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SUN.KING TECH(580)
Analysis¡G
Sun.King Technology is primarily engaged in the manufacturing and trading of power electronic devices. Its products can be divided by application fields into power transmission and distribution, electrified transportation, as well as industrial and others.
In the power transmission and distribution sector, the group supplies products such as anode saturable reactors, power capacitors, DC support capacitors for flexible DC transmission, smart grid online monitoring systems, and distributed power semiconductor devices to conventional DC transmission and flexible transmission sub-sectors. In the electrified transportation field, the group provides various power electronic devices for traction converter systems to rail transit vehicle equipment manufacturers. It also supplies laminated busbars, integrated busbars, and self-developed power semiconductors¡Xincluding insulated gate bipolar transistors (IGBTs) and silicon carbide (SiC) products¡Xto the electric vehicle sub-sector. In the industrial and other fields, the group offers self-developed power semiconductors, laminated busbars, integrated busbars, power quality management devices, power capacitors, DC support capacitors, and distributed power semiconductor devices to manufacturers of industrial control equipment, energy storage equipment, and new energy power generation equipment, as well as to research institutes and clients in other sub-sectors.
In 2025, the group launched IGBT and FRD chips using seventh-generation micro-trench technology, raising the current capacity of its 1,200V and 1,700V chip products to an industry-leading 300A. On the IGBT module side, it introduced four product series¡XEP packaging, FP packaging, TF packaging, and BEVD packaging¡Xand added ED packaging and ST packaging models. As a result, the number of available IGBT module models increased to 37 (from 12 in 2024). The continuous launch of new products was a key driver behind the rapid 104% growth in self-developed power semiconductor revenue in 2025. During the year, the group added 55 new signed customers, covering many leading enterprises in photovoltaics, energy storage, industrial control, and commercial electric drives, achieving significant breakthroughs particularly in the power supply and commercial electric drive sectors. This progress aligns with the deepening trends of industrial electrification, transportation electrification, and building intelligence, alongside a sharp rise in electricity demand from artificial intelligence and data centers.
The group develops and produces power semiconductor chips and modules such as IGBT, FRD, and SiC, including products suitable for the ¡§green electricity + energy storage + computing power¡¨ sector. It officially entered the new energy power station construction business in 2023 and achieved scale in 2024. In 2025, revenue from the new energy power generation and energy storage sub-sectors reached approximately 576 million RMB, representing a 111% increase from 2024. In 2026, the group will focus on the research and development of new SiC MOSFET and IGBT products targeted at photovoltaics, wind power, electric drives, data center power supplies, and other fields to deeply serve the development needs of the industry. ¡§Green electricity + energy storage¡¨ and ¡§computing power synergy¡¨ have become key directions for the new energy industry.(The author does not hold the above stock.)
Strategy¡G
Buy-in Price: $2.65, Target Price: $2.90, Cut Loss Price: $2.50
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BIREN TECH(6082)
Analysis¡G
Biren Technology is China's first AI computing chip company to independently develop a full-stack GPGPU architecture, 2.5D chiplet packaging, and optical interconnection super nodes, and is one of the "Four Little Dragons" of domestic GPUs. With the global surge in AI computing demand, China's smart chip market has achieved a five-year compound growth rate of 46.3%, driven by both policy support and export restrictions, fueling domestic substitution. As one of the few manufacturers with full-stack GPGPU capabilities, Biren's products span training, inference, and edge scenarios, boasting significant technical barriers. Its self-developed BR166 chip employs a Chiplet architecture, delivering a bandwidth of 896GB/s. The software platform BIRENSUPA has been adapted to mainstream open-source models and has achieved stable operation for over 30 days in a thousand-node cluster, with its ecosystem compatibility and reliability proven in practice, leading the industry in commercialization capabilities. The company's total revenue in 2025 reached 1.035 billion RMB, a yoy increase of 207.2%, while net loss stood at 1.6493 billion RMB, primarily due to fair value changes in debt redemption. Core operating losses amounted to 874 million RMB, with a research and development expense ratio of 142.7%, where short-term financing costs and R&D expenses suppressed profitability. The BR20X series is expected to be launched in the second half of 2026, with performance comparable to the H200. The potential for commercialization scale expansion and the benefits of increased penetration of domestic chips are expected to drive upward revisions in performance forecasts.
