Group 1: Robotics Business Expansion - The company is poised for significant growth in its robotics business, having entered the supply chains of leading domestic and international clients in the embodied intelligence sector [1] - The company has secured a major order for the assembly of 10,000 quadruped robotic dogs from a key client, becoming a primary supplier of essential components [1] - The company anticipates shipping 3,000 humanoid robots and over 10,000 quadruped robotic dogs by 2025, with expectations for further doubling of shipments in 2026 [1] Group 2: Consumer Electronics and AI Hardware - The company is expected to benefit from strong demand for the iPhone 17 series, with projected double-digit revenue growth in the upcoming quarter [2] - The company will serve as a key supplier for multiple components in foldable devices, including ultra-thin flexible glass covers and liquid metal hinges, with significant value increases compared to traditional models [2][3] - The company has established vertical barriers from materials to components to complete machines, enhancing cost control and responsiveness in the AI hardware sector [3] Group 3: Financial Projections and Investment Outlook - The company forecasts net profits of 5 billion, 6.9 billion, and 8.9 billion yuan for the years 2025 to 2027, with slight adjustments made to previous profit estimates [3] - Based on comparable companies' 31x PE ratio for 2026, the target price is set at 40.61 yuan, maintaining a buy rating [3]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 40.61 CNY based on a projected PE of 31 times for 2026 [3][6]. Core Insights - The company's robot business is set to ramp up, positioning itself as a leading platform in the domestic and international markets, with significant orders and expected deliveries of humanoid and quadruped robots [11]. - The company is expected to benefit from strong demand for consumer electronics, particularly from major North American clients, with anticipated double-digit growth in iPhone revenue [11]. - The company is leveraging its technological capabilities across various sectors, including consumer electronics and automotive electronics, establishing a competitive edge through vertical integration and horizontal expansion [11]. Financial Forecasts - The projected net profits for the company from 2025 to 2027 are 5 billion, 6.9 billion, and 8.9 billion CNY respectively, with slight adjustments made to previous forecasts [3][12]. - Revenue is expected to grow from 54.49 billion CNY in 2023 to 143.2 billion CNY in 2027, reflecting a compound annual growth rate of approximately 21.5% [5][13]. - The company's gross margin is projected to remain stable around 15% over the forecast period, with net profit margins gradually increasing from 5.5% in 2023 to 6.2% in 2027 [5][13].

Core Viewpoint - The shortage of BT substrates is causing a continuous tightening of BGA packaging capacity, leading to delivery cycles extending beyond 20 weeks, while COB packaging is gaining preference due to its cost-effectiveness and stable raw material supply [1] Group 1: BT Substrate Overview - BT resin substrates are essential for BGA packaging, providing mechanical reliability under extreme temperature cycles due to their low thermal expansion coefficient [2] - BGA packaging typically uses multi-layer stacked structures (6-8 layers) for high-reliability chip support [2] Group 2: Causes of BT Substrate Shortage - The surge in AI server demand is straining BT material capacity, with TSMC's advanced packaging expansion prioritizing ABF substrate orders, which share raw materials with BT substrates [3] - Apple has mandated its memory chip suppliers to use BT substrates for the iPhone 17 series, increasing future demand for this packaging solution [3] - Supply-side issues include extended delivery times for key materials like copper foil substrates and high-grade fiberglass cloth, with delays of 4-5 months reported [3] - Geopolitical factors and tariff uncertainties have led to stockpiling by manufacturers, amplifying short-term demand [3] Group 3: Domestic Replacement Progress - Domestic BT substrate manufacturers are still in a technology ramp-up phase, relying on imported materials and equipment, with a highly concentrated supply of low CTE fiberglass cloth [4] - Japanese companies dominate the high-end low CTE fiberglass market, holding 92% market share, while domestic alternatives face significant technical challenges [4] Group 4: Future Supply Outlook - A turning point in BT substrate supply is expected in the second half of 2026, driven by capacity ramp-up and technological advancements in East Asia [5] - Key milestones include the certification of Taiwanese fiberglass suppliers and the ramp-up of domestic production, which will significantly increase supply [5] - By Q3 2026, the shortage rate is projected to narrow to 5%-7%, although challenges remain in high-end sectors due to certification processes and non-linear growth in AI server demand [6]