Summary of Luxshare Precision Industry Co., Ltd. Conference Call Company Overview - **Company**: Luxshare Precision Industry Co., Ltd. - **Ticker**: 002475.SZ - **Industry**: Greater China Technology Hardware - **Market Cap**: Rmb455.31 billion - **Stock Rating**: Overweight - **Price Target**: Rmb55.00 - **Current Price (as of Oct 30, 2025)**: Rmb65.04 - **52-Week Range**: Rmb72.20 - Rmb27.11 Key Financial Highlights - **3Q25 Earnings**: - Net sales reached Rmb96.4 billion, up 31% YoY - Net income was Rmb4.874 billion, representing a 32% YoY increase - EPS of Rmb0.67, up 35% QoQ and 31% YoY - Gross margin improved to 12.8%, up 0.8ppt QoQ - Operating margin increased to 5.2%, up 0.2ppt QoQ - **2025 Profit Guidance**: - Expected net profit between Rmb16.5 billion and Rmb17.2 billion, up 23.59% to 28.59% YoY - 4Q25 net profit projected to rise 17% to 32% YoY, estimated between Rmb5 billion and Rmb5.668 billion - **Revenue Projections**: - Revenue estimates for 2026 are Rmb400.44 billion and Rmb458.04 billion for 2027 Strategic Initiatives - **Business Diversification**: - Luxshare is focusing on expanding its presence in AI smart end devices, optical electronics, high-speed connectivity, thermal management, smart autos, and robotics - **Dividend Announcement**: - The board approved a cash dividend payout of Rmb1.6 for every 10 shares Market Outlook - **Initial 2026 Outlook**: - Plans for capacity expansion worldwide - Development progress in datacom and automotive sectors - **Risks**: - Upside risks include better demand for AirPods and faster growth in communications and auto electronics due to 5G deployment - Downside risks involve potential sell-through issues in iPhone or AirPods and margin pressures from increased competition Analyst Insights - **Consensus EPS Estimates**: - EPS estimates for 2025 are Rmb2.24, Rmb2.72 for 2026, and Rmb3.40 for 2027 - **Valuation Methodology**: - Valuation based on a residual income model with a cost of equity of 11.1% and a medium-term growth rate of 14% Additional Information - **Average Daily Trading Value**: Rmb5.004 million - **Share Outstanding**: 7,001 million shares - **P/E Ratio**: 21.9 for 2025, projected to decrease to 19.1 by 2027 This summary encapsulates the key points from the conference call, highlighting Luxshare's financial performance, strategic initiatives, market outlook, and analyst insights.

Summary of LONGi Green Energy Technology Co Ltd Conference Call Company Overview - **Company**: LONGi Green Energy Technology Co Ltd - **Industry**: China Utilities - **Date of Report**: October 30, 2025 Key Financial Metrics - **Net Loss**: Reported a net loss of Rmb834 million in 3Q25, an improvement from Rmb1.4 billion in 1Q25 and Rmb1.1 billion in 2Q25 [1][7] - **Revenue**: Revenue for 3Q25 was Rmb18.1 billion, down 9.8% year-over-year (yoy) and down 5.5% quarter-over-quarter (qoq) [2] - **Gross Profit Margin (GPM)**: GPM improved by 3.3 percentage points qoq to 4.9%, but decreased by 3.7 percentage points yoy [2][7] - **Asset Impairment Loss**: Recorded an asset impairment loss of Rmb894 million in 3Q25, compared to Rmb741 million in 2Q25 and Rmb774 million in 3Q24 [2] - **Total Shipments**: External shipments of wafers and modules remained stable at 13.4GW and 23.9GW respectively, compared to 13.5GW and 24.9GW in 2Q25 [2] Year-to-Date Performance - **Net Loss for 9M25**: Total net loss of Rmb3.4 billion, narrowed from Rmb6.5 billion in 9M24 [2] - **Revenue for 9M25**: Revenue fell 13.1% yoy to Rmb50.9 billion, with a GPM of 1.2% [3] Operational