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HAIZHI TECH GP(2706)
Analysis¡G
Haizhi Technology primarily engages in providing Atlas Graph solutions and Atlas Agents. Its Atlas Graph solutions are built on graph computing and data analysis capabilities, encompassing the DMC Data Intelligence Platform, Atlas Knowledge Graph Platform, and Atlas Graph Graph Database. The Atlas Agent is an intelligent agent solution developed based on graph-model fusion technology and has already been successfully implemented in various application scenarios including anti-fraud, intelligent marketing, intelligent operations, risk identification, data governance, and intelligent manufacturing. The Group is also expanding into new application scenarios to more comprehensively empower clients¡¦ overall operations and decision-making processes. As of the end of 2025, the Group had cumulatively served more than 400 industrial-grade clients, with an average contract value of RMB 3 million. The average contract value for Atlas Agent clients reached RMB 3.6 million. Among the Atlas Agent clients that contributed revenue in 2025, 50% had previously deployed the company¡¦s Atlas Graph solutions, demonstrating strong customer stickiness.
Leveraging its differentiated technological offerings in graph computing and graph-model fusion, the Group continues to consolidate its market share in key industries such as finance, government and public utilities, and energy. It is also increasing investment in areas like intelligent manufacturing, Internet of Vehicles, and telecom operators to expand its industry and scenario footprint. The Group has successfully achieved domestic substitution of graph database products in four large state-owned commercial banks with total assets exceeding RMB 150 trillion. Building on the underlying capabilities of its graph database, it is further developing a graph application product system and agent products. In the field of public social security, the Group focuses on core risk dimensions such as financial security, technological security, ecological environment, and accidents and disasters. Relying on its comprehensive ¡§Knowledge Graph + Agent¡¨ integrated product system, it delivers precise risk perception and proactive prevention, effectively enhancing risk control capabilities and maintaining a leading market position in the industry. On the overseas front, the Group has made significant progress in international markets. In Hong Kong, it has leveraged its leading advantages with mainland financial institutions to achieve breakthroughs in banking and non-banking financial sectors.
As a critical infrastructure for enterprise-grade AI implementation, multi-modal databases center on modeling and deep reasoning of multi-modal data through graph computing engines. The core objects that future AI systems will face are no longer isolated text but complex execution environments composed of knowledge, relationships, rules, states, tools, processes, and various types of data. Multi-modal databases can unify these elements, providing AI with a queryable, traceable, constrainable, and sustainably evolving foundation of knowledge and states. Graph computing is the most compatible with this underlying logic ¡X it is inherently oriented toward relationship modeling, deep reasoning, and path mining, making it the most suitable computational paradigm to support AI¡¦s evolution from ¡§conversation¡¨ to ¡§action execution.¡¨ Looking ahead, the Group will rely on its profound insights in graph computing and graph-model fusion, along with advanced large model capabilities, to achieve further breakthroughs in core industry scenario deployments.(I do not hold the above stock.)
Strategy¡G
Buy-in Price: $61.00, Target Price: $70.00, Cut Loss Price: $58.00
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DELTON(1989)
Analysis¡G
According to a report by CCTV News, driven by the concentrated release of computing power demand, the price of electronic fabric has shown a significant upward trend since the beginning of this year. As of early June, mainstream specifications of electronic fabric in the market have undergone five rounds of price increases, with the average price reaching RMB 7.4 per meter, representing a 100% increase from the low point in the third quarter of last year. Furthermore, the spillover effects of geopolitical conflicts in the Middle East are transmitting from the energy sector to the electronics supply chain. It is understood that the Jubail Industrial City in Saudi Arabia previously accounted for approximately 70% of the global supply of PPE resin. However, affected by shipping disruptions in the Strait of Hormuz, related factories in the region have ceased production since the end of March. In the first quarter of 2026, the company achieved operating revenue of RMB 1.914 billion, representing a year-on-year increase of 71.35%. Net profit attributable to shareholders of the listed company reached RMB 393 million, up 63.31% year-on-year. The significant change in performance is mainly attributable to the continued upward momentum driven by AI computing power demand in 2026, thereby fuelling revenue growth. As an emerging force in the high-end printed circuit board (PCB) sector, DELTONhas strategically focused on high-growth trajectory segments such as AI servers and data centres, demonstrating robust growth momentum. From a financial performance perspective, the company has achieved rapid growth in both operating revenue and attributable net profit over the past two years, with profitability consistently remaining at a relatively high level within the industry. The certainty of future earnings delivery is notably strong. The company represents a fundamentally solid investment target with high earnings visibility within the AI computing power track.
