Summary of the Conference Call on Humanoid Robots Industry Industry Overview - The humanoid robot industry is accelerating towards commercialization, with 2025 expected to be a pivotal year for mass production. Leading companies like Yushuzhiyuan and Ubtech have already achieved small batch deliveries, with annual sales projected to exceed 1,000 units [1][2][3]. Key Drivers - **Policy Support**: The Ministry of Industry and Information Technology (MIIT) and 15 other departments have prioritized humanoid robots as a key future industry, aiming to establish an innovation system by 2025 and a reliable supply chain by 2027 [2][3]. - **Local Government Initiatives**: Cities like Beijing, Shanghai, and Shenzhen focus on high-end R&D and open scenarios, while regions like Chongqing and Chengdu emphasize local supply chain and cost control, offering financial and tax incentives [1][2]. - **Capital Influx**: Over the past three years, investments in the humanoid robot sector have exceeded 3 billion yuan, with industry funds investing over 8 billion yuan. In the first seven months of 2025, there were 108 financing events totaling 15.35 billion yuan, with over 70% in angel and Series A rounds [1][3]. Market Participants - **Automakers**: Companies like BYD, Xiaopeng, and GAC leverage technology reuse to reduce costs and have rich application scenarios. However, they face talent shortages due to cross-industry R&D [4]. - **Startups**: Companies such as Ubtech and Yushuzhiyuan have strong technical foundations and flexible mechanisms but are constrained by capital and production capacity [4][8]. - **Tech Giants**: Firms like Xiaomi, Alibaba, and Huawei possess advantages in large model layouts and ecosystem integration but lack hardware R&D experience [4][11]. Commercialization Progress - Various market participants are focusing on different aspects of commercialization, with startups making significant strides in niche applications. For instance, Ubtech has secured contracts worth over 90 million yuan for humanoid robots [9][10]. Product Developments - **Ubtech**: Launched the Workers series for industrial applications and is entering multi-machine collaborative training [12]. - **Yushuzhiyuan**: Plans to release a lightweight humanoid robot priced below 40,000 yuan, significantly down from 99,000 yuan, with a target of delivering 500 industrial robots by 2025 [6][12]. - **Xiaopeng**: Integrating humanoid robots into production processes, aiming for mass production by 2026 [16]. Investment Recommendations - Focus on leading manufacturers in the humanoid robot supply chain, particularly during the initial stages of the industry. Key players include Yushuzhiyuan and Ubtech. In later stages, attention should shift to automakers like Xiaopeng and Xiaomi, which have strong technological and resource advantages [17][18]. Conclusion - The humanoid robot industry is poised for significant growth, driven by policy support, capital investment, and technological advancements. Key players across various sectors are making strides in commercialization, with promising developments expected in the coming years.

Summary of Haopeng Technology Conference Call Company Overview - **Company**: Haopeng Technology - **Date**: September 23, 2025 Key Industry Insights - **Industry**: Consumer Electronics, Battery Technology, AI Products, Robotics - **Market Segments**: PC, Wearable Devices, Mobile Phones, Digital Photography, AI Glasses, Robotics Core Points and Arguments 1. **Revenue Growth**: Haopeng Technology aims for a 20% annual revenue growth, benefiting from steady growth in core businesses such as PC, wearable devices, mobile phones, and digital photography, alongside emerging products like AI glasses and robots [2][3][4] 2. **Profitability Recovery**: Since 2025, the overall profitability has improved, with production capacity utilization increasing by approximately ten percentage points quarter-over-quarter in Q3 compared to Q2. The company targets a net profit margin of 7-9% in the next 2-3 years [2][4][5] 3. **Operational Efficiency**: The company has implemented organizational adjustments and ceased leasing its Shenzhen factory to mitigate relocation impacts, aiming to enhance production efficiency and reduce costs through increased orders and customer integration [2][6] 4. **High-End Client Collaboration**: In the small battery sector, Haopeng has established a closed-loop collaboration with leading clients, driving technological advancements in conventional, high-spec, semi-solid, and solid-state batteries [2][7] 5. **Product Launches**: New products, including AI glasses and robots, are set to be launched in the second half of 2025, with a focus on high-value products expected to boost gross margins [3][8] 6. **Business Structure Optimization**: The company plans