Morningstar: Maintaining Ruisheng Technology's (02018) valuation of HK$55, AI business will welcome volume in 2027

The Zhitong Finance App learned that on July 27, Morningstar (MORNINGSTAR) released an industry research report giving Ruisheng Technology (02018) a fair value valuation of HK$55.00. It is optimistic that the company's basic consumer electronics market is stable and that new businesses such as data centers and smart glasses will gradually be realized. The current stock price has significant allocation value.

The report points out that the market has fully absorbed the pessimistic expectations that smartphone shipments will continue to decline from 2027 to 2028 and that there will be no recovery, yet it has greatly underestimated the growth potential brought about by Ruisheng Technology's diversified business layout, so the company's current stock price is attractive for investment.

According to the report, Ruisheng Technology's valuation continues to be under pressure, mainly because some of the company's new AI businesses have yet to make substantial revenue contributions. It is expected that in 2027, Ruisheng Technology's data center business will expand, and the company's related products will complete qualification certification and enter trial production; if Apple launches smart glasses products, it will also bring additional performance increases to the company.

Furthermore, from a long-term perspective, after the price of memory chips returns to normal, Morningstar believes that the price increase of mobile phones will not completely drop this year. This is particularly evident in high-end models such as Apple and Samsung folding machines. The increase in terminal prices reserves profit space for installing higher-specification components (cooling modules, etc.), directly benefiting Ruisheng Technology.

According to comprehensive media and institutional research reports, Ruisheng Technology's AI business has formed a “computing power+terminal” dual-line layout. On the computing power side, Ruisheng Technology has joined the first tier of AI liquid cooling and cooling. Its core product, the 2.2 MW/2.6 MW centralized liquid-cooled CDU, was mass-produced in the first half of the year and delivered in batches worldwide, covering core scenarios such as AI data centers and high-performance computing.

In terms of AI terminals, UBS and many other institutions have indicated that Ruisheng Technology's VC (hot plate) technology is expected to be extended to product lines such as folding screen iPhones, the cooling business will double in 2026, and will gradually penetrate the entire iPhone/iPad/MacBook series in the next few years. Furthermore, its products such as AI acoustic devices, MEMS sensors, XR optical waveguides, and tactile actuators have been introduced into the world's leading smart terminals such as Samsung, Meta, and Google. As the popularity of AI mobile phones, glasses and other terminal categories accelerate, demand elasticity continues to expand.