Summary of the Conference Call for Jiepu Technology Industry and Company Overview - **Company**: Jiepu Technology - **Industry**: Laser technology and optical devices, focusing on consumer electronics, communication, and energy storage sectors Key Points and Arguments Revenue Projections and Growth Drivers - Jiepu expects revenue to exceed 1.5 billion yuan in 2025, driven by consumer laser technology (increment of approximately 150 million yuan), lithium battery and energy storage expansion, and communication industry certifications and expansions (seasonal increment of 30 million yuan, already profitable) [2][4][5] - The company is optimistic about future revenue growth, particularly in consumer laser technology due to ongoing technological upgrades [2][6] - Communication business is anticipated to be a significant growth curve, with an internal target of approximately 100 million yuan in 2025 and over 1 billion yuan in the next 2-3 years [2][7] Performance in Q3 2025 - In Q3 2025, Jiepu achieved significant performance growth, exceeding market expectations. The optical device business generated approximately 50 million yuan, while laser business revenue reached about 900 million yuan [3] - Specific revenue breakdown includes: MOPA laser (650 million yuan), solid-state laser (100 million yuan), continuous wave laser (150 million yuan), passive component equipment (100 million yuan), and optical detection equipment related to A customers (300 million yuan) [3] Communication Business Developments - The communication sector is viewed as a key growth area, with a high target set internally. The company has successfully expanded its factories in Thailand and Huizhou, with rapid order growth [7][14] - The communication business is expected to reach 1 billion yuan in the next 2-3 years, with Q3 performance aligning with overall company metrics [7][17] Consumer Electronics and Laser Technology - In the consumer electronics sector, Jiepu has begun small-scale shipments of foldable screen Face ID Meta Lens, with expectations for large-scale shipments in 2026, potentially generating around 3 billion yuan in device space and approximately 1 billion yuan in profit [9] - The company is uniquely servicing A customers' XR line detection needs and participating in AI glasses projects, indicating strong growth potential in consumer electronics [9] Energy Storage and Battery Sector - The outlook for the energy storage and battery sector is optimistic, with major clients expanding production and secondary and overseas clients beginning to adopt Jiepu's lasers [10] - The company’s platform capabilities and economies of scale are becoming increasingly evident [10] Market Trends and Future Outlook - The laser market is still in its early development stage, particularly in the B2C segment, with increasing demand in Europe and the US, while the domestic market remains at a low base [11] - Jiepu anticipates significant growth in laser applications in consumer markets, including 3D printing and laser engraving [11] Financial Performance and Cost Management - Jiepu achieved a gross margin of 42% and a net profit margin of 17% in Q3, with expectations for continued improvement due to scale effects and management enhancements [6] - The company is actively working on inventory optimization to reduce asset impairment ratios, which are expected to decline as a proportion of profits [21] Personnel and Expense Projections - The company plans to increase its workforce to 2,000-2,100 employees in 2026, with an overall expense growth rate projected at around 15% [30] Strategic Collaborations and Innovations - Jiepu is collaborating with major clients like 创想 3D for exclusive laser supply agreements and is exploring new opportunities in AI and robotics [24][27] - The company is also developing new laser products in partnership with various clients, with expectations for gradual product launches from Q4 2025 to 2026 [26] Additional Important Insights - The PCB industry is experiencing high demand, with Jiepu securing orders from clients like 东山 and 盛宏, indicating a broad market opportunity [8] - The company is focusing on automation in its optical communication business, which is expected to enhance efficiency and profitability [16] This summary encapsulates the key insights from Jiepu Technology's conference call, highlighting its growth strategies, market positioning, and financial outlook.

