Summary of Lead Intelligent (300450.SZ) Conference Call Company Overview - **Company**: Lead Intelligent (300450.SZ) - **Industry**: Battery Equipment Manufacturing - **Market Position**: Approximately 25% global market share in lithium-ion battery intelligent equipment Key Financial Highlights - **FY25 Net Income**: Pre-announced to be between Rmb1,500 million and Rmb1,800 million, representing a year-over-year increase of 424% to 529% with a midpoint of Rmb1,650 million, which is +477% year-over-year and +25% compared to Goldman Sachs' estimate of Rmb1,315 million [1][17] - **4Q25 Net Income**: Expected to be between Rmb314 million and Rmb614 million, with a midpoint of Rmb464 million, significantly higher than Goldman Sachs' estimate of Rmb128 million [1] - **SG&A Ratio Improvement**: SG&A ratio as a percentage of sales decreased from 34%/24%/29% in 2Q24/3Q24/4Q24 to 25%/23%/19% in 1Q25/2Q25/3Q25, contributing to better operational efficiency [1] Growth Projections - **Revenue Growth**: Projected revenue for FY25 is Rmb14,498 million, with further growth expected to Rmb22,430.5 million in FY26 and Rmb27,368.3 million in FY27 [4] - **EPS Growth**: EPS is expected to grow from Rmb0.18 in FY24 to Rmb1.03 in FY25, and further to Rmb1.64 in FY26 [4][10] Market Dynamics - **Battery Equipment Orders**: Growth driven by increasing demand for energy storage systems (ESS), but offset by a deceleration in domestic electric vehicle (EV) demand. Domestic NEV production/retail volume is expected to grow by +15%/+11% in 2026E, down from +30%/+18% in 2025 [2][17] - **Solid-State Battery Orders**: Increasing trial orders noted, although actual commercialization remains a long-term goal [2] - **Space-Based Solar Power Demand**: Emerging demand for solar equipment linked to space-based solar power, although current contributions are low at 10%/5% in 2024/1-3Q25 [16][17] Risks and Challenges - **Market Saturation**: Anticipated deceleration in global battery equipment total addressable market (TAM) due to domestic battery oversupply and reduced overseas expansion targets [17] - **Account Receivables Risk**: Historical reference to 2019-20 period where Lead Intelligent faced a 25% impairment loss as a percentage of operating profit due to slower EV growth and competitive margin pressure [17] - **Valuation Compression**: Expectation of subsequent compression in valuation multiples for the battery equipment sub-sector [17] Investment Rating and Price Target - **Current Rating**: Neutral since December 8, 2022 - **12-Month Price Target**: Raised to Rmb49.30 from Rmb44.1, based on a 2026E P/E of 30x [1][18] Conclusion - Lead Intelligent is positioned for significant growth in net income and revenue, driven by operational efficiencies and market demand for battery equipment. However, challenges such as market saturation and account receivables risk may impact future performance. The current valuation is considered fair relative to revenue and net income estimates for 2025-2030, maintaining a Neutral rating.

| Price (26 Jan 26 15:00) | Rmb31.140 | | --- | --- | | Target price | Rmb45.000 | | Expected share price return | 44.5% | | Expected dividend yield | 0.1% | | Expected total return | 44.6% | | Market Cap | Rmb37,070M | | | US$5,324M | Cynthia WuAC Do-Fluoride (002407.SZ) FY25 profit alert indicates a Rmb162mn NP during 4Q25 CITI'S TAKE Do-Fluoride announced a profit alert after market close today, suggesting FY25 net profit to be around Rmb200-280mn. Implied 4Q25 headline midpoint came in as Rmb162mn, than ...

