Summary of Desay SV Conference Call Company Overview - **Company**: Desay SV (002920.SZ) - **Industry**: Automotive technology, focusing on smart driving and automotive software Key Points Business Growth and Market Trends - Management remains optimistic about business growth despite challenges in the end market due to rising memory costs [1] - Catalysts for growth include: - Increasing adoption of smart driving technologies - Rising penetration rates of Level 3 (L3) autonomous driving in China - Traditional car OEMs in China adopting smart driving solutions - Expansion of customer base towards joint venture (JV) car OEMs and global-tier car OEMs [1][2] - Development of next-generation domain controllers that integrate smart cockpit and smart driving functionalities [1] Customer Insights - Li Auto is projected to remain the largest customer in 2025, with Chery showing strong growth [2] - Xiaomi and Xpeng are identified as significant revenue contributors [2] - In 2026, management anticipates more opportunities with traditional car OEMs like Great Wall and Changan Automobile, focusing on smart driving adoption [2] Competitive Landscape - Desay SV is positioned as a leading supplier in smart driving and smart cockpit technologies, competing against in-house solutions from companies like BYD, Tesla, and Huawei [2] - The company offers flexible solutions tailored to various customer needs, including manufacturing, design, and algorithm development [2] Financial Outlook - Despite rising memory costs, management believes their inventory can mitigate impacts, although effects may start to be seen in the second quarter of the year [2] - The company is rated Neutral with a 12-month target price of Rmb137, based on a 20.8x target P/E multiple applied to 2026E EPS [3] - Revenue projections for the next few years are as follows: - 2025: Rmb32.23 billion - 2026: Rmb43.15 billion - 2027: Rmb55.55 billion [7] Risks and Considerations - Potential risks include: - Variability in competition intensity among Chinese car OEMs affecting supply chain pricing and gross margins [3] - Uncertainty regarding the pace of product line expansion, particularly in domain controllers and automotive software [3][6] Long-term Drivers - Expansion into global-tier car OEMs and overseas markets, as well as ventures into robotics, are seen as long-term growth drivers for Desay SV [2] Additional Insights - The company’s valuation is considered fairly priced despite ongoing competition and pricing pressures in the supply chain [1] - Management's focus on product expansion from smart cockpit to smart driving and automotive software aligns with the growing trend of smart driving in China [1]

Summary of Lens Technology Investor Meetings Company Overview - **Company**: Lens Technology (6613.HK) - **Date of Meetings**: 15 October 2025 - **Market Cap**: HK$169,718 million (US$21,829 million) [6] Key Industry Insights Humanoid Robots - Lens Tech's humanoid robot factory is set to begin operations in November with a designed capacity of 20,000 units per day [2] - The company plans to supply 3,000 humanoid robots and 20,000 robot dogs in 2025, with a projection of at least 20,000 humanoid robots in 2026 [1][2] - Lens Tech is the largest supplier of dexterous hands in terms of shipment [2] - Breakeven is expected if annual production reaches 100,000 units of humanoid robots [2] Server-Related Revenue - Expected revenue from server-related products is projected to be tens of millions in 2025 and Rmb5 billion in 2026, primarily from metal structural parts [1][3] - The content value for metal structural parts is estimated between US$3,000-8,000 per chassis and US$800-1,000 for liquid cooling modules [3] Smartphone and PCs - Anticipated content value for a key foldable phone model in 2H26 is US$150, with management optimistic about favorable pricing and shipment [1][4] - Lens Tech is likely to benefit from supplying cover glass and touch sensors for iOS notebooks adopting touch panels [4] Automotive Sector - The company will have glass capacity to support 1.5 million vehicles in 2026, with plans to expand capacity for a US EV customer's Shanghai factory [5] - Additional revenue projections include Rmb10 billion from glass, communication modules, and domain controllers, plus Rmb2 billion from smart cockpit solutions in 2026 [1][5] XR (Extended Reality) - Lens Tech aims to support 300,000 Rokid AI glasses in 2025 and 1-2 million in 2026 [8] - The first glasses assembly line is expected to undergo customer acceptance in November [1][8] Financial Projections - **Target Price**: HK$31.00, representing a potential return of 16.8% and a total expected return of 18.7% including a 1.9% dividend yield [6][9] - **Valuation**: Target price based on 23.0x 2026E EPS, reflecting a 25% discount to A-share P/E target multiple [9][11] Risks - Key risks include potential delays in the foldable iOS smartphone launch, lower-than-expected growth in global smartphone, tablet, automotive, XR, and AI smart glasses markets, and FX volatility due to macro uncertainties [10][12] Conclusion - Lens Technology is positioned for growth across multiple sectors, including humanoid robots, automotive, and XR technologies, with significant revenue potential projected for 2026. However, investors should remain cautious of the outlined risks that could impact performance.