Summary of Huaqin Technology (603296.SS) Conference Call Company Overview - **Company**: Huaqin Technology - **Ticker**: 603296.SS - **Market Cap**: Rmb88.6 billion / $12.3 billion - **Industry**: Technology, specifically focusing on consumer electronics and data centers Key Financial Guidance - **2Q25 Revenue Guidance**: Rmb48 billion to Rmb49 billion, midpoint Rmb48.5 billion, representing a **39% QoQ** and **109% YoY** increase, **43% ahead** of estimates [1] - **2Q25 Net Income Guidance**: Rmb1.0 billion to Rmb1.1 billion, midpoint Rmb1,043 million, reflecting a **24% QoQ** and **52% YoY** increase, **30% ahead** of estimates [1] Growth Drivers - **Generative AI Demand**: Management attributes strong guidance to the growing demand for generative AI, indicating a positive outlook for Huaqin's expansion into data centers, including AI servers and switches [1] - **GPU Supply Improvement**: Enhanced GPU supply in China is expected to drive a new product cycle in 2H25, further supporting growth [1] - **Local Chipset Platforms**: The emergence of local chipset platforms is anticipated to capture the growing generative AI demand in China [1][5] Revenue Projections - **Revenue Growth**: Blended revenues projected to grow at a **30% CAGR** from 2024 to 2028 [4] - **2025 Revenue Estimates**: Revised from Rmb147.2 billion to Rmb162.0 billion, a **10% increase** [10] - **2026 Revenue Estimates**: Revised from Rmb208.4 billion to Rmb223.9 billion, a **7% increase** [10] Earnings Revisions - **Net Income Revisions**: Increased by **3%** for 2025 and 2026, and **7%** for 2027, reflecting higher revenue expectations [9] - **Long-term Margin Expectations**: Anticipated improvement in AI server gross margins in the longer term, despite a downward trend in blended gross margins through 2028 [9] Valuation and Price Target - **Target Price**: Raised to Rmb108 from Rmb94, reflecting a **14.9% increase** [1][19] - **P/E Multiple**: Target P/E multiple set at **21x** for 2026, aligned with historical averages and expected earnings growth [16] Risks - **AI Server Ramp-Up**: Potential slower-than-expected ramp-up in AI server production in China [17] - **Production Diversification**: Risks associated with slower diversification of production sites [17] - **Pricing Competition**: Increased competition leading to potential pricing pressures [17] Conclusion - Huaqin Technology is positioned for significant growth driven by the demand for generative AI and improvements in GPU supply. The company has revised its revenue and net income estimates upward, reflecting a strong outlook for the coming quarters. The raised price target and positive valuation metrics suggest a favorable investment opportunity, albeit with some risks related to market dynamics and competition.

20 July 2025 | 9:20AM HKT China Basic Materials Monitor July 2025: weakening demand, while supply work has yet to firm up Summary: End-user orderbooks mildly picked up MoM as of mid-July, amid still sitting at low levels. Infrastructure construction further weakened including visible deceleration in new project starts, as continued funding constraints now exacerbated by stringent payment requirement, based on feedback from cement producers and construction dealers. Metal demand also softened with signs of i ...

July 21, 2025 04:41 PM GMT Asia Economics | Asia Pacific The Viewpoint: China: Anti- Involution – The Antidote to Deflation? Policy efforts to tackle the excess capacity challenge may intensify in the coming months, given a strong policy intent. However, addressing supply factors alone may not be sufficient to address the deflation challenge – demand conditions are more important, in our view. Key Takeaways In this report, we discuss the origins of and solutions to China's deflation challenge, including our ...

Yuting Yang +852-2978-7283 | yuting.y.yang@gs.com 21 July 2025 | 8:00PM HKT China Matters Waiting for the Slowdown (Shan) Andrew Tilton +852-2978-1802 | andrew.tilton@gs.com Goldman Sachs (Asia) L.L.C. Hui Shan +852-2978-6634 | hui.shan@gs.com Goldman Sachs (Asia) L.L.C. Lisheng Wang +852-3966-4004 | lisheng.wang@gs.com Goldman Sachs (Asia) L.L.C. Xinquan Chen +852-2978-2418 | xinquan.chen@gs.com Goldman Sachs (Asia) L.L.C. Waiting for the Slowdown (Shan) Despite external tariff turbulences and ongoing stru ...

For personal use only Disclaimers This presentation contains forward-looking statements that involve subjective judgement and analysis and accordingly, are subject to significant uncertainties and risks, many of which are outside the control of, and are unknown to, American Rare Earths ("ARR"). In such circumstances, the forward-looking statements can be identified by the use of forward-looking words such as "may", "will", "expect", "intend", "seek", "estimate", "believe", "continue" or other similar words. ...

From @WSJopinion: The best way to make the U.S. power grid reliable again is to let supply and demand work in energy markets without the distortions of mandates and subsidies. The GOP budget bill takes a step in that direction that should be welcomed. https://t.co/3tBSmiTLs7 ...

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Key Takeaways MP Materials will supply Apple with rare earth magnets made from recycled materials starting in 2027. MP is building a recycling line at Mountain Pass and scaling its Fort Worth magnet facility for the deal. The partnership advances U.S. rare earth supply chains and circular production in critical materials.MP Materials (MP) announced a landmark long-term agreement to supply Apple (AAPL) with rare earth magnets manufactured in the United States entirely from recycled materials. The $500 mill ...

Key Takeaways Energy Fuels launched pilot HREE oxide production at its White Mesa Mill, including 99.5% pure Dy oxide. UUUU plans pilot-scale Tb by Nov 2025 and Sm by Jan 2026, aiming for full output by Q426 post-modifications. The Donald Project in Australia and assets in Brazil and Madagascar may bolster UUUU's REE supply chain.Energy Fuels Inc. (UUUU) has initiated the pilot-scale production of heavy rare earth element (HREE) oxides at its White Mesa Mill in Utah. Currently, it is the only facility in ...

Asia Pacific Equity Research 18 July 2025 This material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the territory of Mainland China. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan. China Lithium Dashboard More supply disruption news, but limited fundamental improvement Asia Basic Materials Avery Chan AC (852) 2800-8659 avery.chan@jpmorgan.com J.P. ...