20 February 2025 Global Semiconductors & Hardware China Smartphone Tracker (Dec 2024): Stimulus helping demand & especially Chinese OEMs Mark Li +852 2918 5752 mark.li@bernsteinsg.com Stacy A. Rasgon, Ph.D. +1 212 756 4403 stacy.rasgon@bernsteinsg.com Sara Russo +44 207 544 1792 sara.russo@bernsteinsg.com Aleksander Peterc +33 1 57 29 45 25 aleksander.peterc@bernsteinsg.com Arpad von Nemes +1 212 969 1518 arpad.vonnemes@bernsteinsg.com Please download our smartphone monthly tracker data from here. Dec shipm ...

Summary of Chinese Internet Data Centre Sector Conference Call Industry Overview - The focus is on the Chinese Internet Data Centre (IDC) sector, which is currently undervalued compared to global peers despite higher project returns and EBITDA growth [3][4] - Chinese IDC companies achieved an average return of 13% in 2023, projected to rise to 15% by 2026, driven by AI-related demand [4][11] - The sector is expected to record a 20% CAGR in EBITDA from 2024 to 2026, outpacing the global average of 11% [4][11] Key Insights - **Valuation Discrepancy**: Chinese IDC firms are trading at a 25% EV/EBITDA discount compared to global peers, despite superior growth and returns [4][11] - **Hyperscaler Demand**: There is higher order certainty from hyperscalers, with demand driven by internal AI workloads rather than indirect cloud client demand [5][11] - **Emerging Hubs**: Inner Mongolia is identified as a new IDC hub due to low power tariffs and acceptable latency, with low vacancy rates and pre-committed projects from hyperscalers [6][11] Investment Recommendations - **Top Picks**: VNET, GDS, and Aofei are highlighted as top investment picks due to their potential for new order wins and upcoming REIT launches [3][7] - **Price Targets**: Price targets for VNET raised to $25.00 (92% upside), GDS to $66.00 (53% upside), and Aofei to Rmb28.10 (41% upside) [8][29][30][31] Financial Metrics - **VNET**: Expected EBITDA growth of 18% in 2025 and 26% in 2026, with a price target based on 18x 2026E EV/EBITDA [29] - **GDS**: Anticipated EBITDA growth of 12% in 2025 and 14% in 2026, with a price target based on 17x 2026E EV/EBITDA [30] - **Aofei**: Projected to achieve a 20%+ EBITDA CAGR from 2024-2026, with a price target of 25x 2026E EV/EBITDA [31] Market Dynamics - **AI Demand**: The launch of DeepSeek is expected to increase demand for AI training and inference, leading to a more diversified customer portfolio for IDC operators [38][41] - **Utilization Rates**: The industry utilization rate is projected to improve, with third-party IDC revenue growth expected to reaccelerate to 10-20% in 2025/26E [45][62] Risks and Considerations - **Leverage Risks**: The potential launch of REITs in 2025 may help diversify funding options and mitigate excessive leverage risks due to growth ambitions [6][11] - **Market Competition**: The IDC sector is experiencing increased competition, particularly from hyperscalers' in-house capacity, which could impact pricing and margins [41][45] Conclusion - The Chinese IDC sector presents a distinct opportunity for re-evaluation, with strong growth prospects driven by AI demand and favorable market dynamics. The current undervaluation compared to global peers suggests potential for significant upside in selected stocks.

20 February 2025 | 1:55PM HKT China Battery ESS New policies clearing a pathway for future growth, we contextualize near-term implications; Buy CATL (on CL) In the past two weeks, two impactful policies that we think should help clear the pathway for BESS growth have been released. 1. Independent BESS business models are now one step closer to maturity The new policy allows power prices to float in a broader range, which we believe enriches the arbitrage opportunities for BESS - the key driver in our BESS b ...

China Financials | Asia Pacific Tracking industrial risks – some progress on capex rationalization in 2H24 Key Takeaways We believe a continued slowdown in industrial capex will be needed to ease industrial profit pressure and credit risks. While many industrial sectors still felt pressures in 2024, we believe the policy shift from pushing to containing capex expansion and abating loan window guidance since mid-2024 is bearing some fruit, with progress on rationalization of industrial credit and investment ...

February 20, 2025 12:37 PM GMT WeiChai Power | Asia Pacific Data NOW: Weichai's Share Price vs. LNG HDT Sales in Jan- 25 China's LNG heavy-duty truck (HDT) sales were up 21% y-y (-20% m-m) to 7.7k units in Jan-25, with penetration expanding 7ppt y-y to 16% (vs. 9% in Jan-24). This was attributed to a widening LNG/diesel price gap (Rmb3,148/t in Jan-25 vs. Rmb2,520/t in Jan-24 and Rmb3,009/t in 2024, according to CEIC data). Exhibit 1: LNG HDT Sales vs. Weichai H-share Price Performance -5,000 0 5,000 10,000 ...

