Summary of Dongshan Precision's Conference Call Company Overview - **Company**: Dongshan Precision - **Industry**: Optical Chip and PCB Manufacturing Key Points Partnerships and Collaborations - Dongshan Precision is successfully collaborating with major companies such as Meta, Microsoft, and XAI, and is in active discussions with Amazon, Google, and Nvidia [2][3] - Meta has secured an order for 100 million chips, accounting for one-third of next year's total production [4] Production Capacity and Financial Projections - The company aims to achieve a production capacity of 300 million chips by 2027, positioning itself as one of the largest optical chip manufacturers globally [2][3] - Expected profits for 2027 are projected to exceed 20 billion, with a market valuation surpassing 400 billion [3][29] Product Development and Market Demand - Dongshan Precision is developing a 400G single-wave product in collaboration with Nvidia and is focusing on emerging technologies like MBO [5] - The demand for 1.6T products is anticipated to be strong, with Meta and Microsoft placing significant orders [3][9] - The company plans to prepare 25 million related materials for 2027, indicating robust demand for optical modules [12] Financial Performance - In the first three quarters of 2025, profits reached over 1.2 billion, with the company having cleared underperforming LED business segments [11] - The company does not foresee any impact from past underperforming segments on future earnings [11] Competitive Advantages - Dongshan Precision has a competitive edge in the EML (Electro-absorption Modulated Laser) field, with few domestic competitors capable of mass production [6] - The company has unique advantages in PCB technology, being one of the few able to produce high-end soft boards, HDI, and rigid-flex boards simultaneously [7] Market Challenges - The optical chip industry is currently facing a chip shortage due to high global demand and the time required for production expansion [18] - Despite the industry's attractiveness, many companies are operating at a loss, and new entrants are unlikely due to the complexities involved in production [19] Future Outlook - Dongshan Precision is optimistic about the growth of the optical module market, predicting a ninefold increase in demand over the next few years [25] - The company is committed to expanding its production capabilities and adapting to market needs, with ongoing investments in new facilities [21][20] Strategic Initiatives - The company is planning to enhance its production capacity in Thailand and has already invested 10 billion in capacity construction [21] - Ongoing collaborations with Nvidia and other tech giants indicate a strong pipeline for future projects [30] Conclusion - Dongshan Precision is well-positioned for growth in the optical chip and PCB markets, with strong partnerships, a clear production strategy, and a focus on emerging technologies. The company anticipates significant financial performance improvements in the coming years, driven by robust market demand and strategic investments.

Summary of Shennan Circuits Conference Call Company Overview - **Company**: Shennan Circuits (002916.SZ) - **Industry**: Printed Circuit Board (PCB) and Integrated Circuit (IC) substrate manufacturing Key Points Financial Performance - **4Q25 Preliminary Net Income**: Rmb828 million to Rmb1.0 billion, with a midpoint of Rmb922 million, representing a **137% YoY increase** and **7% higher** than estimates [1][4] - **Revenue Growth**: Expected revenue for 2025E is revised to Rmb23.1 billion, up **1%** from previous estimates, with further increases projected for 2026E and 2027E [10] Business Expansion and Strategy - **AI PCB Capacity Expansion**: The company is expanding its AI PCB production capacity in Nantong and Thailand, aiming to improve production yield rates [1] - **Product Mix Upgrade**: Focus on high-end products such as AI PCBs for AI servers, optical transceivers, and switches [1] - **IC Substrate Business**: Benefiting from rising demand in the memory sector, leading to increased pricing and utilization rates [1] Market Position and Outlook - **Market Leadership**: Shennan is expected to maintain its leading position in the local AI PCB market and expand into the ASIC AI server PCB supply chain by 2027E [1] - **Positive Growth Outlook**: The company is projected to see continuous growth driven by product mix upgrades and capacity expansions [1] Earnings Revisions - **Net Income Estimates**: Revised upwards by **3%** for 2025E, with **7%** and **12%** increases for 2026E and 2027E respectively, reflecting higher revenues from AI PCB and BT substrate [4][10] Valuation and Price Target - **12-Month Price Target**: Increased to Rmb290, based on a target P/E of **38x** for 2026E EPS, reflecting higher expected growth rates [10][16] - **Current Price**: Rmb246.05, indicating an upside potential of **17.9%** [17] Risks - **Downside Risks**: Include slower-than-expected expansion into AI PCB, increased competition leading to ASP erosion, customer concentration risks, and slower growth in server/automotive PCB and IC substrate markets [16] Additional Insights - **Revenue Mix**: The contribution from Datacom PCB and IC substrate is expected to rise significantly from 2025 to 2027E [2] - **Gross Margin Trends**: Projected gross margins are expected to stabilize around **28.2%** for 2025E, with slight fluctuations in subsequent years [10][15] This summary encapsulates the essential insights from the conference call regarding Shennan Circuits, highlighting its financial performance, strategic initiatives, market outlook, and associated risks.

