Investment Rating - Maintain BUY with a target price of HK$58.78, reflecting a potential upside of 61.3% from the current price of HK$36.65 [3][12]. Core Insights - The company is expected to achieve revenue growth of 10-15% YoY in 2025, driven by multiple growth drivers across various segments including optics, precision mechanics, electromagnetic drive, and automotive acoustics [1][9]. - Key growth drivers for 2025 include upgrades in optics specifications, increased adoption of VC in high-end models, expansion in automotive acoustics, and advancements in MEMS microphones for AI smartphones [9]. - The company has a solid product roadmap and is expanding into strategic markets such as robotics and AI glasses, with plans to acquire a stake in a Chinese automotive microphone module company to enhance its offerings [9]. Revenue and Earnings Forecast - Revenue is projected to grow from RMB 20,419 million in FY23 to RMB 32,566 million in FY25, representing a YoY growth of 19.2% [2][11]. - Net profit is expected to increase significantly from RMB 740.4 million in FY23 to RMB 2,488.6 million in FY25, with a YoY growth of 38.5% [2][11]. - The company’s EPS is forecasted to rise from RMB 0.63 in FY23 to RMB 2.12 in FY25, indicating a growth of 38.5% [2][11]. Segment Performance - The revenue breakdown indicates that acoustics will contribute RMB 9,466 million in FY25, while optics is expected to generate RMB 5,672 million [10]. - The gross profit margin is anticipated to improve from 16.9% in FY23 to 23.1% in FY25, reflecting operational efficiency and product mix enhancement [11][18]. Valuation Metrics - The stock is currently trading at a P/E ratio of 15.8x for FY25, which is attractive compared to the expected EPS growth of 39% [12][18]. - The target price is based on a sum-of-the-parts (SOTP) valuation methodology, assigning different P/E multiples to various business segments [12][13].

Core Viewpoint - Huawei is actively promoting its foldable smartphones, Mate X6 and Mate X5, with significant discounts, indicating a strategic push to capture market share in the recovering foldable smartphone segment [1][3][6]. Group 1: Promotions and Pricing - Huawei offers a discount of 1000 yuan on the Mate X6, bringing its starting price to 11999 yuan, while the Mate X5 has a discount of 3000 yuan, starting at 9999 yuan [1][3][6]. - The Mate 70 Pro+ also sees a discount of 500 yuan, with prices starting at 7999 yuan for the 16GB+512GB version [6][8]. Group 2: Market Performance - In Q1 2025, China's foldable smartphone shipments reached 2.84 million units, marking a year-on-year growth of 53.1%, with Huawei holding a dominant market share of 76.6% [1][11]. - The overall foldable smartphone market is experiencing growth, with Huawei's innovative products like the Mate X6 and the upcoming Mate XT expected to further boost sales [9][11]. Group 3: Competitive Landscape - The foldable smartphone market is becoming increasingly competitive, with brands like Honor, OPPO, Xiaomi, and Samsung also launching new models [11][12]. - Apple plans to enter the foldable market with its first device expected in the second half of 2026, indicating a growing interest in this segment [11][12]. Group 4: Future Outlook - Counterpoint Research predicts that 32 different foldable smartphone models will be released in 2025, highlighting the ongoing innovation and competition in the market [11][12]. - The overall smartphone market in China is projected to grow modestly, with foldable smartphones expected to reach around 10 million units in 2025, reflecting an 8.3% year-on-year increase [12].

Core Viewpoint - Apple is set to release a foldable iPhone with innovative design features, including a punch-hole camera on the external screen and an under-display camera on the internal screen, along with integrated Touch ID on the side button [1][2]. Group 1 - The foldable iPhone's internal display will have a 14.1:10 aspect ratio, while the external display will have a 14.6:10 aspect ratio [1]. - The device is expected to feature a dual rear camera setup and a front camera that can be used in both folded and unfolded states [2]. - The anticipated price range for the first-generation foldable iPhone is between $2000 and $2300, which is approximately 14423 to 16586 Chinese Yuan at current exchange rates [2]. Group 2 - Mass production of the foldable iPhone is projected to begin in Q4 2026, with a release expected by the end of next year [2]. - The design of the external screen's punch-hole camera is similar to that of current market competitors like the Google Pixel 9 Pro Fold [1].

