Summary of Conference Call Notes Industry Overview - The conference call discusses the **China Industrial Technology** sector, focusing on companies involved in PCB, energy storage systems (ESS), consumer electronics, and industrial automation. Key Highlights 1. **3Q25 Results**: - Overall results were mostly in-line with sector averages showing revenue and operating profit growth of **+18%** and **+17%** year-over-year respectively [1] - Notable performance from major domestic PCB customers driven by AI applications, particularly from **Hans Laser** [1] - Growth in capital expenditures (capex) for batteries and consumer electronics [1] - Resilient market share gains in the industrial automation (IA) segment, particularly for **Inovance** [1] 2. **Challenges Faced**: - Smaller players like **Pony Testing** and **HCFA** struggled with scaling and profitability [1] - Prolonged capex weakness in process automation markets such as steel and chemicals affected companies like **Baosight** and **Supcon** [1] - Temporary delays in defense orders impacted **AVIC Jonhon**, alongside high exposure to precious metals leading to margin deterioration [1] 3. **Margin Trends**: - Smaller players are more vulnerable in a deflationary environment with average selling price (ASP) pressures [2] - **AVIC Jonhon** faced margin deterioration due to precious metal price hikes [2] - Larger companies like **Sanhua** achieved margin beats through stringent SG&A cost control [2] - **Kstar** reported a gross profit margin (GPM) increase of over **3 percentage points** in its ESS segment due to a favorable product mix [2] Actionable Investment Ideas 1. **Buy Recommendations**: - **Hans Laser**: Strong demand in PCB and consumer electronics, with a **+96%** year-over-year growth in 3Q25 [3] - **Kstar**: Positive outlook with diversified customer base and robust ESS pipeline [3] - **Inovance**: Resilient momentum in industrial automation [3] - **Nari Tech** and **Centre Testing**: Defensive plays with stable margins [3] 2. **Sell Recommendations**: - **Raycus**: Limited military end-market sales [3] - **Baosight**: Continued weakness in domestic steel industry capex [3] - **Sanhua-A**: Potential profit-taking pressure due to overly optimistic market expectations [3] Sector Focus Areas 1. **AI Demand**: - **Hans Laser** is experiencing strong growth in PCB equipment sales due to capex expansion from key suppliers like **Victory Giant** for NVIDIA [6] - **Kstar** anticipates higher year-over-year sales growth in data center products driven by domestic and overseas orders [6] 2. **Energy Storage**: - **Sungrow** expects **40%-50%** global ESS installation growth in 2026, driven by renewable energy needs and market-driven policies in China [7] - **Kstar** aims to double its ESS sales growth in 2025, optimistic about demand outlook [7] 3. **Consumer Electronics**: - **OPT** anticipates stronger demand due to shifts in product form factors, particularly with Apple's upcoming products [8] - **Hans Laser** benefits from solid demand for iPhone 17 and next-generation smartphones [8] 4. **Overseas Expansion**: - **Hongfa** holds a dominant market share in HVDC relays and plans to expand capacity in Germany and Indonesia [10] - **Inovance** is also expanding overseas to support sales growth [10] Conclusion The China Industrial Technology sector shows a mix of strong growth opportunities, particularly in AI and energy storage, while facing challenges from smaller players and specific market weaknesses. Investment strategies should focus on larger, resilient companies with strong growth prospects while being cautious of smaller firms facing profitability issues.

