The 720 Greater China Tech Tours, Fed rate hike, BHP, SZS, AmorePacific, Gigadevice, SEMCO, TDK, Horizon Robotics, Recruit

Equity Research 14 September 2026 | 7:26AM HKT

The 720: Greater China Tech Tours, Fed rate hike, BHP, SZS, AmorePacific, Gigadevice, SEMCO, TDK, Horizon Robotics, Recruit

In Focus | Greater China Tech Tours Michael Snaith | Greater China Semis Tour – Takeaways from Chairman, C-level and factory visits. We Goldman Sachs (Asia) L.L.C.

expect China semiconductor capital expenditure to grow at a double-digit pace Caleb Chan | through 2030E, reaching US$82bn, driven by robust generative AI demand and the Goldman Sachs (Asia) L.L.C.

diversification of production sites. Our recent company visits highlight that local semiconductor production equipment and EDA suppliers are benefiting from this growing capex and an increasing localization rate, despite near-term tight supply of upstream components. Furthermore, the broader supply chain across power management ICs, GaN, and specialty memory is riding the AI infrastructure upcycle, supported by rising cloud service provider spending and migration to next-generation platforms. Allen Chang

Greater China Optical Tour – Top 10 takeaways on technology development, demand, supply, and competition. We remain positive on global optical module demand following our recent company visits, driven by AI server rack ramp-ups, expanding optical module adoption, and specification upgrades. While tight raw material supply for DSPs, lasers, and PCBs could cap shipments in 2027, pricing competition remains healthy with 800G price declines limited to single digits and 1.6T prices sustaining above US$700. Furthermore, we identify testing and coupling equipment suppliers as the earliest beneficiaries of Co-Packaged Optics commercialization, as the high cost of final modules necessitates rigorous wafer-level and die-level testing. Allen Chang

Listen Up - GS Webcasts on the Agenda

China in Motion: Macro & Strategy | 10am HK | Global Macro, Activity Data, Market Views | Access Webinar | with Hui Shan, Xinquan Chen, Chelsea Song, Kinger Lau, Si Fu & Kevin Wang (in Mandarin)

Themes in Play | BHP, SZS, AmorePacific, Iluvatar

BHP Group – Assessing returns on Copper SA expansion – Buy. We view the proposed US$15bn investment to double South Australia copper production to over 500ktpa as compelling, calculating an average IRR of roughly 20% for the Phase 1 block caves. We believe mining costs at Olympic Dam and Carrapateena can be reduced by 40% through block caving and the flexibility of the two-stage smelter, driving a long-run EBITDA margin of 55%. After including the Olympic Dam block cave but removing the higher-risk Oak Dam project from our base case, our Copper SA NPV increases to

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US$37bn. We maintain our Buy rating and slightly raise our 12m TP to A$65.30. Paul Young

SZS – Foldable iPhone to drive growth ahead – Buy. We raise our 12m TP to NT$300 from NT$286, as we view the company as a key beneficiary of the upcoming foldable iPhone rollout. As a leading global hinge supplier with strong R&D and in-house metal injection molding capabilities, we expect the company to capture high dollar content from the complex precision components required for foldable devices. While we lower 2026E earnings by 11% following softer-than-expected August revenues in wearable and notebook hinges, we raise 2027E earnings by 1% to reflect our positive view on rising foldable phone penetration, which we forecast to reach 5.9% globally by 2027. Allen Chang

Amorepacific – BY27 Investor Day: Reaffirming Western-led growth – Buy. We raise our 12m TP to W180,000 and fine-tune our 2026-28E operating profit estimates by 2-4% following the company’s BY27 Investor Day, which reaffirmed our Western-led growth thesis.…