Summary of GoerTek Inc Conference Call Company and Industry Overview - **Company**: GoerTek Inc (002241.SZ) - **Industry**: Greater China Technology Hardware - **Focus**: Analysis of Meta's VR headset shipments and their impact on GoerTek's share price Key Points Meta's VR Headset Shipments - **3Q25 Shipments**: 847K units, representing a **54% increase QoQ** but a **28% decrease YoY** [1] - **Market Share**: Meta's share increased by **6 percentage points QoQ**, reaching **90%** [1] - **Industry Comparison**: Shipments exceeded IDC's estimate of **681K units** for the overall industry [8] GoerTek's Share Price Performance - **Current Share Price**: Rmb30.76 as of December 1, 2025 - **Price Target**: Rmb16.60, indicating a potential downside of **46%** from the current price [5] - **52-Week Range**: Rmb40.68 to Rmb17.11 [5] - **Market Capitalization**: Rmb105,212 million [5] Financial Metrics - **Revenue Projections**: - FY 2025: Rmb100,300 million - FY 2026: Rmb104,999 million - FY 2027: Rmb113,559 million [5] - **EBITDA Projections**: - FY 2025: Rmb8,112 million - FY 2026: Rmb8,427 million - FY 2027: Rmb9,231 million [5] - **Earnings Per Share (EPS)**: - FY 2025: Rmb1.13 - FY 2026: Rmb1.09 - FY 2027: Rmb1.25 [5] Valuation and Risks - **Valuation Methodology**: Based on residual income valuation with a cost of equity of **10%**, medium-term growth rate of **13%**, and terminal growth rate of **5%** [9] - **Risks to Upside**: - Better-than-expected yield ramp-up for AirPods - Share gain within iPhone acoustic business - Higher acoustic pricing [11] - **Risks to Downside**: - Intensified competition in the acoustic market - Potential share loss in iPhone acoustic business and AirPods assembly supply [11] Analyst Ratings - **Stock Rating**: Underweight [5] - **Industry View**: In-Line [5] Additional Insights - The shipment slowdown due to model transitions may continue to limit GoerTek's share price upside in the near term [1] - The analysis indicates a cautious outlook for GoerTek, given the competitive landscape and potential risks associated with its product lines [11]