February 20, 2025 04:20 PM GMT NetEase, Inc | Asia Pacific Overseas expansion and overall recovery on track We think Netease's overseas expansion and overall growth recovery are well on track. The market seems to have overreacted to the top-line miss despite the healthy game grossing and profit beat. We stay OW and highlight the FragPunk release on March 6 as the next catalyst. Overseas expansion in focus: Management spoke highly of Marvel Rivals' performance and targets to run this game as a 10-year evergr ...

Summary of FOMC Minutes - January Meeting Industry Overview - The document pertains to the Federal Open Market Committee (FOMC) and its monetary policy discussions, reflecting the economic outlook and potential adjustments to monetary policy in the United States. Core Points and Arguments 1. **Monetary Policy Approach**: The majority of FOMC participants favored a careful approach to additional adjustments in monetary policy due to elevated uncertainty regarding the economic outlook, neutral interest rates, and potential government policy changes [2][1] 2. **Fed Funds Rate**: The vast majority of participants judged that the fed funds rate remains in restrictive territory, with a desire to see further progress on inflation before making adjustments [2][1] 3. **Inflation Risks**: Almost all participants assessed that risks to achieving the FOMC's dual-mandate goals were roughly balanced, with inflation risks skewed to the upside due to potential changes in tariff and immigration policy [3][1] 4. **Inflation Expectations**: Some participants noted recent increases in inflation expectations, while many emphasized that long-term expectations remain well-anchored [3][1] 5. **Economic Activity Risks**: Potential downside risks were identified, including a weaker labor market and tighter financial conditions, alongside upside risks from a favorable regulatory environment and strong consumer spending [6][1] 6. **Economic Forecast**: The Fed staff's economic forecast remained similar to the previous meeting, with inflation in 2025 projected to be similar to 2024's rate, influenced by trade policy assumptions [6][1] 7. **Monetary Policy Framework Review**: The FOMC began a review of its 2025 monetary policy framework, focusing on longer-run goals and communication practices, emphasizing the need to reconsider elements from the previous review [7][1] 8. **Balance Sheet Runoff**: Many participants suggested structuring purchases to align the maturity composition of the portfolio with Treasury debt, and some indicated a potential pause or slowdown in balance sheet runoff until the debt ceiling is lifted [7][1][6] 9. **Runoff Expectations**: The expectation is for the Committee to slow the pace of balance sheet runoff, with discussions anticipated in March and a decision likely in May, with runoff expected to end by the end of Q3 [7][1] Additional Important Content - The document includes contact information for Goldman Sachs analysts involved in the report, emphasizing the importance of considering this report as one factor in investment decisions [4][5] - Regulatory disclosures and compliance information are provided, indicating the firm's policies regarding analyst independence and conflicts of interest [10][11][20]

Summary of EHang Holdings Conference Call Company Overview - **Company**: EHang Holdings (Nasdaq: EH) - **Industry**: Urban Air Mobility (UAM) technology platform - **Market Cap**: US$1.67 billion as of February 19, 2025 [6] Key Takeaways from Management Call 1. **Government Support**: EHang anticipates continued government backing, including project funds for the low-altitude economy and infrastructure development [2] 2. **Operating Certificate**: The company expects the first operating certificate to be released soon [2] 3. **Product Launches**: EHang plans to launch updated versions of its eVTOL aircraft, specifically the EH216 and VT-35, in the upcoming months [2] 4. **Cash Turnover**: EHang's cash turnover is efficient, with buyers required to pay 30% upfront and 60-70% before final delivery [2] Financial Projections 1. **ASP Stability**: EHang estimates that the average selling price (ASP) of the EH216 will remain stable due to mild competition [3] 2. **Cost Management**: The cost structure is expected to stabilize due to economies of scale and new battery and motor technologies [3] 3. **Profit Margins**: EHang anticipates adjusted net margins (before stock-based incentives) to reach 15-20% in 2025, with long-term net profit margins under US GAAP projected at 15-20% [3] 4. **Stock-Based Incentives**: The annual stock-based incentive is expected to remain around Rmb250-300 million for the next few years [3] Revenue and Earnings Forecast - **Revenue Growth**: Projected revenues are expected to grow from Rmb117 million in 2023 to Rmb1.136 billion in 2025, reaching Rmb3.494 billion by 2028 [9] - **Earnings Projections**: Net earnings are forecasted to turn positive in 2025 with an EPS of Rmb0.20, increasing to Rmb3.37 by 2026 [7][9] Valuation and Investment Outlook 1. **Price Target**: The price target is set at US$31, based on a 15x price-to-sales ratio for 2025, implying a 65x PE for 2026 and 29x for 2027 [5] 2. **Investment Rating**: The stock is rated as a "Buy" [6] 3. **Forecast Returns**: Expected stock return is 17.2%, with no forecasted dividend yield [10] Market Sentiment and Risks 1. **Investor Interest**: There is increasing interest from investors regarding EHang, with many recognizing the growth potential of eVTOLs supported by government initiatives [4] 2. **Total Addressable Market (TAM)**: Questions remain about the overall TAM for eVTOLs in China, particularly regarding their viability as a mass transport mode in urban areas [4] 3. **Risks**: Potential risks include operational delays, battery technology stagnation, and slower-than-expected product development [12][13] Conclusion EHang Holdings is positioned for growth within the urban air mobility sector, bolstered by government support and innovative product launches. Financial projections indicate a positive trajectory, with increasing revenues and profitability expected in the coming years. However, investor sentiment is tempered by uncertainties regarding market adoption and technological advancements.

