Core Insights - The report from Guosen Securities highlights that advertising and SaaS products are high-demand areas based on token consumption and input-output analysis [1] - There is a significant need for continued support from downstream market conditions for the massive CAPEX investments, particularly in sectors like autonomous driving and robotics, which are driving GPU leasing demand [1] - The report indicates that without a trend of explosive growth in downstream applications, leading companies may slow their CAPEX spending, especially those reliant on single customers [1] Supply Side - The financial pressure from high CAPEX growth and power shortages is evident, with major overseas companies' CAPEX exceeding 60% of their operating cash flow [2] - Companies are increasingly resorting to financing leases and financial operations to manage cash flow constraints, with firms like Meta and Google utilizing debt financing to supplement their investments [2] - The projected growth in data center capacity in North America is expected to be 100% in 2026 and 50% in 2027, leading to significant power shortages [2] Demand Side - There remains a substantial gap between the cumulative incremental CAPEX of overseas cloud providers since the end of 2022 and the current backlog of unfulfilled orders, which is less than 50% of the current order scale [3] - Excluding Oracle, which is heavily impacted by OpenAI, the three major cloud providers are still in a state of supply shortage, indicating that current CAPEX levels are not excessive [3] Computing Power Demand Structure - The current structure of computing power demand shows a higher internal proportion for cloud providers, supporting AI applications, model training, and the development of AI products like Gemini and Copilot [4] - External revenue is also growing rapidly, primarily from GPU leasing and API calls for AI application development, with GPU leasing accounting for about 70% of demand [4] - API calls, while currently a smaller portion of demand, are growing quickly, with many small companies utilizing models for customer service and process optimization [4]

Financial Performance - Telecom Argentina's 9M25 adjusted EBITDA reached US$41 billion, a 73% increase compared to 9M24[12] - The company's 9M25 revenues showed an EBITDA margin of 305%, compared to 288% in 9M24[12] - Service revenues increased by 5% to P$3,860 million in 9M25, compared to P$3,679560 million in 9M24[24] - The company's 9M25 CAPEX was US$615 million, focused on mobile and FTTH network deployment[12] - Free cash flow generation for 9M25 was US$402 million[76] Operational Highlights - The company has a leading position in the market with 32 million Pay TV subscribers and 203 million Mobile subscribers[13] - Broadband subscribers increased to 41 million[14] - Personal Pay onboarded approximately 44 million clients[14] - Mobile ARPU increased by 10% for TEO and 5% for TMA[26] - Broadband ARPU increased by 3% for TEO and 14% for TMA[26] - Pay TV ARPU increased by 2% for TEO and 19% for TMA[26] Debt and Leverage - Net debt to estimated proforma EBITDA LTM9M25 was 19x[12] - Total funds raised in 2025 amounted to US$27 billion[92]

Financial Data and Key Metrics Changes - The company reported a decrease in top-line guidance while maintaining capital expenditure (CAPEX) guidance, indicating confidence in long-term growth despite near-term headwinds [12][14] - The beer operating margin target remains at 39% to 40%, which is considered best in class, even with some expected deleveraging [65][66] Business Line Data and Key Metrics Changes - The beer segment experienced a decline in sales volume, particularly among Hispanic consumers, attributed to macroeconomic factors and socio-economic concerns [9][10] - The wine and spirits segment showed positive growth, with brands like Kim Crawford and Meiomi contributing to a 2% increase in Q2, maintaining a strong market position [36][70] Market Data and Key Metrics Changes - The company noted significant volatility in sales, particularly in high Hispanic zip code areas, which have underperformed compared to the general market [76] - California has been identified as a major challenge, with expectations for construction opportunities to potentially improve beer sales in the region [77] Company Strategy and Development Direction - The company is focused on maintaining marketing investments to drive long-term growth, despite current economic challenges [25][26] - There is an emphasis on price pack architecture to cater to consumers with varying financial capabilities, ensuring accessibility to products across different price points [44][60] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about hitting the bottom of the current sales decline, while acknowledging unprecedented volatility in the market [76] - The company remains committed to investing in brand loyalty and marketing, particularly targeting younger consumers like Gen Z [10][25] Other Important Information - The company has achieved $105 million in cost savings year-to-date, with ongoing efforts to optimize operations and logistics [48] - Tariff impacts are expected to be around $70 million for the beer business and $20 million for the wine business, tracking with volume changes [53] Q&A Session Summary Question: Volume growth and consumer sentiment - Management highlighted that 80% of consumers are concerned about the socio-economic environment, impacting engagement and volume growth [9][10] Question: CAPEX guidance rationale - The company plans to maintain CAPEX to support long-term growth, despite short-term challenges [12][14] Question: Brand loyalty for Corona and Modelo - Management noted increased loyalty for Corona and Modelo, with specific brands within the portfolio performing well [18][19] Question: Impact of macro factors on beer category - Management believes macro factors are more significant than structural issues, although cannabis and health trends are acknowledged as potential influences [23][24] Question: Beer margin and cost savings - The company reported $65 million in cost savings for Q2, with ongoing initiatives to enhance operational efficiency [47][48] Question: Pricing strategy in light of economic challenges - The company expects to maintain a 1-2% pricing increase, adjusting strategies based on market conditions [72][73] Question: Inventory levels and destocking - Inventory levels are reported to be in a good position, with no significant destocking issues anticipated [70][71]