Summary of Key Points from Conference Call Industry Overview - The Chinese market experienced a strong start in the last week before the Spring Festival holiday, with major indices closing at daily highs [3] - The overall market sentiment is optimistic, anticipating a "spring rally" before the market closure for the holiday [3] Market Performance - Shanghai Composite Index rose by 1.41% [1] - SSE 50 Index increased by 1.45% [1] - CSI 300 Index saw a rise of 1.63% [1] - STAR 50 Index grew by 2.51% [1] - ChiNext Index surged by 2.98% [1] - CSI 500 Index climbed by 2.02% [1] - Total trading volume reached 2.27 trillion RMB, reflecting a week-on-week increase of 5.1% [1] Sector Highlights - Growth stocks received strong buying support, influenced by the rebound of US tech stocks [3] - Notable performance in the technology hardware sector, with Tianfu Communication (300394.CH) surging by 17.76%, reaching a new historical high [3] - The media sector gained attention due to the popularity of ByteDance's new video generation model, Seedance 2.0, leading to multiple media stocks hitting the daily limit [3] - The Goldman Sachs China AI-generated content index rose by 5.9% [3] - Semiconductor/GPU sector sentiment improved, with Cambrian (688256.SH) rebounding by 4.8% after a previous decline of 17% due to profit guidance rumors [3] - The "space solar energy" theme remained active following news related to Tesla's solar strategy [3] - Consumer stocks lagged behind as funds chased growth stocks; Kweichow Moutai saw a slight increase of 0.8% after reports of rising wholesale prices for its Feitian Moutai [3] Fund Flow Insights - Overall buying inclination was 1.1 times, indicating stronger buying interest [3] - Sectors with buying activity included encapsulated optics (CPO), tourism, and PCB [3] - Sectors with selling activity included storage and defense [3]

Group 1 - Meta has signed a long-term supply agreement with Corning to purchase up to $6 billion worth of fiber optic cables by 2030 to accelerate AI data center construction [1] - The single data center project in Louisiana requires the installation of 8 million miles of fiber optic cables, highlighting the rigid demand for fiber optics as the physical foundation of computing power networks [1] - Nvidia's recent webinar focused on Co-Packaged Optics (CPO) switches, reinforcing the strategic value of CPO as a core support for the scaling of AI computing power [1] Group 2 - The PCB industry is experiencing increased demand for AI-PCB driven by robust downstream AI computing needs, with stable growth expected in the industry by 2025 [1] - Emerging industries such as 5G, artificial intelligence, and automotive electronics are raising new requirements for PCB upstream materials, leading to an upgrade in market demand for high-frequency and high-speed copper-clad laminates and copper foils [1] - M8-M9 high-frequency and high-speed copper-clad laminates and low surface roughness electronic copper foils have become essential for high-end AI servers [1] Group 3 - The Integrated Circuit ETF (159546) tracks the Integrated Circuit Index (932087), which covers publicly listed companies in design, manufacturing, packaging, testing, and related equipment materials [1] - This index reflects the overall performance of the integrated circuit industry chain, focusing on technological innovation and high-growth companies, serving as an important indicator of the development status of China's integrated circuit industry [1]

