Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% compared to the benchmark index [7]. Core Insights - The company achieved record-high revenue and profit in Q3 2025, with total revenue of 37.59 billion yuan, a year-on-year increase of 19.3%, and a net profit attributable to shareholders of 1.94 billion yuan, up 37.7% year-on-year [3]. - The gross margin for the first three quarters was 16.6%, an increase of 0.74 percentage points year-on-year, while the net profit margin was 5.2%, up 0.77 percentage points year-on-year [3]. - The company is significantly benefiting from the AI hardware innovation cycle, particularly in the battery, cooling, and fast-charging sectors, with optimistic prospects for future business developments [3]. - The company has established a comprehensive product matrix in robotics and is positioned to benefit from the expanding AI glasses market and the foldable screen sector [4]. Financial Performance - In Q3 2025, the company reported revenue of 13.97 billion yuan, a year-on-year increase of 12.9% and a quarter-on-quarter increase of 15.1%, with a net profit of 1.01 billion yuan, up 39.3% year-on-year and 177.4% quarter-on-quarter [3]. - The company plans to acquire a 96.15% stake in Zhejiang Xianglong for 2.4 billion yuan, which is expected to enhance its automotive parts business and create synergies with its robotics components [5]. - The projected net profit for 2025 and 2026 is 2.406 billion yuan and 3.178 billion yuan, respectively, reflecting strong growth potential from major customer business and new business expansions [5]. Business Developments - The company is deepening its core capabilities in AI terminal hardware, with significant orders in various sectors including machining components, key parts, and assembly [4]. - The company has become a core supplier for AMD in the server sector, focusing on high-power server power products, which is expected to contribute to revenue growth [4]. - The company is actively expanding its customer base and product offerings in the AI terminal market, leveraging its technological synergies between automotive and robotics components [5].

Group 1 - The core viewpoint of the article is that the Taiwanese stock market has experienced a significant upward trend, driven primarily by the AI supply chain, particularly benefiting from increased capital expenditures by large cloud service providers (CSPs) [3][4] - The Taiwan stock index has risen from approximately 13,000 points at the end of 2022 to nearly 26,000 points, marking a cumulative increase of 100% [3] - The AI-driven corporate profit growth cycle is expected to continue until 2026, providing a strong foundation for the long-term positive outlook of the Taiwanese stock market [3] Group 2 - Key indicators to monitor include the capital expenditure trends of the four major CSPs, as sustained increases will translate into strong demand for Taiwan's AI supply chain [3] - AI applications are extending from cloud computing to edge computing and end devices, which is anticipated to create a second wave of growth momentum before 2026 [3] - Despite the structural positive factors, short-term volatility risks exist due to high valuations in AI stocks and potential inflation pressures that could affect market sentiment [4] Group 3 - Investment recommendations include focusing on sectors with potential for specification upgrades, such as thermal management, network communication PCBs, power supplies, and copper foil substrates [4] - Caution is advised in stock selection for non-AI stocks, with suggestions to consider industries with policy support or defensive characteristics, such as military/aerospace, finance, construction, dining, and convenience stores [4]