Depreciation: China Tower acquired 1.43mn towers from China telcos in 2015, and by Oct 2025, these tower assets will reach the end of 10-year depreciable life, and this would result in a steep drop in depreciation expenses in 2026 (hence a one-off strong net profit growth). Management noted the 1.43mn towers account for c.50% of the total acquisition in 2015 (close to Rmb200bn), and this implies each tower has depreciation expense of c.Rmb7k per year. Since the tower acquisition in 2015, China Tower decommi ...

Investment Rating - The report indicates a moderate growth in total store sales, with a rating of low single-digit growth (LSD) for the latest quad-week [1]. Core Insights - Total store sales increased by 2% in the latest quad-week, driven primarily by the Dairy category, while Frozen and Alcohol categories experienced declines [1]. - The report highlights a mixed performance in the Beverages sector, with non-alcoholic categories showing stable trends for carbonated soft drinks (CSDs), sparkling water, and sports drinks, while ready-to-drink (RTD) tea and coffee saw accelerated sales growth [2]. - In the Tobacco sector, sales growth trends remained stable for the overall cigarette category, although specific companies like IMB experienced a deceleration in growth [3]. Summary by Category HPC (Household and Personal Care) - HPC sales growth improved to 2.0% from 1.5% in the previous month, primarily driven by higher pricing, despite lower volume growth [10]. - KMB continued to show robust sales growth, while PG and CL experienced slight moderation in growth [10]. - KVUE and CHD saw improvements in sales growth, with KVUE benefiting from higher volume growth and CHD from improved volume trends [10]. Beverages - Non-alcoholic beverage sales trends were mixed, with stable trends for CSDs and sparkling water, while RTD tea and coffee saw accelerated growth [2]. - Alcoholic beverage sales trends modestly decelerated across all categories, with some companies like BF showing improved trends [2]. Tobacco - Overall sales growth in the cigarette category remained stable, but IMB saw a deceleration in growth trends [3]. Food - Sales in the Food category decelerated in the latest quad-week, contrasting with the growth seen in HPC [1]. Private Label - Private label's dollar share growth remained modest at the total store level, with slight fluctuations across various categories [9].

Economic Projections - The ECB is expected to revise down the annual average headline inflation projection to 1.7% for 2026, a decrease of 0.2 percentage points (pp) from previous estimates[5] - Core inflation projections are anticipated to be lowered to 1.8% in 2026, also a reduction of 0.2pp[17] - The growth forecast for the remainder of 2025 is likely to be downgraded to 0.1% quarter-on-quarter (non-annualized)[21] Market Variables Impact - The Euro appreciated by 4% against a basket of trade-weighted currencies and by 8% against the Dollar since the last projections[5] - Spot prices for oil and gas fell by 25% during the same period, significantly impacting inflation projections[5] - Changes in market variables are estimated to subtract 0.6pp from headline inflation and 0.3pp from core inflation projections in early 2026[12] Policy Implications - The anticipated revisions in inflation and growth projections provide strong motivation for the ECB to implement a 25 basis points (bp) cut at the upcoming meeting[21] - An additional rate cut to 1.75% is expected, likely occurring in July[21] - The new projections will also consider factors such as core inflation momentum and incoming wage data, which showed a cooling trend[15]

27 May 2025 | 11:06AM CDT Americas Food: NielsenIQ data thru 5/17: Solid total food sales, although continued pressure for packaged food Total food sales increased +2.2%/+3.2% y/y for R4/12-wks (in-line with the long-term trend of +LSD), driven by pricing and partially offset by lower volumes. However, we observed sales declines across most of our coverage, with greater pressure on center-of-store companies amid ongoing consumption shifts toward fresh and increasing competition from smaller brands and priva ...

