Investment Rating - The report assigns a "Buy" rating to Kuaishou-W (01024) with a target price of HKD 63 [1] Core Insights - Kuaishou's subsidiary, Keling AI, has achieved an annualized revenue run rate exceeding USD 100 million as of March, with monthly payments surpassing RMB 100 million in April and May, indicating that the run rate is expected to exceed both company guidance and market expectations [1] - The report projects that Keling AI's revenue for the fiscal year 2025 will exceed USD 120 million, with continued rapid growth anticipated thereafter [1]

7 June 2025 | 4:17AM SGT Asian Equity Perspectives Asian Equity Perspectives: Emphasizing idiosyncrasy - leaning into Korea, toning up Taiwan Timothy Moe, CFA +65-6889-1199 | timothy.moe@gs.com Goldman Sachs (Singapore) Pte Alvin So, CFA +852-2978-1585 | alvin.so@gs.com Goldman Sachs (Asia) L.L.C. Kinger Lau, CFA +852-2978-1224 | kinger.lau@gs.com Goldman Sachs (Asia) L.L.C. Sunil Koul +44(20)7051-4931 | sunil.koul@gs.com Goldman Sachs International John Kwon +65-6654-6337 | jongmin.kwon@gs.com Goldman Sach ...

Investment Rating - The report assigns a "Buy" rating to Kuaishou Technology with a 12-month price target of HK$63.00, indicating an upside potential of 15.6% from the current price of HK$54.50 [1][12]. Core Insights - Kuaishou's Kling AI has surpassed expectations with an Annualized Revenue Run Rate (ARR) exceeding US$100 million as of March 2025, and monthly subscription bookings exceeding RMB100 million (approximately US$14 million) in April and May [1][3]. - The launch of Kling 2.1 has significantly reduced costs, making it more competitive in the market, with per video costs dropping to US$0.27-0.47, which is 60-80% lower than the previous version [2][32]. - The revenue outlook for FY25 has been raised to US$100 million, with potential for further upside due to expanding use cases and increased promotional budgets [3][19]. Financial Projections - Revenue projections for Kuaishou Technology are as follows: - FY24: RMB 126.9 billion - FY25: RMB 140.7 billion - FY26: RMB 153.7 billion - FY27: RMB 165.8 billion [6][16]. - EBITDA is expected to grow from RMB 27.1 billion in FY24 to RMB 40.5 billion in FY27, indicating a strong growth trajectory [6][16]. - EPS is projected to increase from RMB 4.02 in FY25 to RMB 5.87 in FY27, reflecting a positive earnings outlook [6][16]. Market Position and Competitive Landscape - Kling AI has captured approximately 30% of the video generation AI model market, outpacing competitors like Runway and Google's Veo 2 as of May 2025 [20][23]. - The revenue mix for Kling AI indicates that 70% comes from 2C/2P subscription revenue, primarily from professional content creators, while 30% is derived from 2B API calling revenue [26][32]. - The company is focusing on expanding its user base, particularly in overseas markets, leveraging its technological advantages and improving user experience [23][32]. Valuation and Comparison - Kuaishou is currently trading at a forward P/E of 10X, which reflects its core video platform and advertising/eCommerce business, while Kling AI is expected to justify a premium valuation due to its growth potential [18][19]. - Comparatively, leading AI startups have ARR and valuations that suggest significant growth potential, with Kling AI's estimated ARR for FY25 at US$124 million [21][19].

Economic Indicators - US Manufacturing and Services ISM data fell below consensus, indicating potential slowing growth[1] - Non-Farm Payrolls (NFP) growth slightly exceeded expectations, but the unemployment rate remained flat, suggesting a mixed economic outlook[1] Monetary Policy and Interest Rates - The European Central Bank (ECB) reduced the deposit rate by 25 basis points and lowered its 2026 inflation projection to 1.6%[1] - Yield curves flattened across regions, with US bonds experiencing a sell-off due to higher front-end and real rates[2] Foreign Investment and Currency Forecasts - Section 899 highlighted concerns regarding foreign investors' appetite for US assets, potentially leading to further USD weakness[3] - EUR/USD forecasts were adjusted to 1.17, 1.20, and 1.25 for 3, 6, and 12 months respectively[3] Equity Market Reactions - US high dividend yield (DY) stocks slightly underperformed compared to the broader market, while non-US stocks with high US exposure showed muted returns[4] - Estimated impact on STOXX 600 earnings is projected at 5% by year four, with companies having options to mitigate this impact[4] Asset Allocation Strategy - The firm maintains a neutral stance in asset allocation, advocating for increased international diversification in equities and bonds[7] - US equities have partially recovered year-to-date underperformance, primarily driven by mega-cap stocks, while the S&P 500 equal weight remains flat against global indices[7]

Defence Spending Outlook - The UK government plans to increase defence spending to 2.5% of GDP by 2027, up from 2.3% in 2024, with a long-term goal of reaching 3.0% in the next Parliament[4] - This increase is expected to generate a near-term demand boost of approximately 0.15%[6] - Additional demand from increased European defence spending could raise demand by a further 0.1%[19] Economic Implications - The fiscal impulse model indicates that the increase to 2.5% of GDP will boost demand, but broader fiscal consolidation keeps the overall fiscal impulse negative[14] - If defence spending reaches 3.0% of GDP, the demand boost could be limited to an additional 0.15% due to potential tax increases and spending restraint in other departments[34] - The long-term impact on GDP growth is contingent on whether increased spending enhances supply capacity, particularly through R&D investments[41] Funding and Fiscal Constraints - The increase in defence spending will be financed by cuts to the foreign aid budget, which should not significantly offset the demand impact[14] - The Chancellor has limited fiscal headroom of £9.9 billion against the deficit rule, restricting the ability to increase day-to-day spending without offsetting measures[28] - The government may need to consider tax increases or spending cuts in other areas to fund further increases in defence spending[33]

