Investment Rating - The report maintains a positive outlook on the computer industry, indicating a "Look Favorably" investment rating for the sector [6][7]. Core Insights - The computer industry is experiencing a low holding ratio, with public fund allocation at 2.6% in Q2 2025, down 0.6 percentage points from the previous quarter, ranking 13th among 30 primary industries [8][9]. - AI remains the main theme for the computer sector throughout 2025, supported by three key factors: the introduction of domestic super-node solutions improving cost-performance, the launch of several foundational large models driving AI applications into commercialization, and continuous innovations across various fields such as stablecoins and 3D printing [9][11]. - The report highlights significant company updates, particularly the official upgrade of iFLYTEK's reasoning large model X1, which enhances capabilities in multiple languages and applications [38][43]. Summary by Sections Investment Allocation - In Q2 2025, the computer industry's public fund allocation decreased to 2.6%, marking a historical low since 2010, with a configuration coefficient of 0.56, down from 0.67 in Q1 2025 [8][9]. - The report suggests increasing positions in Hong Kong-listed computer stocks such as Kingdee and Meitu [6][7]. AI Development - The report identifies three main drivers for the future performance of the computer industry: 1. The launch of domestic super-node solutions that enhance cost-performance and reduce the gap with overseas solutions [9][10]. 2. The introduction of multiple foundational large models that facilitate the commercialization of AI applications [10][11]. 3. Ongoing innovations in various sectors, including stablecoins and 3D printing, which are expected to gain traction [11][12]. Valuation Metrics - As of July 22, 2025, the computer industry’s PE (TTM) stands at 85.4x, placing it in the 93.40% historical percentile, while the PS (TTM) is at 3.4x, in the 48.90% historical percentile [24][25]. - The report notes that current valuation levels exceed those of 2020 and 2023, reflecting optimistic market expectations regarding potential profitability [24][25]. Company Updates - iFLYTEK's reasoning large model X1 has been officially upgraded, showcasing improvements in comprehensive capabilities and multi-language support, with applications in education, healthcare, and enterprise solutions [38][43]. - The report emphasizes the growth trend in AI revenue for iFLYTEK, with significant increases in both consumer and enterprise AI solutions [44]. Market Dynamics - The report discusses the varying rhythms of different technology sectors, influenced by the certainty and traceability of new technologies, with AI applications expected to follow a similar trajectory to cloud computing [36][37]. - The report anticipates a rapid increase in market capitalization for AI-related companies as performance metrics begin to materialize in the latter half of 2025 [37][38].

Investment Rating - The industry rating for the foldable screen mobile phone sector is positive, with expectations for accelerated growth driven by Apple's entry into the market [4]. Core Insights - The foldable screen mobile phone market is set to grow significantly, with global shipments projected to reach 17.8 million units in 2024 and potentially 70 million units by 2027, reflecting a CAGR of 57.8% from 2024 to 2027 [1][20]. - Apple's anticipated launch of a foldable iPhone in 2026 is expected to further stimulate market growth and increase shipments [20]. - The industry is transitioning from traditional smartphones to innovative foldable designs, which are becoming the new standard in mobile technology [15]. Summary by Sections 1. Foldable Screen Mobile Phones - The global smartphone market is rebounding, with a projected shipment of 1.238 billion units in 2024, a year-on-year increase of 6.4% [12]. - Foldable screen technology is recognized as a key innovation in the smartphone sector, addressing the need for larger screens while maintaining portability [15]. - The market is characterized by a shift towards lighter and more affordable foldable devices, with average prices decreasing significantly [31]. 2. Hinge Technology - Hinges are critical components in foldable phones, requiring high durability and precision, with designs evolving towards lighter and more robust solutions [38]. - The predominant hinge types are water-drop and U-shaped, with water-drop designs becoming the preferred choice due to their reduced screen wear and improved folding mechanics [40]. - The global market for foldable phone hinges is expected to grow from approximately $3.2 billion in 2024 to $15.4 billion by 2032, with a CAGR of 21.69% [47]. 3. Cover Glass Technology - Flexible cover glass is essential for foldable screens, with ultra-thin glass (UTG) increasingly replacing traditional materials due to its superior properties [3]. - The market share of UTG in domestic foldable smartphones has risen to 70% in 2023, indicating a strong trend towards this material [3]. - The production of UTG involves complex manufacturing processes, with a focus on improving yield and consistency [6]. 4. Investment Recommendations - The report highlights several key beneficiaries in the foldable screen supply chain, including: - UTG: Lens Technology - Hinges: Linyang Precision, Tonglian Precision, and Jingyan Technology - Liquid Metal: Yian Technology - 3D Printing: Huashu High-Tech and Plit [7].

