Summary of Xintian Green Energy Conference Call Company Overview - **Company**: Xintian Green Energy - **Core Business**: Focuses on renewable energy (primarily wind power) and natural gas, with a total installed capacity of approximately 6 million kilowatts, growing at a compound annual growth rate (CAGR) of about 5% since 2020 [4][6] Key Points and Arguments Business Performance - **Recent Performance**: The company's economic situation has been weak over the past two years, but significant changes in fundamentals are noted [3] - **Revenue Structure**: Natural gas sales contribute a high proportion of revenue, but core profits mainly come from renewable energy, especially wind power [3][7] Natural Gas Business - **Revenue Contribution**: Natural gas business is a channel-type operation with low gross margins, primarily stabilizing cash flow [7] - **Profit Decline in 2024**: The decline in profits is attributed to a warm winter and low initial load rates from the Tangshan LNG project [8][25] - **Impact of Pricing Mechanism**: The pricing mechanism for industrial users allows for stable gross margins, unlike residential users [24] Wind Power Business - **Profitability Factors**: Wind power profitability is affected by utilization hours and curtailment rates, with market pricing pressures also impacting profitability [13] - **Future Outlook**: Optimism for future growth due to improved wind resource conditions and low base effects, despite past challenges [14] Strategic Focus - **Expansion Strategy**: The company adopts a conservative expansion strategy, focusing on asset quality rather than rapid growth [6] - **Divestment Plans**: Plans to divest solar assets to concentrate on wind power, which is seen as more advantageous [5][21] Incentives and Management - **Incentive Mechanism**: A share incentive mechanism aligns management and shareholder interests, with a target of over 20% revenue growth in 2025 [12] - **Dividend Policy**: The dividend payout ratio has exceeded 50%, indicating a commitment to returning value to shareholders [11] Green Certificate Market - **Market Dynamics**: The green certificate market is expected to see significant demand growth due to regulatory changes and increased consumption requirements from various industries [19][20] - **Price Trends**: Green certificate prices have risen significantly, indicating a positive outlook for future revenue streams [20] Regional Demand and Future Projects - **Natural Gas Demand in Hebei**: Anticipated significant growth in natural gas demand in Hebei province, driven by new gas-fired power generation capacity [27] - **Tangshan LNG Project**: The second phase of the Tangshan LNG project is expected to alleviate operational pressures and support long-term growth [26] Additional Important Insights - **Cash Flow Management**: Despite the typically poor cash flow from renewable projects, the natural gas business helps mitigate overall cash flow pressure [11] - **Market Positioning**: The company is well-positioned in the North China region, with substantial offshore wind power reserves and approved capacity [22] - **Investment Value**: The company is considered to have high investment value due to its stable fundamentals, attractive dividend yield, and relatively low valuation [28]

Summary of the Conference Call for Zhenhua Co., Ltd. Industry Overview - **Chromium Salt Demand**: Global chromium salt demand is expected to increase from 930,000 tons in 2024 to 1,310,000 tons by 2028, a growth of 380,000 tons. Zhenhua's production capacity is projected to grow by only 110,000 tons during the same period, leading to a potential capacity shortfall of approximately 250,000 tons by 2028. This is due to restrictions on hexavalent chromium capacity expansion, positioning Zhenhua to benefit from a high prosperity cycle [2][3]. - **Gas Turbine Market Growth**: The global gas turbine market is rapidly expanding, driven by AI demand, renewable energy peak shaving, and grid updates. Deliveries are expected to rise from 30 GW in 2024 to 91.4 GW by 2028, doubling the demand for metallic chromium from 23,000 tons to 49,700 tons [2][6]. - **Commercial Aircraft Shortage**: The global commercial aircraft fleet is aging, with an average age of 14.8 years. GE's commercial engine backlog has increased by 76% to $11.5 billion, with metallic chromium demand in this sector expected to nearly double from 9,800 tons to 19,400 tons by 2028 [2][7]. - **Military and Aerospace Demand**: NATO countries are committing to increase defense spending, leading to a peak in military aviation upgrades and maintenance, alongside strong growth in commercial rocket and aerospace sectors, driving robust demand for metallic chromium [2][8]. Company Insights - **Zhenhua's Market Position**: Zhenhua occupies a significant position in the chromium salt industry, particularly in sodium dichromate production. The company is the largest domestic supplier with a production capacity of 260,000 tons in 2024, followed by Sichuan Yinhe and CITIC Jinzhou [2][9]. - **Production and Sales Balance**: Zhenhua