Core Viewpoint - The company has developed a series of high-yield strength special powder materials for the application needs of foldable smartphone hinges, which have been successfully supplied in bulk for this sector [1] Group 1 - The research and development team of the company has focused on the specific requirements of foldable smartphone hinges [1] - The newly developed materials are characterized by high yield strength [1] - The metal injection molding feedstock high-strength steel products made from these materials are now in mass supply for the foldable smartphone hinge market [1]

Core Viewpoint - Kosen Technology (603626) has issued a stock trading risk warning due to its stock price hitting the daily limit for three consecutive trading days, indicating a significant recent price increase and potential short-term decline risk [1] Company Overview - Kosen Technology specializes in the production of structural components for consumer electronics [1] - The company has been mistakenly identified by media as a player in the AI glasses sector, but it does not manufacture AI glasses or their structural components [1] - Kosen Technology has also been associated with the foldable screen sector; however, it primarily relies on a single customer for its foldable screen hinge assembly business, which only contributed 2.10% to total revenue in the first half of 2025 [1]

Core Viewpoint - The stock of Kosen Technology (603626.SH) experienced a significant price fluctuation, with a cumulative increase of 20% over two consecutive trading days, which is classified as an abnormal trading situation according to Shanghai Stock Exchange regulations [1] Group 1: Company Operations - Kosen Technology's main business is the production of structural components for consumer electronics [1] - The company has been mistakenly identified by media as a player in the AI glasses sector; however, it does not manufacture AI glasses or their structural components [1] - Kosen Technology has also been associated with the foldable screen concept; yet, it only has a single customer for its foldable screen hinge assembly business, which relies on externally sourced components [1] Group 2: Financial Impact - The revenue generated from the foldable screen hinge assembly business accounted for only 2.10% of the total revenue in the first half of 2025, indicating that this segment does not significantly impact the company's overall performance [1]

Core Viewpoint - The stock of Kosen Technology (603626.SH) experienced a significant price fluctuation, with a cumulative increase of 20% over two consecutive trading days, which is classified as an abnormal trading situation according to the Shanghai Stock Exchange regulations [1] Group 1: Company Operations - Kosen Technology's main business is the production of structural components for consumer electronics [1] - The company has been mistakenly identified by media as a player in the AI glasses sector; however, it does not manufacture AI glasses or their structural components [1] - Kosen Technology has also been associated with the foldable screen concept; yet, upon self-examination, it confirmed that its foldable screen hinge assembly business relies on a single customer and uses externally sourced components, contributing only 2.10% to total revenue in the first half of 2025, thus having a negligible impact on overall performance [1]

Core Viewpoint - Kosen Technology (603626.SH) clarifies its business operations in response to media categorization as an AI glasses and foldable screen concept stock, stating it does not produce AI glasses or their components, and that its foldable screen hinge assembly business has minimal impact on overall revenue [1] Group 1: Business Operations - The main business of Kosen Technology is the production of structural components for consumer electronics [1] - The company does not manufacture AI glasses or components related to AI glasses [1] - Kosen Technology's foldable screen hinge assembly business relies on a single customer and uses externally sourced components, contributing only 2.10% to total revenue projected for the first half of 2025 [1]

Core Viewpoint - The company, Kosen Technology, clarifies that it does not produce AI glasses or their structural components, despite being listed as an AI glasses concept stock by the media [1]. Group 1: Business Operations - The main business of the company is the production of structural components for consumer electronics [1]. - The company has a single customer for its folding screen hinge assembly business, which relies on externally sourced structural components [1]. Group 2: Financial Impact - The revenue generated from the folding screen hinge assembly business is estimated to account for only 2.10% of total revenue in the first half of 2025, indicating minimal impact on the company's overall performance [1].

Investment Rating - The industry rating for the foldable screen mobile phone sector is positive, with expectations for accelerated growth driven by Apple's entry into the market [4]. Core Insights - The foldable screen mobile phone market is set to grow significantly, with global shipments projected to reach 17.8 million units in 2024 and potentially 70 million units by 2027, reflecting a CAGR of 57.8% from 2024 to 2027 [1][20]. - Apple's anticipated launch of a foldable iPhone in 2026 is expected to further stimulate market growth and increase shipments [20]. - The industry is transitioning from traditional smartphones to innovative foldable designs, which are becoming the new standard in mobile technology [15]. Summary by Sections 1. Foldable Screen Mobile Phones - The global smartphone market is rebounding, with a projected shipment of 1.238 billion units in 2024, a year-on-year increase of 6.4% [12]. - Foldable screen technology is recognized as a key innovation in the smartphone sector, addressing the need for larger screens while maintaining portability [15]. - The market is characterized by a shift towards lighter and more affordable foldable devices, with average prices decreasing significantly [31]. 2. Hinge Technology - Hinges are critical components in foldable phones, requiring high durability and precision, with designs evolving towards lighter and more robust solutions [38]. - The predominant hinge types are water-drop and U-shaped, with water-drop designs becoming the preferred choice due to their reduced screen wear and improved folding mechanics [40]. - The global market for foldable phone hinges is expected to grow from approximately $3.2 billion in 2024 to $15.4 billion by 2032, with a CAGR of 21.69% [47]. 3. Cover Glass Technology - Flexible cover glass is essential for foldable screens, with ultra-thin glass (UTG) increasingly replacing traditional materials due to its superior properties [3]. - The market share of UTG in domestic foldable smartphones has risen to 70% in 2023, indicating a strong trend towards this material [3]. - The production of UTG involves complex manufacturing processes, with a focus on improving yield and consistency [6]. 4. Investment Recommendations - The report highlights several key beneficiaries in the foldable screen supply chain, including: - UTG: Lens Technology - Hinges: Linyang Precision, Tonglian Precision, and Jingyan Technology - Liquid Metal: Yian Technology - 3D Printing: Huashu High-Tech and Plit [7].

