高盛-GC科技：分行业勾勒增长潜力与机遇-GC Tech：Outlining growth potential and opportunities by sub-sector-20261019

htEtqpi:t/wse.vaaruhelist

19October2026|9:41PMHKT

GCTech:Outlininggrowthpotentialandopportunitiesbysub-sector

Wereview11sub-sectorswithinChinaTechamidcurrentvolatilityandseasonality,andhighlightourkeyinvestmenttheses,supportedbyconstructivefundamentals:

(1)GenerativeAIdrivesAIserversshipmentgrowthandspecificationupgrades,

AllenChang

+852-2978-2930|

allen.k.chang@

GoldmanSachs(Asia)L.L.C.

benefitingglobalchampionsacrosssemiconductors(e.g.TSMC),optical(e.g.

VerenaJeng

+852-2978-1681|verena.jeng@

Innolight),PCB(e.g.VictoryGiant),andODM(e.g.HonHai/FII),(2)AIspendingis

GoldmanSachs(Asia)L.L.C.

expandingfromleadingCSPstoNeoCloud/Enterprises,supportingongoingAI

ChaoWang

+886(2)2730-4195|kuan-

infrastructureupcycle,and(3)Leadingbrandsandpremiummodelstobeimpacted

chao.wang@

GoldmanSachs(Asia)L.L.C.,Taipei

lessunderthehighmemorycostsintheconsumerelectronicsspace.Geopolitical

Branch

tensions/policiesremainaswingfactorintheAIserversupplychain,although

TingSong

+852-2978-6466|ting.song@

modeltransitioninAIserverracksiscomingtoanend,supportinggrowthincomingquarters.Wereviewdemand/supplyandopportunitiesbysegment.

WereiterateBuyon:(1)Semiconductors:TSMC,Mediatek,SMIC,HuaHong,CXMT,AMEC,Naura;(2)OpticalNetworking:Innolight,Robotechnik,Eoptolink,Landmark,VPEC,Largan,FOCI;(3)AISever:HonHai/FII,Wiwynn/Wistron,AVC/Fositek,KingSlide,Luxshare;(4)PC:Lenovo,Huaqin;(5)SmartphonesandiPhones:SZS,Lingyi;(6)PCB/CCL/ABF:ShengyiTechnology,VictoryGiant,WUS,Shennan,EliteMaterial;(7)Satellite:UMT,WNC,Tongyu;(8)Autonomousdriving/Robotaxi:PonyAI,WeRide,

HorizonRobotics(9)Power:Delta,InnoScience.

Semiconductors:WeexpecttoseerisingSemisCapexspendingonmemoryand

advancednodeahead,drivenbyGenerativeAIwhichdrivesbothshipmentand

specificationupgrades,andthe“localforlocal”strategytodiversifysuppliersand

securesupply(Reportlink).WeexpectcapacityexpansionfromadvancednodesandmemorytobenefittheSemissupplychainacrossFoundry,memory,AIchips,SPE,

advancedpackaging,SPEetc.Onmemory,weexpecttoseestronggrowthofChinaDRAMandHBM,drivenbystrongAIservershipmentsandgrowingAImodels,withcompanies’capacityexpansiontofulfillclients’demandtodiversifysupplychain

Reportlink:CHIPSIV:ChinaSemisself-sufficiencybuilds;Changesincoverage.Buy:

TSMC,Mediatek,SMIC,HuaHong,CXMT,AMEC.

OpticalNetworking:Wearepositiveonopticaltransceivergrowthahead,drivenbygrowingAIspending,productmixupgradetowardshigh-speedtransmissionof800G/1.6Tandabove,andrisingadoptionofopticsinconnection.Weexpect800G/

1.6Tshipmentvolumesat45m/33munitsin2026E,growingto49m/71min2027E,with3.2Tshipmentrampingupto23m/68min2027/28E(Reportlink).WithAI

infrastructurerampupandrisingcomputingpowerpertrack,weexpectgrowingTAMtoexpandfromscale-outtoscale-up,benefitingproductsacrosspluggable

GoldmanSachs(Asia)L.L.C.

GoldmanSachsdoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.

Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.ForRegAC

certificationandotherimportantdisclosures,seetheDisclosureAppendix,orgoto

/research/hedge.html.Analystsemployedbynon-USaffiliatesarenotregistered/qualifiedasresearch

analystswithFINRAintheU.S.

GoldmanSachs

GC.Tech

opticaltransceivers,NPOandCPO(Reportlink).Buy:Innolight,Robotechnik,Eoptolink,Landmark,VPEC,Largan,FOCI.

AIServer:WeexpecttoseeAIserverrampupahead,drivenbyongoingGen-AI

infrastructureinvestmentsandspecificationupgradeswithmigrationtonewplatforms.WeexpectAIserverracksshipmenttogrow238%/75%/49%YoYin2026-28E(Reportlink)andexpectgloballeadingCSPstobethemajorcustomers.OnAIserver(8-GPU)

equivalent,weexpectshipmentstoreach2.7m/3.3min2027/28E,mainlydrivenby

risingASIC-basedAIserverdemand,asthecustomdesignenablesASICAIserverswithbetterefficiency.Buy:HonHai/FII,Wiwynn/Wistron,AVC/Fositek,KingSlide,Luxshare.

PC:WemodelglobalPCsshipmentat-14%/-5%/0%YoYin2026-28Eto255m/243m/244munits(Reportlink),consideringthenear-termpressuresofhighermemoryand

CPUcosts,andtheflatteningreplacementcyclefollowingtheendofWin10.WeremainpositiveontheAIPCpenetrationrampupahead,withcontinuousintroductionofnewAIapplicationsandAIscenarios.Buy:Lenovo,Huaqin.

SmartphonesandiPhones:Wemodeltheglobalsmartphonesshipmentat-10%/2%/2%YoYin2026-28E(Reportlink),consideringthesaturatedmarketandrisingmemorycoststhatshouldweighonconsumerpurchases.Withcontinuouscostpressures,we

expecttoseerisingcontributionfromhigh-endsmartphonesthatarelesssensitiveto

priceincreases.Weremainpositiveontherisingpenetrationoffoldablephonesahead,withnewproductlaunchesfromleadingbrandmakers(forexample,foldableiPhone

DUO,reportlink),alongwithnewformfactorsandfeaturesthatbringnewusecasesandenhanceuserexperience.Buy:SZS,Lingyi,Fositek.

PCB/CCL/ABF:WeexpectthedemandforAIserverPCB/CCLwillcontinuetogrowandexpectspecificationupgradestodriverisingdollarcontentonsurgingdemandand

technologyadvancements,withcontinuouscapacityexpansionandutilizationrate

maintainingatahighlevel.Overall,weexpecttheglobalPCB/CCLmarketforAIserverstoreachUS$38bn/22bnby2027E(fromUS$27bn/19bn),thenUS$84/48bnby2028E,implyinga148%/161%2026-28ECAGRforAIPCB/CCLTA(Reportlink).Buy:ShengyiTechnology,VictoryGiant,WUS,Shennan,EliteMaterial.

LEOsatellite:WehaveseentheacceleratedLEOsatellitelauncheswithgrowingLEO

installedbase,andexpectthismomentumtobesustained,supportingaglobalLEO

satelliteinstalledbaseof24k/305kunitsin2028E/31Einourbasecase(Reportlink),benefitingthesatellitesupplychainacrossoperators,groundstations,userterminals,

componentsetc.Globalsatelliteoperatorsareactivelyupdatingtheirsatellitelaunch

plans,andexpandingsatelliteapplications,includingin-flightcommunicationandspacedatacenters,tosupportcommercialization.Buy:UMT,WNC,Tongyu.

