Wang Jeong

Shengyi Technology reported a Q2 earnings beat with strong margins. CCL and PCB prices are rising due to supply shortages in glass fiber and copper foil, which could drive further price hikes in the second half of the year, justifying a buy rating.

Yantai Jereh Oilfield Services beat Q2 earnings expectations and is seeing expanding gas turbine orders for North American AI data centers, which is driving multiple expansion.

Cambricon Technologies is China's leading AI GPU designer, benefiting from forced domestic substitution amid US sanctions. The company is in the early stages of high revenue and profit growth, with analysts projecting a 70% upside based on market expansion and long-term earnings estimates. The main risk is easing US-China tensions, which could reduce the urgency for domestic chips.

Yum China offers a 9.4% total shareholder return yield (dividend + buyback) that far exceeds China's 1.7% 10-year bond yield, is trading near historically low P/B, and has delivered 14 consecutive quarters of same-store sales growth. The company is expanding into lower-tier cities and diversifying brands (KFC coffee, Pizza Hut Burger, etc.), while its committed policy of returning 100% of cash flow to shareholders makes it a stable, high-yield play with limited downside and potential for 20%+ annual returns over the long term.

China Tourism Group Duty Free (Zhongmian) has seen its market cap collapse from 80 trillion to 23 trillion won, P/E has dropped to 19x from historical 30x, yet earnings are improving with Q2 margins expanding on inbound tourism recovery (+20% foreign visitors) and sustained domestic travel. The company commands 72% market share and 90% in Hainan. Despite the stock's collapse, the earnings recovery and low valuation create a re-rating opportunity, with a target price of 37–50, implying 32–37% upside from the last close.

Han's Laser (Dazu Laser) reported strong quarterly results with EPS beat driven by high-margin PCB equipment and recovery in secondary battery equipment. The PCB equipment division saw a 150% YoY order surge, with delivery times stretching to end-2027, creating a shortage. CITIC Securities upgraded the stock, raising forward P/E from 49x to 55x on the PCB upcycle and Apple replacement cycle, with a target price implying 14% upside. The company maintains 9% global market share, ranks #1 in China, and has a PEG of 1.6 with a 44% EPS CAGR.

Chinese Apple supplier Yishen Precision is transforming its business model beyond Apple, expanding into AI data center server assembly, European electric vehicle parts, and other high-margin areas. This mix shift should drive margin expansion and a re-rating of the stock from its historical 15x multiple toward 20–30x, as the higher-growth AI and automotive segments deserve a premium valuation.

For long-term pension investors wanting China exposure, the CSI 300 index (large-cap heavy) is safer and better aligned with long-term growth. The startup board (Chuangye) has many unprofitable, high-multiple stocks and large drawdown risk, making a regular investment plan (DCA) into CSI 300 ETFs more attractive.

Auros Technology — мировой игрок №2 в сфере аккумуляторных систем накопления энергии (ESS) с высокими показателями роста прибыли во втором квартале (234–282% в годовом исчислении), расширением валовой маржи и ростом средних отпускных цен (ASP). В отличие от конкурентов, сильно зависящих от аккумуляторов для электромобилей, компания сосредоточена на быстрорастущем рынке ESS, где она уже занимает долю в 40%. По сравнению с CATL, акции компании торгуются с существенным дискоментом по оценке (рыночная капитализация 13 трлн вон против 500 трлн вон у CATL согласно целевому показателю на 2028 год), а консенсус-прогноз целевой цены предполагает потенциал роста в 54%. Сегмент ESS растет быстрее и может способствовать переоценке акций по мере увеличения маржи.