Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [2][5] Core Views - The company reported a year-on-year revenue growth of 14.18% in 1H25, reaching 329.60 billion yuan, and a net profit growth of 32.68%, amounting to 11.43 billion yuan. In 2Q25, revenue was 158.97 billion yuan, up 18.91% year-on-year, while net profit was 7.14 billion yuan, reflecting a year-on-year increase of 29.30% [3][4] - The company is positioned as a leading global supplier of ultra-thin flexible glass, with significant market share in the foldable screen segment. The demand for new 3D glass is rapidly increasing, leading to a substantial rise in the value of individual units [4][5] - The company has successfully expanded its product matrix in the smart automotive and cockpit sectors, achieving breakthroughs in core product lines and preparing for mass production of new models in collaboration with major automotive brands [4][5] Summary by Sections Financial Performance - In 1H25, the company's revenue was 329.60 billion yuan, with a year-on-year increase of 14.18%. The net profit for the same period was 11.43 billion yuan, up 32.68% year-on-year. For 2Q25, revenue was 158.97 billion yuan, reflecting an 18.91% year-on-year growth, while net profit reached 7.14 billion yuan, a 29.30% increase year-on-year [3][4] Business Segments - Revenue from the smartphone and computer segment was 272 billion yuan, with a 13% year-on-year growth. The smart automotive and cockpit segment generated 32 billion yuan, growing by 16% year-on-year. The smart wearable and head-mounted display segment saw revenue of 16 billion yuan, up 15% year-on-year, while other smart terminal businesses grew by 128% year-on-year, generating 3.6 billion yuan [3][4] Market Position and Strategy - The company completed the R&D and mass production preparations for several flagship smartphones in the first half of 2025, enhancing its market share and profitability. The personal computer business benefited from a recovery in market demand, with simultaneous increases in production and profitability [4][5] - The company has initiated a global capacity layout through its Hong Kong listing, with 30% of the raised funds allocated for technology reserves and capacity construction for foldable screen components and related accessories [5]

Core Insights - The article discusses the competitive dynamics between Geely and BYD in the Chinese electric vehicle market, highlighting Geely's recent resurgence in the new energy vehicle segment, with a penetration rate of 51.5% and total sales of 1.409 million vehicles in the first half of the year, compared to BYD's 2.146 million vehicles [1][2][20] - Geely's CEO expressed confidence in closing the market share gap with BYD, which currently stands at 4 percentage points, down from 8 percentage points last year [1][2] - The rapid growth of Geely's Galaxy brand, which achieved sales of 643,000 vehicles in the first seven months of the year, is a significant factor in this turnaround, with a year-on-year increase of 556% [1][2] Geely's Strategy and Market Position - Geely's strategy involves closely mirroring BYD's successful approaches, including pricing and technology, with the Galaxy brand's EM-i hybrid system directly competing with BYD's DM-i system [2][5] - The company has shifted from a multi-gear hybrid system to a single-gear system to reduce costs and improve efficiency, which has allowed for better price positioning against BYD [5][6] - Geely's R&D investment has been optimized, with a total of 8.6% reduction in spending compared to the previous year, allowing for more efficient use of resources [6][20] Product Offerings and Market Segmentation - Geely's Galaxy brand focuses on the 50,000 to 150,000 yuan price range, with models like the Galaxy L6, L7, and E5 targeting direct competition with BYD's offerings [6][11] - The company aims to capture the 100,000 yuan market segment by addressing consumer pain points and enhancing product features, as seen in the Galaxy A7's competitive specifications [15][21] - Geely's approach includes a dual-channel sales strategy, with plans to expand its dealer network significantly by 2025 [19][20] Future Outlook and Challenges - Geely aims to achieve a 30% increase in overseas sales in the second half of the year, with a focus on expanding its presence in international markets [20][21] - The company faces challenges in balancing volume and profitability, particularly in the mid-to-high-end market, where the Galaxy E8 has underperformed [17][21] - Geely's future success will depend on its ability to innovate and differentiate itself from competitors like BYD while maintaining cost efficiency and market responsiveness [18][21]

Core Insights - The company, Lens Technology (蓝思科技), has submitted an application to the Hong Kong Stock Exchange for a mainboard listing, with CITIC Securities as the sole sponsor [1] - It is a leading provider of one-stop precision manufacturing solutions for the entire industry chain of smart terminal products, focusing on technological innovation and smart manufacturing [1] - The company ranks among the leaders in the global consumer electronics precision structural components and module solutions industry, as well as in the global smart automotive interactive systems solutions industry, based on projected revenues for 2024 [1] Business Model - The company employs a direct sales model without using distributors, with sales to its top five customers accounting for 83.3%, 83.1%, and 81.1% of total sales in 2022, 2023, and 2024 respectively [2] - The largest customer’s sales contribution has decreased from 71.0% in 2022 to 49.5% in 2024, indicating a diversification in customer base [2] Supplier Relationships - The company maintains stable and long-term relationships with key raw material and equipment suppliers, with purchases from the top five suppliers accounting for 23.7%, 37.4%, and 43.6% in 2022, 2023, and 2024 respectively [2] - The largest supplier's contribution to purchases has increased from 16.2% in 2022 to 24.1% in 2024 [2] Manufacturing Capabilities - The company operates nine industrial parks globally, located in China, Vietnam, and Mexico, and produces all products in-house [2] - It integrates smart manufacturing into all production stages and has adopted automation and industrial robots, significantly enhancing production efficiency, precision, and consistency [2] - The implementation of an intelligent warehousing system has improved warehousing, logistics, and inventory management capabilities [2] Product and Service Offering - The company covers the entire industry chain from raw materials and functional structural components production to functional module bonding and smart terminal assembly [3] - It possesses advanced processing capabilities for both glass and metal, making it one of the few solution providers in the global consumer electronics supply chain with full material coverage [3] - The company offers one-stop vertical integration services from design to mass production for its clients [3]