to reorganize its business structure and product strategy to focus on advantageous areas and potential growth sectors, aiming for a scale of 10 billion RMB [4][9] 7. **Market Share and Technology Cooperation**: Haopeng anticipates an increase in high-end clients contributing to revenue, optimizing customer structure, and enhancing scale effects [7][9] 8. **Battery Product Pricing**: The average selling price of batteries is approximately $2 per unit, with new silicon-based anode materials expected to enhance gross margins significantly [13][14] 9. **Solid-State Battery Development**: Haopeng has commenced mass production of semi-solid batteries and plans to complete prototypes of solid-state batteries by the end of 2025, targeting applications in wearable devices and low-altitude economies [20][23] 10. **Robotics Market Potential**: The company has entered the robotics sector, focusing on AI companion robots and industrial robots, with significant market potential anticipated in healthcare and service industries [24][28] Additional Important Insights - **Client Base**: Haopeng's major clients include domestic automotive startups and North American companies, with significant orders expected from these markets [11][12] - **Future Revenue Expectations**: Basic revenue growth is projected at 20% for 2026, excluding additional growth from AI and robotics [23] - **Investment Opportunities**: The company invites investors to visit its facilities for a deeper understanding of its operations and growth potential [28]

Summary of the Conference Call for Luzhou Laojiao Industry Overview - The liquor industry is facing challenges due to the impact of the Mid-Autumn Festival and National Day holidays, with expected sales not meeting last year's levels. The overall consumption demand is recovering slowly, and the industry is still under pressure from the effects of alcohol bans [2][3][4]. Company Strategies and Performance - Luzhou Laojiao is adopting a cautious inventory strategy, maintaining a controlled stock level to avoid short-term price cuts while preserving brand influence and channel profit margins [2][5][6]. - The company is focusing on the Guojiao 1573 product line, shifting resources towards mid-range and mass-market products, and expanding its market coverage to 1.1 million effective terminals [2][7]. - The proportion of low-alcohol products is increasing, with Guojiao 1573's high and low alcohol ratio approaching 50-50. The company is promoting low-alcohol products to meet diverse consumer needs without setting specific revenue targets [2][8]. Market Dynamics - The company is cautious about the market performance during the upcoming holidays, expecting sales to be lower than last year due to ongoing challenges and the lingering effects of alcohol bans [3][4]. - Mid-range products like Laozhao Special and Special 60 Edition have shown stable performance with single-digit growth in the first half of the year, particularly in banquet markets [2][13]. Competitive Landscape - Luzhou Laojiao is maintaining a stable pricing strategy in response to the price drop of competitors like Wuliangye, aiming to enhance brand influence and potentially surpass Wuliangye's pricing in the future [2][10]. - The company is closely monitoring market dynamics and consumer behavior to adapt its strategies accordingly, especially in response to competitive pricing pressures [10][12]. Future Outlook - The company has initiated revenue planning for 2025 but has not yet set a specific revenue target of 15.5 billion due to the industry's deep adjustment phase [2][11]. - The company is optimistic about the long-term potential of low-alcohol products, although it does not expect immediate large-scale shifts in consumer preferences [9][12]. Regional Market Insights - The East China market has seen a slowdown in growth due to the broader economic environment, while the Southwest and North China markets remain relatively stable [14][15]. - The company is focusing on expanding its presence in rural and county-level markets, which have been previously overlooked [19]. Channel Strategy - Luzhou Laojiao is leveraging new channels like e-commerce and instant retail to enhance consumer convenience, although traditional offline channels remain the primary focus [20]. - The company is committed to strict cost control and efficiency in its expenditure, maintaining a stable expense ratio despite fluctuations in sales expenses [21]. International Expansion - The company is actively promoting its brand overseas, although current international revenue contribution is minimal, primarily targeting the Chinese diaspora [22]. This summary encapsulates the key points discussed during the conference call, highlighting the challenges and strategies of Luzhou Laojiao in the current market environment.

