Investment Rating - The investment rating for the company is "Accumulate" [4][7]. Core Views - The acquisition of Shanghai Aolai by Goer Group through its subsidiary Goer Optical is expected to enhance its core competitiveness in XR glasses and micro-nano optical devices [1][2]. - The transaction will allow Goer Optical to leverage Shanghai Aolai's established assets and technology, alleviating financial pressures and accelerating production capacity in the micro-nano optical device sector [3]. Financial Projections - Revenue forecasts for 2025-2027 are projected at 100.239 billion, 115.969 billion, and 134.427 billion yuan, with year-on-year growth rates of -0.7%, +15.7%, and +15.9% respectively [4][9]. - Net profit estimates for the same period are 3.401 billion, 4.239 billion, and 5.334 billion yuan, reflecting year-on-year growth rates of +27.6%, +24.6%, and +25.8% [4][9]. - Earnings per share (EPS) are expected to be 0.97, 1.21, and 1.53 yuan for 2025, 2026, and 2027 respectively, with corresponding price-to-earnings (PE) ratios of 30.66x, 24.60x, and 19.55x [7][9]. Company Overview - Goer Optical has a strong focus on precision optical components and has established a competitive edge in the field of optical waveguide devices [2]. - The company has been actively pursuing external mergers and acquisitions to deepen its vertical integration capabilities [2].

Core Viewpoint - Jefferies maintains a "Buy" rating on China Hongqiao (01378) and raises the target price to HKD 26.9, citing strong performance and confidence in future earnings growth [1][2]. Financial Performance - China Hongqiao reported a net profit of RMB 12.4 billion for the first half of 2025, representing a year-on-year increase of 35% [2]. - The average selling price (ASP) of aluminum increased by 2.7% to RMB 17,853 per ton, while the ASP of alumina rose by 10.3% to RMB 3,243 per ton, significantly outpacing overall market trends [2]. - Unit gross profit for aluminum and alumina increased by RMB 225 and RMB 185 per ton, respectively, due to higher average selling prices [1]. Cost Management - The company effectively controlled its cost of goods sold (COGS), with aluminum costs rising slightly by 2% to RMB 13,300 per ton, influenced by higher carbon anode prices [2]. - Alumina costs increased by 5% to RMB 2,300 per ton, primarily due to rising caustic soda prices, while bauxite benefited from vertical integration [2]. Shareholder Returns - China Hongqiao announced a stock buyback plan of at least HKD 3 billion, in addition to the HKD 2.6 billion already repurchased, reflecting management's confidence in the company's performance [3]. - The company shifted its dividend payment from semi-annual to annual, maintaining a commitment to pay at least 60% of last year's dividends, which is expected to stabilize dividend expectations [3]. - If the HKD 3 billion buyback is completed in the second half of 2025, the total buyback for the year will reach at least HKD 5.6 billion, allowing for an additional 20% dividend payment on top of the 60% base [3].

Core Insights - Goertek reported a revenue of 37.549 billion yuan for H1 2025, a year-on-year decrease of 7.02%, while the net profit attributable to shareholders was 1.417 billion yuan, an increase of 15.65% year-on-year [1] - The company achieved a revenue of 21.245 billion yuan in Q2 2025, a year-on-year increase of 0.83%, with a net profit of 949 million yuan, up 12.12% year-on-year [1] Business Segments - Smart hardware revenue reached 20.341 billion yuan, a year-on-year increase of 2.49% [1] - Smart acoustic devices revenue was 8.324 billion yuan, a year-on-year decrease of 34.92% [1] - Precision components revenue was 7.604 billion yuan, a year-on-year increase of 20.54% [1] Profitability and Expenses - The gross margin for H1 2025 was 13.47%, an increase of 1.96 percentage points year-on-year, with Q2 2025 gross margin at 14.29%, up 0.66 percentage points year-on-year [1] - The company’s expense ratio for H1 2025 was 10.35%, an increase of 2.25 percentage points year-on-year, with R&D expenses accounting for 6.27% [2] Strategic Acquisitions - On July 22, Goertek announced plans to acquire 100% of Mega Precision Technology Limited and Channel Well Industrial Limited for approximately 9.5 billion yuan, enhancing its vertical integration capabilities in the precision metal components sector [3] - On August 8, Goertek's subsidiary announced a loan of up to 100 million USD to Haylo Labs Limited for the acquisition of Plessey Semiconductors Limited, aimed at strengthening its capabilities in the Micro-LED sector [4] Financial Forecast - Revenue projections for 2025-2027 are adjusted to 100.239 billion, 115.969 billion, and 134.427 billion yuan, with expected net profits of 3.401 billion, 4.239 billion, and 5.334 billion yuan respectively [5] - The estimated EPS for 2025-2027 is 0.97, 1.21, and 1.53 yuan, with a maintained "buy" rating based on the stock price of 29.68 yuan as of August 21, 2025 [5]

