2026 Asia Pacific Conference Day 2 key takeaways: Asia-Pacific conference takeaways highlight AI infrastructure, selective consumer recovery and company-specific execution catalysts

Overview

This is a multi-company summary of management discussions at Bank of America’s 2026 Asia Pacific Conference. It spans technology, industrials, autos, consumer, healthcare, financials, property, transport and energy, with the central message that AI-linked infrastructure and selected operational turnarounds offer visible growth, while macro, cost, regulatory and execution risks remain highly company-specific.

Core views

AI infrastructure was a central thread. Weichai expects deliveries of 2.5MW AI-data-center gas gensets to begin in late 2026 and accelerate in 2027, while its LNG heavy-duty truck engine sales face a 3Q26 decline as the LNG-diesel price gap narrowed. VNET cited more than 1GW of potential new FY27 orders, 478MW of overseas resource capacity and a possible initial 100MW overseas project for end-FY27 delivery; its wholesale expansion and CATL-related synergies underpin the maintained Buy view. GDS targets about 1GW of new orders annually in FY26-27, expects 235MW of FY26 customer move-in and nearly 700MW in FY27, and sees faster revenue and adjusted EBITDA growth from 2H27 as customers move in. Technology hardware suppliers described expanding AI-related capacity and content. Asia Vital Components guided for at least 10% sequential sales growth in 3Q26, driven by GPU and ASIC projects, and increased liquid-cooling-module capacity to 1 million units per month from 200,000 previously. It expects liquid cooling to be essential for 1.6T-plus optical transceivers. Minth expects RMB300mn of 2026 liquid-cooling sales and has begun deliveries to Taiwanese customers. Xizhi identifies optical interconnect as its near-term revenue base; its near-term revenue mix is guided at roughly 70:30 between optical interconnect and optical computing, versus 80:20 in FY25, while NPO products remain in customer sampling and validation. MPI expects AI and high-performance-computing applications to contribute 40-50% of 2027 revenue, excluding PC CPUs. Automation and robotics takeaways pointed to improving scale but uneven end markets. Dongguan Yiheda reported resilient 3C demand, supported by foldable-phone equipment and AI-server/optical-module demand, while its 3.2mn-plus SKU platform and customer additions of roughly 3,000-4,000 in 1H26 support expansion. It sees semiconductor and AI-related 3C as the clearest 2027 opportunities, whereas battery and automotive demand are less certain. UBTECH said industrial humanoid efficiency improved to 60-80% in 2026 from 30-50% in 2025, its industrial customer base rose to more than 100 from about 20, and bill-of-material cost fell about 40%, versus an approximately 20% ASP reduction. It targets 6,500-7,000 humanoid-robot deployments and RMB3.5-4.0bn revenue in 2026. In internet, cloud and digital platforms, Sea reported stable e-commerce competition, continued market-share gains in Brazil and EBITDA breakeven there; future Shopee margin improvement is expected to come primarily from higher advertising rates rather than commissions. Kingsoft Cloud guided for RMB15bn FY26 capex, versus RMB8.2bn in FY25, supported partly by operating leases and customer prepayments; management targets roughly 15% adjusted gross margin in FY26 and 10-15% mid- to long-term non-GAAP operating margin. Bairong’s legacy revenue fell 43% year on year in 1H26 after regulatory changes, but management expects AI contact-center revenue to contribute from 2H26 and targets breakeven by end-2027, with mid- to long-term gross margin of 60-70% versus 54% in 1H26. Selected industrial and auto discussions emphasized cycle recovery and execution. Ashok Leyland sees a commercial-vehicle cycle that has turned upward, with industry volumes up more than 25% year to date and expected FY27 volume growth of 10-12% or more; the report reiterates Buy and a Rs205 price objective. Larsen & Toubro’s Middle East revenue growth has slowed from 30% to 10% because of logistics disruption, but the report notes no project cancellations or cash-flow delays. Offshore installation beginning in January 2027 creates a key timing constraint if conflict extends beyond December 2026. RoboSense guided for 600,000 LiDAR shipments in 3Q26 and 900,000-1mn in 4Q26, but PCB costs and recall-related provisions are expected to pressure ADAS LiDAR margins; robotics LiDAR had more than 30% gross margin in 1H26. Healthcare updates centered on clinical catalysts and commercial milestones. Akeso reported that HARMONi-2 showed an overall-survival hazard ratio of 0.73 for ivonescimab versus pembrolizumab, with two-year overall-survival rates of 57.9% and 48.0%, respectively. The FDA action date for ivonescimab plus chemotherapy in later-line EGFR-mutated nonsquamous NSCLC is 14 November 2026. Innovent reiterated a RMB20bn 2027 product-sales target and a RMB35-40bn 2030 total-revenue target, while management expects multiple ESMO readouts and further global clinical-development progress. Financial, property and consumer messages were more balanced. DBS has lower rate sensitivity than in 2021, but its ROE upside remains linked to SORA; management’s US$2.6bn buyback and US$2bn dividend return would leave CET1 at 13.3-13.4%, within its target range. China Merchants Bank reduced 2026 loan-growth guidance to about 5% from 6-7%, reflecting weaker retail demand and continued focus on asset quality. In Hong Kong property, CK Asset remains supported by a 58% discount to NAV and balance-sheet strength, while Henderson and SHKP retain Neutral views because benefits from policy or valuation are offset by leverage and residential-market uncertainty. Consumer updates showed differing trajectories: Yili expects recovery in liquid-milk sales and reiterates Buy with a RMB35 price objective, while Yongda now expects full-year sales of 125,000 units, down about 11% year on year, due to weak domestic demand and dealership rationalisation.

