Summary of IoT Sector Conference Call Industry Overview - The conference call primarily discusses the **Internet of Things (IoT)** sector, focusing on the impact of **Huawei's AI toy** release on the industry and specific companies within the sector [1][2]. Key Points and Arguments - **Huawei AI Toy Launch**: Huawei launched an AI toy priced at **399 RMB**, which sold out in **10 seconds** and is now trading at over **600 RMB** in the secondary market, indicating strong market demand [2]. - **Impact on AI Supply Chain**: The release of the Huawei AI toy positively affects the **edge AI supply chain**, benefiting companies like **Guanghetong**, which provides communication module technology support [1][5]. - **Current Challenges in IoT Industry**: Since Q3 2025, the IoT industry has faced significant pressure, particularly in the upstream module segment due to rising costs and competition from self-developed modules by automotive companies. This situation is expected to persist until Q1 2026 [1][6]. - **Long-term Investment Opportunities**: Despite short-term challenges, the industry may present buying opportunities for long-term investors as conditions are expected to improve post-Q1 2026 [1][6]. Company-Specific Insights - **Guanghetong**: Transitioning from a traditional module manufacturer to a software and hardware integrator, with plans to expand into robotics. The company has raised funds through its Hong Kong listing, which may facilitate further business expansion [1][7]. - **Performance in Smart Module Sector**: Guanghetong leads in smart module market share and is uniquely positioned as the only company fully embracing Qualcomm technology, which could enhance its partnership potential with Qualcomm in AI chip advancements [3][8]. - **Boshi Jie**: Focused on edge applications with self-developed modules, aiming to increase high-margin overseas business and maintain profitability in low-margin domestic markets. The company is expected to grow rapidly in sectors like smart sleep terminals and commercial vehicles [10]. - **Hospital Communication**: Projected revenue for 2025 is **1 billion RMB**, with an increase to **1.2 to 1.3 billion RMB** in 2026. The company is noted for its low valuation, making it an attractive investment target [9]. Challenges and Opportunities - **Module Segment Pressures**: The module segment faces cost increases and limited price transmission capabilities, leading to short-term pressures. However, stock prices have adjusted to reflect these challenges, suggesting that negative information is largely priced in [11]. - **Future Growth Potential**: The edge segment is expected to outperform upstream modules due to the trend towards hardware AI integration and better cost transmission capabilities. Predictions indicate a rebound in the IoT sector by Q1 2026 [12][11]. Conclusion - The IoT sector is currently navigating through challenges but is poised for recovery, particularly in the edge segment. Companies like Guanghetong and Boshi Jie are highlighted as potential leaders in this evolving landscape, with specific attention to their strategic initiatives and market positioning [12][13].