Summary of Ningbo Deye Technology (605117.SS) Conference Call Company Overview - **Company**: Ningbo Deye Technology - **Ticker**: 605117.SS - **Market Cap**: Rmb80,454 million (US$11,554 million) [5] Industry Context - **Industry**: Solar Energy and Battery Storage - **Key Initiative**: The UK government launched the "Warm Homes Plan" with a budget of £15 billion (approximately US$20 billion or Rmb143 billion) to assist up to 5 million families in reducing energy bills through solar panels, battery storage, heat pumps, and insulation [2][8]. Core Points 1. **Government Support**: The "Warm Homes Plan" aims to install solar systems for up to 3 million new households by 2030, tripling current installations [2][8]. 2. **Projected Demand**: The program is expected to generate new residential battery energy storage (BESS) demand of 2.4 GWh per annum in the UK, which is 3.3 times the demand in 2024 [1][7]. 3. **Deye's Position**: Deye is expected to benefit from increased inverter and battery sales in the UK due to an exclusive partnership with its UK-based distributor, Sunsynk [1][8]. 4. **International Trends**: Other countries, including Australia, Indonesia, Ukraine, and Hungary, have also initiated plans to support residential BESS installations since 2025, indicating a global trend towards energy storage solutions [1][8]. 5. **UK BESS Market**: In 2024, the UK deployed 2.9 GWh of BESS, with residential installations accounting for 730 MWh. The UK represented 13% of total BESS installations in Europe [7]. 6. **Inverter Imports**: The UK imported Rmb1,365 million worth of inverters from China in 2025, marking a 15% year-over-year increase [7]. Financial Performance - **Earnings Summary**: - **2023**: Net Profit: Rmb1,791 million, Diluted EPS: Rmb2.129, EPS Growth: 18.7% - **2024**: Net Profit: Rmb2,960 million, Diluted EPS: Rmb3.400, EPS Growth: 59.7% - **2025E**: Net Profit: Rmb3,262 million, Diluted EPS: Rmb3.606, EPS Growth: 6.1% - **2026E**: Net Profit: Rmb4,163 million, Diluted EPS: Rmb4.603, EPS Growth: 27.6% - **2027E**: Net Profit: Rmb5,269 million, Diluted EPS: Rmb5.826, EPS Growth: 26.6% [3] Valuation - **Target Price**: Rmb102.00 per share, representing a potential return of 15.2% and a total expected return of 17.5% [5][10]. - **Valuation Methodology**: Based on a discounted cash flow (DCF) model with a terminal growth rate of 3.0% and a weighted average cost of capital (WACC) of 8.4% [10]. Risks - **Key Risks**: - Lower-than-expected demand for residential and commercial energy storage in emerging markets - Increased price competition among inverter manufacturers - Higher-than-expected trade tariffs on Chinese inverter products in international markets [11] Conclusion Ningbo Deye Technology is positioned to capitalize on the growing demand for residential energy storage solutions, particularly in the UK, driven by government initiatives. The company's financial outlook appears strong, with significant projected growth in profits and earnings per share over the next few years. However, potential risks related to market demand and competition should be monitored closely.

Research Tactical Idea We believe the share price will rise in absolute terms over the next 45 days. This is because of an announced acquisition. Zijin Gold (of which Zijin Mining owns 85%) has announced plans to acquire Allied Gold for C$5.5bn (a 5.39% premium over Allied Gold's last closing price) (see note). AG's plans to produce 11.7-12.4 tons in 2025 and 25 tons by 2029. If the deal is approved, this would bring Zijin Gold's total gold production by 2030 to 95-100 tons pa, with a 2025-30 gold productio ...

25 January 2026 | 5:54PM HKT Equity Research AMEC (688012.SS): Etching tools shipments ramp up for advanced nodes; 4Q Rev +21% YoY, NI midpoint +31% YoY; Buy AMEC pre-announced 4Q Rev of Rmb4.3bn (+21% YoY), which is 10%/ 3% lower than our estimates and Bloomberg consensus. 4Q GM improved to 39.7% (vs. 2Q25/ 3Q25 at 38.5%/ 37.9%). With the continuous spending on R&D for new product development, 4Q25 net income came in at Rmb869m~Rmb969m (+24%~+38% YoY). In 2025, the company's etching equipment sales were Rm ...