Summary of the Conference Call on Gaming Industry and "Delta Action" Industry Overview - The gaming industry is witnessing a significant evolution in shooting games, categorized into three main phases: traditional FPS (e.g., CS, CF), battle royale (e.g., PUBG, Peacekeeper Elite), and hardcore looter shooters (e.g., Escape from Tarkov, Delta Action) [2][6][16]. Key Concepts and Arguments - **"Search and Extract" Gameplay**: This high-risk, high-reward model requires players to enter the battlefield with external gear, scavenge for resources, and defeat enemies to successfully extract and gain rewards. Failure results in the loss of all equipment, akin to gambling psychology [2][3][5]. - **Evolution of Shooting Games**: The transition from traditional FPS to battle royale and now to hardcore looter shooters reflects changing player preferences and gameplay complexity. The hardcore genre, while initially difficult to access, is gaining popularity [6][16]. - **Classification of Looter Shooters**: Looter shooters are divided into three categories: hardcore (e.g., Delta Action), mid-light (e.g., Super Burn Action Group), and X+ looter shooters (e.g., Sausage Party, Egg Party). Each category caters to different player demographics and preferences [7][16]. Delta Action Specifics - **Core Gameplay Mechanics**: Delta Action features three main gameplay modes: Fire Zone (simplified Tarkov), Full Battlefield (PVP), and Black Hawk Down (single-player narrative). Players can choose from 12 operators across four classes, each with unique skills that influence combat strategies [8][9]. - **Teamwork and Strategy**: The game emphasizes teamwork, with AI-controlled NPCs providing auditory cues to locate other players. Players can choose to avoid combat or ambush others for valuable loot [10][11]. - **Economic Mechanisms**: Players can purchase larger insurance boxes to secure high-value loot, promoting an economic cycle within the game and enhancing user retention [12][15]. Market Potential and Trends - **X+ Looter Shooter Growth**: The X+ looter shooter category is expected to grow significantly due to its combination of hardcore gameplay with broader appeal, particularly attracting female players. Current leading titles like Super Burn Action Group demonstrate innovative gameplay and market potential [14][16]. - **Comparison with Other Titles**: Delta Action is less hardcore than similar games like Dark Zone Breakthrough, making it more accessible to new players. This accessibility is crucial for expanding the player base [13][16]. Additional Insights - **Psychological Appeal**: The "Search and Extract" gameplay's gambling-like risk-reward structure is a major draw for players, contributing to its rising popularity [3][5]. - **Future Trends**: The gaming industry is likely to see continued innovation in gameplay mechanics and player engagement strategies, with X+ looter shooters potentially becoming a dominant trend in the coming years [16].

Summary of Haier Smart Home Conference Call Company Overview - **Company**: Haier Smart Home - **Date**: September 23, 2025 Key Industry Insights - **High-End Home Appliance Market**: Casarte has maintained the top market share in China's high-end home appliance sector for eight consecutive years, benefiting from national subsidy policies with a projected revenue growth of over 30% in 2024 [2][3] - **Product Bundling and Scene-Based Sales**: Haier's strategy of promoting bundled and scene-based sales has led to a 60% increase in bundled product sales in 2024, accounting for 35% of sales from the scene brand San Wing Niao [2][3] - **Global Expansion**: Haier has established a strong global presence with a comprehensive product matrix and localized production capabilities, surpassing Whirlpool in the North American market and rapidly expanding in Eastern Europe through the acquisition of Candy [2][4] Core Competitive Advantages - **High-End Strategy**: Haier's Casarte brand effectively addresses high-end consumer pain points and has established a solid barrier through innovative products and a seven-star service standard, achieving over 30% revenue growth in Q4 2024 due to national subsidies [3][12] - **Global Operations**: Haier's global operational capabilities are enhanced by 163 manufacturing centers and 126 sales centers, covering 230,000 sales outlets, which facilitate resource integration and supply chain collaboration [13] Market Potential - **Domestic Market Growth**: The domestic high-end home appliance market is expected to double, with a projected market size of over 130 billion yuan if the penetration rate among the middle class reaches 30% [11][10] - **Emerging Markets**: Haier is actively expanding in emerging markets like South Asia and Southeast Asia, with plans to increase air conditioning production capacity in India from 1.5 million to 4 million units by 2027 [21][22] Financial Projections - **Future Revenue Growth**: Haier anticipates overseas revenue to reach 189 billion yuan by 2030, with a compound annual growth rate (CAGR) of 6% during this period [24] Strategic Execution - **Global Strategy**: Haier is recognized for its clear strategy and strong execution capabilities, effectively identifying and capitalizing on incremental demand. The company is expected to maintain strong performance in both domestic and international markets, with a focus on high-end product offerings and global expansion [25] Additional Insights - **Market Dynamics**: The North American market remains crucial for Haier, with a 25% share in the major appliance sector, while the European market is characterized by diverse growth rates across regions [14][19] - **Competitive Landscape**: In the global dishwasher market, Haier and Whirlpool dominate with over 50% market share, with Haier's GEA brand showing significant growth post-acquisition [15][16] This summary encapsulates the key points from the conference call, highlighting Haier Smart Home's strategic initiatives, market positioning, and growth potential in both domestic and international markets.