AutonomousDriving/Robotaxi:WeseecontinuousfleetdeploymentinbothChinaandoverseasRobotaximarket,withreducingcosts,increasingserviceavailableareas,improvingsoftware,andgrowingacceptancebythepublic.WeexpecttheChina

Robotaxifleettoincreasefrom5kunitsin2025to705k/3.1munitsin2030/35E

(Reportlink),withRobotaxipenetrationrateat0.1%/12%/36%in2025/30E/35E.

Overall,weremainconstructiveontheadoptionrateofautonomousdriving,supportedbymoreaffordablesolutionsandspecupgradestodriveconsumers’interests.Buy:PonyAI,WeRide,HorizonRobotics.

AISoftware:TheChinasoftwareindustry’s8M26growthwasat8.8%YoY,slowingdown

19October20262

19October20263

from8M25at12.6%YoY.Whileweseesoftwarespendingremainingunderpressure

withhigherallocationtoAIfoundationalmodelsandcomputingplatforms,webelieveacceleratedmonetizationandexpandingusecasesofAIagentswillgraduallydrive

clients’ITspending.WithimprovingAIfeaturesandhigherAIefficiency,weseehigherwillingnessofenterpriseclientstouseAI(forexample,AIinterview,AImanufacturingtodriveproductionsitesefficiency).

Telecom:5Gbasestationdeploymentandnewlyadded5Gbasestationsin7M26

continuedtoseeYoYdecline.Withlowercapexinvestmentin5GinfrastructureinChina,weexpecttosee540knew5Gbasestationsin2026E(vs.588knew5Gbasestationsin2025,perMIIT).Besidesslower5GBTSdeployment,weseeChinatelcosalsofacing

pressuresfromthehighervalue-addedtaxat9%(vs.previouslyat6%,effectivefromJan2026),however,weexpectthemtodevelopnewapplicationstopartiallyoffsettheimpact.ChinaTelcosrecentlylaunchedAItokenplansforbothToC(Consumer)andToB(Business)users,chargingclientsviaasubscriptionfeeortokenconsumption.

Power:WiththemigrationtoAIserverplatformwithstrongercomputingpowerandhigherrequirementsinpowerefficiencyandpowerdensity,weexpecttoseegradualshipmentrampupofthe400VDCand800VDCsolutions.Overall,weseemeaningfulincrementalopportunitiesoftheHVDCsolution,withdollarcontentupgrade.WealsoseegrowingadoptionofGaNproductstoenablehigherswitchingfrequenciestomeetthe800VHVDCpowerdensityrequirements,supportingclientsinreducingpower

losses.Buy:DeltaElectronics,InnoScience.

Withthisnote,wemakethefollowingchangestoourcoverage.Ourratings,pricetargetsandestimatesareunchanged(forourcurrentviewoneachsecurity,pleaseseeExhibits1-3).

ChaoWangassumesprimarycoverageofthefollowingstocks:1)fromAllenChang:ShengyiTech(600183.SS),AVC(3017.TW),VictoryGiant(300476.SZ),WNC

(6285.TW),ASUS(2357.TW),Gigabyte(2376.TW),Quanta(2382.TW),HTCCorp.(2498.TW);2)fromVerenaJeng:Auras(3324.TWO),Fositek(6805.TW),WUS

(002463.SZ),Chenbro(8210.TW),Compal(2324.TW),EInk(8069.TWO),Inventec(2356.TW),Pegatron(4938.TW);3)fromTingSong:ShennanCircuits(002916.SZ).

VerenaJengassumesprimarycoverageofthefollowingstocksfromAllenChang:

Insta360(688775.SS),Lingyi(002600.SZ),SZS(3376.TW),AAC(2018.HK),

OmniVision(603501.SS),SunnyOptical(2382.HK),Wiwynn(6669.TW),Kematek(301611.SZ),LandMark(3081.TWO),Inspur(000977.SZ).

