Summary of CNGR Advanced Material Co., Ltd. Conference Call Company Overview - **Company**: CNGR Advanced Material Co., Ltd. (中伟股份) - **Industry**: Battery Materials, specifically Nickel and Cobalt-based precursors - **Market Position**: Leading global producer of nickel and cobalt-based battery precursors, with a significant market share in the nickel precursor market projected at 20.3% and cobalt precursor market at 28% by 2024 [1][9][10] Key Insights Market Leadership - CNGR holds the largest market share in both nickel and cobalt precursor active materials globally, with over 70% of its nickel precursor products being high-nickel and ultra-high-nickel variants [1][9] - The company has a strong pricing power due to its leading position in high-nickel precursor markets, with a market share of 31.7% in high-nickel and 89.5% in ultra-high-nickel precursors by 2024 [9][10] Vertical Integration - CNGR has established a vertically integrated business model covering the entire supply chain from mining and smelting of nickel to battery material production and recycling [1][9] - The company has a nickel smelting capacity of 155,000 tons, which will meet 100% of its precursor production needs by 2024, providing a cost advantage [1][9] Global Presence - The company operates four production bases in China and has additional facilities in Morocco, Indonesia, and planned operations in South Korea, enhancing its global footprint and ability to meet local sourcing demands [2][10] Client Base - CNGR's clientele includes top-tier companies in the battery, automotive, and consumer electronics sectors, such as Samsung SDI, SK Hynix, LG, Panasonic, CATL, and BYD, which contributes to stable profitability [2][10] Investment Risks - Potential demand slowdown due to technological changes and government policy shifts [2][10] - Increased competition that may pressure profit margins [2][10] - Volatility in commodity prices affecting profitability [2][10] Valuation - Target price for A-shares is set at RMB 53.9 and for H-shares at HKD 45, corresponding to a projected P/E ratio of 25.0x for A-shares and 19.1x for H-shares in 2026 [2][11] - The H-share target price includes a 31% premium over A-shares, reflecting a more attractive valuation [11][12] Financial Projections - Revenue projections for the upcoming fiscal years are as follows: - FY24: RMB 40.2 billion - FY25: RMB 45.9 billion - FY26: RMB 56.1 billion - FY27: RMB 57.7 billion [7] - EBITDA projections are: - FY25: RMB 4.9 billion - FY26: RMB 5.6 billion - FY27: RMB 6.4 billion [7] Conclusion - CNGR Advanced Material Co., Ltd. is positioned as a leader in the battery materials industry with a robust growth outlook driven by its market leadership, vertical integration, and strong client base. However, investors should remain cautious of the outlined risks and market dynamics that could impact future performance [1][2][10]

Summary of Megmeet (002851.SZ) Conference Call Company Overview - **Company**: Megmeet Electric Co., Ltd. - **Founded**: 2003 - **Listed**: 2017 - **Market Share**: 3% in global embedded power supply market as of 2024 - **Key Competitors**: Delta Electronics, Lite-On - **Recent Performance**: Share price increased by 260% since October 2024 due to recognition as an NVIDIA MGX ecosystem partner [21][30] Key Industry Insights - **Transition**: Megmeet is shifting from automation and control to becoming a global player in AI server power supply [1] - **Market Potential**: Expected to capture 5% of the global AI server power supply market by 2030, with 8% in custom ASIC supply chains and 3% within the NVIDIA ecosystem [22][39] - **Growth Forecast**: Anticipated total sales CAGR of 28% from 2025 to 2030, primarily driven by server power supply breakthroughs [10][29] Core Investment Debates 1. Market Share Potential - **Forecast**: 5% global market share by 2030, with a focus on custom ASICs [22][39] - **NVIDIA Ecosystem**: Positioned as a secondary supplier to mitigate risks associated with single suppliers [22][39] - **800V DC Architecture**: Transition starting in 2027 may favor established players due to reliability and trust [22][39] 2. Valuation Check - **Current Valuation**: Trading at 79x 12-month forward P/E, higher than the average of 72x since October 2024 [2][23] - **Earnings Forecast**: Projected earnings CAGR of 58% from 2025 to 2030, but 6-19% below consensus for 2025-2027 due to manufacturing challenges [2][26] 3. R&D and Product Cycle - **Product Gaps**: Significant gap in high-efficiency product portfolio compared to tier-1 peers [3][24] - **Competition**: Increasing entrants in the market may intensify competition for next-gen products [3][24] - **Monitoring**: Close observation of product iterations and customer validation is essential [3][24] Financials & Valuation - **Target Price**: Set at Rmb 86.8, implying a 14% downside from current levels [4][26] - **Long-Term Growth**: Expected 27% LT earnings CAGR from 2028 to 2030 [4][26] - **Risk-Reward Profile**: Balanced, with upside potential contingent on faster order wins and production [4][26] Additional Insights - **R&D Focus**: Higher percentage of sales allocated to R&D compared to global peers, though absolute expenditure remains small [30][36] - **Capital Expansion**: Plans to raise Rmb 2.7 billion for production upgrades, particularly in Thailand [48][49] - **Management Team**: Experienced leadership with backgrounds in major companies like Huawei and Emerson [30][35] Conclusion - **Investment Outlook**: While Megmeet shows potential for growth in the AI server power supply market, challenges in execution and competition must be closely monitored. The current valuation reflects optimistic market share expectations that may not align with projected growth rates.

