Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [2]. Core Views - The company has experienced significant revenue growth driven by the demand for AI computing, particularly in the high-speed optical communication components market, with a revenue increase of 24.29% year-on-year in H1 2025 [5][6]. - The company is increasing its R&D investment to enhance its foundational optical technology capabilities, with a 30.71% year-on-year increase in R&D spending in H1 2025 [7]. - The company is actively expanding its domestic and international business, focusing on vertical integration and enhancing production capabilities, including the establishment of a production base in Thailand [8][9]. Financial Performance - In H1 2025, the company achieved a revenue of 263 million yuan, with a net profit attributable to shareholders of 36.59 million yuan, reflecting a year-on-year increase of 11.47% [5][6]. - The company forecasts revenues of 602 million yuan, 786 million yuan, and 1.012 billion yuan for 2025, 2026, and 2027 respectively, with net profits expected to reach 98 million yuan, 137 million yuan, and 186 million yuan in the same years [10][12]. Growth Projections - The company anticipates a revenue growth rate of 35.34% in 2025, followed by 30.45% in 2026 and 28.72% in 2027 [12]. - The projected earnings per share (EPS) are expected to increase from 0.76 yuan in 2025 to 1.44 yuan in 2027 [12].

Core Viewpoint - The acquisition of 100% equity in Mia Precision Technology and Changhong Industrial by GoerTek aims to enhance its competitiveness in the precision structural components sector and improve vertical integration within the smart hardware supply chain [1][2]. Group 1: Acquisition Details - GoerTek announced the acquisition of Mia Precision Technology and Changhong Industrial for approximately HKD 10.4 billion (around RMB 9.5 billion) [1]. - The target companies are recognized for their leading position in the precision metal structural components industry, with significant technical expertise in metal/non-metal material processing and fine surface treatment [1][2]. - The combined unaudited revenue for the two target companies for the fiscal year 2024 is estimated at approximately HKD 9.11 billion, indicating a solid business scale and market foundation [2]. Group 2: Strategic Implications - The acquisition is expected to enhance GoerTek's vertical integration capabilities, increase the scale and profitability of its precision structural components business, and deepen collaboration with leading industry clients [2][3]. - GoerTek's precision components business is the fastest-growing segment, with projected revenue of RMB 15.051 billion for 2024, accounting for 14.90% of total revenue and showing a year-on-year growth of 15.85% [3]. - The acquisition is part of GoerTek's broader strategy to position itself in next-generation terminal products, including acoustic components and optical modules, while maintaining strong ties with major brands like Meta, Sony, and Pico [2].

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]