Stock Code: 2018.HK 2025 Interim Results P&L Summary | | 1H 2025 | 1H 2024 | YoY | | --- | --- | --- | --- | | （RMB mn） | | | | | Revenue | 13,318 | 11,247 | +18.4% | | Gross Profit | 2,754 | 2,418 | +13.9% | | Research and Development Costs | 998 | 949 | +5.1% | | Distribution and Selling Expenses | 343 | 297 | +15.4% | | Administrative Expenses | 637 | 566 | +12.6% | | Net Profit* | 876 | 537 | +63.1% | | Basic EPS (RMB） | 0.76 | 0.46 | +65.2% | *Net profit represents profit attributable to owners of the ...

Core Viewpoint - The closure of Tesla's Dojo supercomputer project, which had significant investment and was initially seen as a key to achieving full self-driving capabilities, reflects a shift in strategy towards leveraging existing industry solutions rather than pursuing vertical integration in AI technology [4][10][12]. Group 1: Project Closure and Financial Implications - Tesla's Dojo project was officially shut down after over $1 billion in investment, marking a significant pivot in its approach to AI technology [4][10][13]. - The company plans to spend tens of billions on NVIDIA AI chips, increasing its stock from 35,000 to 85,000 units by the end of 2025 [13][30]. Group 2: Challenges of Vertical Integration - The ambitious design of Dojo's chip architecture faced significant challenges, including heat dissipation, power consumption, and system stability, which hindered its performance [16][18]. - Tesla's attempt to create a new chip and software stack simultaneously proved to be an extremely difficult challenge, leading to the project's failure to meet performance targets [16][18]. Group 3: Industry Dynamics and Strategic Shift - The closure of Dojo highlights a broader trend in the AI industry where companies are recognizing the importance of platform ecosystems over isolated technological breakthroughs [21][28]. - NVIDIA's CUDA software ecosystem has become a dominant force in AI development, making it difficult for new entrants to compete without a similar platform [22][23][27]. - By outsourcing its computing infrastructure to NVIDIA, Tesla can refocus its engineering efforts on neural network algorithms and data processing, aligning with the industry's shift towards platform-based competition [27][28][30].

Core Insights - Tesla's Dojo supercomputer project, initially aimed at enhancing fully autonomous driving capabilities, has been officially shut down after significant investment exceeding $1 billion, marking a shift in strategy towards purchasing AI chips from Nvidia instead of continuing self-development [1][4][6][10]. Group 1: Project Overview - The Dojo project was introduced by Elon Musk in 2019 with the goal of creating a powerful computing system specifically for training autonomous driving models using Tesla's proprietary D1 chip [4]. - Despite initial ambitions, the project faced significant challenges in performance and stability, leading to its eventual discontinuation [8][10]. Group 2: Strategic Shift - Tesla plans to invest billions in Nvidia AI chips, increasing its stock from 35,000 to 85,000 units by the end of 2025, indicating a strategic pivot from self-reliance to leveraging established industry solutions [6][15]. - This decision reflects a broader industry trend where companies are recognizing the importance of platform ecosystems over isolated technological breakthroughs [11][13]. Group 3: Industry Context - The competitive landscape is dominated by Nvidia, which has built a robust software ecosystem (CUDA) that supports AI development, making it challenging for new entrants to compete without similar infrastructure [9][11]. - The closure of Dojo highlights the difficulties faced by companies attempting to innovate in isolation, as seen in the case of Graphcore, which failed to establish a competitive software ecosystem [13]. Group 4: Future Implications - The end of the Dojo project may allow Tesla's engineers to focus on their strengths in neural network algorithms and data processing, rather than hardware challenges, potentially leading to more effective advancements in AI [12][14]. - This strategic retreat from self-development to collaboration with established players like Nvidia may ultimately position Tesla to achieve its goals more efficiently [16].