achieved a sales volume of over 7,000 tons in 2024, reaching production-sales balance. The actual delivery volume in Q1 2025 exceeded 2,500 tons, with expectations for further sales growth [2][11]. - **Revenue Projections**: Forecasted revenues for Zhenhua are 4.57 billion yuan, 5.39 billion yuan, and 6.18 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 766 million yuan, 1.005 billion yuan, and 1.334 billion yuan [3][29]. Market Dynamics - **Concentration of Chromium Salt Industry**: The domestic chromium salt industry is highly concentrated, with Zhenhua leading in capacity. The total domestic capacity is approximately 520,000 tons, with Zhenhua's capacity being the largest [2][9]. - **Global Supply Concentration**: The global supply of metallic chromium is concentrated among a few suppliers, with Zhenhua being the largest domestic supplier. The supply chain dynamics indicate that profits will likely flow upstream to the major producers [2][10]. - **Export Growth**: China's exports of metallic chromium and its oxides have significantly increased, with a reported 18% year-on-year growth in unrefined chromium powder exports from January to May 2025 [2][27]. Investment Outlook - **Valuation and Rating**: Zhenhua's current P/E ratios are 13x, 10x, and 8x for the next three years, leading to a maintained buy rating for the company based on its strong market position and growth potential [2][5][29]. This summary encapsulates the key points from the conference call, highlighting the industry's growth prospects, Zhenhua's strategic positioning, and the anticipated financial performance.

Summary of Longxin General's Conference Call Company Overview - **Company**: Longxin General - **Industry**: Motorcycle Manufacturing and General Machinery Key Points Financial Performance - Longxin General's revenue is expected to grow steadily from 2018 to 2024, with an average annual growth rate of approximately 7% [2][3] - In the first half of this year, the company reported revenue of 9.7 billion yuan, a year-on-year increase of 30% [2][3] - Overseas markets contributed over 60% of revenue, with a growth of 36%, while domestic market revenue grew by 10% [2][3] - The net profit attributable to shareholders reached nearly 1.1 billion yuan, representing an increase of over 80% year-on-year [2][5] Business Structure and Diversification - The business structure has diversified significantly, with the motorcycle and engine segment accounting for about 75% of total revenue, while general machinery accounts for approximately 20% [2][4][5] - The company has shifted focus from generator sets to motorcycles and general machinery in recent years [5] Market Trends - The domestic motorcycle market is stabilizing after a peak in 2022, with new registrations around 9 million units in 2023 [6] - High-displacement motorcycle demand is increasing, with sales of 400-500CC and above models growing by over 30% from January to May [6] - The global motorcycle market is projected to sell approximately 56 million units in 2024, with Asia being the primary market [10] Competitive Landscape - There are about 100 domestic manufacturers in the motorcycle market, leading to intense competition [7] - Major players in the high-displacement motorcycle market include Longxin, Qianjiang, and Chunfeng, with Longxin focusing on overseas markets [8][9] Export and International Strategy - Longxin aims to expand its presence in high-end markets, particularly in Europe and Latin America, with a focus on high-displacement motorcycles [9][12] - In 2024, China is expected to export 11 million motorcycles, with Longxin holding a 14% market share in the high-displacement segment [11] Future Outlook - Longxin's profit is projected to exceed 1.9 billion yuan by 2025 and could reach over 2.6 billion yuan by 2027, driven by the growth in high-displacement motorcycle exports [4][23] - The company is also focusing on enhancing its sales network, which covers over 90 countries and regions, with more than 2,000 dealers [16] Product Development and Innovation - Longxin is committed to independent research and development, particularly in its "Wuji" brand, which offers high-performance motorcycles at competitive prices [17] - The company is also expanding into electric motorcycles and all-terrain vehicles, with significant growth in these segments expected [18] General Machinery Business - The general machinery segment, which includes engines and pumps, continues to be a major revenue source, with exports contributing over 60% of its income [19][20] Market Opportunities - The global lawn machinery market is projected to grow, with Longxin focusing on high-end products like intelligent lawn mowers to capture market share [21] Strategic Goals - Longxin aims to maintain its domestic market share while optimizing its product structure to boost high-displacement motorcycle sales [22] This summary encapsulates the key insights from Longxin General's conference call, highlighting the company's financial performance, market trends, competitive landscape, and future strategies.

