China PCB & Laminates What's New from Citi China 2025 Investor Conference | VGT, WUS, DSBJ updates Flash | 14 Nov 2025 11:37:12 ET │ 11 pages CITI'S TAKE VGT (Victory Giant), WUS, and DSBJ (Dongshan Precision) joined the Citi 2025 China Investor Conference. Key takeaways include: (1) VGT 4Q25 production will be back to normal post 3Q products transition impact. Co. is constructive on 2026 revenue growth from the largest AI customer and remains confident on its continued leading position. CSP clients contrib ...

Summary of Luxshare (A) Conference Call Company Overview - **Company**: Luxshare - **Sector**: Technology - **Key Customers**: Apple, Google, Microsoft, HP, Dell, Lenovo - **Sales Breakdown**: 80% consumer segment, 9% communication, 6% automotive, 3% computing [12][13] Key Industry Insights - **iPhone Demand**: Luxshare is a key assembler for iPhone 17/Pro Max models, with expected shipments of 239 million, 250 million, and 258 million units in 2025, 2026, and 2027 respectively, surpassing the previous high of 238 million units in 2021 [2][32][33] - **AI Server Growth**: Luxshare is a significant supplier for AI-related projects, benefiting from the build-up of AI datacenters in China and partnerships with global tech giants like Google, Cisco, and Microsoft [3][12] Financial Performance - **Earnings Growth**: Luxshare's earnings are projected to grow at a CAGR of over 25% from 2024 to 2027, driven by the iPhone upcycle and increasing contributions from automotive and communication sectors [13][18] - **Recent Earnings**: In Q3 2025, Luxshare reported earnings of CNY 4.8 billion, a 35% QoQ and 32% YoY increase, exceeding guidance [29][30] - **Q4 Guidance**: Expected earnings for Q4 2025 are projected to be between CNY 5.0 billion and CNY 5.7 billion, indicating a 9% QoQ and 24% YoY growth [31] Valuation and Price Target - **Price Objective**: Raised from CNY 50 to CNY 78, reflecting a P/E ratio of 24x for 2H26-1H27E, aligning with historical averages [1][14] - **Current Share Price**: CNY 63.00, with a market cap of CNY 457.24 billion [7] - **P/E Comparison**: Luxshare trades at 20x 2026-27E average P/E, below the Apple supply chain's 24x and AI server peers' 24-26x [25][29] Key Financial Metrics - **Net Income Projections**: - 2025E: CNY 16.88 billion - 2026E: CNY 21.29 billion - 2027E: CNY 27.55 billion [4][20] - **EPS Growth**: Expected to increase from CNY 2.33 in 2025 to CNY 3.80 in 2027, with a YoY growth rate of 25.9% in 2025 and 29.4% in 2027 [4][20] - **Free Cash Flow**: Projected to rise from CNY 4.33 billion in 2025 to CNY 30.19 billion in 2027 [4] Strategic Outlook - **AI and Technology Integration**: Luxshare's collaboration with OpenAI and other tech giants positions it well for future growth in the AI sector, with potential projects expected to materialize by 2027 [3] - **Market Positioning**: The company is expected to benefit from a stronger execution strategy compared to peers, enhancing its ability to capitalize on opportunities in the AI era [15] Conclusion - **Investment Recommendation**: The company maintains a "Buy" rating, supported by strong earnings growth, strategic positioning in the iPhone supply chain, and expanding opportunities in AI and technology sectors [1][13]

Summary of Dongshan Precision (002384.SZ) 3Q25 Earnings Call Company Overview - **Company**: Dongshan Precision (DSBJ) - **Ticker**: 002384.SZ - **Date of Report**: 21 Oct 2025 Key Financial Results - **Revenue**: Rmb 10.1 billion, up 3% YoY and 21% QoQ, in line with Citi estimates but missed Bloomberg estimates by 4% [1][3] - **Gross Margin**: 14.1%, down 0.5 percentage points YoY, missed Citi estimates by 2 percentage points [1][3] - **Operating Profit**: Rmb 603 million, down 19% YoY but up 50% QoQ, missed estimates by 34% and 37% [1][3] - **Net Profit**: Rmb 465 million, down 8% YoY; adjusted net profit was Rmb 414 million, down 16% YoY [1][3] - **Operating Margin**: 6.0%, down 1.6 percentage points YoY, but up 1.2 percentage points QoQ [1][3] Reasons for Missed Expectations 1. **iOS Business Impact**: Delay in new model purchases and pull-in effect from 2Q [1] 2. **Increased Administrative Expenses**: Up Rmb 118 million YoY, likely due to new asset acquisitions [1] 3. **Thailand Factory Ramp-Up**: Impact on overall performance [1] Upcoming Earnings Call Focus Areas - Breakdown of 3Q25 business performance [2] - Orders for Apple products in 3Q25 and expected upgrades for 2H26 [2] - Updates on precision component plants and new NEV products for 2026 [2] - Progress in humanoid robot business [2] - LED business updates [2] - Acquisition progress in optical transceiver business [2] Valuation and Investment Outlook - **Target Price**: Rmb 99.00, representing a potential upside of 44.9% from the current price of Rmb 68.33 [4] - **Market Capitalization**: Rmb 125.154 billion (approximately US$ 17.578 billion) [4] Valuation Methodology - SOTP (Sum of the Parts) method applied: - 15x P/E for DSBJ's original business 2026 net profits - 30x P/E for optical transceiver business due to market share gains - 15x P/E for backplane PCB business in line with tier-1 peers [11] Key Risks 1. **Slower Progress in FPC Modules**: Potential delays in gaining market share from overseas competitors [12] 2. **Tesla Business Growth**: Risks associated with competition in the China NEV market [12] 3. **Optoelectronic Business Losses**: Continued weak demand and competition [12] 4. **Material Costs**: Rising costs could impact margins [12] 5. **Geopolitical Risks**: US-China relations may affect operations [12] This summary encapsulates the critical financial metrics, reasons for performance misses, future focus areas, valuation outlook, and associated risks for Dongshan Precision as discussed in the 3Q25 earnings call.