10 June 2025 | 11:03AM HKT China Semis: Longsys (301308.SZ): Memory module supplier expanding to enterprise market; Controller IC to ramp up in 2025E We talked to Longsys (301308.SZ, Not Covered) management recently. Longsys is memory module supplier and provides embedded memory, SSD, DRAM modules for consumer, automotive and enterprise clients. Overall, management is positive on company's expansion to enterprise market, driven by rising demand on storage solution with high bandwidth and low latency, with r ...

Core Viewpoint - Lucid Group has signed a multi-year supply agreement with Graphite One for American-sourced natural graphite, enhancing its supply chain for raw materials and resources sourced in the United States [1][2] Group 1: Supply Agreements - The agreement with Graphite One will provide natural graphite starting in 2028, sourced from the Graphite Creek deposit in Alaska [2][3] - This deal builds on a previous agreement with Graphite One for synthetic graphite, also set to begin in 2028, sourced from an active anode material facility in Warren, Ohio [2][4] - Syrah Resources will supply natural graphite AAM to Lucid starting in 2026, sourced from its facility in Vidalia, Louisiana [3][4] Group 2: Strategic Importance - The partnerships are aimed at strengthening the U.S.-based supply chain for critical minerals, which are essential for lithium-ion batteries and fast-charging performance [4] - The agreements reflect Lucid's commitment to American innovation and manufacturing, promoting localized supply chains to enhance economic independence and reduce carbon footprints [2][4] Group 3: Company Overview - Lucid Group is focused on creating advanced electric vehicles, with notable models including the award-winning Lucid Air and the new Lucid Gravity [5] - The company operates a vertically integrated factory in Arizona, emphasizing its commitment to industry-leading technology and innovations in the EV sector [5]

Investment Rating - The report upgrades ACMR to Buy and identifies NAURA as the most preferred stock in the China wafer fabrication equipment (WFE) sector [4][7]. Core Viewpoints - The market has significantly underestimated the resilience of China WFE demand, forecasting a modest decline of 9.5% YoY in 2025, followed by a growth of 6.0% YoY in 2026, contrasting with the consensus expectation of a 20% decline [4][19][20]. - The report highlights that over 70% of survey respondents expect higher or flat capacity expansion in 2025, indicating stronger demand than previously anticipated [5][19]. - The top three Chinese vendors are expected to increase their market share to 25-30% by 2027, driven by localization and tighter US export controls [6][60]. Summary by Sections Market Demand Forecast - China WFE demand is projected to reach US$33.5 billion in 2025, reflecting a 9.5% YoY decline, and US$35.5 billion in 2026, indicating a 6.0% YoY increase [20][24]. - Domestic fabs' capacity expansion is identified as a major driver for sustained demand, with a projected CAGR of 9.0% from 2023 to 2027 [20][24]. Vendor Performance and Market Share - The combined revenue of the top three Chinese WFE suppliers is expected to reach US$10.8 billion by 2027, representing a significant increase in domestic market share from 13% in 2024 [60][61]. - The report emphasizes the narrowing technology gap and increasing willingness of domestic fabs to procure local equipment as key factors for market share gains [66][67]. Investment Dynamics - The report notes that 35% of foundry respondents and 29% of memory respondents indicated plans for higher capital expenditures in 2025, suggesting a positive outlook for the sector [28][41]. - The analysis of semiconductor production equipment imports indicates strong demand in Guangdong, which has not been fully reflected in prior forecasts [5][54]. Competitive Landscape - The report outlines that Chinese WFE companies have achieved higher revenue growth compared to the industry average, with a CAGR of 41%-82% from 2020 to 2024 [67][71]. - Tighter export controls are expected to expand the total addressable market for local vendors, as US companies face limitations in accessing the Chinese market [73][76].

