LY iTECH(SZ:002600)2026-01-20 03:19Summary of Lingyi (002600.SZ) Conference Call Company Overview - Company: Lingyi (002600.SZ) - Industry: Greater China Technology, focusing on advanced manufacturing and components for electronic devices Key Points Discussed 1. Opportunities in Foldable Devices - Management is optimistic about the increasing dollar content from foldable devices due to the rising adoption of foldable smartphones - High-value-added components include mechanical parts for panels, structural components in hinges, rotary modules, and lightweight high-strength materials - The company leverages its expertise in CNC processing, stamping, precision hinge production, and automated assembly to capitalize on the foldable smartphone trend [2][3] 2. Expansion in AI Glasses and Robotics - AI Glasses: There is a growing demand for local AI inferencing with lightweight frames. The company can provide comprehensive solutions in thermal management, precision structural components, and functional module integration - Robotics: Management is positive about embodied AI, including humanoid robots. The robotics segment focuses on total solutions from components (e.g., CSV reducers, force sensors) to modules (e.g., charging modules, joint hinges) and precision assembly solutions [3][4] 3. Financial Projections and Valuation - A 12-month price target of Rmb22.6 is set, based on a target P/E multiple of 38.8x for 2026E EPS - The target P/E is derived from the correlation between P/E and EPS growth of peers, reflecting the company's expected 2027E EPS year-over-year growth [4] 4. Revenue and Earnings Forecast - Projected revenue growth: - 2024: Rmb44.2 billion - 2025: Rmb52.8 billion - 2026: Rmb70.2 billion - 2027: Rmb85.2 billion - Projected EBITDA growth: - 2024: Rmb4.8 billion - 2025: Rmb5.7 billion - 2026: Rmb7.8 billion - 2027: Rmb10.2 billion - Projected EPS growth: - 2024: Rmb0.25 - 2025: Rmb0.38 - 2026: Rmb0.58 - 2027: Rmb0.82 [8] 5. Risks Identified - Potential risks include slower-than-expected penetration of foldable phones and AI terminals, increased competition from suppliers, and a weak macroeconomic environment that could dampen market demand [4] 6. Investment Recommendation - The recommendation is to maintain a "Buy" rating, with an upside potential of 42.6% based on the current price of Rmb15.85 compared to the target price of Rmb22.6 [8] Additional Insights - The company is well-positioned to leverage its accumulated expertise in advanced manufacturing processes to capture growth in emerging technology segments - The focus on total solutions in both AI glasses and robotics indicates a strategic approach to diversify revenue streams and enhance margins [2][3][4]