Summary of China Cosmetics Sector Conference Call Industry Overview - The China cosmetics sector is expected to experience a reset for higher-quality growth in 2026, moving away from reliance on high-cost Key Opinion Leaders (KOLs) and focusing on popular core SKUs. This shift has led to a contraction in Net Profit Margin (NPM) due to deleveraging impacts, despite improvements in Return on Investment (ROI) [1][2]. Key Trends and Insights - **Consumer Acquisition Costs**: Monitoring new consumer acquisition costs will be critical, especially as channel migration benefits diminish and the ingredient cycle remains ambiguous. Anti-involution policies will also play a significant role [1]. - **Branding Strategy**: Branding is anticipated to be the most effective strategy for consumer engagement and new product launches in 2026. Companies with high repurchase rates and cost-efficient omni-channel strategies are better positioned for success [1][2]. - **Market Dynamics**: The cosmetics market is expected to grow at a normalized rate, with growth projected at less than 1x GDP growth. The market is forecasted to see a 2.1% increase in beauty spending in 2026, with a mix of onshore and offshore market performance [17][18]. Company-Specific Insights - **Mao Geping Cosmetics (MGP)**: Upgraded from Neutral to Buy with a target price increase from HK$89 to HK$105, reflecting a 27% upside. The company is noted for strong branding and a balanced channel presence, with a forecasted sales and net income CAGR of 23% and 22% from 2025 to 2027, respectively [2][9]. - **Giant Biogene**: Maintained as Buy, with a target price lowered from HK$71 to HK$46, indicating a 36% upside. The company is expected to recover with new skincare products and a focus on medical aesthetics, projecting sequential growth of -8%/+12%/+17% YoY for 1H26E/2H26E/2027E [2][9]. - **Shanghai Jahwa**: Target price reduced from RMB 31 to RMB 28, with a 22% upside. The company is on a turnaround trajectory with improving margins and cash flow [2][9]. - **Proya Cosmetics**: Remains Neutral as the company is expected to moderate organic growth while awaiting more execution on white space exploration [2][9]. - **Botanee Biotech**: Neutral rating with early signs of a potential turnaround but lacking clear growth drivers [2][9]. - **Bloomage Biotech**: Maintained as Sell due to downside risks in skincare and muted growth in medical aesthetics amid a mature product cycle [2][9]. Market Performance and Projections - **E-commerce Trends**: Tmall is expected to maintain strong growth momentum, supported by anti-involution measures. Douyin's performance has been softer than expected, with a significant decline in KOL channel performance [19][21]. - **Sales Growth Expectations**: The cosmetics sector is projected to see sustained GMV growth on Tmall, while Douyin is expected to experience a narrowing gap in growth rates compared to Tmall [20][21]. Conclusion - The China cosmetics sector is poised for a shift towards higher-quality growth in 2026, with branding and strategic channel management becoming increasingly important. Companies that adapt to these changes and focus on core products are likely to outperform in the evolving market landscape [1][2][19].