Group 1 - Jepter's stock price increased by 5.05% to 167.87 CNY per share, with a trading volume of 445 million CNY and a turnover rate of 2.87%, resulting in a total market capitalization of 15.956 billion CNY [1] - The stock has risen for four consecutive days, with a cumulative increase of 16.63% during this period [1] - Jepter specializes in the research, development, production, and sales of lasers and intelligent equipment for precision testing and micro-processing related to integrated circuits and semiconductor optoelectronic devices [1] Group 2 - The fund "Rida Advanced Manufacturing Mixed Fund A" holds 8,900 shares of Jepter, accounting for 3.71% of the fund's net value, making it the seventh-largest holding [2] - The fund has generated a floating profit of approximately 71,800 CNY today and 202,800 CNY during the four-day increase [2] - The fund has a total asset size of 15.1825 million CNY and has achieved a year-to-date return of 52.16%, ranking 1154 out of 8152 in its category [2] Group 3 - The fund manager of "Rida Advanced Manufacturing Mixed Fund A" is Zhang Xiying, who has been in the position for 1 year and 171 days [3] - Under Zhang's management, the fund has achieved a best return of 99.02% and a worst return of 3.16% [3]

Core Insights - In the third quarter of 2025, the company reported a revenue of 342 million yuan, representing a year-on-year growth of 17.83%, and a net profit attributable to shareholders of 22 million yuan, showing a remarkable increase of 2464.79% [2] - The company's continuous growth is attributed to its strategic business expansion since its listing, moving from a focus on consumer electronics to five key sectors: consumer electronics, semiconductors, new energy, next-generation displays, and biomedicine [2] Revenue Growth - The new business segment has become a significant driver of revenue growth, with new business revenues reaching approximately 54.66% year-on-year growth, totaling about 54.67 million yuan in the first half of the year [3] - The company has developed laser equipment that replaces traditional mechanical processing methods, particularly for PCB/FPC high-tech demands, with expected annual orders exceeding 90 million yuan [3] Product Development - The company has successfully developed laser solutions for various materials and components, including acoustic devices and foldable screen hinges, catering to well-known clients such as AAC Technologies and Lens Technology [2] - The ultra-precision drilling equipment, based on self-developed ultrafast lasers, has received positive feedback from clients, capable of processing micro-holes with diameters of 30-70 micrometers at a drilling speed of up to 10,000 holes per second [3] Competitive Advantage - The company is building a differentiated competitive advantage through independent innovation in core laser technologies and a forward-looking layout in diverse downstream markets [4] - With the ongoing delivery of PCB/FPC laser equipment orders and the accelerated market penetration of new products, the company is well-positioned to sustain high growth driven by trends in consumer electronics innovation, semiconductor localization, and explosive growth in AI computing power [4]

Core Insights - Bodor Laser received significant recognition at the Red Dot Award: Design Concept 2025, with three flagship products honored for design excellence, including the handheld laser welder which won the "Best of the Best" award [1][2] Product Recognition - The handheld laser welder was awarded the "Best of the Best," the highest accolade in the competition, highlighting Bodor's influence in the global laser equipment industry [2] - The other two recognized products include a sheet laser cutting machine and a tube laser cutting machine, both celebrated for their exceptional design innovation [1] Award Significance - The Red Dot Award is one of the top three design honors globally, with the "Best of the Best" title awarded to less than one percent of submissions, emphasizing the high standards of innovation, functionality, and aesthetics [3] Design Philosophy - Bodor's design philosophy integrates technology and aesthetics, focusing on user insight and human-centered engineering, which includes ergonomic structures, intuitive interfaces, and safety systems [4] - The company aims to merge minimalist aesthetics with advanced technology, transforming complexity into clarity and engineering into art [4] Manufacturing Ecosystem - Bodor's Global Headquarters in Jinan spans 200,000 square meters and features intelligent production lines with an annual output exceeding 20,000 units [5] - The upcoming Southern Headquarters in Shenzhen will enhance high-end R&D and manufacturing capabilities, adding over 5,000 units to the annual output, thereby strengthening supply chains in South China and Southeast Asia [5] Industry Impact - With this latest honor, Bodor becomes the first laser equipment brand globally to win the Red Dot "Best of the Best" distinction, further establishing its reputation in the industry [6] - The company has received a total of five Red Dot Awards and four iF Design Awards, along with other international accolades, showcasing its commitment to design excellence [6] Future Vision - Bodor Laser is committed to a vision where technology serves as the foundation, design acts as the wings, and users remain at the core, aiming to drive the industry towards intelligent and aesthetic manufacturing [7]