Group 1 - The core point of the article is that Ruike Laser (300747) has filed an international patent application for a semiconductor laser module spatial beam combining method, with the application number PCT/CN2024/096399 and an international publication date set for October 9, 2025 [1] Group 2 - Ruike Laser has announced a total of 17 international patent applications this year, representing an increase of 183.33% compared to the same period last year [3] - In the first half of 2025, the company invested 171 million yuan in research and development, which is a year-on-year increase of 9.32% [3]

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company reported a significant operational turning point in its main business, with new applications gradually yielding results. The manufacturing demand is expected to recover, and the company is likely to benefit from emerging applications and the trend of laser technology going global [2][6]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved a revenue of 1.664 billion yuan, a year-on-year increase of 4.85%. The net profit attributable to the parent company was 73 million yuan, a decrease of 23.78%. The net profit excluding non-recurring items was 32 million yuan, down 38.34%. In Q2 2025, revenue reached 949 million yuan, up 20.73% year-on-year, while the net profit attributable to the parent company was 56 million yuan, up 73.79% [2][6]. Business Development - The company is solidifying its leading position in the market, with a robust recovery in manufacturing demand and a steady expansion into new applications. The international business is also progressing, with overseas revenue growing nearly 40% year-on-year in the first half of 2025. New customer centers in Turkey and Japan have commenced operations, and the company is preparing to establish offices in Germany, Mexico, Thailand, and South Korea [2][11]. New Applications - The company is actively expanding into new application areas, including: 1. Consumer market: Over 10,000 units of consumer-grade laser equipment sold in the first half of 2025, responding to the trend of miniaturization and smart consumer products [11]. 2. Medical field: Introduction of specialized thulium lasers targeting urology, achieving import substitution and passing performance tests [11]. 3. Security field: Development of key technologies for laser security, with significant revenue growth in its subsidiary [11]. Product Innovation - The company has launched new high-power laser products, including a semiconductor laser suitable for various applications such as electric vehicles and 3D printing. The UV nanosecond laser has been well-received in PCB precision processing, showcasing excellent performance [11]. Profit Forecast - The company is expected to achieve net profits of 182 million yuan, 285 million yuan, and 356 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 91x, 58x, and 47x [11].

Core Viewpoint - The laser industry is showing a stable and positive trend in H1 2025, with the company experiencing simultaneous growth in revenue and shipment volume. Q2 revenue increased by 20.73% year-on-year and 32.67% quarter-on-quarter, indicating a performance turning point. Additionally, overseas revenue grew nearly 40% year-on-year, reflecting the company's ongoing international strategy and market expansion in various sectors such as consumer, medical, and security lasers [1][3]. Financial Performance - In H1 2025, the company achieved operating revenue of 1.664 billion yuan, a year-on-year increase of 4.85%. However, net profit attributable to shareholders decreased by 23.78% to 73 million yuan, while the net profit excluding non-recurring items fell by 38.84% to 32 million yuan [2]. - In Q2 2025, the company reported operating revenue of 949 million yuan, a year-on-year increase of 20.73%. Net profit attributable to shareholders rose significantly by 73.79% to 56 million yuan, and net profit excluding non-recurring items surged by 155.28% to 30 million yuan [2][4]. Profitability and Cost Management - The company's gross margin remained relatively stable at 19.00% in H1 2025, down 4.67 percentage points year-on-year. The gross margin for core products, continuous fiber lasers, was 17.20%, also down 4.75 percentage points year-on-year. Adjusting for accounting changes, the gross margin could be around 24%-25%, with expectations for improvement as cost optimization and rebate adjustments take effect [4]. - The company maintained good control over operating expenses, with a total expense ratio of 14.59% in H1 2025, a slight decrease of 0.28 percentage points year-on-year. The breakdown of expenses includes sales at 2.00%, management at 2.87%, R&D at 10.25%, and financial expenses at -0.54% [4]. Market Expansion and New Opportunities - The company is making significant strides in various niche markets, including consumer, medical, and security lasers. In the consumer sector, laser sales exceeded 10,000 units in H1 2025, driven by a strategic focus on miniaturization and smart consumer products [5]. - In the medical field, the company launched a specialized thulium laser targeting urology, achieving import substitution and laying a solid foundation for market promotion [5]. - In the security sector, the company is advancing key technologies for laser security, with a subsidiary reporting over 420% year-on-year revenue growth in H1 2025 [5].