TingSongassumesprimarycoverageofthefollowingstocks:1)fromAllenChang:

Hikvision(002415.SZ),TongyuCommunication(002792.SZ),WeRide(0800.HK),

ChinaMobile(0941.HK).EHang(EH),iFlytek(002230.SZ),Meitu(1357.HK),RuijieNetworks(301165.SZ),ZTE(0763.HK/000063.SZ),Sensetime(0020.HK),KingsoftOffice(688111.SS);2)fromVerenaJeng:DesaySV(002920.SZ),HuaceNavigation(300627.SZ),ChinasoftIntl(0354.HK).

19October20264

Exhibit1:Coveragesummarytable

Ticker

Company

Analyst(s)

Rating

Currency

Price

16-Oct-2026

12-month

TargetPrice

EPS

TPmethodology

Risks

2026E2027E2028E

600183.SS

ShengyiTech

ChaoWang

Buy

Rmb

114.60

255.00

3.57

5.06

7.68

50.4x2027EP/E

Lower-than-expectedAIinfrastructureinvestment,Lower-than-expectedallocation,Changeinthedirectionoftechnology

1)slower-than-expectedadoptionofliquidcooling;2)lower-than-

3017.TW

AVC

ChaoWang

Buy

NT$

3,315.00

4,736.00

101.06

154.78

195.18

30.3x2027EP/E

expecteddemandforAIservers;3)fiercer-than-expected

competition;and4)aslower-than-expectedrecoveryingeneralservers

300476.SZ

VictoryGiant

ChaoWang

Buy

Rmb

182.00

540.00

9.63

20.54

27.11

26.3x2027EP/E

Slower-than-expectedAIservershipmentrampuppace;Slower-than-expectedAIserverPCBspecificationupgrade;Fiercer-than-expectedmarketcompetition

6285.TW

WNC

ChaoWang

Buy

NT$

255.00

380.00

13.04

13.56

17.15

28x2027EP/E

fiercer-than-expectedcompetitioninsatellitecommunication,slower-than-expectedWi-Fi7or5GFWAramp-upinUSandEuropemarkets

2357.TW

Asus

ChaoWang

Neutral

NT$

994.00

1,115.00

76.45

75.67

86.68

14.8x2027EP/E

1)stronger/weaker-than-expectedPCmarketgrowth;2)faster/slower-than-expectedAIandgamingPCgrowth;and3)faster/slower-than-expectedAIserverramp-up

2376.TW

Gigabyte

ChaoWang

Neutral

NT$

357.50

487.00

31.59

38.48

44.77

14.1x2027EP/E

1)stronger-/weaker-than-expectedPCmarketrecovery,2)faster-/slower-than-expectedgamingPCgrowth,and3)faster-/slower-than-expectedAIserverramp-up

2382.TW

Quanta

ChaoWang

Neutral

NT$

322.00

300.00

27.15

29.40

37.94

10.7x2027EP/E

1)stronger-/weaker-than-expectedPCmarketrecovery;2)faster-/slower-than-expectedAIserverramp-up;and3)stronger-/weaker-than-expecteddemandforgeneralservers

2498.TW

HTCCorp.

ChaoWang

Sell

NT$

40.30

32.80

(0.41)

1.19

2.04

85%from19.3xdiscounted

2028EP/Eamd15%from23.6x2028EP/EM&Avaluation

1)Better-than-expectedVRdemand;2)lower-than-expectedcompetitioninVRheadsets;and3)lower-than-expectedpricepressurefrompeers

3324.TWO

Auras

ChaoWang

Buy

NT$

1,425.00

1,353.00

52.19

69.72

86.98

19.4x2027EP/E

1)Slower-than-expectedliquidcoolingpenetration;2)SoftAIserverdemand;3)Weaker-than-expectedPCmarket;and4)Potentialcompetitionfromexistingandnewsuppliers

