: Product Development and Market Strategy - The company is focusing on high-end products and expanding into diverse application scenarios, including mobile communication and AI-driven smart devices [3] - New product introductions have made significant progress, including L-PAMiD, WiFi7 modules, low-power Bluetooth chips, and automotive ultra-wideband (UWB) chips [2][3] - The WiFi7 module has achieved large-scale production and stable shipments, primarily for mobile phones, with plans to expand into routers [5] Group 3: Capacity and Patent Situation - The utilization rates of the 6-inch and 12-inch production lines are gradually improving, with future capacity adjustments based on market feedback [4] - The company is involved in patent litigation with Murata, contesting the validity of certain patents and has submitted invalidation requests in South Korea and Shanghai [4] - To ensure stable production, the company has increased raw material reserves due to the diverse types of materials and longer lead times required [4]

Core Viewpoint - The company has successfully validated and achieved scale shipments of products utilizing advanced packaging technology, laying a solid foundation for the development of RF front-end modules focused on miniaturization, low cost, and high performance [1] Group 1 - As of the end of the first half of 2025, products using advanced packaging technology have passed key customer validation and achieved scale shipments [1] - The production line specifically designed for advanced integration processes has successfully transitioned from technology implementation to large-scale production [1] - Advanced packaging technology is suitable for products with high requirements for size and shape, such as smart glasses [1] Group 2 - Related products are currently being advanced in some customer projects, although the overall progress remains in the early stages [1]

Core Viewpoint - The company has successfully achieved large-scale shipments of products utilizing advanced packaging technology, which has passed key customer validation as of mid-2025 [1] Group 1 - The production line specifically designed for advanced integration processes has successfully transitioned from technology implementation to large-scale production, establishing a solid foundation for the company's ongoing development of RF front-end modules focused on miniaturization, cost reduction, and high performance [1] - Advanced packaging technology is applicable to products with high requirements for size and shape, such as smart glasses [1] - Related products are currently being advanced in some customer projects, although the overall progress remains in the early stages [1]

Core Viewpoint - The company,卓胜微, has successfully validated and achieved scale shipments of products utilizing advanced packaging technology, with a focus on meeting the requirements of key clients by mid-2025 [1] Group 1: Product Development - Products employing advanced packaging technology have passed key customer validation and are now in scale production [1] - The production line specifically designed for advanced integration processes has successfully transitioned from technical implementation to large-scale production [1] Group 2: Market Application - Advanced packaging technology is particularly suitable for products with high demands on size and form, such as smart glasses [1] - Related products are currently being advanced in certain customer projects, although the overall market presence remains in the early stages [1]

Core Viewpoint - The company disclosed its patent and litigation progress during a conference call, emphasizing its disagreement with Murata's claims and the ongoing invalidation process for the involved patents [1] Group 1: Patent Invalidation - The company has filed for patent invalidation against the claims made by Murata, asserting that it does not recognize these claims [1] - The invalidation cases are currently under review [1] - The company has completed submissions for patent invalidation applications in South Korea and Shanghai [1]

Financial Performance - In the first half of 2025, the company's revenue was 1.703 billion CNY, a year-on-year decrease of 25.42% [4] - The net profit attributable to shareholders was -147 million CNY, a decline of 141.59% compared to the previous year [4] - The gross margin dropped to 28.75% due to high costs from initial production phases and increased competition [4] Product Development and Technology - The company is focusing on high-performance RF front-end chips and modules, enhancing its research and development capabilities [2][3] - Key technologies include 6-inch specialty processes, 12-inch heterogeneous silicon-based processes, and advanced heterogeneous integration [3] - New products launched include L-PAMiD, WiFi7 modules, low-power Bluetooth chips, and automotive ultra-wideband (UWB) chips [4] Market Strategy - The company aims to strengthen its position in the RF industry by expanding its product line and enhancing high-end product offerings [5] - Future focus areas include mobile communication, WiFi wireless connections, and short-range communication technologies, with an emphasis on AI-driven smart hardware [5] - The company plans to explore applications in IoT, smart homes, health monitoring, and automotive electronics [5] Advanced Packaging and Production Capacity - Advanced packaging technologies have been successfully validated by key customers, leading to scale production [6] - The utilization rate of 6-inch and 12-inch production lines is gradually increasing, with future capacity adjustments based on market feedback [6] Inventory and Supply Chain Management - The increase in inventory is attributed to the need for raw material reserves to ensure stable production amid long lead times for certain materials [7] Patent and Legal Matters - The company is actively pursuing patent invalidation against claims made by Murata, with ongoing legal proceedings [7]