Insights - **Positive Cash Flow**: Net operating cash flow turned positive at Rmb1.8 billion as of end-9M25 [7] - **Price Dynamics**: Benefited from wafer price hikes in 3Q25, although challenges in passing through these price increases to the module segment continue to pressure profitability [7] Market Position and Valuation - **Stock Rating**: Underweight with a price target of Rmb14.01, indicating a potential downside of 35% from the current price of Rmb21.51 [5] - **Market Capitalization**: Current market cap stands at Rmb163 billion [5] - **52-Week Price Range**: Rmb22.14 to Rmb14.01 [5] Risks and Opportunities - **Upside Risks**: - Higher-than-expected global solar demand [10] - Increased market share in the module segment due to new product demand [10] - Alleviated trade tensions affecting China's solar products [10] - **Downside Risks**: - Lower-than-expected global solar demand due to infrastructure challenges [10] - Tighter trade protection policies impacting China's solar products [10] - Intensified competition leading to significant margin contraction [10] Conclusion LONGi Green Energy Technology Co Ltd has shown signs of narrowing losses and improving gross profit margins, but continues to face challenges in revenue generation and market dynamics. The company’s stock is rated underweight, reflecting cautious sentiment amid ongoing market pressures and competition.

Summary of China Tourism Group Duty Free Conference Call Company Overview - **Company**: China Tourism Group Duty Free (601888.SS, 601888 CG) - **Industry**: Consumer (China/Hong Kong) - **Market Cap**: Rmb149,440 million - **Stock Rating**: Equal-weight - **Price Target**: Rmb66.00, with a downside of 10% from the current price of Rmb73.10 as of October 30, 2025 Key Financial Highlights - **3Q25 Revenue**: Rmb11,405 million, flat year-over-year (yoy) after six consecutive quarters of decline [8][9] - **Net Profit**: Declined 29% yoy to Rmb662 million, impacted by higher finance costs and selling expenses [8][9] - **Gross Profit Margin (GPM)**: Remained stable at 32.0% [8] - **Dividends**: Declared a dividend per share (DPS) of Rmb0.25, representing 17% of the net profit for the first nine months of 2025 [8] Operational Insights - **Sales Recovery**: Hainan's offline duty-free market sales showed signs of stabilization with a 3% growth in September 2025 [8] - **Sales Channels**: Improvement in airport and online sales contributed to the sequential revenue growth compared to 2Q25, which saw an 8% decline yoy [8] Future Outlook - **Key Focus**: Recovery of the Hainan business is critical for profitability and valuation [8] - **Monitoring Demand**: The company is closely observing demand trends in 4Q25, especially in light of policy relaxations and developments in free-trade ports [8] Valuation and Risks - **Valuation Methodology**: A 20% discount is applied to the A-share valuation, suggesting a 2026 estimated P/E of 20x [9] - **Risks to Upside**: Favorable policy outcomes for Hainan Free Trade Zone and increased consumer spending, particularly in beauty products [12][13] - **Risks to Downside**: Economic slowdown, price competition, and insufficient supply of luxury products [12][13] Conclusion - The company is experiencing a stabilization in revenue after a prolonged decline, but net profit continues to face challenges. The recovery of the Hainan market and consumer spending trends will be pivotal for future performance. The current valuation reflects cautious optimism amid ongoing economic uncertainties.