Core Viewpoint - Leap Motor has significantly increased its stock price by over 200% since August last year, and is expected to achieve its first annual profit [2][3]. Group 1: Company Performance - Leap Motor's stock has doubled since January this year, outperforming competitors like Xpeng Motors and Xiaomi, and has risen from a low of 19.54 HKD to 65.40 HKD [5]. - The company has raised its sales target for 2025 from approximately 290,000 units to 500,000 units, indicating strong growth potential [3][5]. - Leap Motor's competitive pricing strategy, supported by about 70% vertical integration, allows it to offer large vehicles at mass-market prices [3][6]. Group 2: Market Position and Strategy - The company has positioned itself as a more affordable alternative to Li Auto, focusing on in-house production of electrical components to reduce costs [5][6]. - Leap Motor's C11 SUV, launched in late 2020, has a starting price of 148,800 RMB (approximately 20,700 USD), significantly lower than Li Auto's L6 SUV starting at 249,800 RMB [6]. - The recent economic slowdown in China has led consumers to prioritize cost, benefiting Leap Motor's mass-market positioning [9]. Group 3: Future Prospects - Analysts predict that Leap Motor will achieve a profit of 558 million RMB by 2025, with upcoming half-year results expected to provide insights into its progress [9]. - The joint venture with Stellantis, announced at the end of 2023, is anticipated to be a significant growth driver, allowing Leap Motor to expand its global presence [9][10]. - Leap Motor's export growth and software monetization are seen as potential catalysts for its transformation into a scalable global electric vehicle brand [10].

Investment Rating - The report assigns an "Accumulate" rating to the company with a target price of 22.04 CNY [4]. Core Insights - The company is experiencing accelerated revenue growth, with expectations for profit improvement in the second half of the year [2]. - The unique UDM model supports high-end manufacturing R&D capabilities, and the business expansion in high-growth sectors is promising [10]. - The company has adjusted its profit expectations for 2025-2026 and introduced a new profit forecast for 2027, estimating EPS of 0.38, 0.44, and 0.69 CNY for 2025-2027 respectively [10]. Financial Summary - Total revenue is projected to decline from 3,860 million CNY in 2023 to 3,567 million CNY in 2025, before increasing to 5,682 million CNY by 2027, reflecting a growth rate of 26.0% [3]. - Net profit attributable to the parent company is expected to decrease from 451 million CNY in 2023 to 252 million CNY in 2024, before recovering to 536 million CNY in 2027, indicating a significant growth of 56.6% [3]. - The company's gross profit margin is forecasted to decline to 27.6% in 2025, with a net profit margin of 8.6% [11]. Business Performance - In the first half of 2025, revenue from innovative consumer electronics products increased by 41.86%, while automotive electronics and health environment segments also showed positive growth [10]. - The company is focusing on deepening its large customer strategy and enhancing its competitive advantages in smart manufacturing and internationalization [10]. - The sales gross margin for Q2 2025 was reported at 27.1%, down 2.1 percentage points year-on-year, primarily due to currency fluctuations and increased competition in the automotive electronics market [10]. International Expansion - The company is accelerating its internationalization process, leveraging its early advantages to enhance global operations and meet diverse customer needs [10].