Financial Data and Key Metrics Changes - The company reported a decrease in top-line guidance last month but maintained its CAPEX guidance, indicating a commitment to long-term growth despite near-term headwinds [10][12] - The beer operating margin target remains at 39% to 40%, which is considered best in class, even with some deleveraging expected [58][60] Business Line Data and Key Metrics Changes - The beer segment experienced a drop in sales volume, particularly among Hispanic consumers, attributed to macroeconomic factors and socio-economic concerns [6][9] - The wine and spirits segment showed a 2% increase in Q2, driven by brands like Kim Crawford and Meiomi, indicating a strong performance in the market [32][64] Market Data and Key Metrics Changes - Consumer sentiment remains low, with 80% of surveyed consumers expressing concerns about the socio-economic environment, impacting overall sales volume [7][9] - The company noted significant differences in performance across various markets, with high Hispanic zip code areas showing worse results compared to the general market [69] Company Strategy and Development Direction - The company is focused on maintaining marketing investments to drive long-term growth, despite current economic challenges [22][23] - There is an emphasis on price pack architecture to cater to consumers with varying financial capabilities, ensuring accessibility to products [39][55] Management's Comments on Operating Environment and Future Outlook - Management believes that the current challenges are primarily cyclical and expects a return to traditional growth profiles as socio-economic conditions improve [23][60] - The company is cautiously optimistic about hitting the bottom of the current market volatility, with a focus on monitoring trends closely [70] Other Important Information - The company has achieved $105 million in cost savings year-to-date, with ongoing efforts to optimize operations and logistics [43] - Tariff impacts are expected to be around $70 million for the beer business and $20 million for the wine business this year [48] Q&A Session Summary Question: Volume growth and consumer sentiment - Management acknowledged the impact of socio-economic concerns on consumer behavior, particularly among Hispanic consumers, and noted increased loyalty for brands like Corona and Modelo [6][7] Question: CAPEX guidance rationale - The company explained that CAPEX for FY2026 remains unchanged due to long-term commitments, while future CAPEX adjustments will be considered based on market conditions [10][12] Question: Beer margin and cost savings - Management highlighted $65 million in cost savings for Q2 and discussed ongoing efforts to enhance operational efficiency [42][43] Question: Brand loyalty and performance - The company provided insights into brand health metrics, indicating that while Corona Extra faced challenges, the broader Corona family performed well, particularly with Corona Familiar [15][16] Question: Pricing strategy and market conditions - Management reiterated the expectation of a 1% to 2% pricing increase, emphasizing a market-by-market approach to pricing strategies [66][67] Question: Inventory levels and depletions - The company confirmed that inventory levels are in a good position and expressed confidence in aligning shipments and depletions moving forward [36][64]