6805.TW

Fositek

ChaoWang

Buy

NT$

2,250.00

2,082.00

64.17

92.13

110.25

22.6x2027EP/E

1)Slower-than-expectedfoldablephonepenetration;2)Potentialcompetitionfrommoresuppliers;3)Softsmartphonemarket

demand

002463.SZ

WUS

ChaoWang

Buy

Rmb

113.38

148.00

3.64

6.45

9.13

23x2027EP/E

1)Slower-than-expectedhigh-endAIserverandhigh-speedswitchmigration;2)Fiercer-than-expectedcompetitioninAIPCBmarket;and3)Slower-than-expectednewcapacityexpansion

8210.TW

Chenbro

ChaoWang

Neutral

NT$

834.00

1,507.00

47.12

71.08

102.12

21.2x2027EP/E

faster/slower-than-expectedAIinfrastructureinvestments,faster/slower-than-expectedrackbusinessramp-up,orhealthier/fiercer-than-expectedcompetition

2324.TW

Compal

ChaoWang

Neutral

NT$

36.70

46.10

2.47

3.15

3.62

14.7x2027EP/E

1)stronger-/weaker-than-expectedPCmarketrecovery;2)faster-/slower-than-expectedAIserverramp-up;and3)stronger/weaker-than-expecteddemandfortablets

8069.TWO

EInk

ChaoWang

Neutral

NT$

155.00

142.00

10.98

12.92

16.21

11x2027EP/E

1)Faster-/slower-than-expectede-readers/e-notespenetrationrate,2)Faster-/slower-than-expectedESLadoptionrate,3)

Fiercer-/healthier-than-expectedcompetition

2356.TW

Inventec

ChaoWang

Neutral

NT$

59.00

61.00

3.16

4.01

4.54

15.3x2027EP/E

1)stronger-/weaker-than-expectedPCmarketrecovery;2)faster-/slower-than-expectedAIserverramp-up;and3)stronger-/weaker-than-expecteddemandforgeneralservers

4938.TW

Pegatron

ChaoWang

Sell

NT$

102.00

76.90

6.48

7.17

7.79

10.8x2027EP/E

1)stronger-than-expectedsmartphonemarketrecovery,2)faster-than-expectedAIserverramp-up,and3)stronger-than-expecteddemandonconsumerelectronics

002916.SZ

ShennanCircuits

ChaoWang

Buy

Rmb

309.99

511.00

7.87

12.87

16.20

39.7x2027EP/E

1)slower-than-expectedexpansiontoAIPCB;2)fiercer-than-

expectedcompetition,whichcouldleadtoASPerosionandmarginpressure;3)customerconcentrationrisk;and4)slower-than-

expectedserver/automotivePCBandICsubstrategrowth

Notes:ShengyiTechisonConvictionList(CL)

Source:Companydata,GoldmanSachsGlobalInvestmentResearch

Exhibit2:Coveragesummarytable(cont;)

Ticker

Company

Analyst(s)

Rating

Currency

Price

16-Oct-2026

12-month

TargetPrice

EPS

TPmethodology

Risks

2026E2027E2028E

688775.SS

Insta360

VerenaJeng

Buy

Rmb

89.09

269.00

2.57

5.81

10.90

18.6x2030EdiscountedP/E

Fiercer-than-expectedmarketcompetition;Slower-than-expectedActionand360camerashipmentsgrowth;Lower-than-expectedaccessoryattachrate

002600.SZ

Lingyi

VerenaJeng

Buy

Rmb

10.01

18.10

0.38

0.61

0.88

29.5x2027EP/E

Slower-than-expectedfoldablephone/AIterminalpenetration;

Potentialcompetitionfrommoresuppliers;Weakmacroeconomycontinuingtodragmarketdemand

3376.TW

SZS

VerenaJeng

Buy

NT$

176.00

300.00

6.79

13.69

15.92

21.9x2027EP/E

Weaker-than-expectedheadsethingesdemand;slower-than-

expectedfoldablephonepenetration;potentialcompetitionfrommoresuppliers;softmarketdemand