Core Insights - The report emphasizes the undervaluation of consumer stocks in the Hong Kong market, particularly in the context of the recently introduced childcare subsidy policy, which is expected to catalyze a rebound in the consumer sector [3][11] - The report highlights the potential for a mid-term reversal in the consumer sector, driven by improving fundamentals and the market's previous pessimism towards certain industries [3][11] - The report identifies the continuous support from government policies, such as free preschool education, as a significant catalyst for enhancing consumer sentiment and boosting birth rates [3][11] Summary by Sections Hong Kong Consumer Sector Analysis - The report notes that consumer goods stocks are currently undervalued and are likely to experience a rebound due to policy catalysts, particularly the childcare subsidy policy [3][11] - It provides data showing significant price increases in various consumer sectors, with entertainment products and cosmetics seeing increases of 123.5% and 40.5% respectively from January to July 2025 [11] - The report suggests that the consumer sector is at a turning point, with the potential for a mid-term reversal as the market begins to reflect improved fundamentals [3][11] Company Analysis: Ruike Laser (300747) - Ruike Laser is recognized as a leading enterprise in the fiber laser sector, with a comprehensive vertical integration capability from semiconductor laser chips to various laser devices [4][15] - The company has demonstrated a compound annual growth rate (CAGR) of 30.01% in revenue and 25.89% in net profit from 2014 to 2024, indicating strong growth potential [15] - The report highlights the increasing demand for laser equipment in industrial applications, particularly due to the advantages of precision and efficiency over traditional processing methods [4][15] Special Applications and Market Potential - The report discusses the strategic positioning of Ruike Laser in special applications, particularly in defense systems, where laser technology is becoming crucial for modern warfare [4][15] - It notes the potential market space for laser defense systems, particularly in low-altitude anti-drone applications, which are gaining traction globally [4][15] Lithium Battery Equipment Sector - The report highlights the increasing application of laser technology in solid-state batteries, which is expected to enhance the value of equipment in this sector [14][16] - It outlines the advantages of solid-state batteries, including higher energy density and safety, which are driving demand for related equipment [14][16] - Key companies in the lithium battery equipment sector, such as Lianying Laser and Delong Laser, are identified as significant players in the development of solid-state battery production technologies [14][16]

Investment Rating - The report maintains a "Buy" rating for the company, Ruike Laser [6][5][4]. Core Views - Ruike Laser is a leading enterprise in continuous fiber laser technology, with expanding demand in consumer and specialized applications. The company has a comprehensive vertical integration capability from semiconductor laser chips to various fiber and components, aiming for full spectrum, pulse width, power, and application coverage [5][13][19]. - The company has shown robust revenue growth with a CAGR of 30.01% from 2014 to 2024, and a net profit CAGR of 25.89% during the same period. Despite a projected revenue decline in 2024, the company is expected to recover with a focus on high-end applications and cost control measures [23][5][6]. Financial Data and Profit Forecast - Total revenue for 2024 is projected at 3,197 million yuan, with a year-on-year decline of 13.1%. The net profit attributable to the parent company is expected to be 134 million yuan, down 38.2% year-on-year [4][6]. - The company anticipates net profits of 178 million yuan, 275 million yuan, and 361 million yuan for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 94, 61, and 46 [6][5]. - The gross profit margin is expected to improve from 20.5% in 2024 to 25.1% by 2027, reflecting enhanced profitability [6][5]. Industry Insights - The industrial laser market is experiencing a shift towards high-precision and efficient processing, with laser technology increasingly replacing traditional methods due to its advantages in speed and accuracy [29][32]. - The consumer segment is witnessing rapid growth in desktop laser equipment, driven by DIY culture and personalized customization trends in regions like Europe and North America [5][6]. - The special applications sector, particularly in defense and aerospace, is a key growth area, with the company positioned to capitalize on emerging opportunities in low-altitude anti-drone systems [5][6]. Competitive Landscape - The competitive landscape for industrial lasers is improving as smaller players exit the market, allowing for better pricing stability and market share retention for leading companies like Ruike Laser [5][6]. - The company is strategically positioned against comparable firms in the laser industry, with a focus on maintaining a competitive edge through innovation and cost management [6][5].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is a leading enterprise in the continuous fiber laser sector, with demand growth driven by consumer and specialized applications [5][15] - The company has demonstrated strong revenue growth with a CAGR of 30.01% from 2014 to 2024 and a net profit CAGR of 25.89% during the same period [25][26] - The company is positioned to benefit from improving market dynamics in the industrial sector, with a focus on high-precision applications and export opportunities [5][31] Financial Data and Profit Forecast - Total revenue is projected to be 3,197 million yuan in 2024, with a year-on-year decline of 13.1%, followed by an increase to 3,470 million yuan in 2025, representing an 8.5% growth [4] - The net profit attributable to the parent company is expected to be 134 million yuan in 2024, with a significant decline of 38.2%, and is forecasted to recover to 178 million yuan in 2025, reflecting a growth of 32.6% [4] - The earnings per share (EPS) is projected to be 0.24 yuan in 2024, increasing to 0.32 yuan in 2025 [4] Industry Overview - The laser industry is experiencing a shift towards high-precision and efficient processing methods, with laser technology increasingly replacing traditional manufacturing techniques [31][34] - The market for laser equipment is expected to grow steadily, with the Chinese laser equipment market projected to expand from 658 billion yuan in 2019 to 940 billion yuan by 2024, reflecting a CAGR of 7.39% [42][45] - The continuous fiber laser market is anticipated to grow from 82.60 billion yuan in 2019 to 140 billion yuan by 2024, with a CAGR of 11.13% [43][45] Product Development - The company has developed a diverse range of products, including six major categories of laser products, catering to various applications such as laser marking, cutting, welding, and 3D printing [21][22] - The continuous fiber laser products contribute significantly to revenue, accounting for approximately 79% of total revenue in 2024 [23][22] - The company is actively expanding its product offerings to include high-power and ultra-fast lasers, which are gaining traction in precision manufacturing and specialized applications [5][15]

