Major Institutions Conduct Focused Research in April, Spotlighting Impact of Tariff Policies on Electronics Firms

In April, renowned institutions conducted concentrated research, focusing on the impact of the so-called “reciprocal tariff” policy from the United States. Global funds have refocused their attention on the resilience of the supply chain and the strategies employed by export-oriented companies. Notable firms such as BlackRock, Temasek, Sequoia Capital, China Europe International Exchange, CICC, and Citigroup have recently appeared on the research lists of electronic component companies like Luxshare Precision, Anker Innovations, and Crystal Optoelectronics.

Amid uncertainties regarding the U.S. “reciprocal tariff” policy, institutional investors are primarily concerned with how companies are responding to this challenge. Several companies indicated that despite ongoing external disturbances, the factors that truly determine whether a business can withstand economic cycles are its core competitiveness and global operational capabilities.

Luxshare Precision recently held an investor research meeting that attracted over 500 institutions, including BlackRock, Southern Fund, Morgan Stanley, Sequoia Capital, Bank of Communications, Temasek, Hillhouse Capital, and China Merchants Bank. As a leader in the precision manufacturing sector, Luxshare Precision has long focused on industries such as consumer electronics, automotive, and telecommunications. The company’s products span various fields, providing comprehensive core components and system-level product solutions.

During the meeting, an investor inquired about how Luxshare Precision plans to address the high tariffs imposed under the U.S. “reciprocal tariff” policy, particularly given that many consumer electronics are manufactured cost-effectively in Vietnam. Luxshare responded that the high cost-performance ratio of manufacturing in Vietnam significantly benefits brand clients. The company has an excellent global production base layout that enables it to overcome extreme situations, with costs ultimately reflecting the company’s own competitiveness.

Regarding how the company plans to navigate the potential impacts of the U.S. tariffs in the short term, Luxshare noted that companies and brands selling to the U.S. typically aim to ship as much as possible of the expected demand for the second quarter or April before reassessing the situation. They acknowledged that if tariffs are passed on to consumers, it may lead to a decrease in demand due to consumer hesitance or economic recession, but as a top-tier brand manufacturer, Luxshare expects to be less affected. Overall, the adjustments in tariffs are not anticipated to have a significant impact on Luxshare’s operational performance.

Anker Innovations also conducted an investor research meeting, attracting participation from over 200 institutions, including Sequoia Capital, Hillhouse Asset Management, CITIC Securities, China Life, China Europe International Fund, and Goldman Sachs Asset Management. Anker specializes in the research and sales of smart mobile peripherals, smart living products, and computer peripherals, with its “Anker” brand products leading the market on major e-commerce platforms like Amazon.

Anker’s overseas sales primarily come from developed markets, including North America, Europe, Japan, and the Middle East. During the meeting, investors raised concerns about whether the expansion of Anker’s new energy storage product line and new markets like Australia and New Zealand would slow down due to the “reciprocal tariff” policy. Anker confirmed that it has no plans to slow down progress in new categories, emphasizing that consumer-level energy storage remains a key strategic focus for this year, including portable energy storage and household energy storage solutions.

The company has already expanded its household energy storage offerings to Australia and Canada and plans to continue exploring new markets. Portable energy storage and balcony solar products have performed exceptionally well in Europe and North America, positioning Anker as a leader in the global balcony energy storage market. Anker is also intensifying its efforts in non-U.S. markets, with significant growth potential identified in Europe, where the company is enhancing its regional and channel coverage. They are actively expanding in Northeast and Central Europe and refining operations to improve market penetration by adjusting product offerings to meet regional consumer needs. Anker also plans to continue its growth in Southeast Asia, Latin America, Australia, and mainland China.

Crystal Optoelectronics recently hosted a research meeting that attracted over 200 investment institutions, including CICC, Harvest Fund, Franklin Templeton, Sequoia Capital, and Citigroup. Crystal Optoelectronics is a well-known manufacturer specializing in the research, production, and sales of precision thin-film optical products, focusing on optical imaging, thin-film optical panels, automotive electronics (AR+), and reflective materials.

Given the uncertainties surrounding the U.S. “reciprocal tariff” policy, investors were interested in whether Crystal Optoelectronics would adjust its strategic direction or maintain cooperation with major clients. The company emphasized that as a Chinese enterprise, it will align with national policies, which is a fundamental principle. They noted that tariffs have minimal direct impact on the company, although indirect effects may exist. The global supply chain structure for consumer electronics, such as smartphones, remains unchanged, and the company’s previously stated strategy of “globalization, technology-driven, and open cooperation” will not waver due to tariff policies. Furthermore, the company values its partnerships with major clients, which have contributed significantly to its profitability and operational capabilities. Crystal Optoelectronics maintains a robust cash flow and prioritizes precision investments to enhance its resilience against risks in the current environment.

Overall, as these leading companies navigate the challenges posed by the U.S. tariff policies, their strategic approaches indicate a commitment to innovation and resilience in the face of changing market conditions.