Group 1: Market Strategy and Customer Engagement - The company focuses on large, fast-growing regional markets to enhance market penetration and meet customer needs [1] - A strategy for developing major clients involves a lengthy process of 6-12 months due to complex decision-making and high standards for product quality [3] - The company has established stable partnerships with leading clients in various regional markets, supported by a mature customer development and service management system [3] Group 2: Product Development and Innovation - The company’s product matrix is continuously enriched, with competitors showing different product combinations [4] - The newly launched 3D printing products, such as the F1 and P1 models, offer significant advantages including high-speed printing and automated processes [5] - The 3D printing system has received FDA certification for permanent restoration materials, indicating strong market acceptance [5] Group 3: Domestic Market Outlook - Despite a temporary slowdown in domestic market growth, the company remains optimistic about overall operations, with value clients willing to invest in digital transformation [6] - Key performance indicators such as customer penetration rate and single-client purchase amounts are showing healthy growth [6] Group 4: Smart Park Construction - The company is committed to building a "zero-carbon park" equipped with photovoltaic facilities and smart logistics management [8] - The park will feature automated production processes to enhance operational efficiency [8] Group 5: Shareholder Relations - Currently, major shareholders holding over 5% have not applied for share reduction, and the company is focused on sustainable development and shareholder communication [8] Group 6: Application of Zirconia Powder - The zirconia powder produced by Jingdezhen Wanwei can be applied in various industries, including electronics and biomedicine, with potential in solid-state batteries [9]

Group 1: Consumer Electronics - The report highlights the positive outlook for the consumer electronics sector due to the recent adjustments in US-China trade tariffs, which are expected to improve the export environment for Chinese manufacturers in the Apple supply chain, such as GoerTek and Luxshare Precision [3] - The 3D printing industry is experiencing significant developments, with domestic companies making breakthroughs in key technologies, which may disrupt foreign monopolies [3] - The iPhone 16 series is seeing price differentiation in various sales channels, with innovation being a key driver, including the introduction of Apple's first foldable iPhone [3] Group 2: Home Appliances - The global pool cleaning robot market is projected to grow significantly, with an expected penetration rate of 28% by 2026, driven by the increasing number of pools worldwide [5] - The competitive landscape in the pool cleaning robot industry is concentrated, with a lack of innovation providing opportunities for Chinese brands to gain market share, as evidenced by a significant increase in their presence on platforms like Amazon [5] - The report recommends several companies in the home appliance sector, including Gree Electric, Midea Group, and Ecovacs, as potential investment opportunities [5][43] Group 3: Textile and Building Materials - The report indicates that the company achieved a revenue of 1.9 billion yuan in Q1 2025, reflecting a 13% year-on-year increase, driven by increased sales orders [15] - The company is expanding its overseas e-commerce business and has established strategic partnerships to enhance its international presence [15][25] - The report maintains a "buy" rating for the company, projecting net profits of 1.6 billion, 1.9 billion, and 2.4 billion yuan for 2025-2027 [15][25]

Investment Rating - Industry Rating: Outperform the Market (Maintained Rating) [5] Core Viewpoints - The report highlights the recovery opportunities in the consumer electronics sector following the phased implementation of tariff agreements [2] - The 3D printing industry is experiencing significant advancements, particularly in collaboration between equipment suppliers and 3C manufacturers, which is becoming a key focus in the consumer goods sector [2][11] - The iPhone 16 series has shown a price stratification across different sales channels, with significant price adjustments made by authorized dealers and e-commerce platforms to meet "trade-in" subsidy thresholds [2][20] - The panel market is characterized by distinct demand variations across applications, with television panel prices stabilizing due to supply adjustments, while monitor panel prices continue to rise [3][24] - Recent adjustments in U.S. tariffs on Chinese goods are expected to improve the outlook for Chinese manufacturers in the Apple supply chain, enhancing their shipment expectations [4][28] Summary by Sections 3D Printing - Recent developments include a joint venture between Huagong Technology and Lika Precision to focus on SLM manufacturing technology [2][11] - The domestic supply chain is witnessing critical breakthroughs in key areas, such as metal materials and laser technology, which may disrupt foreign technology monopolies [2][11][19] Apple Supply Chain - The iPhone 16 series has seen a price reduction strategy that creates a three-tier pricing structure across different sales channels [2][20] - Innovation is emphasized with the upcoming foldable iPhone featuring a book-like design, showcasing Apple's commitment to new product development [2][21] Panel Market - The television panel market is facing increased supply-demand tension, leading to a proactive reduction in production capacity by manufacturers [3][22] - Monitor panel prices have continued to rise due to tariff exemptions and proactive inventory management by brands [3][24] - The notebook panel market remains stable, with manufacturers adopting flexible pricing strategies to secure orders [3][25] Tariff Adjustments - The U.S. has announced adjustments to tariffs on Chinese goods, which is expected to positively impact the Apple supply chain and related manufacturers [4][26][28] - The tariff policy changes are anticipated to drive a recovery in the valuation of Chinese manufacturers, particularly those closely tied to Apple [4][28]