Investment Rating - The report does not provide a specific investment rating for Transwarp (688031.SS) as it is categorized as Not Covered [3]. Core Insights - Transwarp is expanding from big data software to AI infrastructure, focusing on enterprise clients with its foundation model solutions [1][3]. - The company has developed an in-house AI model named "Transwarp Infinity Intelligence," which boasts high accuracy and precise question-answering capabilities [4][7]. - There is a growing trend among enterprises to allocate more spending towards AI models and applications that promise accurate results and higher ROI [2]. Company Profile - In 2024, 55% of Transwarp's total revenues came from basic data software, followed by technology services at 22% and data applications at 20% [3]. - The revenue breakdown by client sector in 2024 shows that 40% came from finance enterprises, 29% from government, 9% from telecom, 7% from energy, and 3% from manufacturing [3]. Key Takeaways - Transwarp launched the integrated DeepSeek foundation model solution (TxData-LM) in 1Q25, which integrates a 671 billion parameter AI model for various applications [8]. - The company aims to assist clients in model training, knowledge base integration, and AI application development across multiple industries, including finance, manufacturing, energy, and government [8].

Investment Ratings - AMEC: Buy, Rmb173.13 [40] - ASMPT: Neutral, HK$52.35 [40] - EHang: Buy, $16.96 [40] - Horizon Robotics: Buy, HK$7.92 [40] - Huaqin Technology: Buy, Rmb66.75 [40] - Kingsoft Office: Buy, Rmb278.50 [40] - Lingyi: Buy, Rmb7.98 [40] - Maxscend: Neutral, Rmb70.46 [40] - SICC: Buy, Rmb61.45 [40] - StarPower: Neutral, Rmb80.89 [40] - Sunny Optical: Neutral, HK$60.95 [40] - VeriSilicon: Buy, Rmb83.27 [40] Core Insights - The report highlights the rising demand for AI inferencing driven by enhanced foundation models and the localization of semiconductor technologies in China [1][2] - There is a focus on the commercialization of Robotaxi and smart driving features, alongside the expansion of AI applications for both consumer and business markets [1][2] - The semiconductor industry is expected to see continuous R&D investment and capacity expansion despite geopolitical uncertainties [2][9] Summary by Sections Semiconductors - VeriSilicon is expanding into GPU IP and AI IP to meet the growing demand for AI devices, supported by private placement funding [3] - AMEC anticipates stable growth opportunities due to local production needs and plans to expand its addressable market through product migrations [9] - SICC expects increased demand for SiC substrates driven by the launch of more 800V EVs and fast charging requirements [11] AI Server, Smartphones, PC Supply Chain - Huaqin anticipates double-digit revenue growth in 2025, driven by its data center and consumer electronics businesses [19] - Lingyi is optimistic about growth in foldable phone components and cooling components for AI servers [18] - Sunny Optical is focusing on high-end projects and expects growth in vehicle lens shipments due to smart driving features [17] Robotaxi, Smart Driving, and eVTOL - Horizon Robotics plans to mass-produce its HSD system in 2025, supporting city NOA features and demonstrating strong partnerships with car OEMs [22] - EHang is accelerating deliveries of its EH216-S model, with plans to expand into urban sightseeing and Air Taxi services [24] - ECARX reported a 30% YoY revenue increase in 1Q25, driven by strong demand for its computing platforms [25] AI Software - Kingsoft Office is enhancing its AI capabilities to support enterprise clients and expand its user base [28] - Meitu is focusing on AI productivity tools to improve content generation efficiency [29] - Sensetime is optimistic about the generative AI trend and has launched a new foundation model with competitive features [30]

