AMAERO LTD (ASX: 3DA | OTC: AMROF) A leading U.S. domestic producer of high -value refractory and titanium alloy spherical powders & manufacturer of near-net - shape parts for mission -critical components across defense, space, aviation, medical and industrials Investor Presentation August 2025 For personal use only Important Notice and Disclaimer This investor presentation (Presentation) is dated 21 August 2025 and has been prepared by Amaero Ltd (ACN 633 541 634) (Amaero) in relation to a non-underwritten ...

Summary of Conference Call Notes Industry Overview - The focus is on the machinery export industry, particularly in relation to the European and American markets, with insights into the manufacturing sector's recovery and international expansion strategies [1][2][3]. Key Points and Arguments 1. **Stabilization of European Demand**: After a period of decline, European demand is stabilizing, with signs of recovery. Companies like Komatsu report a narrowing decline in the European market, with a potential for growth [1][2]. 2. **Impact of U.S. Policies**: The U.S. manufacturing return policy, supported by subsidies, is beneficial for construction and operational equipment sectors, leading to increased revenues and profit margins for companies like Zhejiang Dingli [1][5]. 3. **China's Manufacturing Challenges**: Domestic growth in China is slowing, prompting manufacturers to seek international expansion as a strategic direction, particularly in less competitive overseas markets [1][6]. 4. **High Domestic Localization**: China's manufacturing sector has achieved a high level of self-sufficiency and localization, making overseas markets a critical choice for growth [1][7]. 5. **Emerging Markets and New Products**: Recommendations for international expansion include targeting the overseas AI CAPEX chain, oil and gas sectors, and emerging products like golf carts and generator sets [1][8]. 6. **Manufacturing Trends**: The trend of manufacturing moving overseas is expected to continue, driven by global supply chain diversification and U.S. tariff policies [1][10]. 7. **Market Share Opportunities**: Companies with strong organizational capabilities can capitalize on market share opportunities, especially in response to external pressures like tariffs [1][11]. Additional Important Insights - **PMI Data Influence**: July's global manufacturing PMI data showed improvements in several European countries, although it remains below 50, indicating uncertainty in sustained demand recovery [1][4]. - **Long-term Manufacturing Strategies**: The logic behind overseas manufacturing aligns with the U.S. manufacturing return, suggesting a dual approach to meet both domestic and international demands [1][10]. - **Focus on Emerging Demand in Africa**: There is a growing emphasis on the African market, particularly for excavators and generator sets, as manufacturers increase their presence in this region [1][8]. This summary encapsulates the key insights and strategic directions discussed in the conference call, highlighting the machinery export industry's current landscape and future opportunities.

Core Viewpoint - Apple's announcement to increase its U.S. investment by $100 billion, totaling $600 billion over the next four years, aims to boost sales and leverage recent positive earnings momentum [1][12]. Investment and Manufacturing Strategy - The announcement coincides with new tariffs imposed by the White House, raising concerns for Apple as most iPhones are manufactured in China [2]. - While the announcement does not include plans to build smartphones in the U.S., it outlines partnerships to manufacture several iPhone components domestically through Apple's American Manufacturing Program [3]. - Initial partners in this program include Corning, Coherent, GlobalWafers America, Applied Materials, Texas Instruments, Samsung, GlobalFoundries, Amkor Technology, and Broadcom [4]. - Specific partnerships involve using Corning glass products for iPhones and Apple Watches, and sourcing VCSEL lasers from Coherent for facial recognition [5]. Financial Performance - Apple's fiscal third-quarter earnings report showed a revenue increase of 10% to $94 billion and earnings per share up 12% to $1.57, with product sales rising 8.2% [12]. - Despite the positive earnings, Apple stock has been relatively flat, rising less than 2% over the past 12 months, while competitors like Nvidia and Microsoft have surpassed Apple in market capitalization [8][10]. Market Reaction - Following the announcement, Apple stock experienced a 5% increase, indicating positive market sentiment [6]. - The company's recent commitment to U.S. manufacturing is seen as a strategy to mitigate tariff-related risks and maintain customer loyalty [15].

8月7日，美股三大指数集体高开，截至23:10，道指、标普500指数转跌，纳指涨幅缩小。 中概股方面，纳斯达克中国金龙指数小幅高开，现涨0.93%。中通快递、名创优品涨超3%，爱奇艺、小 鹏汽车涨超1%，哔哩哔哩跌近2%。 半导体板块则整体表现亮眼，超威半导体（AMD）涨幅扩大至6.39%，现报173.55美元，总市值增长至 2816亿美元。台积电涨超6%，美光科技涨超3%，英伟达涨超1%。 消息面上，据央视新闻报道，当地时间8月6日，美国总统特朗普表示，美国将对芯片和半导体征收约 100%的关税。特朗普称，如果在美国制造，将不收取任何费用。 热门科技股涨跌不一，其中，苹果延续昨日涨势，一度涨超3%。 | 名称 | 现价 | 涨跌幅 ◆ | 11 | | --- | --- | --- | --- | | 苹果(APPLE) | 219.250 | 2.81% | | | AAPL.O | | | | | 英伟达(NVIDIA) | 181.865 | 1.36% | | | NVDA.O | | | | | 亚马逊(AMAZON) | 223.390 | 0.49% | | | AMZN.O | | | | ...

