Group 1: Core Projects and Investments - A total of 10 projects were signed with a total investment of 2.37 billion yuan, focusing on electronic information, new energy vehicle components, and high-end equipment manufacturing [1] - The high-precision optical components project, with an investment of 1.1 billion yuan, aims to produce 2 million non-spherical glass pieces per month by 2024, serving major clients like Sunny Optical and DJI [2] - The expansion projects for automotive components, totaling 2.5 billion yuan, will enhance the production capacity of lightweight and high-strength structural parts, benefiting major automotive manufacturers [3] Group 2: Industry Development and Upgrades - The electronic information industry is set to strengthen its supply chain by attracting leading companies and enhancing the production of key optical components [2] - The new energy vehicle sector is expected to achieve a new high in local supply rates through the collaboration of parts manufacturing and vehicle development [3] - High-end equipment manufacturing is being empowered by smart manufacturing initiatives, with projects focusing on hydraulic filters and 3D vision industrial robots [4] Group 3: Investment Ecosystem and Collaboration - The signing of projects marks a shift in the investment strategy of the Jin'an District, moving from policy-driven to ecosystem-driven approaches [5] - Strategic investors are collaborating with Jin'an to establish cooperative sub-funds, integrating capital investment with industry cultivation [5] - The district aims to optimize the business environment to attract more quality projects and enhance economic development [6]

Market Overview - The A-share market continued to rebound, with the ChiNext Index leading the gains [1] - Major indices opened lower but turned positive by midday, with the ChiNext Index rising over 2% at one point [3] - The overall market saw more stocks rising than falling, with over 3,200 stocks increasing in value and more than 100 stocks hitting the daily limit up [3] Index Performance - The Shanghai Composite Index closed at 3,238.23, up 0.45% [2] - The Shenzhen Component Index closed at 9,834.44, up 0.82% [2] - The ChiNext Index closed at 1,926.37, up 1.36% [2] - The STAR 50 Index rose by 2.07% to close at 1,011.71 [2] Sector Performance - The electronics sector led the gains with a rise of 3.77%, while the agriculture sector saw a decline of 3.18% [2] - Notable performing sectors included automotive (up 2.20%) and machinery equipment (up 1.33%) [2] - The semiconductor sector experienced a significant surge following new regulations on product origin recognition [4] Market Sentiment and Future Outlook - The market is expected to stabilize and recover as previous risks are gradually released, with investment value becoming more apparent [5] - The introduction of a comprehensive "stabilization" policy package has exceeded market expectations, boosting investor confidence [5] - Key sectors to focus on include finance, public utilities, consumer goods, TMT (Technology, Media, and Telecommunications), and non-ferrous metals [5]

Summary of Zoomlion Heavy Industry Conference Call Company Overview - **Company**: Zoomlion Heavy Industry (1157 HK/000157 CH) - **Industry**: Machinery and Construction Equipment Key Points and Arguments Financial Performance and Outlook - **Profit Recovery**: Zoomlion's 4Q24 profit miss was attributed to foreign exchange losses and lack of disposal gain recognition. A 30% net profit growth is expected in 1Q25 due to positive domestic sales recovery [1][10] - **Sales Growth**: Domestic sales are projected to grow by 4% in 2025 after consecutive declines since 2021, driven by recovery in construction machinery and steady growth in agricultural and mining machines [2][10] - **Overseas Sales**: Contribution from overseas sales increased to 51% in 2024 from 6% in 2020, with a four-year CAGR of 57%. However, growth is expected to normalize to 15% in 2025 [3][10] Market Dynamics - **Sector Recovery**: The domestic recovery has expanded from excavators to concrete machines since March 2024, with key applications in farmland, water projects, and community renewal [2][10] - **Excavator Sales**: The 2025 domestic excavator sales volume is raised to 118k units (17% growth), with 70% driven by replacement demand [21][10] Profitability and Margins - **Profit Growth**: A 39% net profit growth is estimated for 2025, supported by a higher sales contribution from overseas business (32% gross margin) and reduced stock-based compensation expenses [4][10] - **Sales Contribution**: The company expects 10% sales growth in 2025, with a significant contribution from margin-accretive overseas business [4][10] Investment Recommendations - **Stock Ratings**: Maintain Buy on H-shares and Hold on A-shares, with target prices adjusted to HKD7.40 for H-shares and RMB8.90 for A-shares [5][10] - **Valuation**: H-shares trade below the historical average at 0.7x 2026e PB, indicating attractive valuation [5][10] Risks and Catalysts - **Risks**: Potential risks include weaker-than-expected residential property construction activity, price competition, and export sales moderation [46][10] - **Catalysts**: Anticipated catalysts include a potential profit beat in 1Q25 and better-than-expected machinery sales in 2Q25 [5][10] Additional Important Information - **Market Data**: As of March 31, 2025, the market cap is HKD66,258 million, with a free float of 48% for both H and A shares [7][10] - **Financial Estimates**: Revenue is projected to grow from CNY45,478 million in 2024 to CNY60,477 million by 2027, with a consistent increase in net profit [11][10] - **Sales by Segment**: Construction machinery accounts for 89% of sales, with concrete machinery and crane machinery being the largest segments [30][10] This summary encapsulates the key insights from the conference call regarding Zoomlion Heavy Industry, highlighting its financial outlook, market dynamics, profitability, investment recommendations, and associated risks.

Investment Ratings - The report includes a "Buy" rating for MediaTek, CR Land, Weichai Power, and Krafton, while removing Advantest, Delta Electronics, Keppel Ltd, and Zijin Mining from the APAC Conviction List [1]. Core Insights - MediaTek is transitioning from a traditional smartphone application processor provider to an AI-focused company, with expected revenue and earnings growth of 16% and 17% CAGR from 2024 to 2027, respectively [2][24]. - CR Land is positioned for recovery in business growth and profitability, with forecasts indicating a re-acceleration in contract sales growth and market share gains [3][41]. - Weichai Power is expected to benefit from an improving outlook for heavy-duty trucks and a more profitable engine portfolio, with a forecasted 18% EPS CAGR over two years [4]. - Krafton's PUBG franchise is anticipated to drive earnings, with a focus on strong performance in upcoming results [5][9]. Summary by Company MediaTek - Positioned to transition to AI applications, with a forecasted revenue growth of 16% CAGR from 2024 to 2027, driven by market share gains and new total addressable markets (TAMs) [2][24][25]. - Expected operating margin (OpM) improvement from 19% in 2025 to 22% in 2027 [25]. - Current trading at 16x/13x FY26/27E P/E, at the mid/low-end of its historical range [26]. CR Land - Forecasts indicate contract sales growth re-acceleration and market share gains, with a projected gross profit margin recovery to 18% by 2027 [3][41]. - Expected average free cash flow (FCF) yield of 11% during 2025-2027 [3]. - Current share price implies a compelling valuation at 0.4x P/B on its development property business [3]. Weichai Power - Anticipated re-rating due to improved cyclical outlook for heavy-duty trucks and a more profitable engine portfolio [4]. - Forecasted gradual increase in dividend payout supported by strong net cash position and FCF generation [4]. - Currently trades at 10x 2025E P/E with a 6% dividend yield [4]. Krafton - Focus on the strong momentum of the PUBG franchise as a key earnings driver [5][9]. - Expected to outperform consensus estimates in upcoming earnings release [9]. - Currently trading at near-historical trough level at 12x 2025E P/E [9].