中国工业科技-2Q25报告：AIDC供应链前景向好；PA意外下跌；3项评级调整-China Industrial Tech_ 2Q25 wrap_ Buoyant outlook in AIDC supply chain; downside surprise from PA; 3 rating changes

Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the AIDC (Automated Identification and Data Capture) supply chain and its outlook for 2H25-2027E, highlighting significant growth opportunities and challenges within the sector [1][2][20]. Core Insights and Arguments 1. Buoyant Outlook in AIDC Supply Chain: - The AIDC supply chain is expected to experience robust growth, particularly in the second half of 2025 and into 2026-2027, driven by rising overseas opportunities [1][2]. - Envicool reported a +216% year-over-year growth in server cooling and other sales in 1H25, indicating strong demand for its liquid cooling products [2][5]. 2. Challenges in Process Automation: - Significant downside surprises were noted in the process automation sector, with Baosight and Supcon reporting revenue declines of -35% and -14% respectively in 2Q25 compared to Goldman Sachs estimates [1][12]. - The decline is attributed to supply-demand imbalances and capacity contractions in the domestic steel and petrochemical industries [12]. 3. Company Ratings Adjustments: - Han's Laser was upgraded to a Buy rating due to strong demand for PCB equipment, while Supcon and Baosight were downgraded to Neutral and Sell respectively [1][7]. 4. Global Market Expansion: - Envicool is expanding its presence in Southeast Asia and the U.S., with plans to capture 5% of the global server liquid cooling market by 2027E and 10% by 2030E [5][2]. - Kstar and Kehua are also benefiting from solid data center capacity demand growth in China and are expanding globally [6]. 5. Humanoid Robots Market: - LeaderDrive reported approximately Rmb50 million in humanoid robot revenue in 1H25, indicating a strong market position [8]. - Sanhua is optimistic about the long-term potential of humanoid robots, with its Thailand factory set for volume production in 3Q25 [9]. 6. Industrial Automation Sector: - The industrial automation demand is forecasted to decline by -1% to -3% year-over-year from 2025 to 2027, with mixed performance across companies [12]. - Inovance showed a positive outlook for 2H25, while Yiheda expressed concerns over lower consumer electronics capex demand [12]. 7. Defensive Sector Performance: - NARI Tech reported a 139% year-over-year growth in overseas revenue in 1H25, indicating strong performance in the smart grid investment sector [14]. - AVIC Jonhon is expected to benefit from stable growth in aerospace and defense, with a solid outlook for liquid cooling contributions [15]. Additional Important Insights - The stock prices of key players in the AIDC supply chain have seen significant increases, with Envicool up 99%, Kstar 60%, and Han's Laser 30% as of August 2025 [7]. - The overall performance of companies in the sector was largely in line with expectations, with average revenue growth of 0% and net income down -3% compared to Goldman Sachs estimates [17]. - The conference highlighted the importance of adapting to market changes and the potential for new technologies to drive future growth in various sectors [20][22]. This summary encapsulates the key points discussed in the conference call, providing insights into the current state and future outlook of the AIDC supply chain and related industries.