今日盘间，硬科技板块迎来强势反弹，这一波上涨主要受多重政策利好催化。双创50ETF（588380）盘 中涨幅一度达到3.78%，截至当前的最新涨幅为3.67%。标的指数成分股中，天孚通信、芯原股份涨超 15%，新易盛、晶合集成涨超6%。 研究机构指出，AI应用落地催生算力需求爆发，光模块、PCB等产业链迎"业绩+估值"双击。随着中长 期资金加速入市，成长板块估值修复空间广阔。而双创50ETF（588380）作为覆盖双创板块的核心工 具，聚焦创业板和科创板的核心资产，精准捕捉人工智能、高端制造等新质生产力核心领域，具备长期 配置价值。 （文章来源：每日经济新闻） 消息面上，2月6日，工信部发布《国家算力互联互通节点建设工作方案》，明确加快算力基础设施建 设；上海亦提出"十五五"期间瞄准智能终端、商业航天等新赛道，全力培育万亿级产业增量，政策红利 持续向科技创新领域倾斜。 ...

风险提示：提及个股仅用于行业事件分析，不构成任何个股推荐或投资建议。指数等短期涨跌仅供参 考，不代表其未来表现，亦不构成对基金业绩的承诺或保证。观点可能随市场环境变化而调整，不构成 投资建议或承诺。提及基金风险收益特征各不相同，敬请投资者仔细阅读基金法律文件，充分了解产品 要素、风险等级及收益分配原则，选择与自身风险承受能力匹配的产品，谨慎投资。 （文章来源：每日经济新闻） 半导体设备ETF（159516）跟踪的是半导体材料设备指数（931743），该指数聚焦于半导体产业链中的 材料与设备环节，成分股涵盖半导体制造、封装测试等过程中所需的材料和设备供应商，以反映半导体 产业上游关键领域的市场表现。 华鑫证券指出，AI算力需求持续旺盛，推动电子与半导体行业相关环节发展。为满足Meta、谷歌、微 软等科技巨头持续增长的需求，光纤光缆作为算力网络的物理底座，其需求刚性与成长持续性获双重验 证。在AI模型变大、推理实时化背景下，共封装光学（CPO）技术成为AI算力规模化扩张的核心支 撑。从PCB行业看，下游AI算力需求旺盛带动AI-PCB需求提升，行业从2024年初开始逐步复苏，2025 年整体实现了较为稳定的增长。 ...

