Zheshang Securities: Maintain a "buy" rating on Superstar Technology, performance is expected to see a recovery trend.

Zhejiang Merchants Securities research report pointed out that Giant Star Technology's profitability is increasing against the trend, and AI infrastructure is contributing new momentum. The total revenue in 2025 was 14.666 billion yuan; net profit attributable to the parent company was 2.51 billion yuan; in Q1 of 2026, the revenue was 3.772 billion yuan; net profit attributable to the parent company was 515 million yuan. The company has formed a distributed production capacity network for global manufacturing and distribution, and while effectively dealing with various external risks, it is expected to further reduce comprehensive manufacturing procurement costs and enhance market competitiveness. The wave of AI infrastructure is driving rapid release of new product categories such as power tools and data center storage cabinets, and the company is accelerating its layout. With its product innovation capabilities and channel advantages, it is expected to benefit significantly. Giant Star Technology is the leader in China's tool industry exports, and with the continuous release of overseas production capacity, marginal reduction in tariff impacts, expansion of AI infrastructure for new products, and acceleration of electric tools, the company's performance is expected to see a recovery. Maintain a "buy" rating.