Core Viewpoint - The report from Dongfang Securities indicates a sustained high growth in overseas data center-related CAPEX since the first half of 2024, with upward revisions to future expectations driven by AI demand [1] Group 1: CAPEX Trends - Overseas CSPs have revised their CAPEX expectations upward, indicating an improving investment climate for data centers [1] - Microsoft, Google, and Meta have all increased their CAPEX forecasts for Q2 2025, with Meta raising its full-year CAPEX expectation to $66-72 billion (previously $64-72 billion) and Google adjusting its FY2025 CAPEX to $85 billion (previously $75 billion) [1] - Microsoft’s Q2 2025 CAPEX is projected at $24.2 billion, with expectations to exceed $30 billion in Q3 2025, reflecting a year-on-year growth of over 50% [1] Group 2: Importance of Power Supply - The transition from traditional computing to intelligent computing has led to significant increases in power consumption, necessitating advancements in AIDC power supply technology [2] - The importance of high efficiency, high density, and high stability power supplies is expected to continue rising as AI demand evolves [2] - The entire power supply chain, from grid power (10kV+) to final chip (<1V), is undergoing technological upgrades, enhancing the value of power systems in AIDC [2] Group 3: Export Opportunities - The overseas AIDC CSP cycle is leading, with AI power supply exports likely to be the first beneficiaries of the AI technology infrastructure wave [3] - High barriers to entry in the overseas AIDC power market favor companies like Delta and Vertiv, which possess strong technical and ecological advantages [3] - As domestic Chinese companies continue to close the technology gap with Taiwanese and foreign firms, they are expected to benefit from the overseas AICAPEX boom [3] Group 4: Investment Recommendations - Companies in the AIDC power sector that are likely to benefit from the improving overseas investment climate include Magpower (002851.SZ), Hewei Electric (603063.SH), Xinle Energy (300593.SZ), Tonghe Technology (300491.SZ), Oulu Tong (300870.SZ), and Zhongheng Electric (002364.SZ) [4] - In the AIDC power supply segment, key companies to watch include Jinpan Technology (688676.SH), Mingyang Electric (301291.SZ), Weiteng Electric (688226.SH), and Liangxin Co., Ltd. (002706.SZ) [4]

Investment Rating - The industry investment rating is "Positive (Maintain)" [5] Core Insights - Overseas cloud service providers (CSPs) have revised their capital expenditure (CAPEX) expectations upwards, leading to an increase in data center construction activity. Major companies like Microsoft, Google, and Meta have all raised their CAPEX forecasts for 2025, driven by strong AI demand [7] - The importance of high-efficiency, high-density, and high-stability power supply systems is increasing as the industry transitions from traditional computing to AI-driven computing. This shift necessitates continuous upgrades in power supply technology across various stages of the power chain [7] - The overseas AIDC (AI Data Center) market is experiencing a boom, with companies like Delta and Vertiv holding significant technological advantages. Domestic companies are expected to benefit from this trend as they close the technology gap and gain access to the overseas market [7] Summary by Sections Investment Recommendations and Targets - The report suggests focusing on companies that are likely to benefit from the rising demand for AIDC power supply, including Megmeet (002851), Hezhong Electric (603063), Newray (300593), Tonghe Technology (300491), Oulu Tong (300870), and Zhongheng Electric (002364) [7] - For AIDC power supply support, companies such as Jinpan Technology (688676), Mingyang Electric (301291), Weiteng Electric (688226), and Liangxin Co. (002706) are recommended for attention [7]

Capital Expenditure (CAPEX) - Meta收紧了年度资本支出（CAPEX）的指引，提高了范围的下限[1] - Meta目前预计2025年的资本支出（包括融资租赁付款）将在660亿至720亿美元之间[1] - 该范围较之前640亿至720亿美元的展望有所收窄[2] Expense Drivers - Meta的主要支出驱动因素是基础设施成本和员工薪酬[2] - Meta正在优先领域增加技术人才[2] - 由于Meta确认了2025年全年员工的薪酬支出，因此预计2026年的同比增长率将高于2025年[2] Tax and Employee Costs - Meta预计美国联邦现金税在今年剩余时间和未来几年内将减少[3] - Meta正在关注员工成本，这显然是Meta的优先事项，因为Meta正在争夺AI人才[3]