Group 1 - The National Health Commission announced the revocation of medical licenses for individuals involved in a public opinion incident [1] - Liu Xiaoqing is under investigation for alleged tax evasion related to a loan transaction [4][5] - Wahaha Group has terminated its cooperation with Jinmailang due to quality control issues [6] Group 2 - Agricultural Bank of China is cooperating with authorities following the unfortunate death of a customer during a withdrawal attempt [6] - JD.com reported a significant increase in daily orders for its food delivery service, surpassing 20 million [6] - Alibaba announced a total dividend distribution of approximately $4.6 billion to shareholders [6] Group 3 - Neta Auto's founder has had 20 million RMB worth of shares frozen amid bankruptcy proceedings for the company [7] - The Ministry of Commerce emphasized the need for compliance in the sale of port transactions by CK Hutchison [7] - Eason Chan has been diagnosed with COVID-19, coinciding with a rising trend of cases across the country [8] Group 4 - Container shipping bookings from China to the U.S. surged nearly 300% following mutual tariff reductions [8] - NetEase reported a 7.4% year-on-year revenue increase in Q1 2025, with significant R&D investment [22] - Alibaba's revenue for the fiscal year 2025 reached 996.347 billion RMB, marking a 6% increase [21] Group 5 - GAC Trumpchi has undergone a leadership change with Feng Xingya stepping down as chairman [9] - Guangdong's new marriage and childbirth incentive program offers financial rewards to residents [10] - China has expanded its visa-free policy to include five additional countries starting June 1, 2025 [10] Group 6 - Hyundai has begun construction on its first manufacturing plant in Saudi Arabia, with an annual capacity of 50,000 vehicles [16] - Uber launched a new carpooling service in the U.S. aimed at daily commuters [16] - The global short video app in-app purchase revenue reached nearly $700 million in Q1 2025, a significant increase from the previous year [16] Group 7 - OpenAI has released the GPT-4.1 model for ChatGPT users, focusing on coding tasks [17] - "Zhongke Bosheng" completed nearly 100 million RMB in Series A financing to enhance production capabilities [18] - "Boson Quantum" secured several tens of millions in A+ round financing to advance quantum computing technology [18]

Core Insights - Apple is targeting to launch its first foldable iPhone in the second half of 2026, positioning it as a "large foldable screen iPhone" [1][3] Group 1: Supply Chain and Production - A supply chain company, which supplies multiple components for Apple phones, is actively seeking to become a key supplier for the foldable iPhone, with samples already sent for testing [3] - To secure additional business orders for critical components of the foldable iPhone, the supplier must pass Apple's stringent factory audit process [3] - After selecting suppliers for the foldable iPhone, Apple will enter the New Product Introduction (NPI) process, which is crucial for ensuring smooth mass production [3] Group 2: Market Demand and Competition - Apple iPhone has a large customer base, and the market demand for the foldable iPhone is expected to be considerable, although final sales will depend on pricing strategy [3] - The foldable smartphone market is highly competitive, with brands like Samsung, Huawei, Xiaomi, Vivo, OPPO, and Honor already launching multiple foldable models [3] - Research firm IDC notes that as technology improves, foldable smartphones are becoming more comparable to traditional smartphones in terms of configuration and price, leading to increased consumer acceptance [3] Group 3: Product Features and Design - Apple's foldable iPhone is expected to have two significant advantages: minimal visible crease when unfolded and a seamless design for a continuous visual experience [4] - The device will feature a "higher quality hinge," which is anticipated to be a key advantage over other foldable smartphones, made from a mix of titanium and stainless steel for durability and stability [4]

Group 1 - Kuaishou's Keling 2.0 model ranks first in the global video generation model leaderboard with a score of 1124, surpassing the previous leader Keling 1.6 [1] - This marks the third consecutive month that Kuaishou's model has topped the leaderboard [1] Group 2 - Apple has announced significant price reductions for the iPhone 16 Pro and iPhone 16 Pro Max, with discounts exceeding 2500 yuan, likely in preparation for the upcoming "618" sales event [2] - Apple plans to launch its first foldable iPhone in the second half of 2026, which is expected to boost sales and encourage other brands to invest in the foldable phone market [2] Group 3 - Xiaoma Zhixing is reportedly planning to submit a listing application in Hong Kong, but the company has declined to comment on the matter [3] - The CPU and GPU prices in Huaqiangbei have returned to normal levels after a spike due to new tariffs, with some products seeing price reductions of up to 50% [3] Group 4 - The former chairman of Unisplendour, Zhao Weiguo, was sentenced to death with a two-year reprieve for corruption and other charges, which may impact the company's reputation and operations [4] Group 5 - Tesla's Shanghai Gigafactory exported nearly 30,000 Model 3 and Model Y vehicles in April, marking the highest monthly export volume in the past year [5] - Xiaomi's founder Lei Jun has restricted comments on his Weibo account to followers who have been following for over 100 days, amid customer dissatisfaction regarding the SU7 Ultra model [5] Group 6 - Baidu is reportedly planning to launch its autonomous taxi service "Luobo Kuaipao" in Europe, specifically in Switzerland and Turkey, as part of its international expansion strategy [7] - The company has accumulated significant operational experience in complex urban traffic scenarios in various Chinese cities [7] Group 7 - China's successful launch of the "Three-Body Computing Constellation" satellite aims to enhance data processing efficiency in space, facilitating the application and development of artificial intelligence [8]