Summary of the Conference Call Industry Overview - The gaming industry is experiencing a new product cycle that drives performance growth for leading companies such as Giant and Jibite, with mobile gaming growing by 17% in the first half of the year. However, the suspension of game license approvals has caused performance fluctuations for some companies, making those with rich product reserves more advantageous [2][3][6]. Company Insights: Kaiyin - Kaiyin has been re-included in the "Golden Stock" list, achieving rapid progress through strategic investments and new contracts. The company has resolved legal disputes with Yumeide and maintained stable profitability after restructuring its business framework. Its main operations include R&D, publishing, and IP investment [2][4][5]. - The company has a strong presence in the "Legend" gaming sector, having launched "Miracle" with a peak MAU of 16 million. The Legend IP remains highly popular, with the global and domestic IP gaming market showing single-digit growth in the first half of 2025 [2][7]. - After the management takeover by Jin Feng, the company has streamlined operations, enhancing overall profitability through mergers and acquisitions. The current business structure includes R&D, publishing, and IP investment, which has laid a solid foundation for future growth [4][8][9]. Market Trends and Future Potential - The gaming industry still holds growth potential, especially for companies with rich product reserves, which may continue to see performance upgrades driven by new products. The mobile gaming sector achieved a 17% growth in the first half of 2025, indicating robust vitality [6]. - Despite challenges from the suspension of game licenses leading to the end of life cycles for older products, companies like Kaiyin and Perfect World, which have significant product reserves and expected discrepancies, are recommended as key investment targets [6]. Specific Strategies in the Legend Sector - Kaiyin has a well-defined strategy in the Legend sector, collaborating with Century Huachong and Tanwan to form a clear upstream and downstream deployment. This includes sharing technology platforms to enhance product supply capabilities and maintaining innovation through version iterations and continuous operations [11]. - The company is also investing in the SLG sector, with anticipated releases such as "Three Kingdoms: The World Returns" expected to contribute to revenue and profits in Q4 2025 or Q1 2026 [11]. Diversification Efforts - Beyond the Legend sector, Kaiyin is diversifying into other game series such as Hot River and Xianxia, as well as making strides in the SLG sector with major IP games expected to launch in Q1 2026. The company is also exploring new monetization avenues through mini-program games and AI applications, including the Soo platform and AI 3D companion product Eve [12]. Governance Improvements - Since Jin Feng's appointment, the company has made governance improvements, including a five-year no-reduction commitment and a recent buyback of 200 million. These measures address previous concerns and enhance shareholder returns, supporting the valuation through core drivers such as high-margin products and potential blockbuster logic [13]. Box Business Potential - The box business boasts over 90% gross margin and over 50% net margin, with significant order growth observed. Revenue for the first half of the year exceeded 600 million RMB, with expectations for accelerated growth in the second half. A price increase is also anticipated in October, indicating substantial integration and enhancement potential [14][15]. Impact of AI Technology - Although AI technology has not yet reflected in gaming sector premiums since 2024, the company has made notable advancements in AI applications. Innovations such as the Soo distribution platform and AI toys are expected to increase user engagement and generate advertising revenue, potentially enhancing valuation if blockbuster products emerge [16].

Summary of Shunwang Technology Conference Call Company Overview - Shunwang Technology holds a leading position in the market, reaching a large number of heavy gamers. The revival of PC gaming and the relaxation of game licensing have improved the gaming industry's outlook, increasing user stickiness for PC and console games, which in turn boosts advertising demand from gaming companies [2][3][4]. Core Business Insights - The primary revenue sources for Shunwang Technology are online advertising and value-added services, mainly targeting internet cafes and esports hotels, which dominate the market share. The company has seen significant revenue growth in 2025, attributed to the overall improvement in the gaming industry and seasonal advertising trends [3][4]. - The advertising business primarily utilizes a Cost Per Thousand Impressions (CPT) model, enhanced by big data for precise ad targeting. The upcoming 9,300 major version update in 2025 is expected to further enhance AI technology applications, improving ad effectiveness and user experience [2][5]. AI and Cloud Computing Initiatives - Shunwang's "Shunwang Intelligent Computing" platform leverages advanced AI capabilities for data analysis and user behavior prediction, enabling precise ad targeting and optimization, thus enhancing marketing efficiency [6]. - The cloud and AI computing services are based on esports technology, utilizing consumer-grade graphics cards for edge computing. The company plans to establish over 300 edge cloud data centers nationwide to meet the demand from internet cafes and esports hotels, ensuring low latency [7][8]. Esports Industry Engagement - The esports industry is viewed as a significant component of competitive sports, with a growing acceptance among the younger generation (Generation Z). Shunwang focuses on grassroots development in esports, aiming to foster a healthy ecosystem that supports the entire industry chain [11][12]. - The company is involved in the development and publishing of mobile games, such as "Three Kingdoms: Hundred Generals Card," which is currently in the testing phase and expected to launch in October [13][15]. Financial Management and Incentives - Shunwang has adjusted its expense recognition method to distribute costs evenly across quarters, promoting healthier financial management. The company is also considering new incentive plans that align with performance targets rather than traditional stock options [16][17]. Future Outlook - The company anticipates continued growth in the second half of 2025, driven by the increasing demand for advertising in the gaming sector and the expansion of its cloud computing services [4][7]. The integration of AI technology is expected to open up new application scenarios and customer growth opportunities [10].

