Summary of Lingyi (002600.SZ) Management Call Company Overview - **Company**: Lingyi (002600.SZ) - **Industry**: Technology, specifically focusing on precision functional and structural components for AI/AR glasses, foldable phones, and AI server components Key Points 1. AI/AR Glasses Outlook - Management anticipates strong growth in the AI/AR glasses market due to: - Lightweight design attracting a broader user base - AI/AR glasses serving as edge devices enhanced by AI applications - Accelerated launches of new models with upgraded specifications - Lingyi is a supplier of structural parts to leading global AI/AR glasses brands and is expanding its product offerings to increase dollar content - Revenue from AI/AR glasses is projected to grow from 11% in 2025 to 17% in 2027, supported by technical advantages and partnerships with major brands in China and the US [2][2][2] 2. Foldable Phone Components - Management expects the trend of foldable phones to increase dollar content for Lingyi, including: - Precision structural parts, hinges, and vapor chamber modules - Lingyi's experience in stamping, MIM, and CNC is noted as beneficial for producing high-quality hinges - The company is diversifying its vapor chamber module offerings across different materials and aims to penetrate more brand clients by 2026 [3][3][3] 3. AI Server Components Expansion - Lingyi is expanding into AI server components, including: - Power supply, liquid cooling, and air cooling components - The company has begun delivering GPU cooling modules for servers and aims to collaborate with more CSP clients in upcoming AI server launches - Specification upgrades in AI server components are expected to drive dollar content and growth opportunities for Lingyi [8][8][8] 4. Financial Projections and Valuation - Target price set at Rmb22.6 with a target P/E multiple of 38.8x based on 2026E EPS growth - Revenue projections for the next few years: - 2025: Rmb44.21 billion - 2026: Rmb52.78 billion - 2027: Rmb70.25 billion - Key risks include slower-than-expected penetration of foldable phones and AI terminals, potential competition, and a weak macroeconomic environment [9][10][10] 5. Market Position and Strategy - Lingyi is positioned as a leader in precision functional and structural components, leveraging deep partnerships with brand clients to drive growth - The company is diversifying its offerings to capitalize on accelerated industry growth in AI devices, foldable phones, and robotics [1][1][1] Additional Insights - Lingyi's established partnerships and technical capabilities are critical to its growth strategy in emerging technology markets - The management's positive outlook on AI/AR glasses and foldable phones indicates a strong belief in the company's ability to adapt and thrive in a competitive landscape [2][3][8]