MeiraGTx Holdings (MGTX) Update / Briefing February 21, 2025 08:00 AM ET Speaker0 Good morning, and welcome to the GTX Investor Event. At this time, all attendees are in a listen only mode. A question and answer session will follow the presentations. As a reminder, this call is being recorded and a replay will be made available on the Mirror GTX website following the conclusion of the event. I'd now like to turn the call over to Doctor. Sandy Forbes, President and Chief Executive Officer of Miura GTX. Pleas ...

Summary of Luxshare Precision Industry Conference Call Company Overview - **Company**: Luxshare Precision Industry - **Industry**: Electric Components & Equipment - **Market Cap**: Rmb315 billion (approximately US$43.3 billion) [6] - **12-month Rating**: Buy - **12-month Price Target**: Rmb58.00 (previously Rmb37.00) [6] Key Points Diversification and Growth Strategy - Luxshare's growth has been closely tied to Apple, with 75% of its revenue in 2023 coming from Apple-related products. The company aims to reduce this dependency to 49% by 2027 through diversification into sectors like edge AI, electric vehicles (EV), and high-performance computing [1][10][19]. - The company expects to double its earnings by 2027, driven by new verticals and key customer breakthroughs in consumer electronics, automotive, computing, and communication sectors [1]. Revenue Projections - **Communication Sector**: Projected to grow at a 43% CAGR from 2025 to 2027, driven by securing tier-1 international clients [2]. - **Automotive Sector**: Expected to see a CAGR of 40-50% over the same period, aided by synergies from the Leoni acquisition [2]. - **Non-Consumer Business Contribution**: Anticipated to rise from 12% of revenue in 2023 to 49% by 2030, significantly reducing reliance on Apple [2]. Consumer Electronics and AI - Luxshare has experienced substantial growth since its listing in 2010, with revenue and earnings increasing 229x and 95x, respectively. The company forecasts a 10% long-term revenue CAGR for its consumer electronics segment, driven by edge AI and the acquisition of Wingtech's ODM business [3][30]. - The edge computing market is projected to grow from US$131 billion in 2023 to US$511 billion by 2033, with a CAGR of 15%, indicating strong demand for AI-enabled devices [17][29]. Valuation Insights - Current valuation is seen as attractive, trading at 18x NTM consensus PE, which is below its five-year average of 23x. The market has not fully priced in the potential growth from non-Apple segments [4][12]. - The target valuation is derived from a 25x 2025E PE, implying a PEG of 1.0x, assuming a 25% EPS CAGR from 2026 to 2030 [4]. Recent Developments - Luxshare has expanded its partnerships with major global clients, including NVIDIA, Google, and Cisco, following the resolution of a complaint that previously hindered its growth [11]. - The acquisition of Wingtech's ODM business is expected to enhance Luxshare's offerings in non-Apple consumer electronics, which previously generated Rmb23.7 billion in sales over three years [30][31]. Market Dynamics - The company faces challenges from US tariffs and stagnant smartphone shipment growth, but it is positioned to benefit from emerging markets and technological advancements [4][10]. - The shift in focus from Apple to non-Apple customers is expected to drive long-term growth, with a forecasted 4% sales CAGR for the consumer electronics business from 2025 to 2027 [8][16]. Conclusion Luxshare Precision Industry is strategically diversifying its revenue streams away from Apple, targeting high-growth sectors such as automotive and communication. The company is well-positioned to capitalize on emerging technologies like edge AI, with significant growth expected in the coming years. The current valuation presents an attractive investment opportunity as the market begins to recognize the potential of Luxshare's non-Apple growth.