Summary of the Conference Call for Jinglv Environment Industry Overview - Jinglv Environment is transitioning from early equipment manufacturing to urban operation services, with service revenue now accounting for 60% and equipment revenue for 40% [2][6][5] - The market for unmanned sanitation vehicles is expected to open significantly, with project totals estimated to exceed 100 billion yuan in the first half of 2025 and an annual market size projected to surpass 300 billion yuan [2][12] Key Points and Arguments Business Structure and Revenue Composition - The company’s main business segments include equipment, urban operation services, and smart sanitation operations [3] - The revenue composition has shifted from primarily equipment manufacturing to a more balanced approach, with a significant increase in service revenue since 2015 [6] - The company has approximately 270 million yuan in hand orders and expects revenue to double in 2025 due to adjustments in fiscal spending [2][6] Unmanned Sanitation Vehicle Development - The company plans to deploy around 50 unmanned sanitation vehicles in 2025, with 60% for internal projects and 40% for external sales [2][7][8] - The cost of unmanned sanitation vehicles has significantly decreased, with prices dropping from over 800,000 yuan to around 100,000-200,000 yuan [2][10] - Unmanned vehicles can replace 3-4 workers, saving approximately 120,000 yuan annually, with a payback period of 2-3 years [11] Market Dynamics and Growth Potential - The unmanned sanitation market is rapidly expanding, with over 100 projects opened in the first half of 2025, indicating a growing demand for automation in sanitation [9] - The market remains fragmented with no dominant players, leading to slower growth rates but significant potential for expansion [12] Cost Structure and Economic Efficiency - The hardware costs of unmanned vehicles account for 40%-50% of total costs, with the remaining costs attributed to smart driving algorithms [15] - The company utilizes NVIDIA's Orin chip for its rich ecosystem and ease of technology transfer [16] - The average labor cost is low due to the company's origins in rural sanitation projects, where wages are significantly lower [29][28] Long-term Contracts and Profitability - The company has long-term contracts ranging from 10 to 30 years, with an average order cycle of 10-15 years [31] - The bidding bottom line for new urban projects is set at a net profit margin of around 10% [33] - Opportunities for price adjustments exist in long-term contracts based on wage levels or fuel prices [34] Research and Development - The R&D team consists of approximately 30 members, focusing on software algorithms and hardware development [17] - The company does not anticipate needing significant additional funding for R&D as the unmanned technology matures [18] Challenges and Future Outlook - The equipment revenue has faced pressure due to seasonal order patterns, with significant order confirmations expected in the second half of 2025 [36] - The company is well-positioned to capitalize on the growing demand for unmanned sanitation solutions, with a focus on technological advancements and cost efficiencies [2][12][19] Additional Important Insights - The company has established a subsidiary, Shanghai Xunming, to independently operate and cater to B-end clients [14] - The operational costs are kept low through mechanization and technological empowerment, enhancing overall efficiency [29][30]

Summary of the Conference Call for 菲利华 Company Overview - **Company**: 菲利华 - **Industry**: Quartz electronic cloth and copper-clad laminate (CCL) manufacturing Key Points and Arguments 1. **AI Development Impact**: The advancement of AI is driving the need for higher circuit transmission rates, leading to stricter requirements for low-loss copper-clad laminates. The M9 level copper-clad laminate is ideal for high-speed transmission due to its extremely low dielectric loss (DF value) [2][3][20] 2. **Quartz Material Advantages**: Quartz materials have an extremely low DF value, theoretically as low as 2/10,000, making them ideal for M9 level copper-clad laminates. Additionally, quartz has a lower thermal expansion coefficient compared to mainstream Low-CTE products [4] 3. **Core Competitiveness**: 菲利华 possesses a "four best" competitive edge: earliest market entry, most complete industrial chain, largest customer base, and superior performance, solidifying its leading position in the specialty fiberglass market [2][5][20] 4. **Full Supply Chain Control**: 菲利华 is the