Summary of China Tourism Group Duty Free Investor Call Company Overview - **Company**: China Tourism Group Duty Free (Ticker: 1880.HK) - **Industry**: Consumer sector in China/Hong Kong - **Market Capitalization**: Rmb191,726.9 million - **Current Share Price**: HK$91.60 (as of January 23, 2026) - **Price Target**: HK$89.00 - **52-Week Range**: HK$97.95 - HK$43.15 - **Average Daily Trading Value**: HK$221 million Key Takeaways from the Call 1. **M&A Activity**: The acquisition of DFS's Greater China retail business is seen as a strategic move to enhance the company's market position in Hong Kong and Macau, leveraging synergies from existing membership and networks [6] 2. **Sales Growth**: Recent sales growth in Hainan has been strong, driven by a diverse product mix beyond just gold jewelry and electronics, indicating a healthy demand across various categories [6][2] 3. **Margin Management**: Concerns regarding product mix impacting margins are acknowledged, but the company believes the dilution effect from increased sales in lower-margin categories will be manageable [2] 4. **Luxury Brand Relationships**: Strengthening ties with luxury brands, particularly LVMH, is expected to enhance cooperation in Hainan and other channels, supporting overall growth [6] 5. **Overseas Expansion**: The company is focusing on overseas expansion through both concession bidding and M&A, which is anticipated to drive top-line growth [6] 6. **Market Outlook**: The overall outlook for 2026 is positive, with expectations of quality growth supported by overseas expansion and strong luxury brand relationships [6] Risks and Considerations 1. **Economic Factors**: Potential risks include an overall economic slowdown and pressure on disposable income, which could impact consumer spending [11] 2. **Competitive Landscape**: Increased price competition among various retail sales channels and intensified competition if the government further opens the duty-free market are noted as risks [11] 3. **Consumer Trends**: Improving consumer spending, particularly in beauty products, and a shift towards non-beauty luxury products are seen as favorable trends [11] Valuation Insights - **Valuation Methodology**: A 15% discount is applied to the A-share valuation, implying a 2026 estimated P/E of 30x compared to 35x for A-shares [8] - **Target P/E**: The target P/E for 2026 is set at 35x, which aligns with the average for the China consumer discretionary sector [9] Analyst Ratings - **Stock Rating**: Equal-weight - **Industry View**: In-Line Conclusion The investor call highlighted China Tourism Group Duty Free's strategic initiatives, particularly in M&A and overseas expansion, while also addressing potential risks associated with economic conditions and competition. The company maintains a positive outlook for growth in 2026, supported by strong sales performance and luxury brand partnerships.

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Electric Vehicle (EV) and Battery Sector in China - **Current Trends**: - Domestic EV insurance registrations increased by 3% YoY and 9% MoM, reaching 1.3 million units in December, resulting in a retail EV penetration of 58.6%, up 6.5 percentage points YoY [2][25] - Wholesale EV penetration decreased to 56%, down 0.9 percentage points MoM but up 6.8 percentage points YoY [25] - Battery sales reached a record high of 143.8 GWh in December, up 49% YoY and 7% MoM [39] Core Insights - **Sales Performance**: - January 2026 retail EV sales volume was reported at 312,000 units, down 16% YoY and 52% MoM, indicating a weakening demand outlook for 2026 [3] - Wholesale EV volume also declined to 348,000 units, down 23% YoY and 46% MoM [3] - **Battery Market**: - ESS battery sales surged to 55.6 GWh, up 1.8 times YoY and 22% MoM [39] - Battery production totaled 201.7 GWh in December, marking a 62% increase YoY and 14% MoM [39] - **Market Share Dynamics**: - BEV models lost 1.2 percentage points YoY market share, while PHEV and EREV gained 0.9 and 0.4 percentage points, respectively [2] Challenges and Risks - **Sector Challenges**: - The sector faces multiple challenges including retreating stimulus, higher taxation, and commodity inflation in 2026 [5] - Slowing domestic demand growth and a rising comparison base may not be offset by new model launches [5] - **Regulatory Changes**: - New regulations in China will require EV makers to monitor vehicle safety, effective from 2027 [8] - Canada has agreed to reduce tariffs on 49,000 Chinese EVs to 6.1% as part of a trade agreement [9] - The EU has set conditions for Chinese EVs to avoid tariffs, which could impact market dynamics [10] Pricing and Cost Trends - **Battery Costs**: - The spot price for battery-grade Li2CO3 increased to RMB 158,000 per ton, up 13% WoW, 67% MoM, and 103% YoY [58] - LFP battery costs rose by 32% YoY, while NCM523 battery costs increased by 47% YoY [55][59] Strategic Developments - **Investment Activities**: - Leapmotor announced a share subscription agreement with Jinyi Hi-Tech, indicating confidence in its new energy vehicle business [13] - **Government Support**: - The Trade-in Vehicle Subsidy Program has been extended into 2026, providing incentives for consumers to switch to new EVs [14][15] Conclusion - The EV and battery sector in China is experiencing significant growth in sales and production, but faces challenges from regulatory changes, market dynamics, and rising costs. The outlook for 2026 remains cautious due to potential demand weakening and external pressures.

