Summary of the Conference Call for Su Shi Testing Company Overview - Su Shi Testing has transitioned from primarily equipment sales to a dual-driven model of equipment and testing services, with testing services now significantly surpassing equipment sales. In 2024, the revenue from environmental testing services is expected to account for approximately 50%, integrated circuit testing for 10%-20%, and equipment sales for about 30% [2][3][4]. Financial Performance and Stock Price Trends - Over the past five years, Su Shi Testing's stock price has experienced three main phases: a dual boost in valuation and performance (2021-2022), a dual decline (2023-2024), and a rebound since 2025, closely linked to the military industry’s development [2][5]. - In the first phase (2021-2022), the company saw revenue growth rates of 26.7% and 20.2%, with net profit growth of 54% and 42%. The environmental testing services revenue grew by 42% and 28%, while integrated circuit testing revenue also increased by 28% in 2021 [5][9]. - The second phase (2023-2024) was marked by a slowdown in performance due to personnel adjustments in the military sector and increased costs from expansion, leading to a 27% decline in profit in 2024 and a drop in PE valuation from over 40 times to around 20 times [2][10]. - Since 2025, the company has benefited from a recovery in downstream demand, with environmental testing services revenue growing by 5.75% year-on-year in the first half of the year and integrated circuit testing revenue increasing by 21% [2][13]. Revenue Structure and Key Markets - Military-related revenue constitutes approximately 45%-50% of the company's total revenue, followed by automotive testing and semiconductor testing [4][7]. - The company has a positive outlook for the military testing industry, expecting stable growth, and anticipates an increase in market share due to rising penetration rates in the third-party testing market [4][8]. Future Outlook - The military testing industry is expected to maintain stable growth, with the company actively expanding capacity and benefiting from strong downstream demand [8][14]. - The semiconductor testing sector is also projected to grow, with integrated circuit testing revenue expected to accelerate due to capacity expansion and a shift towards high-barrier areas like material analysis [18]. - Overall, the company is expected to continue its recovery and growth trajectory in the coming years, similar to the conditions seen in 2021-2022, with positive expectations for revenue and profit growth in the latter half of 2025 [19].

Summary of the Conference Call for Juhua Co., Ltd. Industry Overview - Juhua Co., Ltd. is the largest chemical base in Zhejiang Province, involved in chlor-alkali chemistry, sulfuric acid chemistry, coal chemistry, and basic fluorine chemistry, forming a complete industrial chain and also engaging in petroleum chemistry [2][3] - The company holds the second-largest market share in domestic second-generation refrigerants and over 30% market share in third-generation refrigerants, leading the domestic market [2][3] Core Products and Market Outlook - The core products include refrigerants and fluorine materials. The second-generation refrigerants, primarily used in the maintenance market, are expected to gradually exit the air conditioning market by 2030 due to the Montreal Protocol, although there will still be some demand in the maintenance market [4][5] - The price of R22, a second-generation refrigerant, has increased by 7.6% to 35,500 CNY/ton as of September 7, 2025 [4] - The third-generation refrigerants are crucial for the company, with a quota system starting in 2024, limiting production and use to 90% of the baseline by 2029 and 20% by 2045. The total quota for 2024 is 746,000 tons, increasing to 791,000 tons in 2025 [5][6] Price Trends and Demand Factors - The sustainability of refrigerant price increases depends on supply-demand dynamics. The supply side is dominated by Chinese companies, while demand is expected to grow in developing countries with low air conditioning penetration, such as India [6] - The price of R32 is currently around 60,000 CNY/ton, with potential for long-term price increases due to strong pricing power and global market leadership [6][8] Competitive Advantages - Juhua Co., Ltd. has a complete production setup with self-sufficient upstream raw materials and has increased market share through the acquisition of Feiyuan, becoming a leader in fourth-generation refrigerants [9] - The company has a total production capacity of 80,000 tons and holds quotas for 39,000 tons of second-generation and 260,000 tons of third-generation refrigerants. A 10,000 CNY/ton increase in third-generation refrigerant prices could boost the company's performance by nearly 2 billion CNY [9] Development in Fluorine Materials - The company has significant investments in fluorine materials, including electronic fluorinated liquids and various fluorinated materials, which are widely used in industrial, new energy, and semiconductor fields [10] - Electronic fluorinated liquids are utilized in semiconductor and precision equipment applications, and the company is advancing AI-based immersion cooling technology, considered an ideal and environmentally friendly solution [10] Competitive Landscape - Major global competitors include 3M, Shuwei, and Como. 3M's planned factory closures due to environmental regulations may create market opportunities for Juhua Co., Ltd. [11] - The company is well-positioned to capture market share in high-end applications due to its advanced product offerings and properties [11] Stock Performance and Future Outlook - From 2019 to 2021, Juhua Co., Ltd.'s stock price increased significantly due to market trends and foreign investment, with notable growth in new energy materials [12] - Despite a price decline in PVDF from 400,000 CNY/ton due to domestic supply increases, the overall fundamentals remain strong [12] - The company is expected to benefit from price increases in third and fourth-generation refrigerants and the development of fluorine materials and liquid cooling management materials, indicating substantial growth potential [13]

