Experian (OTCPK:EXPG.Y) 2025 Conference November 19, 2025 07:00 AM ET Company ParticipantsLloyd Pitchford - CFOConference Call ParticipantsJane Sparrow - AnalystJane SparrowOkay, thanks everyone. Welcome. My name is Jane Sparrow. I recently joined the JPMorgan research team in London, and it is my pleasure to introduce Lloyd Pitchford, CFO of Experian, to you today. It's great to have you here. Fresh from, obviously, last week's very strong first half numbers, so I'm sure some of the themes we'll pick up on ...

Core Viewpoint - The essence of business management is resilience and the refusal to give up, which enables companies to navigate through challenges and seize opportunities in a constantly changing market landscape [2][4][8]. Group 1: Entrepreneurial Spirit - The principle of "not accepting fate" is fundamental for startups, as exemplified by ByteDance's journey from a small office to a global player despite initial skepticism and market dominance by established companies [2]. - The story of Shaoyin, a small OEM factory that transformed into a leading brand in bone conduction headphones, illustrates how crises can be turned into opportunities through determination and innovation [4]. Group 2: Corporate Resilience - Large corporations, like Huawei, must also embrace a "second entrepreneurship" mindset to avoid stagnation, as demonstrated by their pivot to smartphone manufacturing despite internal resistance and initial failures [5]. - Mechanisms that institutionalize resilience, such as Tencent's "racehorse mechanism" and Alibaba's annual review meetings, are crucial for fostering a culture of continuous improvement and adaptability [7]. Group 3: Continuous Improvement - The concept of "not giving up" should be embedded in the organizational culture, allowing companies to learn from failures and iterate on their strategies, thus building an immune system against market fluctuations [7]. - The ongoing nature of business challenges means that companies must maintain a persistent drive to innovate and adapt, as highlighted by the insights of former Intel CEO Andy Grove [8][10].

Summary of Greater China Semiconductors Conference Call Industry Overview - The conference call focused on the Greater China semiconductor industry, highlighting recent developments in domestic DUV testing and the AI chip market. Key Companies Discussed - **SMIC (Semiconductor Manufacturing International Corp)**: Testing China's first domestic DUV lithography tool from Yuliangsheng - **Yuliangsheng (YLS)**: A Shanghai start-up producing DUV lithography tools - **Nvidia**: Mentioned in the context of a ban on its RTX Pro 6000D chips for Chinese CSPs - **ASMPT**: Equipment vendor expected to benefit from increasing demand - **Wanye**: Another equipment vendor mentioned in relation to domestic demand - **Cyberspace Administration of China (CAC)**: Regulatory body involved in the ban on Nvidia chips Core Insights - **Domestic DUV Lithography Tool**: SMIC is testing YLS's DUV lithography tool, marking a significant step towards self-reliance in wafer fabrication equipment (WFE) in China. However, the tool is still in the demo phase and may take 1-2 years to achieve high-volume production viability [1] - **Ban on Nvidia Chips**: The CAC's instruction to halt testing and cancel orders for Nvidia's RTX Pro 6000D was anticipated due to low demand among Chinese CSPs [1] - **AI Chip Market**: Domestic AI chips such as Ascend, Cambricon, and Kunlunxin are improving in performance, which is expected to sustain positive sentiment in the Chinese AI chip market and its supply chain [1] Financial Projections and Valuations - **ASMPT**: Target price set at HK$85 based on a 22x 2026E P/E, driven by expected revenue recovery from TCB order wins and stabilization in SEMI and SMT markets [4] - **OmniVision**: Target price of Rmb180 based on a 50x 2025E P/E, justified by anticipated strong earnings growth from automotive market share gains [6] - **SG Micro**: Target price of Rmb100 based on a 65x 2026E EPS, reflecting early-stage analog localization in China [8] - **Wanye**: Target price of Rmb13.0, reflecting a discount due to underperformance in revenue growth and profitability [10] - **SMIC**: Target price of HK$53.0 based on a 2.4x 2026 P/B, supported by US-China decoupling demand and gradual industry recovery [13] Risks Identified - **ASMPT**: Risks include a worsening semiconductor outlook, market share loss, and competition [5] - **OmniVision**: Risks involve pricing pressure in automotive CIS, market share loss, and competition [7] - **SG Micro**: Risks include price competition, inventory corrections, and demand slowdowns [9] - **Wanye**: Risks include supply chain disruptions due to US restrictions and underperformance in revenue growth [11] - **SMIC**: Risks include margin pressures from depreciation, weak policy support, and demand fluctuations [15] Additional Insights - The ongoing developments in the semiconductor industry reflect a broader trend towards localization and self-sufficiency in China, particularly in response to geopolitical tensions and export restrictions from the US [1][3] - The positive sentiment surrounding domestic AI chips indicates a potential shift in market dynamics, favoring local manufacturers over foreign competitors [1] This summary encapsulates the key points discussed in the conference call, providing insights into the current state and future outlook of the Greater China semiconductor industry.