Group 1 - Inno Laser's stock price increased by 5.88% to 42.65 CNY per share, with a trading volume of 159 million CNY and a turnover rate of 2.52%, resulting in a total market capitalization of 6.489 billion CNY [1] - Inno Laser Technology Co., Ltd. was established on November 30, 2011, and went public on July 6, 2021. The company specializes in the research, development, production, and sales of micro-processing lasers and customized laser modules [1] - The revenue composition of Inno Laser includes 59.89% from lasers, 26.86% from laser modules, 10.20% from other main businesses, and 3.05% from other operations [1] Group 2 - Green Fund has a significant holding in Inno Laser, with the Green Carbon Neutral Theme Mixed A Fund (015856) reducing its position by 2,400 shares in the second quarter, holding a total of 15,300 shares, which accounts for 8.27% of the fund's net value, making it the second-largest holding [2] - The Green Carbon Neutral Theme Mixed A Fund was established on January 18, 2023, with a latest scale of 3.4078 million CNY. The fund has achieved a year-to-date return of 53.98%, ranking 544 out of 8,154 in its category, and a one-year return of 59.7%, ranking 357 out of 8,025 [2] Group 3 - The fund manager of the Green Carbon Neutral Theme Mixed A Fund is Liu Zan, who has been in the position for 2 years and 345 days. The total asset size of the fund is 384 million CNY, with the best return during his tenure being 74.56% and the worst being -0.09% [3]

Core Insights - The company, Dazhu Laser Technology Industry Group Co., Ltd., reported a significant increase in revenue and net profit for Q3 2025, with revenue reaching 5.1 billion yuan, a year-on-year growth of 35.14%, and a net profit of 375 million yuan, up 86.51% [1] - For the first three quarters of 2025, the company achieved a total revenue of 12.713 billion yuan, reflecting a year-on-year increase of 25.51%, while the net profit attributable to shareholders decreased by 39.46% to 863 million yuan [1] - The fluctuation in net profit is attributed to the previous year's impact from the disposal of shares in Dazhu Siter Company [1]

Summary of Han's Laser Technology (002008.SZ) 3Q25 Earnings Call Company Overview - **Company**: Han's Laser Technology (002008.SZ) - **Industry**: Industrial Technology & Machinery in China Key Financial Results - **3Q25 Performance**: - Revenue: Rmb 5,100 million (+35% YoY) - Gross Profit: Rmb 1,784 million (+34% YoY) - EBIT: Rmb 471 million (+157% YoY) - Net Income: Rmb 375 million (+87% YoY) - Gross Profit Margin (GPM): 35% (+0pp YoY) - Operating Profit Margin (OPM): 9% (+4pp YoY) - Net Profit Margin (NPM): 7% (+2pp YoY) [1][8][16] Growth Drivers - **PCB Equipment Sales**: - Sales increased by 96% YoY, contributing significantly to overall performance (30% of sales, 29% of gross profit) [8][15] - Driven by demand from key customer Victory Giant, a supplier for NVIDIA [8] - Forecasted sales for PCB equipment in 2026E: Rmb 7,114 million (+29% YoY) [8] - **Consumer Electronics Equipment**: - Growth supported by strong demand for iPhone 17 and next-generation smartphone models [8][15] - Expected segment sales in 2026E: Rmb 3,055 million (+31% YoY) [15] Operating Leverage and Margins - Improvement in operating leverage with SG&A ratio declining to 25% [15] - OPM forecasted to reach 6.2% in 2026E (+2.1pp from 2025E) [15] Earnings Forecast Revisions - EPS forecasts for 2025E-2030E revised up by 4%-17% due to strong results and outlook [1][15] - New 12-month price target: Rmb 49.8 (+11% from previous Rmb 44.8) [1][15] Investment Thesis - Han's Laser is positioned for earnings growth and margin recovery in 2025, driven by AI-related demand and new consumer electronics opportunities [19] - Attractive share price relative to long-term earnings growth potential [19] Risks - Potential risks include: - Slowdown in end-market capex growth - Customer concentration risk - Increased market competition [20] Valuation Metrics - **2025E P/E**: 32.5 - **2026E P/E**: 22.1 - **2027E P/E**: 16.5 [9] Conclusion - Han's Laser Technology shows strong growth potential in the PCB and consumer electronics sectors, with improving margins and operating leverage, making it a favorable investment opportunity [1][19]