2018.HK

AAC

VerenaJeng

Neutral

HK$

35.70

51.00

2.34

2.74

3.06

15.8x2027EP/E

1)Faster/Slower-than-expectedexpansionoflow-margincameramodules;2)Fiercer/Less-than-expectedcompetitionacross

handsetlenses,cameramodules,andexistingproductlines

(acoustics,MEMSmicrophones,hapticsandRFmechanical);3)Faster/Slowerthanexpectedinnovativebusinessexpansion

603501.SS

OmniVision

VerenaJeng

Neutral

Rmb

71.53

107.00

3.21

5.22

6.34

20.5x2027EP/E

1)faster/slowernewproductexpansionandproductmix

improvementinsmartphoneCIS;2)faster/slowergrowthin

automotiveCIS;3)stronger/weaker-than-expectedChina

smartphonedemand;4)faster/slowerramp-upofnewautomotiveICproducts;5)potentialimpactsfromtradetensions

2382.HK

SunnyOptical

VerenaJeng

Neutral

HK$

57.70

83.30

3.71

4.27

4.93

18.3x2027EP/E

1)Less-/more-than-expectedcompetitioninhandsetlens,2)

Faster-/slower-than-expectedshipmentgrowthincameramodules,3)Faster-/slower-than-expectedmarketsharegaininhandset

lens,4)Faster-/slower-than-expectedopexratioimprovements,5)Rmbappreciation/depreciation

6669.TW

Wiwynn

VerenaJeng

Buy

NT$

1,845.00

3,777.00

230.96

182.12

218.07

21.5x2027EP/E

1)weaker-than-expectedAIserverdemandgrowth;2)slower-than-expectedrecoveryingeneralserverdemand;and3)moreseverecompetitionintheserverODMmarket

301611.SZ

Kematek

VerenaJeng

Buy

Rmb

69.47

141.00

0.54

1.18

1.76

42.6x2030EdiscountedP/E

Slower-than-expectedsemiscapexexpansioninChina;Slower-than-expectedproductlineexpansiontomodules;Slower-than-expectedsupplychaindiversificationinlocalmarket

3081.TWO

LandMark

VerenaJeng

Buy

NT$

2,545.00

4,459.00

18.58

35.87

58.46

61.5x2029EdiscountedP/E

Slower-than-expectedSiPhpenetration;stronger-than-expectedcompetition;IntegratedDeviceManufacturers(IDMs)offeringEpitaxial(EPI)wafersin-house

000977.SZ

Inspur

VerenaJeng

Sell

Rmb

56.53

65.20

2.92

3.29

3.94

19.8x2027EP/E

Stronger-than-expectedgenerativeAIdemandinChina;Faster-

than-expectedAIserverstransitionfromglobal-tierGPUtolocalAIchips;Healthier-than-expectedcompetitioninAIserversinChina

Source:Companydata,GoldmanSachsGlobalInvestmentResearch

19October20265

Exhibit3:Coveragesummarytable(cont;)

Ticker

Company

Analyst(s)

Rating

Currency

Price

16-Oct-2026

12-month

TargetPrice

EPS

TPmethodology

Risks

2026E2027E2028E

002415.SZ

Hikvision

TingSong

Neutral

Rmb

33.66

38.30

1.99

2.33

2.81

16.5x2027EP/E

1)Less-/more-than-expectedcompetitioninhandsetlens,2)

slower-/faster-than-expectedshipmentgrowthincameramodules,3)faster-/slower-than-expectedmarketsharegaininhandsetlens,4)faster-/slower-than-expectedopexratioimprovements,5)Rmbappreciation/depreciation

Slower-than-expectedLEOsatellitelaunchesinChina;Fiercer-

002792.SZ

TongyuCommunication

TingSong

Buy

Rmb

26.28

77.00

0.08

0.12

0.29

44.0x2030EdiscountedP/E

than-expectedmarketcompetition;Lower-than-expectedbasestationenddemand

0800.HK

WeRide

TingSong

Buy

HK$

11.24

54.72

(1.61)