Summary of Haichen Co., Ltd. Conference Call Company Overview - Haichen Co., Ltd. reported a total revenue of 1.65 billion yuan in 2024, with manufacturing logistics service revenue of 1.38 billion yuan, accounting for 84% of total revenue [2][3] - The company has expanded into logistics automation equipment and robot manufacturing through the acquisition of Mengli Automation Kunshan [2][3] Core Business Insights - The main revenue contributors are from the consumer electronics sector, which generated 1.3 billion yuan, while the new energy vehicle sector contributed approximately 90 million yuan, primarily due to a reduction in clients from Ideal Auto [2][3] - The semiconductor Automated Material Handling System (AMHS) equipment revenue reached 81 million yuan, and display panel MHX equipment revenue was 40 million yuan, showing rapid growth [2][5] Industry Dynamics - The MHS market in China is steadily growing, projected to reach approximately 8.7 billion yuan in 2024, a nearly 40% year-on-year increase, and expected to exceed 13 billion yuan by 2027 [2][6] - The domestic MHS market has been historically dominated by Japanese companies, with a low domestic production rate of about 5% in 2023, indicating significant barriers in hardware, software, and customer development [2][8] Strategic Initiatives - Haichen Co., Ltd. is focusing on enhancing its production logistics supply chain capabilities, with a 54% share from warehousing and 46% from freight forwarding, where freight forwarding has a higher gross margin of 26-27% [2][5] - The company is actively pursuing domestic production initiatives, including the acquisition of Mengli Automation Kunshan, which has led to the production of OHT cranes and AGV unmanned vehicles [4][9] Collaborations and Innovations - A partnership with Leju Robotics was established to explore the application of humanoid robots in logistics and warehousing, aiming to improve efficiency through automation [4][10] - The company has a strong focus on R&D investments to support the development of advanced logistics solutions [4][9] Future Outlook - Haichen Co., Ltd. is well-positioned to benefit from the trend towards domestic production in the semiconductor high-end logistics equipment sector, with a favorable market outlook [2][11] - The company's current market valuation is approximately 6 billion yuan, with a low valuation of around 7-8 times PE, indicating potential for growth [2][11]

Summary of Key Points from the Conference Call Industry Overview - The aviation engine industry is on an upward trend, with revenue increasing from over 30 billion RMB in 2019 to over 80 billion RMB by 2024. However, profits are expected to decline in 2024 due to changes in the competitive landscape and one-time pricing adjustments leading to lower gross margins [1][3] - 2025 is anticipated to be a pivotal year for the aviation engine industry, with new models gradually ramping up production to offset declines in main models, alongside growth in the maintenance and commercial engine markets [1][6] Company Insights Huqin Technology - Huqin Technology, a leader in special stealth materials, has not performed as expected in stock price but remains technically advanced. It is projected to see significant changes by 2026, with revenue in the first half of this year already matching last year's total [1][7][13] - The company has actively diversified its business through the establishment and acquisition of subsidiaries, aiming to reduce reliance on a single revenue source [1][9] AVIC Heavy Machinery - AVIC Heavy Machinery has seen stable revenue but increased operating costs, leading to a significant one-time provision and a decline in net profit. The company is currently undergoing an adjustment period, but long-term prospects remain optimistic [1][8] - The company’s operating profit dropped from 1.6 billion RMB to 860 million RMB, indicating challenges in the current market environment [5][8] Aero Engine Corporation of China (AECC) - AECC reported total revenue of 47.88 billion RMB in 2024, with core factory revenues totaling approximately 56 billion RMB, indicating internal offsets. Financial expenses have significantly increased, reflecting a weaker position in the industry, but improvements are expected [4][18] - The company faces high contract liabilities and is gradually digesting prepayments, with inventory issues