Summary of the Conference Call on Space-Based Solar Power Industry Overview - The focus of the conference call is on the emerging theme of space-based solar power, particularly its potential to power commercial satellites and orbital AI data centers (AIDCs) [2][11] - The global solar market is expected to cool down in 2026, but space solar is emerging as a new demand driver [11] Key Insights and Projections - Space-based solar installations are projected to grow significantly, with estimates of 9GW by 2030, 86GW by 2035, and 171GW by 2040 [3][44] - By 2035, space solar could account for 9% of global solar demand and represent 69% of the global solar market value [3][58] - The annual market size for space solar is estimated to reach USD20 billion in 2030 and USD64 billion in 2035 [3][58] Technological and Economic Drivers - The development of next-gen solar cells and advancements in commercial satellite technology are crucial for the growth of space solar [4][11] - The cost of launching and operating solar panels in space is significantly higher than terrestrial options, but the potential for higher efficiency and utilization hours makes it attractive [20][22] - The economic viability of space AIDCs is contingent on technological advancements and cost reductions in satellite launches [19][27] Milestones and Catalysts - Key technological breakthroughs and upcoming IPOs in the commercial space sector are expected to support investor sentiment [4][67] - Notable projects include SpaceX's Starlink V3 and Google's Project Suncatcher, which aim to enhance satellite capabilities and test AIDC technologies [70] Relevant Stocks - GCL Tech (3800 HK) is highlighted as a key player in the space solar market, being the largest producer of perovskite solar cells, which are expected to be the next generation for space applications [5][73] - Other notable companies include Drinda, Jinko Solar, and Risen Energy, which are exploring opportunities in space solar technology [73][75] Market Dynamics - The commercial space sector is expected to see a surge in satellite launches, with a projected 49% CAGR from 2026 to 2030 [36][38] - China and the US are in a race to secure orbital resources, with both countries applying for large numbers of satellites to enhance their space capabilities [34][35] Future Outlook - The roadmap for space-based AIDCs is divided into four phases, with significant milestones expected between 2026 and 2040 [24][53] - The transition from pilot projects to full-scale commercial operations is anticipated to occur by 2040, aligning with Elon Musk's prediction of 100GW capacity [24][41] Conclusion - Space-based solar power presents a significant long-term opportunity for the solar market, with the potential to become a major segment by 2035 [50][51] - The success of this sector will depend on overcoming technical, economic, and competitive challenges in both space and terrestrial energy markets [23][50]

Summary of the Conference Call Transcript Industry Overview - **Industry**: China Pharmaceutical Retail Sector - **Key Development**: Nine ministries, including the Ministry of Commerce and the National Health Commission, issued policies to support the high-quality development of the pharmaceutical retail sector on January 22, 2026, aiming for professional, sustainable, digital, and compliant growth [2][5]. Core Insights - **Market Dynamics**: Despite ongoing store closures, industry leaders like Yifeng and Dashenlin are poised for expansion after completing internal adjustments. The sector has significant consolidation potential, with market shares of leading pharmacies in provinces often below 20% [3][5]. - **Sales Growth Potential**: The increasing outflow of prescriptions and pharmacies' efforts to diversify products could enhance same-store sales growth (SSSG). Currently, pharmacies account for approximately 30% of China's drug market [3][5]. - **Company Guidance**: Yifeng and Dashenlin provided optimistic guidance for 2026, with expansion plans and earnings outlook surpassing market expectations. Their valuations are considered attractive, estimated at around 14-15x 2026E PE [3][5]. Regulatory Environment - **Consolidation Encouragement**: The government is promoting horizontal mergers and acquisitions (M&As) and restructuring among drug retailers [5]. - **Regulatory Adjustments**: Policies include optimizing inspection frequencies for compliant drug retailers and addressing violations related to internet hospitals and physician licenses [5]. - **Prescription Mechanism Improvements**: Enhancements to the prescription outflow mechanism and e-prescription platforms are being implemented, along with equal reimbursement standards for pharmacies and primary-level hospitals [5]. Risks Identified - **Policy Risks**: Changes in state medical insurance policies could impact drugstore traffic and margins. Regulatory requirements may also affect expansion plans and operational costs [7]. - **Operational Risks**: Non-compliance with regulations could lead to severe consequences, including disqualification from state insurance payments and revocation of operating licenses [7]. - **Competitive Landscape**: Accelerating consolidation may lead to the emergence of regional leaders, which could hinder the expansion of cross-regional chains and intensify competition among leading chains [7]. - **Shift to E-commerce**: The rise of pharmaceutical e-commerce, often offering lower prices, may divert traffic from offline drugstores as consumer purchasing habits evolve [7]. Company Valuation - **Valuation Methodology**: Price targets for Yifeng and Dashenlin are derived using Discounted Cash Flow (DCF) methodology [6]. Company Ratings - **Dashenlin Pharmaceutical**: Rated "Buy" with a price of Rmb19.90 as of January 22, 2026 [19]. - **Yifeng Pharmacy Chain**: Rated "Buy" with a price of Rmb22.55 as of January 22, 2026 [19]. This summary encapsulates the key points from the conference call, highlighting the current state and future outlook of the China pharmaceutical retail sector, along with specific insights into leading companies and associated risks.