Summary of China Banks 3Q25 Wrap Industry Overview - The report focuses on the banking sector in China, particularly the performance of state-owned enterprises (SOE) and shareholding banks in the third quarter of 2025 (3Q25) [1][6]. Key Points Core Operating Trends - Despite a decline in investment income, many banks reported improving net interest income (NII) growth and healthy fee income growth in 3Q25 [1][3]. - SOE banks experienced higher profit growth in 3Q25 compared to the first half of 2025, supported by stable credit quality [1][2]. - Ningbo and Agricultural Bank of China (ABC) outperformed peers with above-average trends in NII growth [1][2]. Net Interest Income (NII) and Net Interest Margin (NIM) - Most shareholding banks reported a rebound in NIM in 3Q25, aided by lower funding costs and prudent loan growth [2][11]. - Minsheng and SPDB achieved both quarter-on-quarter (QoQ) and year-on-year (YoY) NIM improvements, focusing on risk management rather than volume growth [2][12]. - Ningbo maintained the highest NII growth within the coverage, benefiting from market share gains and lower NIM pressure [2][11]. - SOE banks faced persistent NIM pressure due to increased growth in lower-yielding bond investments [2][12]. Fee Income Growth - Average fee income growth increased significantly from 1.4% YoY in 2Q25 to 11.1% in 3Q25, driven by capital market activities and strong insurance sales [3][16]. - Bank of Ningbo led with a remarkable 94% YoY growth in fee income, while ABC reported a 23.6% YoY increase [3][16]. - The overall fee income growth for SOE banks averaged 9.8% YoY, with several banks reporting double-digit growth [16][27]. Credit Quality and Non-Performing Loans (NPL) - Credit quality remained stable in 3Q25, with an average NPL ratio flat at 1.15% for covered banks [4][10]. - SOE banks reduced credit costs modestly to support profit growth, maintaining a high NPL coverage ratio of 263% on average [4][10]. Profit Growth - Covered banks reported modest profit growth of 1.9% YoY in 3Q25, with some banks exceeding consensus estimates [10][22]. - SPDB, Huaxia, and Citic led the profit rebounds among joint-stock banks (JSBs) with growth rates of 10.3%, 7.6%, and 3.5% YoY, respectively [22][23]. Investment Income and Revenue Trends - Revenue and pre-provision operating profit (PPOP) growth were affected by lower investment income due to higher bond yields [3][20]. - ABC and BoCom bucked the trend by reporting higher investment income, revenue, and PPOP, indicating strong investment capabilities [3][20]. Dividend Payouts - Several banks, including Minsheng, Citic, and regional banks like Ningbo, announced interim dividend payouts, reflecting confidence in their financial health [9]. Cost-Income Ratio - The average cost-income ratio increased modestly by 0.2 percentage points across banks, with some banks reporting improvements while others saw increases [21]. Future Outlook - Banks expect NIM pressure to moderate further, with ICBC guiding for a full-year NIM of 1.26%, down from 1.28% in 9M25 [13][15]. - Overall, banks are optimistic about continued profit growth and fee income performance in the upcoming quarters [17][18]. Conclusion - The banking sector in China showed signs of recovery in 3Q25, with improving core operating metrics, stable credit quality, and a rebound in fee income. However, challenges remain with NIM pressure and fluctuating investment income impacting overall revenue growth.