Summary of the Conference Call for 美埃科技 Company Overview - 美埃科技 holds a leading position in the Fan Filter Unit (FFU) market with a market share of 30% due to continuous investment in technology research and product quality [2][4][6] - The company benefits from the ongoing profitability of the existing market, as products require regular replacement, enhancing profitability with the increase in new factory constructions [2][5] Key Points Market Position and Growth - The company is actively expanding into overseas markets, collaborating with leading global semiconductor manufacturers for product validation and supply chain integration, expecting significant breakthroughs in overseas markets by the second half of 2025 [2][7] - The renewable energy business presents growth potential, providing supporting equipment to companies like 宁德时代, 亿纬锂能, and 比亚迪, with an estimated order volume of approximately 200 million RMB for every 10GWh of capacity [2][7] Financial Performance and Projections - Consumables account for about 30% of total revenue with a gross margin of 30%-40%, higher than that of fan equipment, which is around 20% [3][10][24] - Revenue projections for 2025 to 2027 are 2.4 billion, 3.1 billion, and 3.7 billion RMB, with a compound annual growth rate (CAGR) exceeding 30% [3][29] - Net profit forecasts for the same period are 260 million, 340 million, and 450 million RMB, with a CAGR of 32.3% [3][29] Competitive Advantages - The company maintains high gross margins due to the low proportion of FFU and filters in total investment (approximately 1%-2%), leading to lower price sensitivity among owners [4][10] - The company’s products have superior performance metrics compared to foreign brands, particularly in resistance coefficient, which significantly impacts energy costs [27] Strategic Acquisitions - The acquisition of Malaysia's 捷鑫隆 company has expanded the customer base and enhanced overall competitiveness, targeting Taiwanese, American, and German cleanroom leaders [2][7][28] Market Trends and Demand - The cleanroom industry in China is experiencing double-digit compound growth, driven by semiconductor and battery technology upgrades [15][19] - The shift from traditional liquid batteries to solid-state batteries increases the demand for higher cleanliness levels in production, thus boosting the need for advanced filtration systems [22] Valuation and Market Outlook - The company's current valuation is around 40-50 times earnings, considered high within the industry, with a target price of 67.28 RMB based on a 35 times PE ratio for 2025 [23][29] - The company is positioned as a growth stock with significant long-term potential, especially after penetrating overseas markets [11][29] Additional Insights - The company has 10 domestic and 3 overseas production bases, allowing it to respond promptly to regional demands [21] - The cleanroom market is characterized by a high demand for efficient and ultra-efficient filters, with the semiconductor industry being a major driver of this demand [16][18]

8 September 2025 | 5:06PM CST We hosted Innolight Chairman for a CIO/PM meeting at GS Asia Leaders Conference 2025 on Sep 4 (also at the company VP's group meetings on Sep 3). Heading into the meeting, investor debates have centered around the growth trend beyond 2026 as growth sustainability continues to drive the valuation debate. The key topics during the meeting range across demand trend, silicon photonics, scale-up opportunities for optical, 3.2T product roadmap, supply dynamics, pricing outlook, and c ...