expected to be resolved this year. Future profitability is anticipated to come from aftermarket maintenance and refurbishment services [4][19] Financial Performance - The aviation engine industry has experienced a divergence between revenue and profit due to changes in the competitive landscape and one-time pricing adjustments. For instance, AVIC Heavy Machinery's operating costs increased by about 1 billion RMB in 2024, leading to a drop in net profit margin [5][8] - Huqin Technology's revenue has grown from less than 50 million RMB in 2018 to over 1.1 billion RMB in 2024, despite experiencing fluctuations in profit [12][13] Future Outlook - The aviation engine industry is expected to rejuvenate by 2030, driven by new model demand and growth in the commercial engine market [6] - Huqin Technology is projected to break through its current bottleneck and achieve rapid growth starting in 2026, with expectations of maintaining a growth rate of over 30% [13][14] - AECC's stock performance has lagged behind indices, but it is still considered to have significant research value and investment potential, with a market cap expected to rise from 18 billion RMB to 30-50 billion RMB [14][20] Conclusion - Despite facing challenges in recent years, both Huqin Technology and AECC are viewed as having strong long-term investment potential due to their strategic positioning and market demand growth [20]

Summary of 嘉友国际 Conference Call Company Overview - 嘉友国际 is involved in the coal supply chain and logistics, with a focus on coal trading and transportation services. The company has a target trade volume of 6-7 million tons for the year, up from 5.5 million tons last year [2][4]. Key Points Industry and Market Dynamics - The company expects to return to profitability starting from Q3, benefiting from a decrease in coking coal prices and a stable domestic demand for coal during the economic recovery phase [2][3]. - The logistics profit is relatively stable, with a gross profit of over 50 RMB per ton for full-service logistics and around 35 RMB for partial services [2][6]. Financial Performance - The company achieved a trading volume of 1.7 million tons in Q2, with a significant increase in expected annual trading volume [4]. - If the company achieves its target of 7 million tons, logistics could contribute approximately 350 million RMB in profit [6]. - The overall profit expectation for the year is around 1.2 billion RMB, with contributions from both Mongolia and Africa [12][18]. Growth Opportunities - The company has secured long-term contracts totaling 7.5 million tons, providing a stable foundation for future growth [2][5]. - The African land port business has seen a growth rate of 40%, with expected profits of 330-350 million RMB this year, up from 270 million RMB last year [9]. - The company is expanding its operations in Africa, with projects in Zambia and Tanzania, which are expected to enhance profitability significantly [10][11][15]. Strategic Initiatives - 嘉友国际 plans to introduce advanced logistics models from China to Africa, optimizing resource allocation and improving operational efficiency [10][16]. - The company is also involved in significant infrastructure projects, such as the upgrade of the TAZARA railway, which will facilitate mineral transportation [15]. Future Outlook - The company anticipates a stable demand for coking coal in China, with a positive outlook on pricing and demand during the economic recovery [7][17]. - The potential for profit in Africa is substantial, with projections indicating that overall profits could reach 1.5 billion RMB as projects mature [16]. - The company is expected to maintain a growth trajectory, with a projected market valuation of over 28 billion RMB based on a 20x P/E ratio, compared to its current valuation of 20 billion RMB [19]. Risks and Considerations - The company acknowledges that while coal prices have decreased, operational costs have also declined, which may limit profit margins compared to previous high price levels [17][18]. - The reliance on logistics profits rather than coal price fluctuations is a strategic shift that may mitigate risks associated with market volatility [18]. This summary encapsulates the key insights from the conference call, highlighting 嘉友国际's strategic positioning, financial expectations, and growth potential in both the coal and logistics sectors.