Summary of Advanced Micro-Fabrication Equipment Inc. (AMEC) Conference Call Company Overview - **Company**: Advanced Micro-Fabrication Equipment Inc. (AMEC) - **Ticker**: 688012.SS - **Industry**: Semiconductor Equipment Manufacturing Key Financial Results - **3Q25 Net Profit**: Rmb505 million, up 28% YoY, beating consensus estimate of Rmb478 million by 6% [1][11] - **Revenue**: Rmb3.1 billion, a 51% YoY increase, driven by 35% YoY growth in etching equipment sales and Rmb204 million from LPCVD/ALD [1][11] - **Gross Profit Margin (GPM)**: Decreased by 5.8 percentage points YoY to 37.8% due to price discounts for large customers [1][11] - **R&D Expenses**: Increased by 96% YoY to 21.8% of total revenue, reflecting investment in new equipment development [2] Growth Drivers and Market Dynamics - **Import Replacement Demand**: Strong revenue/order growth expected from Chinese logic customers, particularly in memory sectors [3] - **Capacity Expansion**: Foundries in South China, including Pengxinwei and Pensun, are expanding capacities, which may benefit AMEC [3] - **New Product Launches**: Introduction of 90:1 HAR etching machines aimed at supporting Chinese memory customers in producing advanced 3D NAND [3] Valuation and Investment Outlook - **Target Price**: Raised to Rmb352, reflecting a ~63% increase based on a revised P/S multiple of ~13x for 2026E [4][22] - **Investment Rating**: Reiterated Buy due to strong revenue growth prospects and ongoing import replacement trends [4][21] Earnings Forecast Revisions - **2025E Revenue**: Revised to Rmb12.449 billion, a 1% increase from previous estimates [12] - **2026E Revenue**: Revised to Rmb16.603 billion, a 2% increase [12] - **Net Profit Forecasts**: Adjusted downwards for 2025E and 2026E due to anticipated lower margins [12] Risks and Challenges - **Market Risks**: Potential impacts from stricter US restrictions, a weaker semiconductor cycle, and lower-than-expected GPM [23] Additional Insights - **Market Capitalization**: Approximately Rmb185.75 billion (US$26.17 billion) [6] - **Expected Total Return**: 18.8%, including a dividend yield of 0.1% [6] - **Long-term Growth**: Management projects at least 30% YoY revenue and new order growth in 2025 [21] This summary encapsulates the essential points from the conference call regarding AMEC's financial performance, market position, growth strategies, and investment outlook.

Summary of BYD Co. (002594.SZ) 3Q25 Conference Call Company Overview - **Company**: BYD Co. (002594.SZ) - **Industry**: New Energy Vehicles (NEV) Key Financial Results - **Revenue**: RMB 194.985 billion, down 3% year-over-year (yoy) and quarter-over-quarter (qoq), and 11% below Goldman Sachs estimates (GSe) [1][6] - **Net Profit**: RMB 7.823 billion, a decrease of 26.4% yoy and 32.6% qoq, also below GSe [1][6] - **Gross Margin**: Improved to 17.6%, slightly above GSe of 17.4%, up from 16.3% in 2Q25 [1][6] - **Operating Margin**: Increased qoq due to tighter cost control [1] - **Net Margin**: 4.0%, down from previous quarters [6] Sales Performance - **Vehicle Deliveries**: 1.1 million new energy passenger vehicles in 3Q25, a decline of 2% yoy and 3% qoq [1][4] - **Market Share**: China NEV wholesale market share at 28.0%, down 7.2 percentage points yoy and 3.8 percentage points qoq [4] - **Premium Brands Sales**: Denza, Fangchengbao, and Yangwang had total sales of 36k, 55k, and 1,502 units respectively, showing significant growth [4] - **Overseas Sales**: 233k units sold, a 156% increase yoy but a 10% decrease qoq, contributing to 21% of total sales [4] Cost and Expenses - **Cost of Goods Sold (COGS)**: RMB 160.639 billion, down 11.3% yoy [6] - **Operating Expenses**: 3% below GSe, indicating effective cost management despite revenue decline [1] - **Interest Expense**: Increased due to rising long-term debt, reaching RMB 66 billion in 3Q25 [1] Balance Sheet and Cash Flow - **Net Cash**: RMB 87 billion, down from RMB 116 billion in 2Q25 [5] - **Operating Cash Flow**: RMB 9 billion, significantly lower than RMB 23 billion in 2Q25 [5] - **Debt to Equity Ratio**: Increased to 34% from 13% in 2Q25 [5] Future Outlook and Investor Concerns - **Investor Call Scheduled**: Management will address consumer demand, product strategies, overseas expansion, and potential impacts from EU-China negotiations on EV tariffs [2] - **Growth Expectations**: BYD 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 [7] - **Risks**: Potential risks include intensifying competition in the electric vehicle market, slower overseas expansion, and lower-than-expected external battery sales [9][10] Investment Thesis - **Rating**: Buy rated with a target price based on discounted cash flow (DCF) methodology [10] - **Catalysts for Growth**: Strong sales, supportive NEV policies, and breakthroughs in overseas markets [9] Conclusion - BYD's 3Q25 results reflect challenges in sales volume and profitability, but improvements in margins and cost control indicate potential for recovery. The company is well-positioned for future growth, particularly in overseas markets, despite facing significant competition and market risks.