Strategy¡G
Buy-in Price: $184.00, Target Price: $209.80, Cut Loss Price: $172.10
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Sanhua (002050.CH) - Dual-Engine Momentum Conversion
Company ProfileSanhua is the world's largest manufacturer of HVACR controls and components, focusing on heat management business with heat pump technology as the core. It operates the domestic and commercial air conditioning business as well as automotive heat management fields, establishing a leading position in the industry. The products of the Company such as electronic expansion valves of air conditioning, four-way reversing valves, solenoid valves, micro-channel heat exchangers, automotive electronic expansion valves, new energy vehicle heat management integrated components and omega pumps have the highest market share across the world. The market proportion of service valves, thermostatic expansion valves for vehicles and receivers rank top among the world. Investment SummaryCore Business Maintained High Growth, Profitability Improved
FY2025 full-year results: The Company reported revenue of RMB31,012 million (RMB, the same below), up 10.97% yoy; net profit attributable to the parent company of RMB4,063 million, up 31.10% yoy; and gross margin of 28.8%, up 1.4 ppts yoy. The Company adopted a raw material price linkage mechanism and hedging measures to reduce costs and enhance efficiency, while continuously optimising its product mix and benefiting from economies of scale, driving an improvement in profitability. In terms of business structure, revenue from refrigeration and air-conditioning electrical appliance components amounted to RMB18,585 million (accounting for 59.93%), up 12.22% yoy; revenue from automotive components amounted to RMB12,427 million (accounting for 40.07%), up 9.14% yoy. FY2026 Q1 results: Revenue amounted to RMB7,774 million, up slightly by 1.36% yoy; net profit attributable to the parent company was RMB928 million, up 2.68% yoy; and net profit excluding non-recurring items was RMB986 million, up 15.52% yoy. Gross margin was 27.8%, up 1.0 ppt yoy. Although growth was moderate, after adding back foreign exchange losses of RMB140-150 million and securities investment losses of RMB100 million, adjusted net profit grew by more than 30% yoy, with net profit margin rising to 14.6%. This reflects that despite the challenge of rising raw material costs caused by the situation in the Middle East in Q1, the Company still achieved solid results growth. Refrigeration Business Foundation Remained Solid, Liquid Cooling and Energy Storage Demand Was StrongIn 2025, revenue from the refrigeration components business grew against the trend, despite a 1.2% decline in total domestic air-conditioner industry sales volume. This was mainly attributable to the steady increase in market share and product mix optimisation. The segment's gross margin was 28.8%, up 1.42 ppts yoy. Notably, the Company's annual sales from liquid cooling and energy storage businesses reached RMB2 billion, among which revenue from data centre liquid cooling doubled. In 2026 Q1, despite a 3% yoy decline in domestic air-conditioner sales volume, the Company achieved steady revenue growth by expanding its data centre liquid cooling business and new application scenarios for energy storage thermal management. Based on strong demand, the Company maintained its full-year guidance of high growth of 50%-100% for data centre and energy storage-related businesses. Refined Operations in Automotive Components BusinessIn 2025, the gross margin of the automotive components business segment increased by 1.15 ppts to 28.8%, reflecting the strategic results of the Company's shift from scale expansion to refined operations. In 2026 Q1, although NEV sales volume declined by 3.7% yoy, the Company's core customer Tesla recorded a 13% yoy increase in global production in Q1, the proportion of domestic emerging automaker customers increased, and exports of domestic brands grew rapidly, jointly driving the Company's automotive components business growth to outperform the industry average. Moreover, the Company's automotive thermal management business is transforming and upgrading from component supply to system integration, which helps increase the value of products per vehicle, product value-added and overall competitiveness. Cost Reduction and Efficiency Enhancement Delivered Significant ResultsIn 2025 H2, the Company adjusted its strategy and refocused on operational improvements. Through measures such as digital transformation and upgrades, the introduction of AI and digital employee tools, and the optimisation of operational efficiency at overseas bases, the Company improved its operational efficiency. In 2025 and 2026 Q1, the period expense ratios (sales + administration expense ratios) decreased by 0.65 ppts and 0.88 ppts yoy to 13.01% and 11.69%, respectively, with economies of scale continuing to emerge. Liquid Cooling Contributes Short-Term Certain Incremental Growth, While Robotics Opens Up a Hundred-Billion-Level Growth SpaceThe Company has entered the liquid cooling and energy storage sectors as a thermal management component supplier, with core products covering valves, pumps, heat exchangers and sensors. The common architecture of thermal management technology across the three major scenarios of automobiles, robotics and AI servers gives the Company the ability to reuse its technology for "one core and three applications". Its R&D investment efficiency is significantly higher than that of single-track companies, with a high self-production rate, more mature products and a clear platform-based expansion path. It has currently reached cooperation with several leading thermal management integrators. Among them, Tesla's HW4.0 valve island product has secured a nomination and entered the batch delivery stage, while AI server liquid cooling has reached cooperation with leading domestic cloud vendors, entered the prototype testing stage, and is expected to achieve small-scale mass production within the year. Short-term growth certainty in the liquid cooling segment is promising. In the robotics field, the Company has entered the biomimetic robot market as an electromechanical actuator supplier, actively cooperating with customers in product R&D, trial production and iteration, while stepping up joint development efforts. At the same time, it is strengthening its technology reserves and capacity layout in parallel, and has launched the construction of a RMB3.8 billion robotics production base, laying the foundation for future profit growth. Investment ThesisSanhua Intelligent Controls is a leader in refrigeration components. As global NEV penetration remains on an upward trend, the Company's technical barriers and customer advantages remain solid, and its market share is expected to continue increasing. Its automotive components business is expected to maintain a double-digit CAGR over the next three years, while the liquid cooling and energy storage businesses have relatively high certainty of sustaining high growth. In the long term, the potential space in the robotics track is expected to reshape the Company's valuation logic. As for valuation, we expected the Company's 2026/2027/2028 earnings per share to 1.11/1.30/1.55 yuan, a yoy increase of 15.2%/16.7%/19.8%. And we accordingly gave the target price to RMB53.4, respectively 48/41.2/34.4x P/E for 2026/2027/2028. "Accumulate" rating. (Closing price as at 29 May) RiskProgress of new production line is below expectations
Electric vehicle sales fall short of expectations
Macroeconomic downturn affects product demand
Sharply rising raw material prices or sharply falling product prices Financials
(Closing price as at 29 May 2026) Download PDF Version
| Recommendation on 10-6-2026 | | Recommendation | Accumulate (Maintain) | | Price on Recommendation Date | $ 46.340 | | Suggested purchase price | N/A | | Target Price | $ 53.400 |
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