Summary of Conference Call Notes Industry or Company Involved - Focus on the export market and the impact of US-China trade negotiations on various industries, particularly in the hand tools sector and companies like 权丰控股 (Qianfeng Holdings) and 浙江鼎力 (Zhejiang Dingli) [1][7][10] Core Points and Arguments - **US Consumer Market Demand**: The US consumer market shows robust demand supported by improved employee purchasing power, although trade negotiations and tariff adjustments pose risks to export companies [1][5] - **Hand Tools Industry**: The hand tools sector is characterized by low price sensitivity and stable demand from the US housing market, making it a reliable investment area. Interest rate cuts or the removal of capital gains taxes could further stimulate demand [1][6] - **Impact of Tariff Changes**: Tariff changes have varied impacts on companies, with those having a high domestic production ratio benefiting from adjustments. For instance, 权丰控股 has 60% of its capacity in China, positioning it well for potential tariff reductions [7][10] - **Manufacturing Reshoring**: The return of US manufacturing has led to order growth, but capacity constraints and high costs have limited revenue growth. Companies like 浙江鼎力 are expected to maintain stable revenue despite market fluctuations [9][10] - **Investment Opportunities**: Potential investment opportunities arise from tariff changes, particularly for companies with production concentrated in China, such as 凌霄泵业 (Lingxiao Pump Industry) [10] - **Overseas Market Demand**: There is a noticeable increase in demand for consumer goods like high-pressure washers and small generators in overseas markets, prompting companies to establish manufacturing facilities abroad to mitigate tax risks [2][15][14] Other Important but Possibly Overlooked Content - **Complex Tariff Structure**: The current US tariff structure on Chinese goods includes a combination of tariffs from 2018 and recent adjustments, leading to a comprehensive tax rate perceived at 55% [3] - **Manufacturing Development in Southeast Asia**: Southeast Asia and South Asia are emerging as manufacturing hubs, absorbing simple manufacturing from China and gradually moving towards more complex consumer goods production [16] - **Natural Gas Demand**: The growth in natural gas demand is offsetting declines in oil orders, benefiting companies like 杰瑞 (Jereh) and 牛威 (Nuiwei) [13] - **Global Competitiveness**: Companies are encouraged to focus on global competitiveness and overseas expansion, with a significant portion of profitable companies linked to international markets [11][19]

Group 1 - Trump announced a 25%-40% tariff on imports from 14 countries, including Japan and South Korea, effective August 1 [1][3] - The tariffs aim to encourage U.S. manufacturing by increasing the cost of foreign goods, potentially forcing South Korean companies to relocate production to the U.S. [3][4] - South Korea's automotive and semiconductor industries are significantly reliant on the U.S. market, making them vulnerable to the proposed tariffs [4][5] Group 2 - South Korea's economy is heavily dependent on its relationship with the U.S., particularly in defense and trade, which complicates its response to U.S. pressure [4][5] - The new South Korean administration under Lee Jae-myung seeks to maintain diplomatic independence while balancing relations with both the U.S. and China [5][10] - South Korea is exploring ways to negotiate with the U.S. to mitigate the impact of tariffs, potentially by increasing investments in U.S. industries [10] Group 3 - China has expressed opposition to U.S. efforts to pressure allies against it, advocating for dialogue and cooperation instead [8] - China is willing to support South Korea by enhancing economic cooperation and reducing reliance on the U.S. dollar [8] - The ongoing U.S.-South Korea negotiations could lead to limited concessions from South Korea to alleviate tariff pressures while maintaining its economic ties with China [10]

Group 1 - Amazon announced an investment of £40 billion (approximately $54.4 billion) in the UK to expand infrastructure and create thousands of jobs, focusing on cloud computing and AI facilities over the next three years [1] - TCL's founder Li Dongsheng stated that the possibility of China's manufacturing share in global industrial output rising to 40% from the current 30% is low, attributing this to the redefinition of global investment and economic development rules [1] - Tesla's first grid-side energy storage station in mainland China is expected to be completed this year, with a storage capacity of 300 MWh, and a total investment of 4 billion yuan [1] - Singapore's manufacturing sector may face short-term negative impacts due to the return of US manufacturing, as the country is highly integrated into the global value chain and is under pressure from shifting investment flows and geopolitical uncertainties [1] - Samsung has developed a new DRAM structure that is smaller, generates less heat, and has improved power and data transmission efficiency, achieving a production yield of over 60% [1]