Summary of Fosun Pharmaceutical Conference Call Company Overview - **Company**: Fosun Pharmaceutical - **Industry**: Healthcare, specifically focusing on innovative drugs and biopharmaceuticals Key Points and Arguments Turnaround Potential - Fosun is expected to experience a turnaround with improved profitability across all segments, particularly in innovative drugs [1] - The innovative drug portfolio is considered underappreciated, and divestment of non-core assets is anticipated to enhance financial stability [1] Market Performance - Fosun Pharma's A-share has underperformed compared to peers, with a year-to-date increase of only 29% versus MSCI China healthcare's 74% [2] - The H-share has increased by 86%, primarily due to a narrowing A-H premium, which decreased from 62% to 34% [2] - The subsidiary Henlius has surged by 274% year-to-date, indicating strong market performance in innovative drugs [2] Management Changes and Growth Targets - A new chairman was appointed in June, and a 2025 employee stock ownership plan (ESOP) was announced, targeting a 20% net profit CAGR and 19% sales CAGR for innovative drugs from 2024 to 2027 [2] - This guidance suggests potential upside to street estimates and is expected to drive a meaningful turnaround [2] Valuation Insights - New drugs are projected to drive 68% of Fosun's valuation, contributing to 45% of total drug sales by 2030, up from approximately 30% in 2025 [3] - The innovative portfolio of Henlius is valued at Rmb72 billion, with significant contributions from core drug candidates [3] Financial Strategy - Management has focused on reducing high debt levels by divesting non-strategic assets, achieving a return of approximately Rmb5 billion from asset sales in 2024-1H25 [4] - A commitment to Rmb3 billion in annual capital returns over the next three years is expected to improve capital structure and resource allocation for innovation [4] Share Rating and Price Target - A recommendation to upgrade A- and H-shares to Overweight (OW) with price targets raised to Rmb42 for A-shares and HK$33 for H-shares [5] - Projected 20% net profit growth in 2025 and a 20% CAGR for 2025-2027, driven by an 18% CAGR in new drug sales from 2025 to 2028 [5] R&D and Pipeline Developments - Fosun's internal R&D team has been re-prioritizing pipelines, focusing on high-value projects while discontinuing less promising ones [29] - Recent out-licensing deals indicate a strong R&D platform, with potential for significant market opportunities in various therapeutic areas [31] Subsidiary Performance - Henlius, holding a 63.4% stake by Fosun, is crucial for Fosun's valuation, contributing significantly to new drug sales [44] - Other subsidiaries like Gland Pharma and Sisram are also expected to show improvement, contributing positively to Fosun's growth [44] Financial Forecasts - Revenue forecasts indicate a gradual recovery, with new drugs expected to account for an increasing share of total sales [48] - The overall valuation framework suggests that innovative drugs and biosimilars will be the primary drivers of growth moving forward [45] Additional Important Insights - The market has not fully recognized the improving growth prospects of Fosun, which is seen as a mixed bag due to its diverse segments and past earnings challenges [10][11] - The company is strategically focusing on enhancing R&D efficiency and resource allocation to bolster its innovative capabilities [30] This summary encapsulates the critical insights from the conference call regarding Fosun Pharmaceutical's current status, future prospects, and strategic initiatives.

Summary of HG Tech Conference Call Company Overview - **Company**: HG Tech (000988.SZ) - **Industry**: Communications and Electronics Devices Key Points Demand Outlook - Strong demand for optical transceivers is expected to continue into 2026, with HG Tech capturing 25% to 50% market share among various customers [2][17] - Despite challenges in 2025, such as limited availability of foreign chips like Nvidia's H20 GPU, overall demand remains robust and is anticipated to grow compared to 2024 [3][17] Shipment and Production - A temporary slowdown in shipments occurred due to constrained foreign AI chip availability, but momentum is expected to resume in 4Q25 [1][3] - HG Tech plans to initiate small volume shipments to North American customers in 4Q25, with a potential ramp-up in 2026 [7][10] Growth Drivers - Two key growth drivers identified for 2026: 1. Significant increase in overall transceiver demand volume compared to 2025 2. Migration of customers to 800G technology, which is expected to improve product mix [4][17] - Anticipated 30% to 40% of the volume mix will be 800G in 2026, up from approximately 10% in 2025 [4] Overseas Market Expansion - HG Tech is expanding its production capacity in Thailand, aiming to reach 200,000 units per month by the end of 2025, with potential for over 500,000 units depending on demand [9] - Entry barriers for new suppliers in North America include the need for production diversification and the ability to offer differentiated products [8] Pricing and Margin Concerns - Transceiver pricing in the domestic market has dropped by over 20% annually, raising concerns about margin stability [11] - Management asserts that margins will remain stable due to cost reduction measures and an improved product mix [11][12] - Successful mass shipments to overseas customers could enhance margins, with overseas gross margins projected to be 10 percentage points higher than domestic margins [12] Financial Projections - Revenue and net income are projected to grow significantly, with net income expected to reach Rmb 3.621 billion by 2027 [16] - The company is rated as a "Buy" with a target price of Rmb 81 based on a 29x P/E ratio for 2026 [18][17] Risks - Key risks include slower ramp-up of 400G/800G shipments, lower-than-expected margins, and geopolitical tensions affecting supply chains [20] Conclusion - HG Tech is positioned for growth with strong demand for its products, particularly in the optical transceiver market, and is making strategic moves to expand its presence in North America while managing pricing pressures effectively [17][11]

