8 July 2025 | 7:19AM HKT China Software: Qi An Xin (688561.SS): Mgmt. call: Gen-AI brings opportunity in Cybersecurity; Costs / Cash flow enhancements We hosted a call with Qi An Xin (688561.SS, Not Covered) management on Jul 7 as part of our China Software Corp Calls (July 7 - 9). Key discussions were around cybersecurity market outlook, cybersecurity framework construction for clients, and 2025 performance outlook. Management sees opportunity in generative AI, which can intensify cyber attacks, resulting ...

7 July 2025 | 9:24AM HKT China Software: Product Tracker: AI agents upgraded, multi-modal AI models to unlock use cases; Software projects bidding review We reviewed software product launches form 1Q25 till date (Exhibit 1), and see the momentum of AI-native applications and software with AI features new launches remaining strong in 2Q25, especially agentic AI, multi-modal AI model, and model deployment. Vendors across AI foundation models and applications are migrating from basic integration to LLMs to mor ...

6 July 2025 | 2:08PM HKT Desay SV (002920.SZ): Mgmt. visit: Smart driving continues to grow; full stack solutions to accelerate deployment We visited Desay SV in Huizhou recently. Management remains positive on the smart driving trend, domain controllers growth, full stack solutions, and ongoing costs control and operation efficiency. We are positive on Desay SV's product expansion from smart cockpit to smart driving and automotive software, supporting them to better ride on the growing smart driving trend ...

7 July 2025 | 7:34AM HKT Exhibit 1: Huaqin revenue by products 14% 24% 36% 41% 45% - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2022 2023 2024 2025E 2026E 2027E 2028E Smartphones PCs Smart wearables AI servers General servers Switch Others Blended revenues to grow at +29% CAGR in 2024-28E Rmb m Huaqin Technology (603296.SS): AI servers and Switch in expansion; Data center to up to 51% of revenues by 2028E; Buy (on CL) We initiated Huaqin at Buy in April (report link); the stock is on the APAC Co ...

7 July 2025 | 7:45AM HKT GC Tech: Longcheer (603341.SS): Mgmt positive on AI PC and AI/AR glasses growth opportunities; expanding overseas business/capacity We attended Longcheer's (603341.SS, Not Covered) investor day and visited factories in HuiZhou recently. Longcheer is one of the leading smartphone/PC ODMs, expanding into AI/ AR glasses, automotive and other business. Overall, management is positive on the rising AI PC penetration rate and targets to penetrate more global-tier brand clients. Mgmt. also ...

ab 3 July 2025 Global Research First Read China Solar Industry Heightened efforts against involution competition Solar glass production cut According to China Economic Weekly, solar glass manufactures are starting to cut production, considering the persistently weakening demand since June. Based on our channel check, the production cut may not reach as high as 30% as some media reports estimate. We think 10-20% production cut could be reasonable. That could lead to a monthly effective production of around 4 ...

Flash | 04 Jul 2025 11:23:44 ET │ 8 pages China Materials Takeaways from Aluminum Product Expert Call with Mymetal CITI'S TAKE We hosted an aluminum product expert call with Mr. Tong Yilai, Aluminum Product Research Analyst of Mymetal on 4th July. Aluminum demand in solar power industry is mainly for aluminum industrial profiles and foil sheet. The demand has been decreasing since mid-May and the decline has slowed down into July. The weekly aluminum industrial profile output for sampled Chinese producers i ...

中金公司 高端装备-传动的技术基因及发展趋势 20250706 摘要 中国机加工企业跨界人形机器人传动系统，但技术标准、传动方案、加 工工艺和材料尚未收敛，硬件成本结构未固定，竞争格局不明朗，需持 续跟踪研究。 主关节传动分旋转和线性，旋转关节适用于上半身，追求灵活性；线性 关节适用于下半身，追求支撑力和传动效率。灵巧手传动方案以腱绳和 丝杠驱动为主，前者仿生但负载低，后者适用于高负载工业场景。 国内外企业在主关节和灵巧手传动方案选择上存在差异。国内企业倾向 于旋转模组，海外企业如特斯拉偏好线性执行器。灵巧手方面，全球单 手自由度增加，驱动方案混合使用丝杠与腱绳。 国内人形机器人应用场景聚焦轻负载工业和 C 端市场，采用成熟旋转执 行器；海外特斯拉侧重高负载工业场景，倾向丝杠路线；家用场景则考 虑安全性和价格，设计简化。 人形机器人技术方案呈现混合设计趋势，如灵巧手采用多级传动系统。 未来，随着对高自由度和高精密度需求的增加，灵巧手将继续沿着混合 设计方向发展。 Q&A 人形机器人传动系统的核心部件有哪些，它们在成本结构中的占比如何？ 人形机器人的传动系统核心部件包括丝杠、减速器和轴承，这些部件构成了人 形机 ...

Investment Rating - The report assigns a "Buy" rating to Sangfor, iFlytek, Shiji, Glodon, BOCHU, and Hundsun, indicating a positive outlook for these companies [10][32]. Core Insights - AI applications monetization is a key focus area, with investors showing increased interest in AI-related software despite a weak economy. Companies like Beisen, Yonyou, and Changet are gaining traction with their AI functionalities [4]. - Overseas expansion is another preferred theme among investors, particularly for BOCHU, which is working directly with local integrators [5]. - Investors have mixed views on turnaround stories, favoring growth potential over attractive valuations, with Glodon being highlighted for its cost control [6]. Summary by Sections AI Applications - Investors are keen on AI monetization ideas, especially in mainland China, as AI agents are seen to help enterprises reduce costs. Companies like Beisen and Yonyou are attracting investor interest due to their AI functionalities [4]. Overseas Expansion - BOCHU's overseas expansion is well-received, with investors not overly concerned about tariffs due to its collaboration with local integrators. There is also interest in BOCHU's welding business [5]. Turnaround Stories - Investors prefer growth potential over valuation, with Glodon noted for its effective cost control despite concerns about limited growth in the property sector [6]. Company Ratings and Financials - Sangfor (300454 CH): Buy, Target Price RMB143.00, Upside 54% [7][32] - iFlytek (002230 CH): Buy, Target Price RMB57.00, Upside 21% [7][32] - Shiji (002153 CH): Buy, Target Price RMB11.00, Upside 27% [7][32] - Glodon (002410 CH): Buy, Target Price RMB17.00, Upside 28% [7][32] - BOCHU (688188 CH): Buy, Target Price RMB160.71, Upside 23% [7][32] - Hundsun (600570 CH): Buy, Target Price RMB44.00, Upside 30% [7][32]

Global Research ab 30 June 2025 First Read China Solar Industry People's Daily reiterates efforts to curb excess competition People's Daily of China advocates tackling involution competition On 29 Jun, People's Daily of China published commentary about reining in involution- style competition, especially in the solar, EV, and battery sector. It attributed the involution-style competition mainly to oversupply, lack of high market entry standards, and support from local government. Measures to address excess ...