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Global Energy Storage System (ESS) Market - **Forecast**: Global ESS demand is expected to more than double from 177.8 GWh in 2024 to 360.2 GWh in 2027, translating to a 26.5% 3-year CAGR [2][9][42] Core Insights - **Regional Demand Drivers**: - **China**: Market-driven demand and extensive local government policies favoring renewable projects with ESS, despite the cancellation of compulsory requirements effective February 9, 2025 [2][21] - **United States**: Accelerated electricity demand growth, particularly from data centers, with a revised forecast of 3.2% CAGR in power demand leading up to 2030 [2][43] - **Europe**: Targeting a fivefold increase in the battery ESS market by 2029 compared to 2024 levels [2][50] - **Emerging Markets**: Providing cost-competitive solutions to address power shortages [2][9] Company-Specific Insights - **Sungrow Power Supply**: - **Earnings Upgrade**: Net profit estimates raised by 3.7% for 2025E, 6.5% for 2026E, and 9.5% for 2027E due to higher ESS shipment volumes [3][11] - **Target Price**: Increased by 33% to Rmb160/share, maintaining a Buy rating with a projected 36.3% ROE for 2025E [3][11] - **Ningbo Deye Technology**: - **Earnings Upgrade**: Net profit estimates raised by 1-3% for 2026-27E, with a target price increase of 10% to Rmb78.2/share [3][12] - **Market Position**: Strong growth in C&I ESS products and high profitability with a 34.1% ROE for 2025E [3][12] Additional Important Insights - **China's ESS Installations**: - New installations reached 23.03 GW/56.12 GWh in 1H25, up 68% YoY, with cumulative installed capacity at 101.3 GW by end-1H25, reflecting a 110% YoY increase [16][18] - The new bidding volume for ESS products soared 264% YoY to 11.2 GW/86.2 GWh in 1H25, driven by centralized procurement from state-owned energy groups [20] - **Policy Changes**: - The abolishment of compulsory ESS installation for new energy projects is expected to shift the market towards voluntary installations driven by return considerations [21][37] - **User-side ESS Growth**: - User-side ESS installations are projected to grow at a 57.9% CAGR from 2023-25E, driven by time-of-use tariff arbitrage opportunities [32][34] - **US Market Dynamics**: - The US electricity generation mix is expected to evolve with increased solar contributions, from 12% in 2025E to 33% by 2040E, while gas contributions decrease from 41% to 30% [44] - **European Market Outlook**: - European battery storage capacity is forecasted to grow significantly, with annual additions expected to reach 118 GWh by 2029E [52] This summary encapsulates the key points from the conference call, highlighting the growth potential and evolving dynamics within the global ESS market, as well as specific company performance and strategic insights.

Summary of NAURA (002371.SZ) Conference Call Company Overview - **Company**: NAURA (002371.SZ) - **Industry**: Semiconductor Equipment (SPE) - **Rating**: Buy Key Points Industry Dynamics - NAURA is positioned to benefit from increased semiconductor capital expenditure (Capex) in China, projected to grow by 5% YoY to US$40 billion in 2025 and US$42 billion in 2026 [1][2] - Rising demand for local semiconductor equipment is driven by increased cloud Capex spending from Chinese cloud service providers (CSPs) focusing on AI applications [2] Financial Performance - Earnings have been revised upwards by 2% and 3% for 2026 and 2027, respectively, due to higher revenues from etching and deposition tool shipments [3] - Gross margin (GM) is expected to decrease slightly by 0.1 percentage points in 2026 and 2027 due to product mix changes, while operational efficiency improvements are expected to reduce the operating expense (Opex) ratio by 0.2 percentage points [3] Revenue and Profit Projections - Revenue projections for 2025, 2026, and 2027 are Rmb39.34 billion, Rmb51.28 billion, and Rmb61.63 billion, respectively, reflecting a growth of 1% and 2% from previous estimates [4] - Net income is projected to increase to Rmb10.54 billion in 2026 and Rmb12.09 billion in 2027, marking a 2% and 3% increase from prior estimates [4] Valuation and Price Target - The target price for NAURA has been revised to Rmb561, based on a 38.4x P/E ratio for 2026, up from Rmb492 previously [6][14] - The target P/E is derived from a regression analysis of global SPEs' P/E ratios and forward earnings growth [6][14] Risks - Key downside risks include potential US export restrictions on Chinese semiconductor firms, which could hinder capacity expansion and reduce demand for NAURA's equipment [15] - Slower-than-expected capacity expansion at NAURA's mature node customers may lead to slower revenue growth than anticipated [15] Additional Insights - The company is expanding its product offerings, including new manufacturing capacities for advanced nodes to meet the demand for AI chipsets in China [2] - The localization trend in China is evident, with major telecom companies like China Mobile and China Unicom announcing new AI computing projects utilizing local chipsets [2] This summary encapsulates the essential insights from the conference call regarding NAURA's market position, financial outlook, and associated risks, providing a comprehensive overview for potential investors.