Summary of Focus Media Information Tech (002027.SZ) Earnings Review Company Overview - **Company**: Focus Media Information Tech - **Ticker**: 002027.SZ - **Industry**: Advertising and Media Key Financial Highlights - **3Q25 Revenue**: Increased by 6% year-over-year (yoy) to Rmb3,494 million, inline with expectations, and up 1% compared to Goldman Sachs estimates (GSe) [1] - **Operating Profit (OP)**: Rose by 28% yoy to Rmb1,576 million, exceeding GSe by 11% [1] - **Gross Profit Margin (GPM)**: Achieved a record high of 74%, up 5.9 percentage points (ppts) yoy, driven by margin expansion and effective OPEX management [1][2] - **Dividend Declaration**: Total dividend of Rmb722 million for 3Q25, equating to Rmb0.05 per share, representing a payout ratio of approximately 46% [1] Growth Drivers and Future Outlook - **Sales Recovery**: Anticipated further sales recovery in 4Q25 due to easier year-over-year comparisons and increased spending on eCommerce platforms [1][2] - **Key Initiatives**: 1. **Internet Platform Spending**: Incremental spending from Internet platforms is expected to continue, although it may moderate sequentially from 3Q25 [2] 2. **"Tap and Grab Red Packets" Initiative**: Aiming to expand to 1 million to 2 million ad screens by end-2025/2026, with monetization expected to start in 4Q25 [2] 3. **Potential Price Hikes**: Possible increase in revenue per ad slot due to the proposed acquisition of Xinchao Media, enhancing market leadership and bargaining power [2] - **Operating Leverage**: Sustained operating leverage anticipated from gross margin expansion and disciplined OPEX management [2] Financial Estimates Adjustments - **Revenue Estimates**: 2025E revenue estimates remain largely unchanged at Rmb12,898 million, with 2026E at Rmb13,631 million [3] - **Gross Margin Estimates**: Increased by 1.9 ppts to 71% for 2025E and 72% for 2026E [3] - **Net Profit Estimates**: Adjusted downwards by 2% to 0% for 2025-27E, primarily due to lower investment gains and non-operating revenues [3] Price Target and Valuation - **Target Price**: Revised to Rmb9.00 from Rmb9.10, based on a 21x P/E multiple for 2026E [3][19] - **Current Price**: Rmb7.78, indicating an upside potential of 15.7% [20] Risks and Considerations - **Macro Headwinds**: Potential slowdown in advertising budgets due to economic conditions [19] - **M&A Uncertainties**: Risks associated with the completion of the proposed acquisition of Xinchao Media [19] - **Pricing Power**: Weaker-than-expected pricing power on newly-acquired customers could impact revenue [19] - **Competition**: Increased competition from online and offline advertising players [19] Additional Insights - **Cost Management**: Cost per elevator ad slot has been decreasing, which is expected to continue into 4Q25 [12] - **Ad Slot Expansion**: Focus Media has slowed its ad screen expansion since 4Q24, indicating a strategic shift [14] This summary encapsulates the key financial metrics, growth drivers, future outlook, and risks associated with Focus Media Information Tech, providing a comprehensive overview for potential investors.