Investment Rating - The report maintains a "Buy" rating for Kuaishou Technology with a revised 12-month price target of HK$63.00, indicating an upside potential of 29.2% from the current price of HK$48.75 [1]. Core Insights - Kuaishou reported in-line results for 1Q25 and maintained its FY25 guidance on advertising, eCommerce, and profitability, with a positive outlook on growth momentum for the remainder of the year [1][19]. - The advertising momentum is expected to improve, with management targeting a 12% year-on-year growth in 2Q25 and further acceleration anticipated in the second half of the year [2][34]. - The eCommerce segment is projected to achieve 13-15% year-on-year GMV growth, supported by stable livestreaming and a focus on enhancing merchant ROI through AI tools [3][37]. - The Kling monetization outlook has been raised significantly, with FY25 revenue expectations increased to US$100 million, reflecting a rapid expansion of paying users [4][22]. Summary by Sections Advertising - Management anticipates a 12% year-on-year growth in advertising for 2Q25, with expectations for high-teens growth in the second half of the year driven by contributions from mini-games and local services [34]. - The advertising target for FY25 remains unchanged at approximately 14% year-on-year growth [34]. eCommerce - Kuaishou aims for 13-14% year-on-year GMV growth in 2Q25, with a stable overall take rate of around 4% for 2025 [37]. - The company plans to start monetizing pan-shelf based eCommerce traffic to improve the take rate from nearly 0% to approximately 1-2% in the second half of 2025 [38]. Kling AI - The revenue outlook for Kling AI has been raised to US$100 million for FY25, driven by a growing base of paying users and enhanced marketing efforts [4][22]. - The revenue mix indicates that 70% of Kling AI revenue comes from subscriptions, primarily from professional content creators, while 30% is derived from API calling revenue [23]. Financial Projections - Revenue estimates for 2025-2027 have been fine-tuned upwards by 0.7% to 1.1%, reflecting better-than-expected performance in livestreaming and other services [19][21]. - The projected total revenue for 2025 is Rmb 140,739 million, with net income expected to be Rmb 19,104 million [17][21].

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - China's industrial profits rose by 3.2% year-over-year (yoy) in April, compared to 2.6% yoy in March, with sequential growth of 4.3% seasonally adjusted (sa) non-annualized in April after a decline of 2.8% in March [1][6] - Industrial revenue increased by 2.6% yoy in April, down from 4.4% in March, with a sequential decline of 0.5% sa non-annualized in April [2][6] - Downstream industries saw profits increase by 17.1% yoy in April, while upstream industries experienced a decline of 26.1% yoy [6] Summary by Sections Industrial Profits - In April, industrial profits increased by 3.2% yoy, with a sequential growth of 4.3% sa non-annualized, following a decline of 2.8% in March [1][6] - Overall profit margins remained stable on a 12-month average basis, with downstream profit margins outperforming upstream [6] Industrial Revenue - Industrial revenue rose by 2.6% yoy in April, down from 4.4% in March, and fell by 0.5% sa non-annualized sequentially [2][6] Sector Performance - The equipment manufacturing sector contributed 3.6 percentage points (pp) to the year-over-year growth of industrial profits in the first four months of the year [6] - Profits in the instrument/meter and electrical machinery sectors grew by 22.0% yoy and 15.4% yoy, respectively [6] PMI Forecasts - The report forecasts an increase in the NBS manufacturing PMI to 49.6 from 49.0 in April, with expectations for the Caixin manufacturing PMI to rise to 50.7 from 50.4 in April [7]

28 May 2025 | 6:43AM HKT Xiaomi Corp. (1810.HK) Buy Earnings Review: 1Q25 results beat on AIoT/EV and strong China sales; An eventful month ahead; Raise TP and reiterate Buy | 1810.HK | | --- | | 12m Price Target: HK$65.00 | | Price: HK$51.55 | | Upside: 26.1% | Key Data __________________________________ Market cap: HK$1.3tr / $170.6bn Enterprise value: HK$1.1tr / $143.8bn 3m ADTV: HK$15.6bn / $2.0bn China China Internet Verticals M&A Rank: 3 Leases incl. in net debt & EV?: No | GS Forecast _______________ ...

Investment Rating - The report indicates a positive outlook on consumer confidence, with the consumer confidence index rising significantly above expectations [2]. Core Insights - The Conference Board index of consumer confidence increased by 12.3 points to 98.0 in May, surpassing consensus expectations, with a prior revised level of 85.7 [2]. - The expectations component of the index rose by 17.4 points to 72.8, recovering from its lowest level since October 2011 [2]. - The present situation component also saw an increase of 4.8 points to 135.9 [2]. - The labor differential decreased slightly to 13.2, with 31.8% of respondents indicating jobs are plentiful and 18.6% stating jobs are hard to get [2]. - The survey's measure of 12-month ahead inflation expectations decreased by 0.5 percentage points to 6.5% [2]. - The rebound in consumer confidence was noted to have gained momentum following the announcement of a 90-day pause in US-China retaliatory tariffs [2]. Summary by Sections Consumer Confidence Index - The consumer confidence index rose to 98.0 in May, a significant increase from the revised April level of 85.7 [2]. - The expectations component increased to 72.8, while the present situation component rose to 135.9 [2]. Labor Market Insights - The labor differential decreased to 13.2, with a slight increase in the percentage of respondents indicating jobs are plentiful [2]. Inflation Expectations - The 12-month ahead inflation expectations decreased to 6.5%, indicating a decline in inflation concerns among consumers [2].