Economic Indicators - Global hard data shows resilience while soft data normalizes, indicating a stable economic environment[3] - The Global Financial Conditions Index (FCI) eased primarily due to equities, short rates, and credit spreads, reflecting tighter financial conditions[8] - The Current Activity Indicator (CAI) for May shows a global increase of +1.6% month-on-month annualized, with emerging markets leading at +3.6%[12][47] GDP Forecasts - Goldman Sachs revised its GDP forecast for 2025, with notable increases in Japan and the Euro Area, while Canada saw a decrease[10][93] - The change in GDP forecast since 60 days ago shows Taiwan with an increase of +1.9 percentage points, while Turkey increased by +1.2 percentage points in the last week[10][93] Inflation Trends - The trimmed core inflation forecast for 2025 indicates a decrease across several regions, with Turkey showing the largest increase of +1.9 percentage points[88][90] - The inflation forecast for 2026 also reflects similar trends, with notable adjustments in various countries, including a decrease in the UK and Canada[90][91] Labor Market Insights - The jobs-workers gap has shown significant changes since December 2019, with the US and UK experiencing notable declines[21][70] - Wage trackers indicate a steady increase in wage growth across G10 economies, with the US showing a composition-adjusted increase[63][64]

9 June 2025 | 3:53PM EDT Americas Media TV Viewership Tracker: L3 through week ending June 8th, 2025 We refresh our Nielsen TV ratings tracker for our US Media coverage (DIS, CMCSA, PARA, WBD, FOXA) that includes traditional ACM (average commercial minute) prime time and total day ratings across broadcast and cable. This edition focuses on the C3 cable and broadcast ratings through week ending May 25th, 2025 (14 day delay), and L3 cable ratings through week ending June 8th, 2025. Prime time commercial ratin ...

Investment Rating - The report assigns a "Buy" rating to Summit Therapeutics Inc. (SMMT) with a 12-month price target of $41, indicating an upside potential of 90.2% from the current price of $21.56 [9]. Core Insights - The report highlights positive Phase 3 (HARMONi) data for ivonescimab combined with chemotherapy in second-line EGFR-mutant non-small cell lung cancer (NSCLC), suggesting that data from China can be translated to Western patients [2][3]. - Management anticipates full data from the Akeso Phase 3 HARMONi-6 study, which shows ivonescimab's benefits in first-line squamous NSCLC, to be presented at the ESMO meeting in October 2025 [2][5]. - Recent overall survival (OS) data from the HARMONi-2 study supports the translatability of ivonescimab's progression-free survival (PFS) benefits to OS, with management expecting statistically significant OS results in ongoing global studies [6][7]. - The company plans to explore partnership opportunities to accelerate the global development of ivonescimab and expand its indications beyond NSCLC [7]. Summary by Sections Phase 3 Trials - The global Phase 3 HARMONi trial involves approximately 420 patients and compares ivonescimab against placebo in combination with chemotherapy for second-line treatment of non-squamous EGFRm NSCLC [3][5]. - Initial topline data from the trial indicates a statistically significant PFS hazard ratio of 0.52, suggesting a strong efficacy profile [5]. Business Development - Management is focused on identifying partnership opportunities to facilitate rapid global development of ivonescimab, emphasizing the need for collaboration with larger players in the industry [7]. - The competitive landscape for PD-1/L1xVEGF therapies is seen as validating for the class, with SMMT aiming to maintain its leadership position [6][7]. Future Outlook - The report anticipates that the upcoming full data from the HARMONi-6 study will provide clarity on the efficacy of ivonescimab in combination with chemotherapy compared to existing standards of care [6]. - Management plans to provide updates on the timelines for the HARMONi-3 study in the second half of 2025, with strong enrollment noted to date [6].

TSMC (2330.TW/TSM) Risk/reward now skewed to the upside June 2025 Bruce Lu Goldman Sachs (Asia) L.L.C., Taiwan 886-2-2730-4185 bruce.lu@gs.com For Reg AC certification and other important disclosures, go to https://research.gs.com and https://www.gs.com/research/hedge.html. c45a43530f604d12bcb9a82b5aa6b9f6 Improving sentiment with limited earnings downside Supply chain mismatch mitigated; AI order cut now seems less likely Limited earnings downside from here 70 118 322 585 923 1,287 69% 173% 82% 58% 200% 18 ...

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - China's trade growth moderated in May, with exports increasing by 4.8% year-over-year (yoy) and imports decreasing by 3.4% yoy, falling short of consensus expectations [1][9] - The decline in exports to the US continued, with a sequential decline of 17% after seasonal adjustment, following a 25% decline in April [1][9] - The trade surplus for May was reported at US$103.2 billion, an increase from US$96.2 billion in April [1][3] Summary by Sections Trade Growth - Year-over-year trade growth in May showed exports rising by 4.8% yoy compared to 8.1% yoy in April, while imports fell by 3.4% yoy from a decline of 0.2% yoy in April [2][9] - Sequentially, exports decreased by 0.7% non-annualized in May, while imports dropped by 6.3% non-annualized [2][9] Regional Analysis - Exports to the US fell significantly, with a 34.5% yoy decline in May, while exports to the EU rose by 12.0% yoy [10] - Imports from the US also declined by 18.1% yoy, while imports from the EU remained roughly unchanged [10] Product Categories - Export values for housing-related products fell, with home appliances declining by 8.9% yoy, while automobile exports increased by 13.7% yoy and chip exports rose by 33.4% yoy [11] - Import values for energy products and metal ores saw notable declines, with crude oil imports falling by 22.1% yoy [12]