Investment Rating - The report maintains an investment rating of "Buy" for the company [6]. Core Views - The company is deepening its layout in the AR industry chain, particularly through the acquisition of Shanghai Aolai, which will enhance its capabilities in SiC substrate optical waveguide business [1][2]. - The merger is expected to create synergies between the company and Sunyu, alleviating financial pressures and strengthening their core competitiveness in wafer-level micro-nano optical devices [2]. - The company has been actively investing in key segments of the AR industry chain, including acquisitions and partnerships to enhance its technological capabilities and market position [3]. Summary by Sections Investment Activities - The company has made several strategic investments, including acquiring Yuguang Technology and increasing its stake in Kangnait, which will enhance its capabilities in nano-imprinting and ion beam etching technologies [3]. - The company plans to provide a $100 million equity-linked loan to Haylo to support its acquisition of UK-based Micro-LED manufacturer Plessey, potentially yielding a 25% share of the transaction value [3]. Market Outlook - The global market for AI smart glasses is expected to grow rapidly, with new products being launched, such as Meta's Hypernova smart glasses priced at $800, aimed at stimulating market demand [4]. - The company anticipates that advancements in AI and AR glasses will drive growth in precision components, benefiting its business [4]. Financial Projections - The report projects the company's net profit for 2025 to be 3.288 billion RMB, with an upward revision for 2026 and 2027 to 4.248 billion RMB and 5.056 billion RMB, respectively [5]. - The target price for the company's stock has been raised to 36.60 RMB, reflecting a 30x PE valuation for 2026 [5].

Market Performance - The main board led the gains with notable increases in stocks such as Anhui Tong Technology (+10.06%), Aorui Technology (+10.05%), and Beiwai Technology (+10.04%) [1] - The ChiNext board saw significant rises, particularly in Longli Technology (+20.00%) and Weier High (+20.00%) [1] - The Sci-Tech Innovation board was also strong, with Lier Technology (+20.01%) and Dongxin Technology (+14.66%) leading the way [1] - Active sub-industries included SW Printed Circuit Boards (+3.75%) and SW LED (+3.16%) [1] Domestic News - GoerTek announced efforts to advance Micro-LED technology and products, supporting its AI smart glasses and AR business, with a loan of up to $100 million to Haylo [1] - Shanghai Chip-on-Wafer Technology Co., Ltd. held a delivery ceremony for its 500th stepper lithography machine, aiming to become a leading semiconductor equipment company [1] - Wentech Technology reported progress in the sale of nine subsidiaries and overseas business assets, with several companies' 100% equity and related business assets successfully delivered [1] - World Advanced reported a significant drop in July revenue to NT$36.13 billion, a decrease of 19.26% from the previous month, attributed to reduced wafer shipments [1] Company Announcements - Aobi Zhongguang reported a total revenue of 435 million yuan for H1 2025, a year-on-year increase of 104.14%, with a net profit of 60 million yuan, up 212.77% [3] - Guangha Communication achieved a total revenue of 194 million yuan for H1 2025, a 27.8% increase, with a net profit of 24 million yuan, up 69.51% [3] - Rijiu Optoelectronics reported a total revenue of 302 million yuan for H1 2025, an 8.06% increase, with a net profit of 46 million yuan, up 37.87% [3] - Industrial Fulian announced a total revenue of 360.76 billion yuan for H1 2025, a 35.58% increase, with a net profit of 12.113 billion yuan, up 38.61% [3] International News - Toshiba's semiconductor division plans to significantly increase its contract chip manufacturing output by 50% by the end of the 2029 fiscal year [4] - Samsung Electronics is considering expanding local investments, including an additional 10 trillion won for packaging facilities, following large orders from Tesla and Apple [4] - TrendForce reported that DRAM manufacturers and PC OEMs are negotiating third-quarter contract prices, with limited capacity affecting PC demand [4] - SK Hynix predicts that the HBM chip market for AI design will grow at an annual rate of 30% by 2030, driven by significant capital expenditures from cloud computing companies [4]