(1.59)

(1.44)

11.7x2032EdiscountedEV/EBITDA

Slower-than-expectedfleetexpansioninChinaandoverseas

markets;Fiercer-than-expectedpricingcompetition;Regulation;Slower-than-expectedvehicleandADKcostreduction

0941.HK

ChinaMobile(HK)

TingSong

Neutral

HK$

80.95

94.00

7.27

7.30

5.86

4.2x2027EEV/EBITDA

1)Intensifying/Easingindustrycompetitionpressuring/boostingmobileARPU;2)Slower-/Faster-than-expectedcloudproductexpansion;and3)Intensifying/Easingtaxpressures

EH

EHang

TingSong

Neutral

$

3.61

6.90

(7.65)

(1.51)

4.76

DCFvaluation

1)Slower-/faster-than-expectedcommercialization;2)lower/highershipmentsofeVTOL;3)worse-/better-than-expectedeVTOL

policy/regulation

002230.SZ

iFlytek

TingSong

Neutral

Rmb

36.00

53.10

0.53

1.00

1.81

DCFvaluation

1)Educationcontractsarestronger/worsethanweexpect,leadingtohigher/lowerrevenuegrowth;2)competitionismore/lessintensethanweexpect;and3)better-/worse-than-expectedexpense

control

1357.HK

Meitu

TingSong

Neutral

HK$

3.58

5.10

0.25

0.34

0.46

DCFvaluation

1)slower/faster-than-expectedAIadoptionandmonetization,2)lower/higher-than-expectedpayingratios,and3)fiercer/better-than-expectedcompetition

301165.SZ

RuijieNetworks

TingSong

Neutral

Rmb

81.78

133.10

1.33

2.10

2.66

63x2027EP/E

Higher/lower-than-expectedChinaCloudcapex;Faster/slower-than-expectedproductmigration;Milder/fiercer-than-expectedpricingcompetition

0020.HK

SenseTime

TingSong

Neutral

HK$

1.16

2.03

0.00

(0.01)

0.01

DCFvaluation

Slower-/Faster-than-expectedgenerativeAIcustomerrampup

pace;Lower-/Higher-than-expectedcustomerspending;Stronger-/milderthan-expectedmarketcompetition

Faster/slower-than-expecteddemandintelecominfrastructure/5G

0763.HK

ZTE

TingSong

Neutral

HK$

19.47

32.60

1.49

1.71

1.97

17.5x2027EP/E

BTSbuildinginChina;faster/slower-than-expectedsharegainintheChinamarket;faster/slower-than-expectedmargin

improvements

000063.SZ

ZTE

TingSong

Neutral

Rmb

27.10

50.60

1.49

1.71

1.97

29.6x2027EP/E

Faster/slower-than-expecteddemandintelecominfrastructure/5GBTSbuildinginChina;faster/slower-than-expectedsharegainintheChinamarket;faster/slower-than-expectedmargin

improvements

1)Faster-than-expectednewmembershipsystemtransition;2)

688111.SS

KingsoftOffice

TingSong

Sell

Rmb

231.44

201.00

8.32

6.48

8.49

DCFvaluation

Faster-than-expectedToBcustomeradoption;and3)Faster-than-expectedAImonetization

002920.SZ

DesaySV

TingSong

Neutral

Rmb

73.80

130.00

5.15

7.08

7.20

18.4x2027EP/E

1)lessfierce/fiercercompetitioninChinacarOEMs,whichcouldfurtheraffectsupplychainpricingandGM;2)faster/slowerthanexpectedproductlineexpansion,and3)faster/slowerthan

expectedautomotivesoftwareandservicesdevelopment

Faster-/slower-than-expectedtechnologymigration;Milder-/

300627.SZ

HuaceNavigation

TingSong

Neutral

Rmb

24.63

39.60

1.16

1.52

1.94

26x2027EP/E

fiercer-than-expectedmarketcompetition;Higher-/lower-than-expectedGNSSdevicepenetration