Core Insights - Aeva Technologies (AEVA) has gained attention due to its partnership with Swiss delivery company Loxo, leveraging its unique GPS-free localization technology [1][9] - Aeva's 4D LiDAR sensor, Atlas, provides real-time velocity and direction data, distinguishing it from traditional LiDAR systems [2][6] - The technology is particularly beneficial for Loxo's expansion into dense European cities where GPS signals are often unreliable [3][9] Aeva's Distinctive Velocity Advantage - Aeva's Atlas sensor measures velocity and direction directly, offering a clear understanding of surroundings without GPS [2][6] - This capability is crucial for autonomous delivery vehicles operating in environments with weak GPS signals [3][6] Comparison with Competitors - Competitors like Luminar Technologies (LAZR) and Ouster (OUST) focus on high-resolution, long-range sensing but lack built-in velocity detection [4][5] - Luminar's Iris sensor estimates motion through software, which may introduce lag in real-time responsiveness, while Ouster relies on external data [5][6] Market Position and Valuation - Aeva's shares have surged approximately 265% year to date, indicating strong market interest [8] - The company trades at a forward price-to-sales ratio of 33.36, significantly higher than the sector average, and carries a Value Score of F [10] - The Zacks Consensus Estimate for Aeva's 2025 earnings suggests a 21% year-over-year improvement [11]

Core Insights - PepsiCo's international business is crucial for its global strategy and long-term growth, achieving 5% organic revenue growth in Q1 2025, marking 16 consecutive quarters of mid-single-digit growth despite geopolitical and macroeconomic challenges [1][4] - The international segment contributed nearly 40% of PepsiCo's total net revenues and core operating profit in 2024, with a portfolio valued at approximately $37 billion [1][4] International Business Performance - The international beverages business led growth with 11% organic growth in Q1 2025, driven by strong demand in markets such as China, India, Egypt, Turkey, Mexico, Brazil, the U.K., and Australia [2][8] - The international convenient foods business grew 2% organically, supported by strong performance in Brazil, Egypt, India, and Turkey, along with snack share gains in China, South Africa, Poland, and Thailand [2] Future Strategy - PepsiCo plans to enhance its global presence by deepening localization efforts, adapting product offerings to regional tastes, and expanding channel reach [3][4] - Investments in automation, digitalization, and standardization are aimed at increasing productivity and freeing up capital for reinvestment in commercial initiatives and innovation [3] Competitive Landscape - Key competitors in the international market include The Coca-Cola Company and Monster Beverage, both of which compete with PepsiCo in several key markets [5][6] - Coca-Cola's international strategy focuses on being a "Total Beverage Company," with significant market share in Latin America, Western Europe, and the Asia-Pacific region [6] - Monster Beverage is expanding its international footprint, contributing approximately 39.6% of its total revenues in Q1 2025, with a focus on key markets like China and India [7][9] Financial Performance and Valuation - PepsiCo's shares have declined approximately 13.5% year-to-date, contrasting with the industry's growth of 6.9% [12] - The forward price-to-earnings ratio for PepsiCo is 16.33X, below the industry average of 18.59X [13] - The Zacks Consensus Estimate for PepsiCo's 2025 earnings indicates a year-over-year decline of 3.6%, while the 2026 estimate suggests a 5.4% increase [14]

Core Insights - AI-Media Technologies Limited has partnered with Lightning International to enhance accessibility and localization for Free Ad-Supported Television (FAST) channels, aiming to transform content distribution and monetization globally [1][4][11] Group 1: Partnership Overview - The collaboration seeks to break down barriers in entertainment access, allowing for premium content to reach a global audience [1][4] - AI-Media's LEXI and LEXI Translate solutions will provide real-time localization in over 50 languages, making content accessible to diverse viewers [2][11] Group 2: Benefits for FAST Platforms - The partnership enables channels previously limited to English-speaking markets to expand their reach by offering live-translated captions in multiple languages, thus opening new distribution channels [3][11] - Increased engagement and viewership are anticipated as captions enhance viewer retention and ad opportunities on FAST platforms [11] Group 3: Technological Implementation - AI-Media's Alta and LEXI Translate solutions integrate real-time transcription and translation into the linear channel feed, ensuring a cost-effective and reliable workflow [5][11] - The launch of LEXI Voice will provide real-time alternate-language audio tracks, enhancing accessibility for visually impaired audiences [6][11] Group 4: Market Impact - The partnership is expected to create new revenue streams by breaking down language barriers, allowing content owners to tap into previously inaccessible markets [11] - AI-Media's AI-powered solutions offer scalable localization at a fraction of the cost compared to traditional methods, with reduced latency and increased reliability [11]

