Investment Rating - The report maintains a "Recommended" rating for the company [5][7]. Core Insights - The company achieved a cumulative operating revenue of 3.826 billion yuan in the first three quarters of 2025, representing a year-on-year increase of 16.80%. The net profit attributable to shareholders reached 348 million yuan, up 72.56% year-on-year, with a non-recurring net profit of 341 million yuan, increasing by 106.81% [1]. - In Q3 2025, the operating revenue was 1.384 billion yuan, a year-on-year growth of 14%, while the net profit attributable to shareholders surged by 164.38% to 115 million yuan, and the non-recurring net profit rose by 196.21% to 123 million yuan [1]. - The gross margin for Q3 2025 improved to 25.8%, an increase of 2.3 percentage points year-on-year, and the net profit margin rose by 4.7 percentage points to 8.51% [2]. Summary by Sections Financial Performance - The company reported a significant improvement in gross and net profit margins, alongside enhanced cost control and increased R&D investment. The expense ratio decreased by 2.7 percentage points year-on-year, with sales, management, R&D, and financial expense ratios showing varied changes [2]. - The forecast for revenue from 2025 to 2027 is projected at 5.35 billion, 6.29 billion, and 7.11 billion yuan, respectively, with net profits expected to be 510 million, 640 million, and 750 million yuan [5][6]. Market Opportunities - The foldable smartphone market is anticipated to experience rapid growth in 2026, driven by key products like Huawei's Mate and Pura X series. The company’s flagship product, the drilling machine, has achieved comprehensive coverage of core users in the 3C sector, with a market share leading the industry [3]. - The company is actively expanding its product applications in AI hardware and humanoid robots, collaborating with clients in these fields for precision processing of components [4]. Strategic Outlook - The company is positioned to benefit from the recovery in the 3C sector and the domestic production of high-end machine tools. The current stock price corresponds to a PE ratio of 33, 26, and 22 for the years 2025, 2026, and 2027, respectively [5][6].

Core Viewpoint - The company has achieved comprehensive coverage of downstream core users with its 3C drilling and milling machining centers, leading the industry in market share [1] Group 1: Market Dynamics - The demand for equipment is increasing due to the AI-driven consumer electronics upgrade wave and the rising penetration of titanium alloy frames and foldable screens [1] - Downstream customers are expanding production, contributing to the growth in equipment demand [1] Group 2: Technological Advancements - The company is enhancing efficiency by upgrading technology, such as increasing tool magazine capacity [1] - The acceleration of equipment updates and domestic substitution is expected to further boost the market share of drilling and tapping machines [1]

Core Viewpoint - The A-share market experienced a significant upward trend on October 27, with the Shanghai Composite Index rising over 1% and reaching a ten-year high, peaking at 3999.07 points, close to the 4000-point mark [2] Market Performance - The storage chip sector showed strong performance, with Jiangbolong increasing by 19.82%, reaching a historical high, while other companies like Jingrui Electric Materials, Jingzhida, and Weicet Technology rose over 15% [2] - Demingli achieved two consecutive trading limits at a new high, with several stocks including Zhaoyi Innovation, Dwei Co., and Zhongdian Port hitting the daily limit [2] Price Adjustments - Following a price increase by Samsung Electronics, Micron, and SanDisk in September, Samsung Electronics and SK Hynix have raised prices for storage products, including DRAM and NAND, by up to 30% [2] - TrendForce estimates that the price of general DRAM will increase by 8%-13% in Q4, with HBM included, the increase could reach 13%-18%. NAND Flash contract prices are expected to rise across all product categories, averaging a 5%-10% increase [2] Industry Outlook - Xiangcai Securities anticipates a continued recovery in consumer electronics from 2025, driven by the release of new foldable smartphones and advancements in AI technology, which will sustain high demand for AI infrastructure [2] - The implementation of AI technology in end-user devices is expected to drive hardware upgrades, enhancing the market for components such as end-side SOCs and thermal materials, indicating a positive outlook for investment opportunities in AI infrastructure, end-side SOCs, foldable smartphone supply chains, and the storage industry [2]