Summary of StrongRay Technology Conference Call Company Overview - **Company**: StrongRay Technology - **Industry**: AI servers, semiconductor equipment, consumer electronics, robotics, and commercial aerospace Key Points and Arguments Financial Projections - StrongRay Technology expects revenue to exceed **3.2 billion** yuan in 2026, with a minimum profit of approximately **330 million** yuan [20] - The company anticipates a net profit margin between **13% and 15%** for 2026 [8] Liquid Cooling Business - StrongRay acquired Dongguan Luba Technology, which provides precision structural components for AI servers, expecting revenue of over **500 million** yuan in 2025 and **800 million** yuan in 2026 [2][4] - The company is entering the liquid cooling detection equipment market through Foxconn, projecting revenue of **300 to 400 million** yuan in 2026 [2][4] - Liquid cooling and air cooling products are expected to account for over **50%** of total revenue by 2026, with total revenue from these segments projected to reach **1.5 to 1.7 billion** yuan [4] Semiconductor Equipment Collaboration - StrongRay has made significant progress in its semiconductor parts business, with orders exceeding **100 million** yuan in 2025 and expected to surpass **300 million** yuan in 2026 [5] - The company is collaborating with leading domestic semiconductor equipment manufacturers, focusing on small-batch new products with promising profit margins [5] Consumer Electronics and Apple Partnership - StrongRay is positioned to benefit from Apple's plans to launch a foldable phone in 2026, which will increase demand for related equipment and fixtures [6][14] - Revenue from Apple-related products is projected to reach nearly **600 million** yuan in 2025, with a growth rate of **30% to 40%** expected in 2026 [14] New Product Development - Luba Technology is developing new high-value products, which could contribute an additional **300 to 400 million** yuan in revenue per product annually if successful [7] - The company is also working on new liquid cooling components for NVIDIA, with potential revenue of **300 to 400 million** yuan if the products pass validation [11][12] Robotics and Aerospace Ventures - StrongRay is expanding into commercial aerospace by providing precision components and is also involved in robotics, producing motors for cleaning robots and exploring patrol robots [15][18] - The company is collaborating with various partners in the robotics sector, including Zhaowei Electromechanical and others [17] Market Dynamics and Growth Potential - The liquid cooling server market is expected to grow significantly, with NVIDIA planning to deploy over **20** liquid cooling testing lines, of which StrongRay will manage **three to four** [9] - Profit margins for U.S. clients (e.g., NVIDIA) are around **40%**, while domestic clients have margins of **20% to 30%** [10] Incentive Plans and Employee Engagement - StrongRay has designed an incentive plan for employees, particularly focusing on core personnel, with stock options priced at **92 yuan** and restricted stock at **46 yuan** [19] Overall Growth Outlook - The company is positioned in multiple high-growth sectors, including liquid cooling systems, semiconductor equipment, and partnerships with major clients, indicating strong potential for future performance [22]