Summary of Key Points from the Conference Call Industry Overview - **Industry**: China Software and IT Services - **Growth Forecast**: The sector is expected to achieve a revenue growth of **12% YoY in 2026E**, slightly down from **13% YoY in 2025E** due to macroeconomic factors and soft demand in various verticals [18][20]. Core Insights - **AI Monetization**: Accelerated AI monetization is anticipated to drive growth, alongside trends in software import substitution [18][20]. - **Employee Count**: A **5% YoY decline** in employee numbers was observed in 2025, with expectations for a **1% YoY increase** in 2026, leading to an average **4.6 percentage points (ppts)** improvement in operating profit margin (OPM) [2]. - **Valuation**: Current average trading at **5.4x 12-month forward P/S**, which is **1 standard deviation (SD) below historical averages**, indicating an undemanding sector valuation despite solid share price performance [13][14]. Company-Specific Insights - **Top Picks**: - **Kingdee**: Expected to benefit from resilient top-line growth and improved profitability [3][8]. - **Meitu**: Strong earnings growth anticipated due to rising subscription revenue and productivity tools expansion [3][8]. - **Kingsoft Office**: Upgraded to Buy due to better growth outlook driven by WPS 365 and import substitution trends [3][8]. - **Downgrades**: - **Kingsoft Corp** downgraded to Neutral due to weaker game business growth [3]. Financial Performance - **2025 Recap**: Share prices of covered software companies rose by **16% on average** in 2025, underperforming the MSCI China Index which rose by **23%** [11][12]. - **Revenue Estimates**: Revenue forecasts for 2025-2027 have been revised down by **2% on average** for 16 companies under coverage [10]. Sector Spending Breakdown - **Major Sectors**: Software spending is concentrated in manufacturing & natural resources (28%), financials (25%), government (14%), and communications/media/services (12%), collectively accounting for **75% of total software spending in 2026E** [20][21]. Risks and Cautions - **Cybersecurity and Property Software**: Cautious outlook on cybersecurity and property software due to muted demand and declining property sales [1][48]. - **SOE Revenue Growth**: SOE revenue growth was **1.0% YoY** in 11M25, indicating stable demand for software despite slight declines in growth rates [24][25]. Conclusion - The China software and IT services sector is poised for solid growth driven by AI and import substitution, but faces challenges from macroeconomic volatility and sector-specific demand issues. Key companies like Kingdee, Meitu, and Kingsoft Office are highlighted as strong investment opportunities, while caution is advised in areas like cybersecurity and property software.

Summary of Kingsoft Office (A) Conference Call Company Overview - **Company**: Kingsoft Office - **Sector**: PC Software - **Main Product**: WPS Office series, an alternative to Microsoft Office, compatible with various operating systems including Windows, Linux, MacOS, Android, iOS, and Harmony OS - **Monthly Active Devices**: 669 million as of Q3 2025 [11] Key Points Growth Outlook - **Upgrade to Buy**: Kingsoft Office's rating upgraded from Neutral to Buy due to a more positive growth outlook driven by: 1. Rapid growth of WPS 365 with client base expansion, including privately-owned enterprises (POEs) and local state-owned enterprises (SOEs) [1] 2. Recovery in WPS to-C business revenue with accelerated AI monetization domestically and strong overseas user growth [1] 3. Promising growth in WPS software business with increasing Xinchuang (import substitution) opportunities [1] Financial Estimates - **Earnings Estimates**: FY26-27E earnings estimates raised by 2% due to stronger-than-expected growth in WPS 365 and WPS software businesses [1] - **Price Objective**: Adjusted DCF-based price objective to RMB 408 from RMB 363, trading at 55x 12-month forward P/E, which is 1 standard deviation below its historical average [1] - **Revenue Growth**: Expected revenue CAGR of 20% from FY25-27E, compared to 14% for global SaaS peers [1][22] WPS 365 and Enterprise Adoption - **WPS 365 Upgrades**: Recent upgrades to a one-stop AI collaborative office platform are expected to accelerate enterprise adoption, enhancing collaboration and document management capabilities [2] - **Total Addressable Market (TAM)**: Estimated to grow at a CAGR of 31% from 2024-2030 for domestic office software among Chinese enterprises, excluding SMEs [14][15] Revenue Breakdown and Growth Projections - **Revenue Segmentation**: - WPS to-C (domestic) and WPS to-C (overseas) are expected to grow significantly, with overseas growth projected at 30-40% YoY [3][16] - WPS 365 is anticipated to contribute increasingly to total revenue, with a forecasted revenue breakdown showing a rise in contribution from 3% in FY23 to 19% by FY27 [20] - **Financial Metrics**: - FY26E revenue projected at RMB 7,222 million, with net income expected to reach RMB 2,612 million [4][34] Competitive Positioning - **Market Position**: WPS 365 is well-positioned against competitors due to its cloud-based architecture, which mitigates software piracy and integrates various productivity tools [14] - **User Acquisition**: The mobile-first distribution strategy is expected to enhance user acquisition and conversion rates, particularly in emerging markets [16] Valuation Metrics - **Valuation Comparison**: Kingsoft Office's implied FY26E Price/FCF of 45x is 50% higher than leading global SaaS companies, justified by its superior growth outlook and stronger free cash flow margin [1][22] - **P/E Ratio**: Currently trading at 58x, compared to a historical mean of 100x [27] Risks and Considerations - **Market Competition**: The competitive landscape in the office software market remains intense, with ongoing innovations required to maintain market share [12] - **Economic Factors**: Potential economic fluctuations could impact growth rates and user adoption [12] Conclusion Kingsoft Office is positioned for significant growth driven by its innovative WPS 365 platform and expanding market opportunities. The company's financial outlook is positive, supported by strong revenue growth projections and a favorable valuation compared to peers.