Core Viewpoint - The launch of the Samsung W26, a high-end flagship smartphone, showcases a blend of advanced technology and Eastern aesthetics, targeting elite consumers in the market [1]. Design and Aesthetics - The Samsung W26 features a lightweight design at 215 grams and a thickness of only 4.2 mm when unfolded, setting a new record for foldable smartphones without compromising durability [3]. - It is available in two color options: "Xuan Yao Black" and "Dan Xi Red," with a luxurious gold-like embossed texture on the frame, enhancing its premium appeal [5]. AI Integration - The device runs on Samsung One UI 8, incorporating Galaxy AI for enhanced user interaction, including multi-modal understanding capabilities [6]. - Features like "Voice Chat Vision" and "Instant Briefing" provide personalized suggestions and improve communication efficiency [8]. Imaging Capabilities - The Samsung W26 is equipped with a 200-megapixel main camera and an advanced imaging system, ensuring high-quality visuals in various lighting conditions [9]. - AI features enhance the photography experience, allowing for intelligent composition adjustments and noise reduction in videos [11]. Performance and Connectivity - The smartphone is powered by the Snapdragon 8 Gen 2 mobile platform, offering significant performance improvements for both productivity and gaming [13]. - It supports satellite communication, enabling connectivity even in areas without ground network coverage, enhancing its utility for users in remote locations [15].

Group 1 - The first-generation iPhone Fold's hinge unit price is expected to drop to approximately $70–80 after mass production, significantly lower than the market expectation of $100–120 or higher, which may help Apple reduce costs and increase profits, potentially reflecting in pricing to expand market share [1] - Luxshare Precision (002475.SZ) may join as a new hinge supplier as early as 2027, indicating two possible trends: further downward potential for hinge unit prices and that hinges will become a new battleground for system assembly factories [1] - The joint venture between Hon Hai and New Nikko is responsible for the folding iPhone hinge assembly and production, with Hon Hai holding a slightly higher stake and leading future directions, achieving a higher order ratio (approximately 65%) compared to Amphenol (approximately 35%) [1] Group 2 - Amphenol's low order ratio is attributed to its lack of proactive response to Apple's expansion requirements, possibly considering absolute returns (profit growth in the hinge business) versus relative returns (higher returns from AI investments) [2] - The folding iPhone hinge remains an important trend for New Nikko, but its contribution needs to be reassessed, as market consensus may be overly optimistic by not considering factors such as significantly lower hinge unit prices, Hon Hai's higher profit share from the joint venture, and New Nikko's lack of significant benefits from upstream key component orders [2]

Core Insights - The first-generation iPhone Fold's hinge price is expected to drop to approximately $70–80, significantly lower than the market expectation of $100–120, which could help Apple reduce costs and enhance profits, potentially reflected in pricing strategies to increase market share [1] - Luxshare Precision is anticipated to join as a new hinge supplier after 2027, indicating potential trends of further price reductions and competition in the hinge assembly sector [1] - The joint venture between Hon Hai and New Nikko is responsible for the folding iPhone hinge assembly and production, with Hon Hai holding a slight majority and leading the direction, capturing a higher order share of about 65% compared to Amphenol's 35% [1] Price Dynamics - The decline in hinge prices is attributed to optimized assembly design and Hon Hai's involvement rather than a significant drop in upstream component costs [1] - Hon Hai's expansion and mass production capabilities have enabled the joint venture to secure a larger order volume [1] Competitive Landscape - Amphenol's lower order share is partly due to its lack of proactive response to Apple's expansion demands, possibly influenced by considerations of absolute and relative returns on investment [2] - The folding iPhone hinge remains a significant trend for New Nikko, but there is a need to reassess its contributions as market consensus may be overly optimistic regarding hinge pricing and profit distribution within the joint venture [2]