Summary of Gree Electric Appliances Inc. 3Q25 Conference Call Company Overview - **Company**: Gree Electric Appliances Inc. (000651.SZ) - **Industry**: HVAC (Heating, Ventilation, and Air Conditioning) Key Financial Results - **3Q25 Revenue**: Rmb 40,034 million, down 15% year-over-year (yoy) [1][6] - **3Q25 Net Profit**: Rmb 7,049 million, down 10% yoy [1][6] - **Comparison to Estimates**: Revenue and net profit were 18% and 2% below Goldman Sachs estimates, respectively [1] - **Interim Dividend**: Announced Rmb 1.0 per share, representing a 28% payout ratio based on Rmb 3.86 EPS for 9M25 [1] Market Position and Competition - **Market Share Pressure**: Gree is the only major HVAC company in the coverage that reported declining revenue in 3Q25, while competitors like Midea, Haier, and Hisense reported growth [1] - **Shipments**: Gree's total shipments increased by 3% yoy, but domestic AC shipments fell by 15% yoy, compared to industry averages of +6% and -13%, respectively [2] - **Contractual Liabilities**: Increased to Rmb 13.7 billion in 3Q25 from Rmb 10.9 billion in 3Q24, potentially supporting revenue growth in 4Q25 [2] Profitability Metrics - **Operating Profit Margin (OPM)**: Decreased by 1.5 percentage points yoy to 14.5%, attributed to pricing pressure and operating deleverage [3] - **Net Operating Cash Flow**: Increased to Rmb 17.4 billion in 3Q25, up from Rmb 7.6 billion in 3Q24, supported by increased prepayments from distributors [3] Investment Thesis - **Strengths**: - Strong manufacturing capabilities due to vertical integration and economies of scale - Extensive offline distribution network - Strong brand equity in the mid to high-end AC segment [7] - **Risks**: - Revenue growth pressure as trade-in stimulus support diminishes - Market share loss due to intensified competition and a less proactive strategy in product offerings [7] - **Valuation Support**: Expected dividend yield of 7% in 2025 is anticipated to support current low valuation [7] Price Target and Risks - **Target Price**: Rmb 42, based on a 9x exit multiple applied to 2027E EPS [8] - **Key Risks**: - Demand fluctuations due to macroeconomic conditions and property market changes - Variability in material costs affecting gross profit margin (GPM) - Channel inventory levels impacting revenue growth - Progress in diversification into other home appliances [9] Conclusion - **Rating**: Neutral, with a fair risk/reward profile based on projected earnings decline in 2026E [7]

Summary of Shennan Circuit (002916.SZ) Conference Call Company Overview - **Company**: Shennan Circuit - **Industry**: PCB (Printed Circuit Board) manufacturing - **Market Position**: Leading PCB supplier in China, focusing on telecom and aeronautics sectors, with a "3-in-1" model encompassing PCB, PCB assembly, and IC substrate packaging [20][21] Key Financial Highlights - **Revenue Growth**: - 9M25 revenue increased by 28.4% year-over-year (YoY) to RMB 16.754 billion, with 3Q25 growth at 33.3% compared to 25.6% in 1H25 [1] - **Net Profit**: - Attributable net profit surged 56.3% YoY to RMB 2.326 billion, with 3Q25 growth accelerating to 92.9% compared to 37.8% in 1H25 [1] - **Earnings Estimates**: - 2025-27 earnings estimates raised by 13-15%, target price increased to RMB 281 from RMB 230 based on a 48x PE for 2026E [1][22] 4Q25 Outlook - **Revenue Forecast**: Expected 4Q25 revenue growth of 33% YoY to RMB 6.427 billion, similar to 3Q growth [3] - **Net Profit Forecast**: Anticipated net profit growth of 115% to RMB 838 million, driven by a low base in 4Q24 [3] Capacity Expansion Plans - **New Plants**: - Thai plant to start in mid-2025, targeting annual revenue of RMB 1.3 billion - Nantong Phase 4 for AI-PCB to commence in 4Q25, with projected annual revenue of RMB 1.5 billion [4] - **Capital Expenditure**: High capex of around RMB 3 billion per annum planned to support AI infrastructure growth [4] Margin and Cost Insights - **Gross Margin**: - 3Q25 gross margin improved to 31.4%, with net margin rising to 15.3% [11] - **Material Cost Inflation**: - Major CCL players increased ASP by RMB 5-10 per sheet in October due to a ~10% rise in copper costs [12] Segment Performance - **PCB and Substrate Segments**: - PCB segment gross margin reached a record high of 36% in 3Q25, with AI-PCB margins estimated at over 40% [10] - Substrate gross margin improved significantly to ~20% in 3Q25 from 15% in 1H25 [10] Investment Strategy - **Recommendation**: Buy rating maintained, with a preference for Shengyi Tech over Shennan due to higher operating leverage in the CCL industry [1][21] - **Market Exposure**: Over 80% revenue exposure to PCB-related businesses, with strong growth potential in AI servers and automotive sectors [21] Risks - **Downside Risks**: - Slower-than-expected growth in AI server demand, weaker automotive demand, and higher laminate cost inflation could impact performance [23] Conclusion - Shennan Circuit is positioned for significant growth driven by its strong market position in the PCB sector, ongoing capacity expansions, and favorable industry dynamics, despite potential risks from market fluctuations and cost pressures [1][21][23]

Weichai Power (000338.SZ) Conference Call Summary Company Overview - Weichai Power is China's largest manufacturer of internal combustion engines, holding approximately 18% market share in the diesel engine segment. The company operates across various sectors including commercial vehicles, construction machinery, agricultural equipment, marine, and power generation [10][12]. Key Financial Results (3Q25) - **Net Profit (NP)**: Rmb3.23 billion, representing a 29% year-over-year (yoy) increase and a 10% quarter-over-quarter (qoq) increase, exceeding expectations by 27% [1][7]. - **Topline Revenue**: Rmb57.42 billion, up 16% yoy and 3% qoq, surpassing estimates by 4% [6]. - **Gross Profit Margin (GPM)**: 21.4%, a decrease of 0.7 percentage points yoy and 0.8 percentage points qoq, but 0.4 percentage points above estimates [6]. - **Operating Expenses**: Rmb7.68 billion, which was 9% lower than expected, contributing to an EBIT margin of 8.0%, up 1.2 percentage points yoy and 1.9 percentage points qoq [6][7]. - **Free Cash Flow (FCF)**: Rmb6.66 billion, significantly improved from -Rmb1.18 billion in 3Q24 and Rmb9.43 billion in 2Q25 [1][11]. Segment Performance - **Heavy-Duty Trucks (HDT)**: Sales volume for HDT assembly and engines grew by 34% and 20% yoy, respectively, indicating strong demand recovery [6]. - **KION (Subsidiary)**: Achieved a 58% yoy increase in NP with a solid order intake growth of 10% yoy, contributing approximately 10% to Weichai's normalized NP [1][11]. Operational Insights - The company is expected to discuss operational trends by segment, engine wallet share dynamics, updates on the large-bore engine business, and guidance for 4Q25 and 2026 during the upcoming management conference call [8]. Investment Thesis - The investment thesis is based on a positive cyclical outlook for heavy-duty trucks, improved profitability from a more profitable engine portfolio, and potential tailwinds from KION's European capex exposure. The long-term earnings prospects are expected to be underappreciated by the market, with a robust FCF profile and a strong net cash position [12][14]. Risks - Key risks include slower-than-expected macroeconomic activity, weaker global economic growth, shifts towards electrification, and potential underperformance in HDT engine market share [14]. Valuation - The target price for Weichai's H-share is set at HK$20.00, reflecting an 11.5x 2026E EPS, while the A-share target price is Rmb19.60, applying a 6% premium to the H-share value [13][15]. Conclusion - Weichai Power's strong financial performance in 3Q25, coupled with a positive outlook for the heavy-duty truck market and robust cash flow generation, supports a "Buy" rating for both A- and H-shares [1][12].