Summary of Weichai Power Conference Call Company Overview - **Company**: Weichai Power - **Industry**: Heavy-duty trucks, diesel and natural gas engines, SOFC (Solid Oxide Fuel Cell) technology Key Points SOFC Business Potential - Weichai Power's SOFC business has significant growth potential, benefiting from North America's electricity demand and collaboration with Bloom Energy. Current capacity is limited to approximately 10 MW, with plans to reach 1 GW by 2030, potentially contributing over 10 billion RMB in revenue and a net profit of 1-2 billion RMB, indicating substantial growth opportunities [2][5][12] ITC Financial Business Growth - The ITC financial business is expected to benefit from increased capital expenditures by internet companies, breakthroughs in domestic large models, and the recovery of IDC tenders. Projected data center shipments are 1,300 units in 2025 and 2,600 units in 2026, with overseas market growth through the Baudouin brand and domestic market growth expected to exceed forecasts due to AIDC tender recovery [2][6][7] Heavy-duty Truck Industry Outlook - The heavy-duty truck industry is projected to see wholesale sales of approximately 1.17 million units in 2026, a slight increase year-on-year. Domestic policy impacts are diminishing, and exports are expected to grow by 15%-20% to 400,000 units. The electric heavy-duty truck sector is trending positively, with an electrification rate potentially reaching 35%. The industry may be at an upward cycle turning point, driven by the replacement cycle of National V vehicles [2][8][9] Future Market Cycles - Weichai Power is anticipated to enter a new heavy-duty truck market cycle between 2028 and 2030, potentially benefiting from the transition from National VI to National VII policies. Historical cycles suggest that sales peaks could reach 1.1-1.2 million units or higher, with limited impact from electrification on Weichai's core business [2][9] Diesel and Natural Gas Engine Market Performance - Weichai Power maintains a stable market share of 10-15% in the diesel engine market and 50-55% in the natural gas engine market. The company aims to maintain its leading position through technological iterations and flexible policies [2][10] 2026 Performance Expectations - Weichai Power's performance is expected to reach 14-15 billion RMB in 2026, with a current market capitalization of 160 billion RMB, resulting in a PE ratio of 11 times. The dividend payout ratio is expected to remain at least 55%, providing a dividend yield of approximately 5% [3][11] Valuation Compared to Peers - Compared to North American leaders like Cummins and Caterpillar, Weichai Power's valuation is relatively low, with an EVA/EBITDA multiple significantly lower than its overseas peers. The overall reasonable valuation for Weichai Power could exceed 200 billion RMB, corresponding to a PE of about 14-15 times for 2026 [4][13][14] Long-term Growth Projections - By 2028, Weichai Power's performance is projected to reach 18-20 billion RMB, with an expected growth rate of 15%-20% in 2026 and around 10% in 2027-2028. The current PE of 11 times is considered inexpensive, indicating a favorable outlook for valuation recovery [2][14]

视觉中国在垂直场景的数据服务方面具有独特优势，通过多年积累的数 据采集和清洗经验，提供高质量的垂直场景数据集，例如与携程合作提 供出行相关数据。 视觉中国与 Minimax 共同开发 TTS 语音模型，并与生数公司深度合作， 参与其投资，生数公司的 Q2 模型在短剧和漫剧生成领域表现优异，技 术被广泛应用于美图、360 纳米搜索等领先企业。 视觉中国 20260112 摘要 视觉中国利用 AI 技术提升广告营销业务，通过高效生成符合客户需求的 素材，降低成本并提高毛利，已成为 3C、新能源汽车等领域最大的平面 供应商，预计新增收入 1.5 亿元。 视觉中国在 AI 生成素材过程中，确保所有数据经过版权保护，并拥有大 量授权资源，为客户提供快速、高质量且版权合规的素材，同时控制国 内最大的设计师和摄影师社区。 视觉中国拓展 AI 工具平台，销售 AI 生产物料平台，已赋能汽车、快消、 互联网、金融等领域，并成功帮助某国内大厂将品牌推荐率从不足 30% 提升至 100%。 视觉中国从内容营销物料接入，以数据优势、高效合规保障和创作生态 占据市场领先地位，提供高质量物料、AI 制作工具及 GU 分发服务，与 传统投 ...