Summary of Key Points from Conference Call Records Industry Overview 1. PCB (Printed Circuit Board) - The PCB sector has shown weak performance since Q4 of last year, primarily due to divergent market views on orthogonal backplane solutions, with some believing they may be replaced by copper cables/CPO or delayed until 2028. However, the orthogonal backplane is currently progressing steadily and is expected to enter mass production in H2 2027. Leading companies are experiencing stock price stagnation due to these divergences, highlighting their cost-effectiveness. Recommended companies include Dongshan Precision, Shenghong Technology, and Huidian Co. [1] - The CoWoP (Chip on Wafer on PCB) solution has stronger certainty, can reduce costs, improve efficiency, and bypass the shortage of substrate capacity. The value per square meter of PCB may increase several times, potentially reaching tenfold, with product launches expected by the end of 2027 and full implementation in 2028. Recommended companies in this direction include Pengding Holdings, Shennan Circuit, and Xinsong Technology. [1] 2. Storage - Contract prices remain in an upward cycle despite fluctuations in spot prices. Module companies are expected to see explosive Q1 performance, with Jiangbolong and Demingli realizing low-priced inventory. Recommended design companies include Zhaoyi Innovation (with a profit expectation of 6 billion) and Puran Co., Beijing Junzheng, and Hengshuo Co. [2] - Demand for memory modules is driven by AI servers and general servers, with recommendations for Lanke Technology (long-term profit of 10 billion) and Jucheng Co. (long-term profit of 1.5 billion). [2] 3. Communication - The recent decline in optical modules is related to the pullback of US tech stocks and speculation around CPO concepts. However, industry sources (such as Coherent and Xuchuang) indicate that CPO's potential to replace optical modules in ScaleOut scenarios is low, suggesting that short-term speculation may be excessive. [2] - North American cloud service providers have exceeded capital expenditure guidance for 2026 (620 billion, up 65% year-on-year), indicating potential accelerated demand for optical modules in 2027. Key upcoming catalysts include Nvidia's quarterly report (February 26), GTC conference (March), and OFC exhibition (NPO product showcase). Recommended companies include Zhongji Xuchuang, Xinyisheng, and Dongshan Precision. [2] - For copper connections as a Plan B alternative to orthogonal backplanes, companies to watch include Luxshare Precision, Wokai Nuclear Materials, and Huiju Technology (with potential for stock doubling). [2] - The price of scattered fiber has surged in the short term (from 25 to 50 yuan), but the low willingness of operators to raise prices raises doubts about long-term sustainability. [2] 4. Computing - Domestic computing resources are in short supply, with the recent downtime of Qianwen highlighting the scarcity of AI foundational resources. The demand for CPUs is expected to rise due to increased usage of agents compared to chatbots. Recommended companies include Haiguang Information (benefiting from both CPU and GPU), Cambrian (leading domestic AI chip manufacturer), and Tianshu Zhixin (expected to accelerate integration with leading players). [2] - Cloud infrastructure resources are expected to benefit from price increases, with recommendations for Kingsoft Cloud, Wangsu Technology, and Fourth Paradigm. [2] - In the AI application sector, the recent drop in overseas software and restructuring of SaaS business models may lead to a narrative reversal with the launch of native agent products in Q3 2026. Companies to watch include Alibaba for 2C entry reconstruction and third-party AI agents like TaxFriend, Zhongkong Technology, and Dingjie Smart. [2] 5. Media - Tencent has faced a decline due to market concerns over potential tax increases on internet platforms, although there is no space for increased game value-added tax. The company remains recommended despite rumors of Q4 earnings downgrades, maintaining a PE ratio of 15 times, which still offers value. [3] - The download situation for the Yuanbao app remains stable, and Tencent's AI capabilities may be closing the gap with larger competitors. [3] - In gaming, companies with upcoming catalysts such as Giant Network and Perfect World are recommended for short-term focus, while Century Huatong and Kaiying Network are suggested for medium to long-term attention due to expected catalysts. [3] - Tencent's establishment of a separate AI comic app is beneficial for the production side, which is entering a period of profitability. Recommendations include Kuaishou, Huanrui, and Rongxin. [3] 6. Pharmaceuticals - Attention is drawn to the update of the essential drug catalog, which may accelerate progress. [4] - The probability of inclusion in the essential drug catalog is high for unique products, with several specific products from companies like Jichuan Pharmaceutical and Panlong Pharmaceutical being highlighted. [4] - Emphasis on the global competitiveness of the innovative drug industry chain, with a focus on new-generation ADCs, IOs, small nucleic acids, and CGT. Recommended companies include Kanghong, Yingen, Yunding, and Chengdu Xian Dao. [4] - The brain-computer interface theme is noted, with a potential showcase of non-invasive products during the Spring Festival and a semi-invasive product approval for Borui Kang in March. [4] - Recommendations include Meihua Medical, Dongwei Semiconductor, and Sanbo Brain Science. [5] - The surgical robot sector is expected to see comprehensive implementation of charging policies before August, with overseas orders doubling and maintaining high growth in 2027. Key types include laparoscopic and orthopedic robots, with strong overseas performance for laparoscopic robots. Recommended companies include MicroPort, Jingfeng Medical, Tianzhihang, and Sanyou Medical. [6]