0354.HK

ChinasoftIntl

TingSong

Sell

HK$

3.62

3.00

0.27

0.30

0.37

9.6x2027EP/E

1)Faster-than-expectedendmarketgrowth,2)Faster-than-

expectedHuawei'sproductsdeployment,3)Faster-than-expectedharvestfromtheAIinvestments

Source:Companydata,GoldmanSachsGlobalInvestmentResearch

GoldmanSachs

GC.Tech

19October20266

DisclosureAppendix

RegAC

We,AllenChang,VerenaJeng,ChaoWangandTingSong,herebycertifythatalloftheviewsexpressedinthisreportaccuratelyreflectourpersonal

viewsaboutthesubjectcompanyorcompaniesanditsortheirsecurities.Wealsocertifythatnopartofourcompensationwas,isorwillbe,directlyorindirectly,relatedtothespecificrecommendationsorviewsexpressedinthisreport.

Unlessotherwisestated,theindividualslistedonthecoverpageofthisreportareanalystsinGoldmanSachs’GlobalInvestmentResearchdivision.

ContributingAuthors:AllenChangGoldmanSachs(Asia)L.L.C.,VerenaJengGoldmanSachs(Asia)L.L.C.,ChaoWangGoldmanSachs(Asia)L.L.C.,TaipeiBranch,TingSongGoldmanSachs(Asia)L.L.C..

Unlessotherwisestated,theindividualslistedintheContributingAuthorsdisclosureofthisreportareanalystsinGoldmanSachs’GlobalInvestmentResearchdivision.

GSFactorProfile

TheGoldmanSachsFactorProfileprovidesinvestmentcontextforastockbycomparingkeyattributestothemarket(i.e.ouruniverseofratedstocks)anditssectorpeers.Thefourkeyattributesdepictedare:Growth,FinancialReturns,Multiple(e.g.valuation)andIntegrated(acompositeofGrowth,

FinancialReturnsandMultiple).Growth,FinancialReturnsandMultiplearecalculatedbyusingnormalizedranksforspecificmetricsforeachstock.Thenormalizedranksforthemetricsarethenaveragedandconvertedintopercentilesfortherelevantattribute.Theprecisecalculationofeachmetricmayvarydependingonthefiscalyear,industryandregion,butthestandardapproachisasfollows:

Growthisbasedonastock’sforward-lookingsalesgrowth,EBITDAgrowthandEPSgrowth(forfinancialstocks,onlyEPSandsalesgrowth),withahigherpercentileindicatingahighergrowthcompany.FinancialReturnsisbasedonastock’sforward-lookingROE,ROCEandCROCI(forfinancial

stocks,onlyROE),withahigherpercentileindicatingacompanywithhigherfinancialreturns.Multipleisbasedonastock’sforward-lookingP/E,P/B,price/dividend(P/D),EV/EBITDA,EV/FCFandEV/DebtAdjustedCashFlow(DACF)(forfinancialstocks,onlyP/E,P/BandP/D),withahigherpercentileindicatingastocktradingatahighermultiple.TheIntegratedpercentileiscalculatedastheaverageoftheGrowthpercentile,FinancialReturns

percentileand(100%-Multiplepercentile).

FinancialReturnsandMultipleusetheGoldmanSachsanalystforecastsatthefiscalyear-endatleastthreequartersinthefuture.Growthusesinputsforthefiscalyearatleastsevenquartersinthefuturecomparedwiththeyearatleastthreequartersinthefuture(onaper-sharebasisforallmetrics).ForamoredetaileddescriptionofhowwecalculatetheGSFactorProfile,pleasecontactyourGSrepresentative.

M&ARank

Acrossourglobalcoverage,weexaminestocksusinganM&Aframework,consideringbothqualitativefactorsandquantitativefact