Core Viewpoint - The article from The New York Times strongly questions the effectiveness of the U.S. government's strategy to bring manufacturing jobs back to America through tariffs, highlighting significant challenges in the manufacturing ecosystem [1]. Group 1: Manufacturing Challenges - Bringing manufacturing back to the U.S. may take years or even decades due to a lack of essential elements such as workers, training, technology, and government support [2]. - A U.S. jeans company employs about 250 workers in Los Angeles, producing 70,000 pairs of jeans monthly, while a larger factory in Southeast Asia employs thousands and produces 500,000 pairs monthly [2]. Group 2: Economic Pressures - High tariffs imposed by the Trump administration have created immense pressure on companies, forcing them to consider how much more they can produce domestically [3]. - The U.S. lacks large-scale factories and key suppliers for zippers and buttons, leading to high operational costs and a shortage of available labor [3]. Group 3: Investment and Long-term Viability - Shifting production back to the U.S. requires substantial investment; for instance, the jeans company has invested approximately $150 million in Southeast Asia, with a long payback period of at least seven years [6]. - If the Trump administration maintains high tariffs and companies cannot alleviate financial burdens, they may need to seek alternative markets for products manufactured in Southeast Asia [6].

Core Insights - The Kearney Reshoring Index experienced a significant decline in 2024 after two years of strong growth, raising questions about the sustainability of the recent upward trend in U.S. manufacturing [1][4][5] - Despite substantial investments in domestic manufacturing capacity, the growth of U.S. manufacturing output has nearly stagnated following the release of most potential capacity in early 2023 [2][7] - Mexico has benefited from the trend of reshoring, particularly in the automotive and electrical equipment sectors, but faces challenges such as weak infrastructure that limit its ability to absorb more manufacturing demand [1][19] Group 1: Reshoring Index and Manufacturing Output - The U.S. manufacturing reshoring index saw a reversal in 2024, with the manufacturing import ratio (MIR) increasing by 9%, indicating a shift back to reliance on low-cost Asian countries [5][11] - The domestic manufacturing output (MGO) growth rate has slowed to around 1%, significantly lower than the average growth rate of 30% from 2020 to 2022 [10][11] - The increase in imports from low-cost Asian countries, including a rise from $878 billion to $968 billion, highlights the growing dependency on these regions to meet domestic demand [11][14] Group 2: Mexico's Role and Challenges - Mexico remains a key trade partner for the U.S., with exports reaching $457 billion in 2024, but the growth rate has slowed compared to previous years [16][17] - The manufacturing sector in Mexico is facing capacity constraints and infrastructure challenges, particularly in energy supply, which could hinder its ability to attract more manufacturing [19][20] - Labor costs in Mexico have risen by an average of 4% annually over the past two years, reducing its competitive edge against other low-cost countries [19][36] Group 3: U.S. Manufacturing Self-Sufficiency - The U.S. self-sufficiency index has declined as net imports increased by $155 billion while domestic manufacturing output grew by only $260 billion [25][29] - The imbalance between domestic production and imports indicates structural challenges within the U.S. manufacturing sector that need to be addressed for sustainable growth [25][40] - The anticipated increase in imports is driven by manufacturers preparing for potential tariff increases post-election, further complicating the self-sufficiency outlook [29][41] Group 4: Future Outlook and Strategic Considerations - Despite the current challenges, there is a noticeable increase in the intention of U.S. companies to reshore manufacturing, with a 15% rise in CEOs planning to bring back operations within three years [30][31] - The motivations for reshoring are evolving, with geopolitical tensions becoming a significant factor for many CEOs, although cost remains the primary concern [33][36] - To successfully reshore, companies must invest in automation and workforce development while addressing supply chain vulnerabilities [39][40]

Group 1 - The core viewpoint of the articles revolves around President Trump's threat to impose a 25% tariff on Apple products not manufactured in the U.S., which could lead to a significant increase in iPhone prices and impact consumer demand and inflation [2][3][7] - Analysts predict that if Apple were to move production back to the U.S., the price of the iPhone could rise by at least 25%, potentially reaching $3,500, which is 190% higher than current prices [2][7] - The U.S. manufacturing sector faces a significant labor shortage, with nearly 500,000 manufacturing jobs unfilled, and a general reluctance among Americans to take on manufacturing jobs due to their perceived difficulty [3][4] Group 2 - Apple's current supply chain is heavily reliant on China, with approximately 90% of its production occurring there, and only about 5% of its components manufactured in the U.S. [7][8] - The complexity of Apple's global supply chain, which involves around 2,700 different components sourced from 28 countries, makes it impractical to relocate production to the U.S. [8] - Experts suggest that even a partial relocation of Apple's supply chain would require significant investment and time, with estimates of $30 billion and 3 years for just 10% of the supply chain, making a full transition unrealistic [8]