推出"荷兰文化俱乐部"会员订阅服务，提供独家内容（如荷兰语教学、本地旅游攻略），单月会员收入超 3万欧元。 1. 电商布局：提前绑定品牌，储备供应链资源 一、荷兰市场潜力：娱乐直播与电商的双重蓝海 1. 用户基础与消费力：娱乐直播的天然土壤 2. 荷兰互联网普及率高达98%，TikTok日活用户量突破260万，人均GDP达6.5万美元，用户对直播打赏、会 员订阅等付费模式接受度高。荷兰用户热爱环保、健康、户外运动等主题，公会可通过策划"骑行挑战 赛""可持续时尚"等主题直播，结合本土文化符号（如风车、郁金香）提升用户粘性。例如，某公会通过 直播"荷兰环保之夜"，单场打赏收入突破5万欧元，粉丝订阅量增长40%。 3. 电商市场空白：TikTok Shop入场前的最后机会 4. 荷兰电商市场年均增速超5%，但TikTok Shop尚未正式上线，本土电商格局尚未固化。公会可通过娱乐直 播积累粉丝，为未来电商带货铺路。参考英国市场经验，TikTok Shop上线后，直播带货GMV占比超 30%，美妆、家居、时尚配饰等品类需求旺盛。荷兰用户对高性价比商品敏感，公会可提前与本地品牌洽 谈合作，储备供应链资源。 二、公会抢 ...

20 May 2025 | 1:59AM HKT China Software: 1Q25 result review; quality new products to drive growth; profitability remains key focus We review our China Software coverage based on 1Q25 performance and update our estimates to reflect our latest views. In 1Q25, the avg. revenue growth of our coverage was 6% YoY, and avg. net margin was -3% due to weak seasonality of 1Q. Looking into 2H25, software companies are focused on (1) high-quality products/ projects carrying better margins, (2) new products/ product upg ...

Investment Rating - The report maintains a positive outlook on selected Chinese semiconductor companies, particularly those focused on consumer electronics and mature semiconductor localization [1][4]. Core Insights - The US and China have announced a 90-day pause on tariffs, reducing US tariffs on Chinese imports from 145% to 30% and Chinese tariffs on US imports from 125% to 10%, which is viewed as a slight positive for the Chinese semiconductor sector [1][2]. - The tariff reprieve is expected to reduce demand uncertainties for consumer electronics in the second half of 2025, benefiting companies like Silan and CR Micro [1][3]. - China's commitment to suspend rare-earth export controls may negatively impact investor sentiment towards RF front-end vendors such as Maxscend, which were previously seen as beneficiaries due to their access to rare earth materials [3][4]. - The report emphasizes that China's mature semiconductor localization efforts will continue, with companies like SG Micro and Will Semi positioned to benefit from this trend amid supply uncertainties [4][5]. Summary by Sections - **Tariff Impact**: The 90-day tariff pause is expected to lower tariffs significantly, which could positively influence demand for consumer electronics and related semiconductor manufacturers [1][2]. - **Company Performance**: Companies with higher exposure to consumer electronics, such as Silan and CR Micro, are likely to benefit from the tariff changes, while RF front-end vendors may face challenges due to changes in rare-earth material export controls [3][4]. - **Localization Trends**: The report highlights the ongoing trend of semiconductor localization in China, with a focus on mature semiconductor technologies, indicating a robust market for companies like SG Micro and Will Semi [4][5]. - **Future Monitoring**: Upcoming events to watch include the US Section 232 investigation and potential new AI export restrictions, which could impact the semiconductor industry [5].

President Trump says he told Apple CEO Tim Cook to scale back plans to produce iPhones in India and instead re-shore manufacturing back to the US — a demand that could complicate the company’s global supply chain strategy.“I had a little problem with Tim Cook yesterday,” Trump said during a state visit to Qatar, referencing his conversation with the Apple chief.“He is building all over India. I don’t want you building in India.” 4 President Trump says he told Apple CEO Tim Cook that the tech giant needs t ...