Summary of Empyrean (301269.SZ) Conference Call Company Overview - **Company**: Empyrean (301269.SZ) - **Industry**: Electronic Design Automation (EDA) tools Key Points 1. Full-flow EDA Tools Expansion - Empyrean is expanding its offerings in full-flow EDA tools, covering approximately 80% of total EDA tools including full-flow analog, panel, and memory EDA - The company is working on developing additional point tools like Design for Testability (DFT) and digital client tools, which are expected to enhance order growth from customers seeking comprehensive EDA solutions [2][4] 2. AI Chip Growth Opportunities - Management highlighted increasing demand for AI chips from local customers such as Hygon and Moore Thread, leading to larger order sizes - Empyrean plans to provide full-flow digital design EDA tools to meet the rising demand from AI chip customers, leveraging its experience in EDA tool development [3][4] 3. Partnerships with Local Leaders - The strong performance of Empyrean's EDA tools has resulted in partnerships with local IC design leaders in sectors like consumer electronics and AI chips - Management aims for higher allocation among major customers, supported by the localization trend in chip manufacturing and preference for EDA technology leaders [4][8] 4. EDA Business Model - Empyrean typically signs three-year agreements with clients for EDA tool adoption, with annual payments - The company encourages clients to trial EDA tools for free initially, reviewing licenses quarterly before charging, to foster user habits and deeper connections [8] 5. Financial Outlook and Valuation - Empyrean is rated as a "Buy" with a 12-month target price of Rmb155, representing a 36.3% upside from the current price of Rmb113.70 - Revenue projections indicate growth from Rmb1,222.4 million in 2024 to Rmb2,864.3 million by 2027, with EBITDA expected to improve from a loss of Rmb30.4 million in 2024 to Rmb801.5 million in 2027 [9][10] 6. Risks - Key risks include slower customer acquisition, increased competition, labor cost issues, and escalating US-China tech tensions [10] Additional Insights - The company is expanding into Intellectual Property (IP) and Computer-Aided Engineering (CAE) tools to capture a larger addressable Total Addressable Market (TAM) [1] - Management remains optimistic about order growth despite potential revenue impacts from major clients' near-term spending [1][3]

Summary of WuXi AppTec Conference Call Company Overview - **Company**: WuXi AppTec (603259.SS) - **Industry**: Contract Research Organization (CRO) and Contract Development and Manufacturing Organization (CDMO) Key Financial Highlights - **FY25 Revenue**: Estimated at Rmb45.5 billion, representing a **16% year-over-year (yoy)** increase, surpassing management guidance of Rmb43.5-44.0 billion (10-12% yoy) and consensus estimates [1] - **Revenue Growth**: Continued business revenue grew by **21.4% yoy** in 2025, exceeding management's guidance of 17-18% yoy [1] - **FY25 Net Profit**: Estimated at Rmb19.2 billion, a **103% yoy** increase, compared to Rmb16.8 billion (78% yoy) by consensus and Rmb18.5 billion (96% yoy) by Citi estimates [1] - **Adjusted Non-IFRS Net Profit**: Expected to reach Rmb15.0 billion, up **41% yoy**, aligning with higher non-IFRS net margin guidance [1] - **Excluding One-off Items**: FY25 net profit is projected at Rmb13.2 billion, reflecting a **33% yoy** increase, impacted by foreign exchange changes [1] Management Insights - **Gains from Asset Sales**: Management anticipates a net gain of Rmb4.2 billion from the sale of WuXi XDC shares and Rmb1.4 billion from the sale of the clinical business in 2025 [1] Valuation and Target Price - **Target Price**: Rmb130, based on a Net Present Value (NPV) analysis using a Weighted Average Cost of Capital (WACC) of 9.2% and a terminal growth rate of 3% [4] - **Segment Valuation Breakdown**: - WuXi Chemistry: Rmb103.9/share - WuXi Testing: Rmb8.3/share - WuXi Biology: Rmb3.7/share - Investment Income: Rmb5.0/share - Other Services and Net Cash: Rmb9.2/share [4] Risks and Challenges - **Customer Demand**: Potential reduction in customer spending on outsourced services could