● 本报记者 张兴旺 日前，中国证券报记者从供应链公司人士处获悉，苹果给供应商提供的出货目标指引是2026年下半年推 出首款折叠屏手机，这是一款大折叠屏iPhone。预计苹果完成折叠屏iPhone供应商选择后，将会进入 NPI（新产品导入）流程。 目前，三星、华为、小米、vivo、OPPO、荣耀等厂商已推出多款折叠屏手机。市场期待苹果进入折叠 屏手机市场。据苹果产业链公司人士对中国证券报记者分析称，苹果iPhone客户基础量大，预计苹果折 叠屏iPhone市场需求大，但销量将取决于最终的定价。 对于苹果迟迟未进入折叠屏手机市场的原因，据业内人士对中国证券报记者分析称，近几年折叠屏手机 出货量不多，仍是小众市场，而苹果的策略是求稳。 据研究机构TechInsights数据显示，2024年四季度，全球折叠屏手机出货量为380万部，同比下降18%。 2024年四季度，华为占据31.2%的市场份额，超越三星，成为市场领头羊；而三星跌至第二位，市场份 额为26.7%；荣耀凭借14.3%的市场份额稳居第三位。 2024年，全球折叠屏手机市场增速开始放缓，未来，随着苹果入局，市场有望迎来复苏。据研究机构 Counterpo ...

Core Viewpoint - Apple has significantly reduced the prices of its iPhone 16 series ahead of the "6·18" shopping festival, with discounts exceeding 1,000 yuan, in response to disappointing sales performance in the Chinese market [1][6]. Price Reduction Details - Apple announced a price cut of $160 (approximately 1,313.06 yuan) for all storage versions of the iPhone 16 Pro Max and a $176 (approximately 1,445.27 yuan) reduction for the 128GB version of the iPhone 16 Pro [1]. - On platforms like JD.com, the iPhone 16 Pro 128GB version, originally priced at 7,999 yuan, is now available for 5,499 yuan after applying national subsidies, marking a reduction of 2,500 yuan [2]. - The iPhone 16 Pro 128GB version on Tmall's official Apple Store is also priced at 5,499 yuan, reflecting a 31% discount from its original price [4]. Market Response - The price cuts have led to a surge in demand, with the subsidized iPhone 16 Pro 128GB version reportedly selling out quickly [4]. - Various platforms, including Pinduoduo, have also reported significant price drops for different iPhone models, with some versions seeing reductions of over 2,000 yuan [4]. Sales Performance - Apple's sales in the Greater China region have been declining, with a reported revenue of $15.033 billion for Q4 of fiscal year 2024, marking the only region with a year-on-year decline [6]. - In Q1 of fiscal year 2025, revenue from the Greater China region was $18.51 billion, down 11% year-on-year, and in Q2, it further decreased to $16 billion [6]. - According to IDC, Apple ranked fifth in smartphone shipments in China, with a 9% year-on-year decline, while competitors like Xiaomi, Huawei, OPPO, and Vivo continue to dominate the market [6]. Strategic Adjustments - Apple has been implementing multiple price reductions since the launch of the iPhone 16 series, indicating a shift towards regular promotions as demand wanes [8]. - The company is also exploring new product innovations, such as foldable smartphones, which may be launched depending on the sales performance of the iPhone [9].

Core Viewpoint - The recent US-China Geneva trade talks have led to a significant reduction in tariffs on Chinese goods, which is expected to alleviate pressure on the supply chain, particularly for Apple-related products, enhancing growth potential in the second quarter [1][3]. Group 1: Trade Policy Changes - The US will modify tariffs on Chinese goods, reducing the tariff from 125% to 34%, with 24% of the tariff suspended for the first 90 days, while retaining a 10% tariff on non-US origin products [2][3]. - The joint statement from the trade talks indicates that the short-term impact of the tariffs on the supply chain is largely mitigated, allowing for a more favorable environment for growth [3]. Group 2: Impact on Apple Products - Apple has announced significant price reductions for the iPhone 16 series, with the iPhone 16 Pro Max dropping by $160 and the iPhone 16 Pro by $176, aimed at boosting sales in the second quarter [2][4]. - The price cuts are expected to enhance shipment volumes, with a reported 6% year-on-year increase in iPhone shipments during Q2, driven by promotional activities on platforms like Pinduoduo and JD.com [4]. Group 3: Future Growth and Innovations - The upcoming launch of AI smartphones and foldable devices is anticipated to drive a new replacement cycle for iPhones, potentially increasing the average selling price (ASP) of core components in the supply chain [4][5]. - The market sentiment around emerging technologies such as humanoid robots and AI glasses is expected to positively influence the valuation of core suppliers in the Apple supply chain [5]. Group 4: Recommended Stocks - Key recommended stocks in the Apple supply chain include Lens Technology (300433.SZ), Lianyi Intelligent Manufacturing (002600.SZ), Xinwanda (300207.SZ), and Pengding Holdings (002938.SZ) [7].