27 May 2025 | 7:02PM CST Hesai Group (HSAI) 1Q25 Earnings Review: Net profit beat, raise industry LiDAR volume; Buy Hesai reported 1Q25 result with revenue in line and net profit beat mainly on higher gross margin and lower opex. Key areas of surprise: (1) Gross margin of 41.7% (+3.0pp yoy/+2.7pp qoq) was higher vs. GSe at 39.5%, mainly due to higher engineering services revenue; (2) Opex was -9% yoy and 5% below GSe, with S&M / R&D / G&A to revenue ratio -2.1pp/-19.2pp/-8.9pp yoy, showing operating leverag ...

Investment Rating - The report does not provide a specific investment rating for Wondershare (300624.SZ) as it is categorized as "Not Covered" [1]. Core Insights - The management of Wondershare has a positive outlook on user base stickiness and revenue growth from entertainment applications, indicating strong user willingness to pay [7][8]. - The company is focusing on enhancing its AI-Native applications and AI agent capabilities, with plans to upgrade AI algorithms based on user acceptance [1][8]. Summary by Relevant Sections User Base and Revenue Growth - Wondershare's user base is primarily supported by professional users, showing high stickiness and an upward trend in renewal rates, reflecting strong willingness to pay [7]. - Revenue from entertainment products like SelfyzAI and Media.io studio has been increasing rapidly over the past year, alongside efforts to attract new users [7]. AI-Native Applications and Market Outlook - There is strong user interest in AI-Native applications such as SelfyzAI, and the company plans to enhance awareness of its entertainment products [8]. - A prototype AI agent has been applied to Filmora, with ongoing development to meet commercial standards [8]. Company Profile - Wondershare specializes in multimedia, data recovery, and PDF solutions, actively integrating AI technologies into its flagship products [3]. - The company is investing in R&D for video and audio algorithms to enhance its AI software functions and is collaborating with external foundation models [3].

27 May 2025 | 4:57AM EDT Americas Transportation: US Tariff Impact Tracker – High Frequency Trends Relatively Quiet on Transition As We Await China Bump US Tariff Impact Tracker – Net-net, we saw a relatively quiet week on the data front, as we suspect the transition from a sharp reduction in China trade to a possible burst in activity post the 90-day pause announcement is still to come, based on comments by shippers, US transports, and container companies (i.e., an "air pocket" is possibly to occur first). ...

Investment Rating - The report does not provide a specific investment rating for Longcheer (603341.SS) but indicates a positive long-term growth outlook for the company [1][4]. Core Insights - Longcheer is positioned as a market leader in the smartphone ODM sector with a global market share of 33% in 2024, although margins are currently affected by rising raw material costs [4][8]. - The company is optimistic about new business segments, particularly AI glasses and automotive electronics, which are expected to drive future growth [1][8]. - Management anticipates a recovery in margins in 2025 as raw material prices normalize, despite a saturated smartphone market [4][8]. Summary by Sections Smartphone ODM Outlook - Longcheer's smartphone ODM business holds a 33% global market share as of 2024, reflecting its leadership position [4]. - Current margins are pressured by increased raw material costs, but a recovery is expected in 2025 as prices stabilize [4]. - The smartphone market is viewed as saturated, yet AI applications may provide avenues for growth [4][8]. Development of New Business - The AI glasses segment is expected to see increased demand in 2025, supported by new foundational models [8]. - The penetration rate for AI PCs is projected to rise, contributing to a product replacement cycle [8]. - Longcheer's smart cockpit products are in testing and have begun to enter local car OEMs, indicating growth potential in automotive electronics [8].