Core Viewpoint - The company reported significant growth in revenue and net profit for Q3 2025, while the first three quarters showed a decline in net profit despite revenue growth [1] Group 1: Q3 2025 Performance - The company achieved a revenue of 5.1 billion yuan in Q3 2025, representing a year-on-year increase of 35.14% [1] - The net profit attributable to shareholders was 375 million yuan, showing a year-on-year growth of 86.51% [1] - The basic earnings per share (EPS) for Q3 2025 was 0.36 yuan [1] Group 2: Year-to-Date Performance - For the first three quarters of 2025, the company reported a total revenue of 12.713 billion yuan, which is a year-on-year increase of 25.51% [1] - The net profit attributable to shareholders for the first three quarters was 863 million yuan, reflecting a year-on-year decline of 39.46% [1] - The basic EPS for the first three quarters was 0.84 yuan [1]

Core Viewpoint - The company Dazong Laser (002008) has indicated that its laser metal wire deposition equipment (DMD) is suitable for research and development, as well as the 3C (computer, communication, and consumer electronics) sectors [1] Company Summary - Dazong Laser's DMD equipment is applicable in various fields, particularly in scientific research and the 3C industry [1]

Summary of Han's Laser Technology Conference Call Company Overview - **Company**: Han's Laser Technology (002008.SZ) - **Industry**: Laser Equipment Manufacturing Key Highlights 1. **3D Printing Business Expansion**: Han's Laser is actively selling 3D printing equipment across various end-markets including consumer electronics, automotive, and semiconductors, while also providing 3D printing services to major customers [1][2] 2. **Positive Outlook on PCB Equipment**: The company is optimistic about PCB equipment sales growth extending into 2026, driven by increased capital expenditure in the PCB industry due to global AI server shipment ramp-up and technology upgrades [2][3] 3. **General Laser Equipment Growth**: High-power laser equipment experienced a shipment volume growth of 10%-20% year-over-year in the first half of 2025, despite a 7%-8% decline in average selling price due to competition. This growth is attributed to overseas expansion and domestic demand in sectors like metal processing and aviation [3] 4. **Operational Streamlining**: Han's Laser has been optimizing its operations by reducing low-growth business units, delegating more authority to business units to enhance productivity, and centralizing raw material procurement to lower supply chain costs. The company does not anticipate major changes in headcount in the near term [4] Financial Outlook 1. **Earnings Growth Expectation**: The company is expected to see earnings growth and a turnaround in margins in 2025 after three years of EBIT year-over-year decline from 2022 to 2024, primarily driven by AI-related demand in the PCB equipment sector and new opportunities in consumer electronics [8] 2. **Price Target and Valuation**: The 12-month price target is set at Rmb 44.80, based on a 30x 2026E P/E ratio, indicating an upside potential of 9.8% from the current price of Rmb 40.81 [10] Risks and Challenges 1. **Market Risks**: Potential risks include a slowdown in end-market capital expenditure growth, customer concentration risk, and increased market competition [9] Additional Insights - **Long-term Revenue Goals**: The company aims for 30% of its total revenue to come from overseas markets in the long term, compared to 14% in 2024 [3] - **AI Applications**: Han's Laser is exploring AI applications, including chatbots for customer service and generative AI tools for operational efficiency [2] This summary encapsulates the key points discussed during the conference call, highlighting the company's strategic initiatives, financial outlook, and potential risks.