Analysis framework

The report summarizes management meetings company by company, combining operational guidance, demand and order indicators, capacity plans, margin drivers, competitive conditions, financing and capital-return commentary, and stated valuation or rating conclusions. Its appendix sets out company-specific price-objective methodologies and risks.

Methodology notes

• Valuation methodsDCF (Discounted Cash Flow)

  Discounted cash flow valuation

  The report uses DCF models for selected companies, discounting projected cash flows using stated WACC and terminal-growth assumptions to derive price objectives.

• Valuation methodsSOTP (Sum-of-the-Parts) Valuation

  Sum-of-the-parts valuation

  For diversified companies, the report values separate businesses or holdings using different earnings, asset or market-based approaches and combines them into a price objective.

• Industry AnalysisSupply-demand framework

  Supply-demand analysis

  Management takeaways frequently link demand, capacity, utilization, pricing and inventory conditions to expected revenue, margin and earnings outcomes.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• VNET Group

  Wholesale data-center expansion and CATL-linked energy synergies support the report’s Buy view.

  Strengths

  More than 1GW potential FY27 new orders; 478MW overseas resource capacity.

  Weaknesses

  Overseas revenue contribution is not expected until FY28.

  Risks

  Order conversion, project funding and execution timing.

• GDS Holdings

  Order backlog and accelerated customer move-in are expected to support growth from 2H27.

  Strengths

  Targets 1GW of new orders annually in FY26-27; capital is described as sufficient for the next two years of capex.

  Weaknesses

  Revenue growth is dependent on customer move-in timing.

  Comparison

  Management estimates around 15% of China’s total new data-center orders captured this year.

  Risks

  Pricing competition, slower client move-in and AI-chip restrictions.

• Sea Limited

  Shopee’s stable competition and advertising-led margin improvement support the Buy view.

  Strengths

  Brazil market-share gains while maintaining EBITDA breakeven; stable gaming and controlled fintech NPAs.

  Weaknesses

  Limited current AI investment relative to peers.

  Comparison

  TikTok Shop competition in Southeast Asia is described as stable.

  Risks

  E-commerce competition and fintech NPA risk.

• Larsen & Toubro

  Middle East backlog remains intact, but regional execution is slowed by logistics disruption.

  Strengths

  No project cancellations or cash-flow delays; sovereign or quasi-sovereign project sponsorship.

  Weaknesses

  Middle East revenue growth reset to 10%.

  Comparison

  Immediate reconstruction opportunities are considered largely not addressable for L&T.

  Risks

  Conflict extending beyond December 2026 could impair January 2027 offshore installation.

• Akeso

  Ivonescimab clinical data and regulatory milestones are central catalysts.

  Strengths

  HARMONi-2 showed a statistically significant overall-survival benefit.

  Weaknesses

  Commercial and clinical outcomes remain subject to development and regulatory uncertainty.

  Comparison

  Ivonescimab was compared with pembrolizumab in HARMONi-2.

  Risks

  Clinical outcomes, regulatory timelines, competition and pricing pressure.

Key data

• VNET potential new orders>1GW in FY27Management cited strong demand from top-tier customers; delivery could be spread over two to three years.
• GDS FY27 customer move-inNearly 700MWExpected to be back-end loaded, following 235MW of FY26 customer move-in.
• Asia Vital Components liquid-cooling capacity1mn modules per monthUp from 200K per month previously.
• Akeso HARMONi-2 OS hazard ratio0.73Ivonescimab versus pembrolizumab; two-year OS was 57.9% versus 48.0%.
• UBTECH 2026 revenue guidanceRMB3.5-4.0bnMore than 70% expected in 2H26.
• RoboSense 4Q26 LiDAR shipment guidance900k-1mn unitsADAS is expected to account for 60-65% of shipments.
• Yongda full-year sales outlook125k unitsRoughly 11% year-on-year decline, mainly due to weak domestic demand and network rationalisation.

Impact & implications

The report frames AI infrastructure as a multi-year demand driver for power, data-center, cooling, optical and semiconductor suppliers, but repeatedly distinguishes announced capacity and customer discussions from realized utilization and earnings. Elsewhere, management commentary points to selective recovery in commercial vehicles, consumer brands and healthcare pipelines, with outcomes dependent on pricing, cost control, regulation, financing and execution.

Risks

• AI infrastructure demand may not convert into orders, utilization or revenue on the timelines discussed.
• Higher component, energy, commodity and logistics costs may constrain margins across technology, industrial and consumer companies.
• Regulatory changes, clinical outcomes and approval timelines remain material for affected financial, healthcare and autonomous-driving companies.
• Financing, leverage and capital-expenditure execution are important risks for several data-center, battery and expansion-led businesses.

What to watch

• VNET and GDS new-order conversion, customer move-in schedules and overseas project progress.
• Whether Middle East conflict conditions ease before L&T’s offshore installation work begins in January 2027.
• Weichai’s late-2026 AIDC genset deliveries and the expected post-3Q26 recovery in LNG heavy-duty-truck engines.
• Akeso’s 14 November 2026 FDA action date and HARMONi-3 results expected by year-end 2026.
• AI-related cooling, optical-interconnect, cloud and robotics capacity utilization, customer qualification and margin progression.