only company globally that can independently control all four stages from quartz sand purification to electronic cloth production, ensuring product quality and supply chain stability [2][9] 5. **Strategic Partnerships**: The company collaborates with downstream clients like 生益科技 and 松下 to continuously improve products, achieving a DF value of 5% to 7%, which is globally leading [2][12] 6. **Production Capacity Plans**: By 2027, 菲利华 aims to achieve an annual production capacity of 20 million meters of quartz electronic cloth, with agreements for loom procurement already signed [2][15][17] 7. **Market Trends**: The quartz electronic cloth market is expected to maintain high prices due to its critical role in AI applications, despite its higher cost compared to other materials [2][18] 8. **Revenue and Profit Projections**: If production capacity is fully utilized in 2026, the company could see revenues exceeding previous total revenues, with projected profits around 2 billion yuan, indicating a potential market valuation of at least 80 billion yuan [2][19] 9. **Investment Timing**: Current market conditions are favorable for investing in 菲利华, with clear downstream demand and an anticipated industry explosion by 2027 [2][21] Additional Important Insights - **Technological Advancements**: The company has made significant progress in technology, achieving a major breakthrough in high-frequency and high-speed copper-clad laminates [2][13] - **Customer Relationships**: 菲利华 has established long-term and stable relationships with numerous clients, which aids in continuous innovation and business growth [10][11] - **Future Market Outlook**: The quartz fiber market is expected to expand rapidly, with plans to sell quartz fibers directly to meet market demand [2][16] This summary encapsulates the critical insights from the conference call, highlighting the strategic positioning and future outlook of 菲利华 in the quartz electronic cloth and copper-clad laminate industry.

Summary of the Conference Call Transcript Company Overview - **Company**: Zhejiang Huayou Cobalt Co Ltd - **Ticker**: 603799.SS - **Market Cap**: Rmb 87,248.7 million - **Current Share Price**: Rmb 51.56 (as of September 19, 2025) - **Price Target**: Rmb 43.00 - **52-Week Range**: Rmb 54.75 - 21.61 - **Shares Outstanding**: 1,692 million - **Average Daily Trading Value**: Rmb 1,725 million Industry Context - **Industry**: Cobalt and Nickel Production - **Key Market Dynamics**: - The Democratic Republic of Congo (DRC) has extended its cobalt export ban until October 15, 2025, followed by export quotas that will limit the 2026-27 quota to 40% of normal production levels. This is significant as DRC accounts for 70% of global cobalt supply [2][4]. - Nickel smelters in Indonesia, which utilize laterite nickel ore and the HPAL method, are expected to benefit from a potential increase in cobalt prices, as they typically produce about 10% cobalt as a byproduct [2]. Production Estimates - **Cobalt Production**: - Huayou's cobalt production volume from its Indonesian smelting operations is estimated to be approximately 20,000 tons (with 11,000 tons attributable based on shareholding) in 2025 [2]. Valuation and Risks - **Valuation Methodology**: - The price target is derived from a Discounted Cash Flow (DCF) model, assuming a Weighted Average Cost of Capital (WACC) of 10.9% and a steady-state revenue growth rate of 2% [7]. - **Risks to Upside**: - Improvement in cobalt prices alongside demand - Increase in copper prices - Rising sales volume of NCM (Nickel Cobalt Manganese) precursors - Cost reductions in NCM due to self-supply of nickel raw materials from Indonesian projects coming online [9]. - **Risks to Downside**: - Lower-than-expected cobalt and copper prices - Missed precursor sales volume due to weaker-than-expected demand - Slower-than-expected ramp-up of Indonesian nickel projects [9]. Analyst Insights - **Analyst**: Chris Jiang, Morgan Stanley Asia Limited - **Stock Rating**: Equal-weight - **Industry View**: Attractive - **Analyst Certification**: The analyst certifies that views about the company and its securities are accurately expressed and that no compensation has been received for these views [14]. Additional Notes - The report indicates a "very likely" probability (70% to 80%) for the scenario regarding cobalt supply impacts due to DRC's export policies [3]. - The company is positioned to benefit from the ongoing dynamics in the cobalt market, particularly with the expected price increases due to supply constraints from the DRC [2][4].