Investment Rating - The report does not explicitly provide an investment rating for Longcheer (603341.SS) but indicates a positive outlook on the company's growth opportunities in AI PC and AI/AR glasses [1][2]. Core Insights - Longcheer is optimistic about the increasing penetration of AI PCs, which are expected to have higher average selling prices (ASP) due to enhanced specifications for computing power and storage [3]. - The company is expanding its business into AI/AR glasses, leveraging its strengths in lightweight design and customized solutions, with projected annual shipments in China expected to grow at a 56% CAGR from 2024 to 2030, reaching 7 million units by 2030 [7]. - Longcheer is also focusing on overseas expansion, with production facilities in Vietnam and India, targeting markets in the US, Europe, Japan, and Korea [8]. Summary by Sections AI PC Market - Management is positive about the rising AI PC penetration rate, viewing Longcheer as a key beneficiary in the supply chain due to its R&D efficiency and automated production lines [3]. - The company has already penetrated local brands and aims to collaborate with global-tier brand clients [3]. AI/AR Glasses Market - Longcheer is actively providing PCBA and accessory services for AI/AR glasses, with a focus on enhancing user experience through lightweight solutions and proofing/simulation [7]. - The management anticipates significant growth in the AI/AR glasses market, driven by affordability and increased use cases [7]. Overseas Expansion - Longcheer has established production sites in China, Vietnam, and India, with plans to expand capacity in Vietnam to mitigate concentration risks amid trade tensions [8]. - The company is building a Manage Sales & Marketing (MSM) framework to enhance product development efficiency and service quality for its overseas markets [8].

Investment Rating - The report does not provide a specific investment rating for Longcheer (603341.SS) but indicates a positive long-term growth outlook for the company [1][4]. Core Insights - Longcheer is positioned as a market leader in the smartphone ODM sector with a global market share of 33% in 2024, although margins are currently affected by rising raw material costs [4][8]. - The company is optimistic about new business segments, particularly AI glasses and automotive electronics, which are expected to drive future growth [1][8]. - Management anticipates a recovery in margins in 2025 as raw material prices normalize, despite a saturated smartphone market [4][8]. Summary by Sections Smartphone ODM Outlook - Longcheer's smartphone ODM business holds a 33% global market share as of 2024, reflecting its leadership position [4]. - Current margins are pressured by increased raw material costs, but a recovery is expected in 2025 as prices stabilize [4]. - The smartphone market is viewed as saturated, yet AI applications may provide avenues for growth [4][8]. Development of New Business - The AI glasses segment is expected to see increased demand in 2025, supported by new foundational models [8]. - The penetration rate for AI PCs is projected to rise, contributing to a product replacement cycle [8]. - Longcheer's smart cockpit products are in testing and have begun to enter local car OEMs, indicating growth potential in automotive electronics [8].

Investment Rating - The report does not provide a specific investment rating for Longcheer (603341.SS) as it is categorized as "Not Covered" [1]. Core Insights - Longcheer is optimistic about its long-term growth prospects, driven by market share expansion in PCs and new opportunities in AI glasses and smart cockpit technology [1][7]. - The smartphone ODM business holds a global market share of 33% as of 2024, with expectations for margin recovery in 2025 due to stabilizing raw material prices [4][7]. - The company is entering new business segments, including AI glasses and automotive electronics, which are expected to contribute to growth [7]. Summary by Relevant Sections Company Overview - Longcheer (603341.SS) was established in 2002 and has become a global leader in consumer electronics ODM, with a diverse product line including smartphones, PCs, tablets, smart wearables, and automotive electronics [3]. Smartphone ODM Outlook - The smartphone ODM business is projected to recover margins in 2025 as raw material prices normalize, despite a saturated market [4][7]. - AI applications are anticipated to support future market growth, alongside increasing penetration rates in smartphone ODM [4]. New Business Development - The AI glasses segment is expected to see positive demand driven by new foundational models, while the penetration of AI PCs is projected to rise, enhancing the product replacement cycle [7]. - Longcheer's smart cockpit products are currently in testing and have begun to enter several local car OEMs, indicating a promising growth trajectory [7].