Core Insights - The cost of the foldable iPhone hinge is expected to be between $70 and $80, significantly lower than the previous market estimates of $100 to $120, providing Apple with greater pricing flexibility and maintaining profit margins for its flagship product [1][2] Group 1 - The joint venture between Foxconn and New Nikkei is responsible for the majority of hinge unit production, holding an estimated combined market share of about 65%, while Amphenol supplies the remaining 35% [1][2] - Luxshare Precision is projected to potentially join as a new hinge supplier by 2027 [1][2]

Core Insights - China Telecom and Samsung Electronics launched the new high-end foldable smartphone, the Samsung W26, featuring upgraded Snapdragon 8 Gen 2 platform and satellite communication capabilities [1] - The foldable smartphone market in China is rapidly growing, with a need for innovation across hardware, software, and materials to transition from niche to mainstream [1] - The global foldable smartphone market is expected to see significant growth, with a forecasted shipment of 15.2 million units in 2025 and a 51% increase in 2026 [3] Industry Trends - The foldable smartphone market is currently in an early growth stage, primarily targeting high-end segments due to cost constraints [3] - The hinge technology has become a critical barrier to success in the foldable smartphone market, with increasing demand expected to drive the hinge industry forward [3][4] - The global market value for foldable smartphone hinges is projected to reach $1.2 billion by 2025, driven by the anticipated release of foldable products from major brands like Apple [4] Company Developments - Jiangsu Jingyan Technology is enhancing its hinge solutions through a dual-driven approach, focusing on lightweight and durable components to improve the reliability of foldable smartphones [4] - The company emphasizes the potential market growth for foldable smartphones as software ecosystems mature and innovative applications are explored [4] - Despite progress, the domestic hinge industry faces challenges in high-end technology and manufacturing capabilities, necessitating further innovation to close the gap with international standards [5]

Group 1 - Samsung China held the "Heartfelt World" series product launch event on October 11, officially releasing the new device Samsung W26, which is based on the Samsung Galaxy Z Fold 7 and features new color options of Danxi Red and Xuan Yao Black along with the Heartfelt World logo [1] - The Samsung W26 is priced at 16,999 yuan for the 16+512GB version and 18,999 yuan for the 16+1TB version [3] - The W26 has a folded thickness of 8.9mm and an unfolded thickness of 4.2mm, making it the thinnest phone in the Heartfelt World series, with a total weight of only 215g [3] Group 2 - The new device is equipped with the Qualcomm Snapdragon 8 for Galaxy mobile platform and includes Galaxy AI, supporting Tiantong satellite communication services [5]

Investment Rating - The report assigns an "Accumulate" rating to the company with a target price of 80.50 CNY [5][12][18]. Core Insights - The company specializes in precision components for folding machines, with expectations for continuous improvement in average selling price (ASP) per unit. The company is steadily advancing its domestic and international production capacity, enhancing its global supply capabilities [2][12][21]. - The projected revenue for the company from 2025 to 2027 is 12.37 billion CNY, 16.10 billion CNY, and 21.39 billion CNY, respectively, with net profit attributable to the parent company expected to be 1.07 billion CNY, 1.86 billion CNY, and 2.76 billion CNY [11][16][18]. Summary by Sections 1. Earnings Forecast and Valuation - The company is expected to achieve revenues of 814 million CNY in 2024, growing to 1.237 billion CNY in 2025, and 1.610 billion CNY in 2026, with a compound annual growth rate (CAGR) of 44.9% from 2024 to 2025 [11][16]. - The estimated earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 0.66 CNY, 1.15 CNY, and 1.71 CNY, respectively, indicating significant growth rates of 43.3%, 73.9%, and 48.2% [11][12][18]. 2. Business Situation - The company focuses on MIM (Metal Injection Molding) and non-MIM components, with a strong presence in the supply chains of major smartphone brands, including Apple and Amazon. The company is well-positioned to benefit from the increasing demand for folding screen devices [21][22]. - The revenue from non-MIM precision components is expected to reach 460 million CNY in 2024, representing a year-on-year growth of 101.9%, driven by new projects from major clients [12][21][24]. 3. Production Capacity and Global Supply Chain - The company is making steady progress in establishing new production capacities both domestically and internationally, with factories in Changsha, Hunan, and Vietnam entering phased production [12][24].