Summary of Centre Testing International Group (300012.SZ) Investor Day Company Overview - **Company**: Centre Testing International Group (CTI) - **Ticker**: 300012.SZ - **Market Cap**: Rmb 24.1 billion / $3.4 billion - **Enterprise Value**: Rmb 23.1 billion / $3.2 billion - **Industry**: Testing, Inspection, Certification (TIC) Key Takeaways from the Investor Day 1. Financial Performance and Projections - Expected revenue and net income CAGRs of 11% and 15% respectively from 2025E to 2030E - Operating profit margin (OPM) projected to improve to 18.4% by 2030E from 15.4% in 2025E [1][2][22] 2. Strategic Initiatives - **"123 Strategy"**: - Stabilizing traditional TIC business - Accelerating expansion in rapidly-growing end-markets - Incubating technologies and certifications for potential new markets [2][19] - **LEAN Project**: - Implementation has improved efficiency in 43% of CTI's labs, with plans to increase this to 60% in 2026E and 75% in 2027E [2][19] 3. Digitalization and Automation - Established 31 sets of Laboratory Information Management Systems (LIMS) since 2008 - Achievements in digitalization include reducing manual processing workload by 8% and significant efficiency improvements in various applications [3][19] 4. Overseas Expansion and M&A - Targeting over 20% overseas revenue exposure in the next 5-10 years - Three overseas M&As initiated in 1H25 to expand into food, carbon emission, and ESG testing segments [17][20] 5. Financial Management and Growth Targets - Aiming for double-digit revenue and net income growth over the next three years - CAPEX to revenue ratio expected to drop to 5-7% from 7% previously guided [17][20] - Monthly reviews on cash flow conditions and projects with hard-to-collect accounts receivable [20] 6. Market Position and Competitive Landscape - CTI is positioned as a consolidator in the TIC market, benefiting from a resilient operational performance compared to peers - The TIC market in China is expected to grow at a long-term CAGR of 7% [22] Important Metrics - **Revenue Projections**: - 2025E: Rmb 6,506.6 million - 2026E: Rmb 7,116.2 million - 2027E: Rmb 7,807.9 million [5][14] - **EPS Growth**: - 2025E: Rmb 0.60 - 2026E: Rmb 0.69 - 2027E: Rmb 0.78 [5][14] Risks and Considerations - Key risks include potential damage to the company's credibility, intensifying pricing competition, and greater accounts receivable risk due to the 3rd National Soil Census [23] Conclusion - CTI is positioned for growth with a strong focus on efficiency, digitalization, and strategic expansion into new markets. The company is well-prepared to navigate challenges in the TIC industry while aiming for significant revenue and profit growth in the coming years [22][23]

Summary of Shenzhen Inovance Technology Co. (300124.SZ) Conference Call Company Overview - **Company**: Shenzhen Inovance Technology Co. - **Stock Code**: 300124.SZ - **Industry**: Industrial Automation Key Points Orders and Growth - Inovance's industrial automation (IA) segment orders grew by over 30% year-over-year (yoy) in September 2025, compared to a growth of 20-30% yoy in August 2025 [1][9] - For the third quarter of 2025, IA orders are expected to grow approximately 25% yoy, significantly outperforming the broader China manufacturing fixed asset investment (FAI), which saw a decline of 0.2% and 2.0% yoy in July and August respectively [1][2] - Key end-markets showing solid growth include logistics equipment, semiconductors, wind power, metallurgy, lithium batteries, woodworking, construction machinery, machine tools, and healthcare equipment [1] Revenue and Income Forecast - Revenue and net income are forecasted to grow by 23% and 13% yoy respectively in 3Q25, assuming a 20% yoy growth for the IA segment sales and a 30% yoy growth for EV components revenue [2] - The elevator controls segment is expected to show flat growth, contrasting with a 3% yoy decline in domestic elevator production during July and August 2025 [2] Margin Expectations - Margins are expected to moderate, with gross profit margin (GPM) decreasing by 0.6 percentage points and net profit margin (NPM) decreasing by 1.0 percentage point yoy in 3Q25, primarily due to a change in revenue mix with a higher proportion of EV components sales [2] Competitive Position and Market Outlook - Inovance is positioned as a domestic leader in industrial automation, with significant opportunities for growth in overseas markets and potential market share gains in small and large PLCs [18] - The company is expected to benefit from ongoing domestic substitution, breakthroughs in new end-industries, and