Summary of Humanoid Robot Insights and Market Dynamics Industry Overview - The report focuses on the **humanoid robot industry** in China, highlighting recent technological advancements and market trends that may influence investor sentiment and stock performance [2][4]. Key Technological Developments - **Dexterous Hands**: Tesla's CEO Elon Musk announced the finalization of the design for Optimus Gen 3, emphasizing the importance of dexterous hands in humanoid robots, which could significantly impact component producers and OEMs [2][4]. - **Linear Actuators and Roller Screws**: Increased adoption of linear actuators by Chinese companies is anticipated due to their superior functionality compared to rotary actuators, benefiting producers in this segment [2][4]. - **Brain AI Chips**: Several Chinese humanoid robot OEMs are preparing to utilize NVIDIA's Jetson Thor, which offers enhanced processing capabilities, potentially improving robot intelligence [2][4]. Market Sentiment and Investment Trends - **Divergence in Investment Interests**: Global investors show varied interests in humanoid robotics, with EU investors still learning about the sector, US clients favoring companies with existing AI revenue, and Asian investors preferring high-quality firms with humanoid options [3][4]. - **Accelerating Orders**: In China, humanoid robot orders have surged, totaling approximately **Rmb 500 million** YTD, with UBTECH, Unitree, and AGIBot capturing over **80%** of these orders [4][5]. Company-Specific Insights - **UBTECH**: Received significant orders worth **Rmb 90 million** and **Rmb 250 million** in Q3, primarily from the auto industry [4][5]. - **Tesla**: Proposed new CEO incentive targets, including the delivery of **one million** bots within ten years, which is seen as a more achievable goal compared to previous guidance [4][5]. - **Upcoming Events**: Anticipated events include Tesla's shareholder meeting and updates on Optimus Gen 3, which could further influence market sentiment [4][5]. Stock Performance and Recommendations - The humanoid index has begun to outperform the A-share machinery index since late July, with expectations for stronger sentiment in Q425 due to upcoming catalysts [5][9]. - Preferred investments include key component suppliers such as **Hengli Hydraulic**, **Tuopu**, **Sanhua**, **Horizon Robotics**, and **Inovance**, which are expected to benefit from the growth in the humanoid sector [5][9]. Risks and Considerations - **Macroeconomic Risks**: The report highlights potential risks including a slowdown in China's economy, which could adversely affect demand for industrial goods and impact the humanoid robot market [22][23]. - **Competitive Pressures**: Intense competition from domestic and foreign enterprises may lead to market share losses for companies in the humanoid robotics space [22][27]. Conclusion - The humanoid robot industry in China is poised for growth driven by technological advancements and increasing market demand. Investors are encouraged to focus on high-quality companies with strong fundamentals and exposure to the humanoid theme, while remaining aware of macroeconomic and competitive risks that could impact performance [5][22].

24 September 2025 | 11:45PM HKT Equity Research China Software: IT services new projects towards AI computing and AI models; Integrated solution to accelerate AI deployment Verena Jeng +852-2978-1681 | verena.jeng@gs.com Goldman Sachs (Asia) L.L.C. Ting Song +852-2978-6466 | ting.song@gs.com Goldman Sachs (Asia) L.L.C. Exhibit 1: ~50% of new project-wins were from AI related solution 15% 25% 10% 25% 25% Data analysis ERP and management system OS and platform AI computing AI model and applications Key IT ser ...