Summary of Conference Call Notes Industry Overview - **Industry**: Greater China Technology Hardware - **Key Focus**: Price adjustments for CCL (Copper Clad Laminate), prepreg, and CRS (Copper Foil) products Key Points 1. **Price Increases Announced**: Mitsubishi Gas Chemical (MGC) has announced a price increase of approximately 30% for its CCL, prepreg, and CRS products, effective from April 1, 2026 [2][7] 2. **Impact of T Glass Shortage**: The shortage of T glass has resulted in multiple price hikes for CCLs and prepregs, with other manufacturers like Resonac also announcing similar increases [3] 3. **Potential Effects on Competitors**: The price hikes may lead to adjustments in pricing for competitors such as Unimicron and NYPCB, with the possibility of higher material costs being passed down to downstream customers, potentially squeezing profits [3][7] 4. **Investment Recommendations**: The recommendation remains Overweight (OW) on both Unimicron and NYPCB, with a preference for Unimicron over NYPCB [3][7] 5. **Valuation Methodology**: - **Unimicron**: Utilizes a residual income (RI) valuation model with a cost of equity of 9.2%, medium-term growth rate of 10%, and terminal growth rate of 3% [8] - **Nan Ya PCB**: Also employs a RI valuation model with a cost of equity of 9.3%, medium-term growth rate of 12%, and terminal growth rate of 3% [9] 6. **Risks Identified**: - **Upside Risks**: Better-than-expected demand for ABF substrates from PC and server customers, faster-than-expected growth in AI and 5G demand, and stronger-than-expected ASP hikes [11][12] - **Downside Risks**: Capex cuts, sudden demand shortfalls, technological changes that may reduce the need for ABF substrates, and intensifying competition [11][12] Additional Insights - **Market Dynamics**: The ongoing price adjustments in the substrate market indicate a tightening supply chain, which could lead to further volatility in pricing and demand dynamics in the technology hardware sector [3][7] - **Analyst Contact Information**: Analysts involved include Howard Kao, Sharon Shih, and Irene Yen, with their contact details provided for further inquiries [4] This summary encapsulates the critical insights and recommendations from the conference call, focusing on the implications of price changes in the technology hardware sector and the associated investment outlook.

Group 1 - The Hong Kong Stock Exchange has launched the "HKEX Technology 100 Index" to expand its index business, with a focus on the largest technology companies listed in Hong Kong [1] - The index tracks 100 companies across six major innovation themes: artificial intelligence, biotechnology and pharmaceuticals, electric vehicles and smart driving, information technology, internet, and robotics [1] - All constituent stocks of the index are eligible for the Stock Connect program, catering to both international and mainland Chinese investors [1] Group 2 - Yuejiang Technology, founded in 2015 by Liu Peichao, a graduate of Shandong University, has been included in the HKEX Technology 100 Index [1] - The company specializes in the research, development, production, sales, and service of intelligent robotic products, focusing on intelligent robotic arms and other smart hardware [1] - Yuejiang has developed the world's first desktop collaborative robot and offers over twenty models across seven series, with a cumulative global shipment of 100,000 units, distributed in more than 80 countries and regions [1]

Group 1 - The Hong Kong Stock Exchange has launched the "HKEX Technology 100 Index" to expand its index business, with the inclusion of the company 越疆 (Yuejiang) [1] - The HKEX Technology 100 Index tracks the performance of the 100 largest technology companies listed on the Hong Kong Stock Exchange, covering six major innovation themes: artificial intelligence, biotechnology and pharmaceuticals, electric vehicles and smart driving, information technology, internet, and robotics [1] - All constituent stocks of the index are eligible for the Stock Connect program, catering to the investment needs of international and mainland Chinese investors [1] Group 2 - 越疆 was founded in 2015 by Liu Peichao, a graduate of Shandong University, focusing on the research and application of intelligent robotics [1] - The company specializes in the development, production, sales, and service of intelligent robotic arms and other smart hardware products [1] - 越疆 has developed the world's first desktop collaborative robot, with over 100,000 units shipped globally, covering more than 80 countries and regions across various industries including 3C, automotive, semiconductors, chemicals, healthcare, metal processing, food and beverage, and new retail [1]