a focus on top customers amid increasing consolidation [1][18] Risks - Potential risks include slower-than-expected market share gains in industrial automation, weaker margin trends, slower ramp-up in the EV component segment, and a general slowdown in manufacturing capital expenditure and automation demand [20][21] Valuation - The 12-month price target for Inovance is set at Rmb82.50, based on a 35x P/E ratio for 2026 estimates [20] - Current share price is Rmb83.82, indicating a downside potential of 1.6% [22] Additional Insights - The company’s competitive advantages include industry-leading R&D effectiveness and a comprehensive product portfolio that enhances customer switching costs [18] - The growth outlook remains strong, supported by the company's strategic focus on digitalization and IoT solutions [18] Conclusion Shenzhen Inovance Technology Co. is experiencing robust growth in its industrial automation segment, with significant opportunities for future expansion. However, potential risks and margin pressures should be monitored closely as the company navigates a competitive landscape.

Financial Data and Key Metrics Changes - In Q2 2025, EPAM generated revenue of $1.353 billion, an 18% year-over-year increase, surpassing the upper end of the revenue outlook [31] - Organic constant currency revenue grew 5.3% compared to Q2 2024, marking the third consecutive quarter of positive organic growth [31][32] - GAAP gross margin for the quarter was 28.8%, down from 29.3% in Q2 of the previous year, while non-GAAP gross margin was 30.1%, compared to 30.8% [37] - GAAP income from operations was $126 million, or 9.3% of revenue, compared to $121 million, or 10.5% of revenue in Q2 of last year [38] - Non-GAAP diluted EPS was $2.77, reflecting a $0.32 increase year-over-year [38] Business Line Data and Key Metrics Changes - Financial Services grew 34.4% year-over-year, with 6.5% organic growth in constant currency, driven by strength in banking and insurance [33] - Software and high-tech increased by 21.2% year-over-year, while Life Sciences and Healthcare grew 11.7% [33] - Emerging verticals delivered strong growth of 28.7% year-over-year, positively impacted by recent acquisitions [35] - Consumer Goods, Retail, and Travel showed 6.2% year-over-year growth, indicating improvement [34] Market Data and Key Metrics Changes - The Americas, representing 59% of Q2 revenues, grew 15.9% year-over-year, while EMEA increased by 21.7% [36] - APAC, making up 2% of revenues, saw a 13% year-over-year increase [36] - Revenues from the top 20 clients grew 8.8% year-over-year, while revenues from clients outside the top 20 increased by 23% [36] Company Strategy and Development Direction - The company is focused on AI-native services and core engineering strengths, positioning itself for sustainable growth [6][10] - EPAM is expanding its market-leading position as an AI-native transformation company, with significant investments in AI capabilities [12][13] - The company is optimizing its global delivery hubs to provide scalable options and enhance talent capabilities [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stabilization and potential improvement in demand conditions, despite a complex macroeconomic backdrop [7][9] - The company anticipates further improvement in organic constant currency growth rates in Q3 and is raising the bottom end of the revenue growth range for 2025 [42][44] - Management highlighted the importance of quality execution and strategic efficiency for clients, which aligns with EPAM's strengths [10][21] Other Important Information - The CEO transition plan is on track, with the current CEO transitioning to the role of executive chairman [19] - The company has made strategic acquisitions to enhance capabilities in regulated industries and cloud-native engineering [26] Q&A Session Summary Question: Workforce and Talent Addition - Management acknowledged the balance between hiring new talent and optimizing existing resources, indicating a thoughtful approach to bench management [55][57] Question: Client Discretionary Spending - Management noted that clients are returning to discretionary spending due to regulatory requirements and the need for AI adoption, which aligns with EPAM's strengths [59][61] Question: Q4 Activity and Outlook - Management provided insights on the range of Q4 activity, indicating that achieving the midpoint of the guidance requires stable demand and seasonal adjustments [66][68] Question: New Discretionary Transformation Programs - Management highlighted that EPAM is seeing incremental increases in discretionary transformation programs, particularly in AI-driven initiatives [69] Question: Employee Upskilling Progress - Management reported that over 80% of employees have undergone AI upskilling, with ongoing efforts to enhance capabilities across the organization [75][76] Question: Margin and Profitability Outlook - Management indicated a focus on improving utilization and profitability, with expectations to exit the year with better margins compared to previous periods [78][84]

