Investor Presentation_ Greater China Technology Hardware_ Key Themes For 2025

Summary of Key Points from the Conference Call Industry Overview - Industry Focus: Greater China Technology Hardware [3][4] - Market Position: The industry view is currently rated as "In-Line" by Morgan Stanley [1] Core Themes and Insights - AI Hardware Supply Chain: Emphasis on positioning within the AI hardware supply chain for 2025 [3] - AI PCs: Anticipated to drive the next phase of growth in the PC market [4] - Cyclical Components: Signs of a potential turnaround in cyclical components [4] - Cooling Technologies: Liquid cooling is in the early adoption phase, while immersion cooling is expected to take longer to gain traction [4] - Beneficiaries and Valuation: Discussion on beneficiaries in GB200/GB300 and the sustainability of re-rating based on valuation multiples [4] Key Stocks Mentioned - Beneficial Companies: - Hon Hai - FII - AVC - Delta - Lenovo - Wistron - Wiwynn - Giga-Byte - Quanta - Lotes - GCE - Asustek - Yageo [4] Market Dynamics - Tariff Implications: Potential tariffs on Mexico and China could significantly impact final assembly operations, with some companies experiencing rush orders for PCs [4] - AI PC Definition: Clarification on what constitutes an AI PC and its use cases [4] - Catalysts for Growth: Identification of key catalysts over the next 12 months and the main beneficiaries [4] Supply Chain Insights - ABF Substrate: Expected oversupply to persist until 2025, leading to further margin pressure [4] - MLCC Inventory: Anticipated end of inventory digestion, with a focus on recovery in end-demand [4] - Cloud & Edge AI Impact: Inquiry into how Cloud & Edge AI will influence the Total Addressable Market (TAM) for MLCC [4] Financial Metrics and Valuation - Valuation Comparison: Detailed financial metrics for various companies, including EPS, P/E ratios, P/B ratios, and EV/EBITDA [6] - Market Capitalization: Companies listed with their respective market caps, trading prices, and projected earnings for 2024 and 2025 [6] Additional Considerations - Analyst Disclosures: Important disclosures regarding analyst certifications and potential conflicts of interest are noted [2] - Research Use: The document is intended solely for internal research use by Shanghai Xinyu Private Equity Fund Management Co., Ltd. [1][2] This summary encapsulates the essential insights and data points from the conference call, providing a comprehensive overview of the Greater China Technology Hardware industry and its key players.