Core Viewpoint - The recent listings of domestic GPU leaders, Moer Thread and Muxi Co., have reignited market enthusiasm for technology stocks, with foreign investors reaffirming their positive outlook on China's tech sector for 2026 [2][11]. Group 1: Foreign Investment and Market Sentiment - Foreign investors are increasingly optimistic about Chinese AI and technology stocks, with expectations of a rich array of AI application scenarios and accelerated monetization in the coming year [2][8]. - Over 200 A-share companies have been surveyed by foreign investors since November, with AI-related firms receiving significant attention [4][5]. - High-profile foreign institutions such as Goldman Sachs Asset Management and Fidelity International have been actively involved in these surveys, indicating strong interest in the technology sector [5][6]. Group 2: AI as a Key Investment Theme - AI is projected to remain a crucial investment theme in 2026, with UBS forecasting that AI-driven innovations will propel market growth [8][9]. - The global AI market is expected to be a significant driver of stock performance, with recommendations for investors to allocate up to 30% of their portfolios to AI and related sectors [8][9]. - Goldman Sachs highlights that AI is reshaping profit dynamics, with capital expenditures in AI expected to boost earnings significantly [10]. Group 3: Overall Market Outlook - Foreign investors are optimistic about the overall performance of A-shares in 2026, citing improved corporate resilience and a supportive macroeconomic environment [11][12]. - The Chinese market is seen as a viable alternative for global investors seeking options outside the U.S. stock market, with a potential for significant capital inflow [12][13]. - The combination of strong capital expenditure growth, global expansion strategies, and improved shareholder returns is expected to drive profit recovery and valuation reassessment for Chinese companies [13].

Core Viewpoint - The article highlights the renewed enthusiasm for Chinese technology stocks, particularly in the AI sector, driven by the recent IPOs of domestic GPU leaders and positive foreign investment sentiment towards A-shares in 2026 [3][4]. Group 1: Foreign Investment Sentiment - Foreign institutions, including UBS and Fidelity International, express optimism about the performance of Chinese AI and technology stocks in 2026, indicating a low likelihood of an "AI bubble" and expecting a richer array of AI application scenarios [4][12]. - Over 200 A-share companies have been surveyed by foreign investors since November, with AI-related firms like Huichuan Technology and Luxshare Precision receiving significant attention [6][9]. - High-profile foreign investment firms such as Goldman Sachs Asset Management and Morgan Stanley have been actively involved in these surveys, indicating strong interest in the technology sector [6][8]. Group 2: Key Companies and Their Strategies - Huichuan Technology has been focusing on promoting new products and expanding its international business, with a strategy of bundling products to meet customer needs [8]. - Luxshare Precision is enhancing manufacturing efficiency and investing in robotics, with a focus on general AI and core components [8]. - Other notable companies receiving foreign interest include Tonghui Electronics and Dazhu Laser, indicating a broader trend of foreign investment in the tech sector [8]. Group 3: Market Outlook and Growth Potential - Foreign investors predict a slow bull market for A-shares, with strong capital inflows and a potential 37% growth in corporate earnings in 2026 [12][16]. - Goldman Sachs forecasts a sustainable upward trend in the Chinese stock market, driven by AI capital expenditures, a resurgence in profitability, and increased global competitiveness [13][17]. - UBS emphasizes that the Chinese technology sector represents one of the most significant investment opportunities globally, supported by ample liquidity and a recovering market sentiment [12][17].

Group 1: Investor Relations Activities - The company conducted multiple investor relations activities from November 24 to December 5, 2025, including on-site research and telephone conferences, with participation from various investment firms totaling 78 individuals [2][3][4]. - Notable participants included AGCM Group with 10 individuals and a large group of 55 from various asset management firms during a telephone conference [3][4]. Group 2: Automation Business Growth - The company aims to enhance its market share in automation through multi-product solutions, focusing on servo systems, variable frequency drives, small PLCs, and industrial robots, which have shown strong market presence in China [4][5]. - The company is expanding its presence in fragmented and project-based markets, as well as targeting international markets to boost global product share [4][5]. Group 3: New Product Development - Recent product extensions include precision machinery, pneumatic products, and sensors, which are being marketed through bundled sales strategies to meet customer needs [4][5]. - The company anticipates significant growth potential for these new products, which are expected to support its general automation business [4][5]. Group 4: PLC Product Expansion - The company has successfully sold various PLC products, including small, medium, and large PLCs, with a current market share of approximately 5.1% for large PLCs, ranking sixth in China [5][6]. - Continuous investment in R&D for PLC products is planned to enhance capabilities and market penetration [5][6]. Group 5: Internationalization Strategy - The company aims to increase its overseas business share, focusing on brand building, establishing international platforms, and leveraging customized solutions for multinational clients [7]. - The international strategy includes enhancing sales, R&D, and supply chain capabilities to support global expansion [7]. Group 6: Elevator Business Outlook - The elevator business is expected to maintain steady growth, with strategies to expand into multinational enterprises and enhance product offerings in overseas markets [8][9]. - The company is also focusing on after-service markets, capitalizing on the growing demand for elevator maintenance and upgrades [8][9]. Group 7: R&D Investment Focus - The company plans to allocate 8% to 10% of its revenue to R&D, targeting software development, international product offerings, and humanoid robotics [9]. - This investment is aimed at maintaining technological leadership and supporting strategic business initiatives [9].

Group 1: Investor Relations Activities - The company conducted multiple investor relations activities from May 6 to May 16, 2025, including on-site research and conference calls, with a total of 136 participants across various sessions [6][7][8]. - Notable participants included major investment firms such as Point72, Allianz, and BlackRock, with a total of 91 participants in one of the strategy meetings [2][3][4]. Group 2: Business Growth Areas - The company aims to enhance its market share in automation, focusing on servo systems, variable frequency drives, and small PLC products, with a strategy to expand into industrial robots and precision machinery [8][9]. - The company is targeting the process industry as a key growth area, leveraging trends in digitalization and new industrialization to improve its offerings [8][11]. Group 3: Mergers and Acquisitions Strategy - The company is pursuing mergers and acquisitions that align closely with its core business in automation, precision machinery, and industrial software, aiming to build a comprehensive industrial ecosystem [11]. - Recent acquisitions include the purchase of SBC in 2023, which has strengthened the company's capabilities in precision machinery [9][11]. Group 4: Production Capacity and Expansion - The company has initiated production at a new factory in Nanjing, which focuses on industrial robots and precision machinery, enhancing its production capacity [9]. - The company is actively working to introduce new products into the Chinese market, leveraging collaborations with industrial clients [9][10].