Financial Data and Key Metrics Changes - The company reported record sales of $963 million, up 30% year-over-year, with organic growth of 9% driven by both volume and price [12] - Adjusted EPS grew 28% to $0.86, exceeding guidance [14] - Adjusted operating income increased 18% year-over-year, with a return on sales of nearly 21% [8][14] Business Line Data and Key Metrics Changes - Systems Protection sales increased 43% to $632 million, with organic growth of 10% [14][16] - Electrical Connections sales rose 11% to $331 million, with organic sales up 7% [16] - Infrastructure vertical led with organic sales growth over 20%, while commercial residential sales were up mid-single digits and industrial sales were down slightly [8][16] Market Data and Key Metrics Changes - All key geographic regions experienced growth: Americas up 9%, Europe up 10%, and Asia Pacific up low single digits [9] - The backlog increased more than fourfold compared to the previous year, driven by strong demand in data centers and power utilities [6][10] Company Strategy and Development Direction - The company is focused on becoming a higher growth electrical connection and protection company, with a significant shift towards the infrastructure vertical, which is expected to account for over 40% of sales [25][26] - Investments are being made in data solutions to support the AI build-out, with a focus on innovative power and cooling solutions [27][29] - The company is prioritizing growth initiatives, including new products and acquisitions, while maintaining a strong balance sheet [10][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance and growth outlook, particularly in data centers and power utilities [10][11] - The company raised its full-year sales guidance to reflect strong Q2 results, expecting reported sales growth of 24% to 26% [21] - Management acknowledged the dynamic tariff environment but emphasized their ability to manage pricing and productivity to offset impacts [10][87] Other Important Information - The company launched 50 new products in the first half of the year, contributing over three points to sales growth [8] - Free cash flow for the quarter was robust at $74 million, with a healthy balance sheet supporting disciplined capital allocation [18][19] Q&A Session Summary Question: Timing of converting backlog and its duration - Management indicated that the backlog is expected to convert into sales through 2026 and beyond, driven by growth in the data center solutions business and recent acquisitions [36][37] Question: Concerns about disintermediation in liquid cooling - Management clarified that they partner with hyperscalers to provide complete system solutions or specific products, maintaining strong relationships despite market changes [38][41] Question: Performance of commercial residential segment - Management noted healthy performance in the commercial residential segment but remained cautious about the overall industry outlook, expecting it to be flattish for the year [47][49] Question: Backlog growth and expectations for the second half - Management confirmed that backlog has grown significantly, particularly in the systems protection business, which is expected to grow ahead of the electrical connections segment [54][55] Question: Price recovery from tariff impacts - Management stated that they expect to recover tariff impacts through pricing and productivity, with a focus on maintaining healthy margins [85][87] Question: Modular data centers and integration of other products - Management indicated that they are integrating other OEMs' equipment into their modular data center offerings, which will enhance their capabilities over time [90][91] Question: Growth opportunities in international markets - Management attributed outperformance in international markets to a focus on high-growth verticals and strong distribution partnerships [117] Question: Margin protection amid inflation and tariffs - Management confirmed that they have mechanisms in place to adjust pricing in response to tariffs and inflation, ensuring margin protection through long-term contracts [119]