Investment Rating - The report assigns a "Buy" rating to the company with a current price of HKD 7.70 and a fair value of HKD 11.43 [2]. Core Insights - The company is expected to achieve record-high performance in 2025, with revenue projected at HKD 5.096 billion, a year-on-year increase of 8.7%, and a net profit of HKD 726 million, up 12.7% [9]. - The demand for self-supplied power in the U.S. is driven by the AI computing wave, with gas turbines and diesel engines becoming core solutions for data centers [9]. - The company is positioned to benefit significantly from the growing demand for high-power engines, which is expected to become its largest business segment [9]. - The company has capabilities in gas turbine components, which may open new growth opportunities in the future [9]. - Revenue forecasts for 2026-2028 are projected at HKD 58.37 billion, HKD 66.91 billion, and HKD 75.64 billion, respectively, with net profits expected to reach HKD 8.63 billion, HKD 10.11 billion, and HKD 11.80 billion [9]. Summary by Sections 1. Deepening Casting and Precision Machining - The company has over 20 years of experience in precision component manufacturing and has established a global benchmark in the industry [14]. - It has become the sixth-largest independent investment casting manufacturer globally and the largest in China [14]. 2. U.S. Computing Wave and Self-Supplied Power - The traditional U.S. power grid is unable to meet the increasing power demands of AI data centers, leading to a consensus on the necessity of self-supplied power [35]. - The demand for data center power is expected to grow significantly, with projections indicating a potential increase of 400 TWh by 2030 [35]. 3. Benefits from Self-Supplied Power - The company’s high-power engine business is expected to benefit from the self-supplied power trend, with significant growth anticipated in this segment [9]. - The company has established deep ties with major clients like Caterpillar and Cummins, positioning itself well within the supply chain [9]. 4. Profit Forecast and Investment Recommendations - The company is expected to maintain steady growth, with revenue and net profit forecasts indicating a robust upward trend [9]. - A PE valuation of 25x for 2026 suggests a fair value of HKD 11.43 per share, supporting the "Buy" rating [9].