Strategy¡G
Buy-in Price: $53.50, Target Price: $63.00, Cut Loss Price: $48.00
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Foryou Group (002906.CH) - Second Growth Curve Gradually Becoming Clear
Company profileForyou Corporation was established in 1993 and is mainly engaged in the R&D, production and sales of automotive electronics and precision die-casting businesses. The Company's automotive electronics business mainly covers two core sectors, namely smart cockpit and advanced driver-assistance systems. Its precision die-casting business is centred on precision mould design and manufacturing technology, covering aluminium alloy, magnesium alloy and zinc alloy product lines. In addition, it actively explores and develops AI, robotics and other related businesses, including optical communication modules, AI high-speed connectors, robotics and other related component businesses. In 2025, the Company reported revenue of RMB13,048 million, up 28.46% yoy; net profit attributable to the parent company was RMB782 million, up 20.00% yoy. Investment SummaryQ1 Revenue Maintained High Growth
In Q1 2026, the Company reported revenue/net profit attributable to the parent company/net profit excluding non-recurring items of RMB3,096 million/RMB166 million/RMB159 million, respectively (RMB, the same below), up 24.37%/6.61%/5.89% yoy, respectively. Gross margin was 16.5%, down 1.7 ppts yoy. The slower profit growth compared with revenue growth was mainly due to factors such as price competition and rising raw material prices. The Company has established a raw material price linkage mechanism with most of its customers, and its operating results are expected to improve significantly from Q2. Automotive Electronics Business Continued to Grow, With Its Leading Position in Smart Cockpit Firmly EstablishedThe Company's automotive electronics business reported revenue of RMB9,675 million in 2025, up 27.25% yoy, accounting for 74.15% of total revenue. CAGR reached 35.66% from 2020 to 2025, maintaining high-quality growth. The Company has built a comprehensive product matrix and solution capabilities in the smart cockpit field. The market shares of HUD, in-vehicle wireless charging and other products continued to rank first in China, while the market shares of LCD instrument panels and central control screens rapidly rose to the forefront of the industry. The Company's customer structure continued to optimise, with a low dependence on any single customer, and the revenue contribution from some new energy vehicle makers and international automotive brands increased. Revenue from customers including Changan, BAIC, Xiaomi, Dongfeng, STELLANTIS, SAIC Volkswagen, BYD, Xpeng, NIO and Leapmotor increased significantly. Leveraging the ADAYO Automotive Open Platform (AAOP), the Company provides customers with "one-stop" overall smart cockpit solutions based on its implementation capabilities in cockpit domain controllers across multiple platforms including Qualcomm, SemiDrive and MediaTek, as well as mainstream large models, demonstrating significant platform-based competitive advantages. Precision Die-Casting Business Improved Its Process Technologies, Enhancing Overall CompetitivenessThe Company overcame a number of difficult technical challenges in mould design and manufacturing, expanded the application of highly flame-retardant magnesium alloy materials, and promoted the deep integration of 3D vision guidance with AI and robotics to improve the flexible changeover capability of automated manufacturing cells. Its capabilities in complex and difficult production processes, including high-vacuum combined extrusion, friction stir welding of aluminium-magnesium alloys, profiling spraying, multi-spindle machining and vacuum adsorption, continued to improve. The precision die-casting business delivered particularly impressive performance in 2025, reporting revenue of RMB2,859 million, up 38.47% yoy, with growth exceeding that of the automotive electronics business. CAGR reached 35.08% from 2020 to 2025. Second Growth Curve Gradually Becoming Clear, with Capacity Expansion Releasing Growth MomentumThe Company actively explores non-automotive businesses such as AI and robotics: 1) In the AI infrastructure field, optical communication modules, high-speed connectors and data centre cooling system components have secured project nominations; 2) In the robotics field, the Company has received orders for robotics display screens and joint module components, and jointly developed robotics main and auxiliary controllers, with brand momentum surging and sales increasing exponentially. Following a record-high scale of capacity construction in 2025, capital expenditure is expected to remain at a high level in 2026, focusing on the Thailand Production Base, the expansion of the Automotive Electronics Huizhou Base, the expansion of the zinc alloy die-casting business in the AI field, and Phase III of the Precision Die-Casting Changxing Project. Capacity expansion is being carried out based on orders on hand, providing solid support for sustained business growth going forward. Among them, the Thailand Production Base is expected to commence production in Q4 2026, providing strong support for overseas business expansion. Investment ThesisThe Company's traditional automotive business is growing steadily and rapidly, while its non-automotive business offers enormous growth potential. We are optimistic about the long-term development of the Company and expect EPS to be 1.81/2.18/2.63 yuan respectively for 2026/2027/2028, a yoy increase of 22%/21%/21%. We offer a target price of 36.3 yuan, respectively 20/16.6/13.8x P/E for 2026/2027/2028, and an "Buy" rating. (Closing price as at 5 June) Historical P/E Band 
Source: Wind, Company, Phillip Securities Hong Kong Research
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 5 June) Download PDF Version
| Recommendation on 16-6-2026 | | Recommendation | BUY (Initiation) | | Price on Recommendation Date | $ 28.340 | | Suggested purchase price | N/A | | Target Price | $ 36.300 |
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