Core Insights - Tesla's ambitious AI supercomputer project, Dojo, was expected to be a cornerstone for achieving full self-driving capabilities and transforming Tesla into a trillion-dollar AI giant, with potential valuations reaching $500 billion [1][2] - However, within three weeks of optimistic projections, the Dojo project faced a dramatic turnaround, leading to its termination due to strategic miscalculations and a mass exodus of key personnel [2][21] Group 1: Dojo's Development and Challenges - Dojo was conceived from Tesla's obsession with vertical integration, aiming to eliminate reliance on external suppliers like NVIDIA for AI computing power [3][4] - The project aimed to handle vast amounts of data generated by Tesla's fleet, but its aggressive design overlooked critical memory requirements, leading to performance limitations [9][12] - The D1 chip, a key component of Dojo, was designed with high processing capabilities but lacked sufficient memory, which was essential for training large AI models [10][12] Group 2: Talent Exodus and Project Termination - The departure of key figures, including Ganesh Venkataramanan and Peter Bannon, along with about 20 core engineers, significantly weakened the Dojo project, leading to its abrupt end [19][20][21] - This mass departure was not just a loss of personnel but a critical blow to the project's intellectual capital, making it nearly impossible to continue [21] Group 3: NVIDIA's Dominance - Tesla's attempts to compete with NVIDIA in the AI training chip market were fundamentally flawed, as NVIDIA's established software ecosystem (CUDA) provided a significant competitive advantage [22][25] - Despite promoting Dojo, Tesla continued to rely heavily on NVIDIA's GPUs, indicating that Dojo never became the primary solution for AI training [23][24] Group 4: Strategic Shift to AI6 - Following the termination of Dojo, Tesla announced a new strategy centered around the AI6 "fusion architecture," which aims to combine training and inference capabilities into a single chip [27][29] - This shift reflects a pragmatic approach to resource allocation, focusing on more commercially viable projects like Robotaxi and Optimus robots [26][39] Group 5: Industry Implications - The failure of Dojo serves as a cautionary tale about the challenges of vertical integration in AI hardware, highlighting the difficulties even well-funded companies face when competing against established giants [38] - The situation emphasizes the importance of flexibility and adaptability in AI model development, suggesting that general-purpose GPUs may still be the more effective solution in a rapidly evolving landscape [38][39]

Core Viewpoint - Company reported a revenue of approximately 8.83 billion RMB for H1 2025, representing a year-on-year growth of 15.1%, driven by increased sales and prices of cameras in the automotive and IoT sectors, as well as improvements in fingerprint recognition module sales and specifications [1] Group 1: Financial Performance - Revenue growth primarily attributed to camera module sales, which increased by 10.3% to 7.96 billion RMB, and fingerprint recognition modules, which surged by 109.3% to 830 million RMB [1] - Gross margin improved to 7.4%, up 2.2 percentage points year-on-year, due to a higher proportion of mid-to-high-end products and improvements in fingerprint recognition module business [1] - Net profit attributable to shareholders reached approximately 308 million RMB, a significant increase of 167.6%, aligning with previous profit forecast [1] Group 2: Non-Mobile Sector Growth - Non-mobile sector camera module shipments increased by 47.9%, exceeding the annual target of over 40%, with sales revenue from this sector accounting for 23.9% of total revenue, up 14.3 percentage points year-on-year [2] - Company established partnerships with seven leading smart driving solution providers and gained supplier qualifications from 37 automotive brands, adding three new partners and five designated projects [2] Group 3: Strategic Investments and Partnerships - Company increased its stake in New Giant Technology to 41.8%, with the latter's revenue growing by 19.8% and net profit soaring by 385.8% [2] - Investment in poLight for a 32.97% stake aims to enhance the optical module product line into VR/AR/MR applications, further diversifying the product offerings [2] - Company’s controlling shareholder plans to acquire TDK's micro-driver assets to collaborate on drone business with core customers [2] Group 4: Future Business Goals - Company updated its annual operational targets, expecting camera module sales in the automotive and IoT sectors to grow by no less than 60% and fingerprint recognition module sales to increase by no less than 30% [3] - The board approved a mid-term dividend of 0.15 HKD per share, marking the first dividend distribution since the company's listing, aimed at enhancing shareholder returns [3] Group 5: Investment Outlook - Strong performance in H1 2025 instills market confidence, with projected net profits for 2025E and 2026E expected to reach 700 million RMB and 830 million RMB, reflecting year-on-year growth of 150.1% and 18.9% respectively [3] - Target price set at 14.1 HKD based on projected P/E ratios of 20x for 2025 and 17x for 2026, with a recommendation to accumulate shares [3]