GF SECURITIES·2025-07-04 08:28Investment Rating - The industry investment rating is "Buy" [2] Core Insights - The recent trade agreement between the US and Vietnam is favorable for Chinese manufacturers with production capacity in Vietnam, such as Ruiming Technology and Daotong Technology. This agreement clarifies tariff situations, allowing these companies to benefit from lower tariffs when exporting to the US [6] - Ruiming Technology has invested in a smart manufacturing center in Vietnam since 2022, which began production in May 2023. The company estimates that the US market will account for nearly 15% of its total revenue in Q1 2025, supported by strong bargaining power due to high product technology content and deep customer ties [6] - Daotong Technology has diversified its production capacity, which will mitigate the impact of tariffs. The company has established an SMT production line in Vietnam since 2020 and aims for 50% of its total revenue to come from the US by 2024. The company is also expanding its presence in Mexico, benefiting from zero-tariff advantages under the US-Mexico-Canada Agreement [6] Summary by Sections Trade Agreement Impact - The US-Vietnam trade agreement imposes a 20% tariff on goods imported from Vietnam to the US, while Vietnam will exempt US imports. Products from other countries transiting through Vietnam will face a 40% tariff [6] - This agreement is expected to benefit companies like Ruiming Technology and Daotong Technology, which have established production facilities in Vietnam [6] Company Performance - Ruiming Technology's high product technology content and strong customer relationships enhance its pricing power, leading to high gross margins and potential profit growth [6] - Daotong Technology's AI initiatives and diversified production strategies are expected to drive further performance improvements [6] Financial Analysis - Ruiming Technology's estimated EPS for 2025 is 2.41 CNY, with a PE ratio of 20.37x, while Daotong Technology's estimated EPS is 1.79 CNY, with a PE ratio of 17.88x [7]