Core Viewpoint - The company is increasing its investment in its subsidiary, Yihao Metal, to enhance its competitive edge in the liquid metal industry and improve R&D and production capabilities [1][3]. Group 1: Investment Details - The company plans to invest 120 million yuan in Yihao Metal, with 44.28 million yuan allocated to registered capital and the remainder to capital reserves [1]. - After the investment, Yihao Metal's registered capital will increase from 92.25 million yuan to 137 million yuan, with the company holding a 72.97% stake [1]. Group 2: Financial Performance - Yihao Metal reported a revenue of 149 million yuan and a net profit of 2.73 million yuan last year [1]. - In the first quarter of this year, Yihao Metal generated a revenue of 18.16 million yuan but incurred a loss of 3.47 million yuan [1]. - The estimated value of Yihao Metal's total equity is 252 million yuan by the end of 2024 [1]. Group 3: Industry Context - Liquid metal, or amorphous alloy, is characterized by a non-crystalline structure, providing superior properties such as high strength, hardness, and corrosion resistance [2]. - The liquid metal industry is experiencing growth due to favorable national policies and increasing market demand, with applications in consumer electronics, automotive parts, medical devices, and more [2]. - The company aims to leverage market opportunities and expand its liquid metal production capacity to enhance profitability and competitiveness [2][3].

Core Viewpoint - Dongmu Co., Ltd. is significantly increasing its stake in the MIM (Metal Injection Molding) sector by acquiring 34.75% of Shanghai Fuchi High-Tech Co., Ltd. for 735 million yuan, aiming to hold 99% of the company post-transaction, which is expected to enhance its growth in the MIM business and overall performance [1][2]. Group 1: Acquisition Details - The acquisition involves issuing shares and cash payments to five parties for a total of 34.75% equity in Shanghai Fuchi, with a transaction price of 735 million yuan [2]. - Dongmu plans to raise up to 548 million yuan from no more than 35 specific investors to fund the acquisition and technology upgrades for MIM production lines [2]. Group 2: Business Performance - In Q1 2025, Dongmu reported revenue of 1.459 billion yuan, a year-on-year increase of 32.41%, and a net profit of 112 million yuan, up 37.61% [1][5]. - The MIM business generated revenue of 634 million yuan in Q1 2025, reflecting a growth of approximately 65.86% [5]. - For the full year 2024, Dongmu achieved total revenue of 5.143 billion yuan, a 33.20% increase, with net profit reaching 397 million yuan, a significant rise of 100.59% [5]. Group 3: MIM Business Growth - The MIM segment's revenue for 2024 was 1.965 billion yuan, marking a 92.19% increase and accounting for 38.2% of the company's total revenue [5]. - The company has added seven new production lines for foldable hinge modules in 2024, transitioning from "MIM parts" to "MIM parts + modules" [3]. Group 4: R&D and Innovation - Dongmu has focused on R&D to drive high-end manufacturing upgrades, with R&D expenses increasing from 245 million yuan in 2020 to 322 million yuan in 2024 [5]. - As of the end of 2024, Dongmu holds 222 invention patents and 622 utility model patents, forming a technological moat in MIM, P&S, and SMC platforms [6].

Investment Rating - The report does not explicitly state an investment rating for the electronic components industry or the specific company being analyzed [1]. Core Insights - The company specializes in high-precision, high-density, and complex-shaped precision components, aiming to become a leading manufacturer of MIM products and a comprehensive solution provider for precision parts [18]. - In 2024, the company achieved total revenue of approximately 814 million yuan, a year-on-year increase of 44.90%, with non-MIM precision component revenue rising by 101.94% [19]. - The company has established production bases in Shenzhen, Huizhou, Changsha, and Vietnam, with the latter primarily serving overseas clients [20][21]. - The MIM industry is expected to grow due to the increasing demand for new applications, such as foldable screens [23]. Summary by Sections 1. Company Overview - The company focuses on the research, design, production, and sales of precision components, with a strong emphasis on metal materials and advanced manufacturing processes [18]. 2. Financial Performance - In 2024, the net profit attributable to the parent company was approximately 74 million yuan, a year-on-year increase of 26.17% [20]. - The company’s non-MIM business has seen rapid growth due to diverse customer demands for precision components [21]. 3. Production Capacity - The company operates four production bases, with high capacity utilization in peak seasons at the Shenzhen and Huizhou factories [20]. 4. Market Outlook - The MIM industry is anticipated to expand significantly, driven by new product developments and applications, particularly in consumer electronics [23]. 5. Strategic Initiatives - The company has proactively prepared for opportunities in the foldable smartphone market, having already engaged in related business since 2023 [24].