negatively impact revenue [5] - **Talent Retention**: Challenges in attracting and retaining skilled scientists and technicians may affect operational efficiency [5] - **Regulatory Compliance**: Non-compliance with regulations could harm the company's reputation and financial condition [5] - **Geographic Expansion**: Difficulties in expanding into new markets may limit growth opportunities [5] - **Labor Costs**: Rising labor costs could pressure profit margins [5] - **Geopolitical Risks**: US sanctions and geopolitical tensions may impact business operations [5] Market Position and Competitiveness - **Market Capitalization**: Rmb294.7 billion (approximately US$42.2 billion) [2] - **Expected Total Return**: 34.1%, with an expected dividend yield of 2.3% [2] Conclusion WuXi AppTec is positioned for strong growth in FY25, with significant revenue and profit increases driven by robust demand for its services. However, the company faces several risks that could impact its performance, including regulatory challenges and market competition. The target price reflects a positive outlook based on solid financial fundamentals and growth potential in the CRO/CDMO sector.

Summary of Nantong Jianghai Capacitor Co. (002484.SZ) Conference Call Company Overview - **Company**: Nantong Jianghai Capacitor Co. (002484.SZ) - **Industry**: Aluminum electrolytic capacitors and supercapacitors Key Points and Arguments Upgrade and Price Target - The company has been upgraded to a "Buy" rating from "Neutral" with a new target price (TP) of Rmb36.10, reflecting a 26% increase from the previous TP of Rmb28.60, indicating a potential upside of 20.2% from the current price of Rmb30.04 [1] Revenue and Income Forecasts - Sales and net income forecasts for 2026E-2030E have been revised upward by 6%-12% and 3%-11% respectively, driven by the anticipated demand for aluminum electrolytic capacitors from the AIDC sector [1] - AIDC aluminum electrolytic revenue is projected to grow from Rmb146 million in 2025E to Rmb479 million in 2026E and Rmb853 million by 2030E, increasing AIDC's share of the aluminum electrolytic segment to 9% in 2026E and 11% from 2027E to 2030E [1] Supercapacitor Market Insights - The ramp-up of supercapacitors has been slower than expected, but potential volume growth is anticipated to begin in the second half of 2026 [2] - The company expects to capture a market share of 5%-10% in EDLC and 2%-5% in LIC from 2025E to 2030E, with revenue projections of Rmb206 million for EDLC in 2026E and Rmb361 million in 2027E [2] - Pricing advantages are highlighted, with Jianghai's LIC expected to be over 30% cheaper than Musashi and even more competitive in EDLC compared to global peers [2] Earnings Growth - The company forecasts approximately 25% revenue growth and 36% EPS growth in 2026E, exceeding management's conservative targets [3] Financial Metrics - Key financial metrics include: - Revenue projections for 2026E at Rmb7,056.5 million, with EBITDA of Rmb1,343.8 million and EPS of Rmb1.18 [4] - The company is trading at a forward P/E of 28x, compared to a historical average of 23x, indicating potential for further upside as earnings momentum strengthens [16] Risks - Key downside risks include: 1. Lower-than-expected market share ramp for EDLC/LIC due to diverging customer preferences [17] 2. Uncertainty in the technological pathway between EDLC and LIC [18] 3. Delays in AIDC-driven contributions if hyperscaler architectures and qualification timelines shift [18] Investment Thesis - Jianghai is positioned as a leading supplier in aluminum electrolytic capacitors, with a strong industrial client base and vertical integration that enhances profitability [34] - The anticipated growth in AIDC adoption across EDLC and LIC is expected to drive market share sustainability and revenue growth [34] Additional Important Information - The company has a self-sufficiency rate of approximately 75% for formed foil, significantly higher than Japanese peers, providing a gross profit margin advantage of around 18% [34] - The stock's valuation methodology is based on a 25x P/E for 2028E, discounted back to 2026E with a cost of equity of 10.5% [35]