Industry Overview - On July 22, Trump announced trade agreements with Japan, the Philippines, and Indonesia, with Japan's tariff set at 15%, lower than the previously mentioned 25%. Japan will invest $550 billion in the U.S. and open markets including automobiles and rice. The U.S. will impose a 19% tariff on goods from the Philippines and Indonesia, which will also open their markets to the U.S. The remaining major economy, the EU, has yet to finalize tariff negotiations with the U.S., making the differences in tariff rates between China and these countries a potential market focus and risk point [1]. Company Performance - Jiepu Te, primarily engaged in power laser components, announced a semi-annual performance forecast for 2025, expecting revenue between 840 million to 920 million yuan, a year-on-year increase of approximately 41.50% to 54.98%. The net profit attributable to shareholders is expected to be between 86 million to 100 million yuan, with a year-on-year growth of about 57.03% to 82.60%. The growth is attributed to increased global demand for lasers, particularly in the precision processing of new energy power batteries and consumer-grade laser fields [2]. - Xiamen Tungsten, focusing on new energy battery materials, projected a revenue of 7.534 billion yuan for the first half of 2025, representing a year-on-year increase of 18.04%. The expected net profit attributable to shareholders is 307 million yuan, up 27.76%. The second quarter alone is anticipated to generate 4.557 billion yuan in revenue, a 51.85% increase year-on-year. The growth is driven by the lithium cobalt oxide business benefiting from replacement subsidies and AI demand in 3C devices, alongside a strong market position in the power battery sector [5]. - Keda Li, specializing in precision components for lithium-ion batteries and automotive structures, forecasted a net profit of 750 million to 820 million yuan for the first half of 2025, reflecting a year-on-year increase of 15.73% to 26.53%. The second quarter's net profit is expected to be around 398 million yuan, a 28.80% increase year-on-year. The growth is primarily due to increased orders for precision components driven by rising sales of new energy vehicles and cost-reduction measures enhancing operational efficiency [6]. - Bailong Oriental announced a performance forecast for the first half of 2025, expecting a net profit of 350 million to 410 million yuan, a year-on-year increase of 50% to 76%. The net profit after deducting non-recurring items is projected to be between 323 million to 383 million yuan, with a significant year-on-year growth of 202% to 258%. The growth is attributed to robust orders in the yarn business and improved capacity utilization domestically and internationally [8].

Core Viewpoint - The ZEUS system, recognized as "the most powerful laser in the U.S.," has officially commenced scientific experiments with a peak power output of 2 petawatts, which is approximately 100 times the total power of the global electrical grid [1] Group 1 - The ZEUS laser emits ultra-short pulses with a peak power of 2 petawatts [1] - Each pulse lasts only 25 attoseconds, opening new dimensions for high-energy physics research [1]