Summary of BYD Co. (002594.SZ) Conference Call Company Overview - **Company**: BYD Co. (002594.SZ) - **Industry**: New Energy Vehicles (NEV) Key Points Domestic Operations - BYD has adopted conservative pricing strategies in 2025 due to government guidance aimed at reducing competition [4][6] - Competitors are launching new products at lower prices, impacting BYD's market share [4] - The company plans to enhance technology, marketing, and model designs in preparation for new launches in 2026 [4][6] - Upcoming models include Sea Lion 06, expected to achieve over 30,000 units in sales by August 2025, and Fangchengbao TAI7, which will be priced attractively [4][6] - Existing models will receive updates, such as the Qin L EV, which will now include a suspension system previously reserved for larger models [4] Overseas Operations - BYD's overseas sales volume target for 2025 was initially set at 800,000 units, but management is now aiming for 900,000 to 1 million units [4] - The company has planned production capacities of over 150,000 units in Hungary, Thailand, and Brazil, and 50,000 units in Uzbekistan by 2026 [4] Financial Performance - R&D expenses for 1H25 were recorded at RMB 30 billion, with expectations for a similar amount in 2H25 [5] - The company is working on cost-reduction strategies to mitigate the impact of higher Bill of Materials (BOM) costs for autopilot versions [5] Long-term Targets - BYD aims for total sales volume of approximately 10 million units, with 5-6 million units from the domestic market and 4-5 million units from overseas [8] - The domestic market is expected to achieve 80%-90% NEV penetration and a 25%-30% market share [8] Investment Thesis - BYD is positioned as a leading NEV maker in both domestic and global markets, capturing mass-market demand and building premium brands [6] - The company is expected to grow total vehicle sales from 4.3 million in 2024 to 8.9 million by 2030, capturing one-third of China's NEV wholesale demand [6] - Current share prices are below historical averages, presenting an attractive investment opportunity [6] Risks and Challenges - Potential risks include intensifying competition in the electric vehicle market, slower-than-expected overseas expansion, and lower-than-expected external battery sales [6][7] - The domestic sales volume target of 2.15 million units for 2H25 appears challenging based on current sales trends [8] Price Target - The price target for BYD A/H shares is set at RMB 133/HK$130, with a downside risk assessment [7] Additional Insights - Management has not provided specific comments on the 2H25 outlook, but overseas sales are currently tracking ahead of expectations [8] - The company is focusing on both domestic and international markets to drive growth, with a comprehensive product portfolio and strong in-house capabilities [6]

8 September 2025 | 8:25PM HKT Leaf Liu +852-3966-4169 | leaf.liu@gs.com Goldman Sachs (Asia) L.L.C. Christina Liu +852-2978-6983 | christina.liu@gs.com Goldman Sachs (Asia) L.L.C. Valerie Zhou +852-2978-0820 | valerie.zhou@gs.com Goldman Sachs (Asia) L.L.C. Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider t ...

8 September 2025 | 12:11PM CST Innolight (300308.SZ): Update post 2Q result; reflecting better margins. Buy Margin expansion will be a key driver of earnings growth, in our view, driven by cost reduction on the back of SiPho expansion and production yield improvements, which has already contributed to a strong margin increase in 2Q25. We reflect 2Q results and update our margin estimates for 2025-27E. We maintain Buy on Innolight. In 2Q25 results, gross margin at 41.5% came above our pre-print estimate at 3 ...

摘要 富临精工通过风力集团控制，业务涵盖汽车精密零部件、智能电控、锂 电材料和矿业等。2024 年与宁德时代签署合作协议，并拓展机器人赛 道，与上海志远等合作。 公司 2018 年因子公司客户危机导致亏损，2019 年后快速发展，2022 年达到高位。2023 年因铁锂行业竞争加剧亏损，2024 年业绩随产业出 清和技术迭代明显改善。 汽零方面，公司从发动机零部件向新能源转型，拓展电驱三合一、电控 管理系统和悬架 CDC 产品，与广汽、吉利、奇瑞、华为赛力斯阿维塔等 车企有合作。 铁锂材料方面，公司采用草酸法生产高压实产品，满足动力电池和储能 需求。新一代铁锂在容量、快充和低温性能上提出更高要求，高压实铁 锂生产难度大，供给偏紧。 公司将继续推动传统发动机零部件扩张，加速新能源汽车转型，重点发 展电驱三合一、电控管理系统及悬架 CDC 产品，扩大终端客户项目储备。 Q&A 富临精工的核心业务及其发展历程是什么？ 富临精工最初主要聚焦于汽车零部件业务，2016 年收购湖南升华后开始延展 至锂电材料领域。随着新能源车产业的爆发增长，其主业从汽车零部件扩展到 铁锂材料，实现了业绩腾飞。2024 年 8 月，富临精工 ...