Market Overview - The market experienced a low open followed by a rebound, but overall profitability remained poor [3] - The Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index closed down by 0.25%, 0.33%, and 0.73% respectively, with total trading volume shrinking to 2.1 trillion [4] Sector Performance - The Traditional Chinese Medicine sector opened high but showed a trend of high open and low close [3] - The PCB sector saw a strong morning performance with stocks like Shenzhen South Circuit hitting the daily limit, but retreated in the afternoon [3] - Solid-state and sodium-ion battery stocks showed localized strength, with several stocks hitting the daily limit [3] - The space photovoltaic sector rebounded in the afternoon, with stocks like GCL-Poly Energy achieving three consecutive daily limits [3] AI Applications - AI application stocks faced significant declines, following a downturn in the Nasdaq index, marking the worst three-day drop since April 2025 [9] - Notable declines included FaceSet dropping over 7% and Thomson Reuters falling over 5% [9] - The release of a new AI model by Anthropic raised concerns about potential disruptions to traditional software business models, leading to market panic [9] Precious Metals - Precious metals like silver and gold experienced violent declines in overseas markets, leading to a significant drop in A-share prices [13] - Despite initial low openings, the sector saw a collective rebound, with stocks like Hunan Gold hitting the daily limit [13] - Overall, most precious metal stocks ended the day either slightly up or down, with gold rising by 0.76% and silver down by only 1% [13] Company-Specific Events - Alibaba's Qianwen launched a promotional event offering free milk tea, which generated significant online buzz and led to a surge in related concept stocks [7] - The event caused a temporary disruption to the Qianwen platform due to high traffic, but also positively impacted stocks in the "milk tea" sector [7]

A股三大指数早盘集体上涨，截至午盘，沪指涨0.11%，深成指涨0.65%，创业板指涨0.65%，北证50指数涨1.05%，沪深京 三市半日成交额13950亿元，较上日缩量642亿元。全市场超3800只个股上涨。 板块题材上，化学原料、中药、电池、油气开采及服务、光纤、电网设备、PCB概念股涨幅居前；白酒、旅游及酒店、零 售、文化传媒、煤炭开采加工、军工装备板块表现落后，盘面上，受政策利好影响，中药板块早盘高开，特一药业、汉森制药 双双涨停。国际化工巨头巴斯夫涨价提振化工板块，金牛化学等股收获涨停。PCB概念股盘中异动，深南电路封板，胜宏科技 跟随上涨，此前多个美国科技巨头资本开支超出预期。此外，有色金属、油气资源股低开后持续回暖。另一方面，白酒、零 售、旅游等消费股未能延续昨日涨势回调，皇台酒业跌停，百大集团、国光连锁跌幅居前。 ...

Core Viewpoint - The company anticipates a significant increase in net profit for 2025, projecting a range of 1.43 to 1.51 billion, representing a year-on-year growth of 331.0% to 355.9% [2] Group 1: 2025 Performance Expectations - The projected net profit for 2025 is between 1.43 to 1.51 billion, with a year-on-year increase of 331.0% to 355.9%, and the same range applies to the non-recurring net profit [2] - In Q4, the company experienced a quarter-on-quarter decline in net profit, with a median of 360 million, a year-on-year increase of 145.8% but a quarter-on-quarter decrease of 38.8% [2] - The decline in Q4 performance is attributed to a slowdown in order fulfillment from major clients in the computing power sector, particularly AWS, along with increased depreciation and foreign exchange losses [2] Group 2: Market Outlook for 2026 - For 2026, the company expects a new growth inflection point with the anticipated switch and ramp-up of AWS's new architecture products in Q2 [3] - The company is rapidly expanding its high-end production capacity, with new facilities in Jinan and Thailand expected to come online by mid-2026 [3] - The company is actively seeking certification from major clients like Meta, Google, and NV, which may enhance its market share in AI servers and high-speed switches [3] Group 3: Investment Recommendations - The company forecasts revenue for 2025-2027 to reach ***/***/*** billion, with net profit projected at ***/***/*** billion, corresponding to a PE ratio of ***/***/*** times [3] - The long-term outlook is positive due to accelerated expansion of high-end production capacity and continuous product structure optimization, which is expected to drive growth in the computing power market [3]