Investment Ratings - Diageo: Sell [2] - Pernod: Buy [3] - Campari: Neutral [4] Core Insights - The US spirits market is experiencing a decline, with overall sales down -3.3% excluding RTDs, and a slight decline of -0.3% including RTDs, driven by a volume increase of +2.6% [6][27] - Diageo continues to lose market share, with volumes including RTDs declining -7.5% and sales down -3.7% [2][11] - Pernod's volumes declined -7.8%, but Jameson showed modest improvement, indicating some resilience in the brand [19] - Campari's performance is underwhelming, with volumes down -1.8% and sales falling -1.9%, despite some growth in Aperol [28] Summary by Company Diageo - The USA accounted for 36% of Diageo's FY24 sales and 46% of EBIT [2][17] - Key brands like Crown Royal and Don Julio showed mixed results, with Crown Royal volumes flat and Don Julio up +20% [11][16] - Vodka brands Smirnoff, Ketel One, and Ciroc all lost market share, with Ciroc declining -27.8% [11][12] Pernod - The USA accounted for 19% of Pernod's FY24 sales and 24% of EBIT [3][20] - Jameson volumes improved slightly by +0.2%, while Absolut and Malibu faced declines of -4.6% and -9.2% respectively [19][21] - Overall sales declined by -6.4%, indicating a challenging market environment [19][23] Campari - The USA accounted for 28% of Campari's FY24 sales [4][29] - Espolon volumes turned negative for the first time since June '23, while Aperol grew by +4.7% [28][31] - Sales fell -1.9%, with a broadly flat price/mix indicating pricing pressures [28][32]

Investment Rating - The report does not explicitly provide an investment rating for Innogrit, but it highlights positive views on related companies such as Huaqin and Lingyi, both rated as "Buy" [13]. Core Insights - Innogrit is positioned as a competitive player in the memory controller IC and SSD market, with a focus on enterprise-grade products that have higher entry barriers and longer switching cycles compared to consumer-grade products [3][6]. - The global enterprise SSD market is experiencing rapid growth, driven by an increasing volume of data, with China seeing a CAGR of 25-30% [4][6]. - Innogrit has successfully penetrated various enterprise-grade clients across local and global markets, including cloud service providers and large-scale enterprises in finance and energy sectors [3][6]. Company Profile - Innogrit is a memory controller IC design house established in 2017, focusing on the SSD market and offering products for consumer, enterprise, and data center markets [2]. - The company has launched over 10 memory controllers and has begun mass production of PCIe 5.0 memory controllers since 2024, with plans to release PCIe 6.0 products in 2026 [2]. Market Dynamics - The management of Innogrit believes that enterprise-grade products are less competitive than consumer-grade products due to their long switching cycles and higher reliability standards [3]. - The company has cumulatively shipped over 20 million memory controller ICs, 1 million industry-grade SSDs, and 250,000 enterprise SSDs, indicating a strong market presence [6].

Investment Rating - The report does not provide a specific investment rating for Longcheer (603341.SS) as it is categorized as "Not Covered" [1]. Core Insights - Longcheer is optimistic about its long-term growth prospects, driven by market share expansion in PCs and new opportunities in AI glasses and smart cockpit technology [1][7]. - The smartphone ODM business holds a global market share of 33% as of 2024, with expectations for margin recovery in 2025 due to stabilizing raw material prices [4][7]. - The company is entering new business segments, including AI glasses and automotive electronics, which are expected to contribute to growth [7]. Summary by Relevant Sections Company Overview - Longcheer (603341.SS) was established in 2002 and has become a global leader in consumer electronics ODM, with a diverse product line including smartphones, PCs, tablets, smart wearables, and automotive electronics [3]. Smartphone ODM Outlook - The smartphone ODM business is projected to recover margins in 2025 as raw material prices normalize, despite a saturated market [4][7]. - AI applications are anticipated to support future market growth, alongside increasing penetration rates in smartphone ODM [4]. New Business Development - The AI glasses segment is expected to see positive demand driven by new foundational models, while the penetration of AI PCs is projected to rise, enhancing the product replacement cycle [7]. - Longcheer's smart cockpit products are currently in testing and have begun to enter several local car OEMs, indicating a promising growth trajectory [7].

27 May 2025 | 9:01AM CEST GS Utilities Daily: Acciona Energia: More consensus earnings downgrades on the horizon for 2025-26 // Enel signs agreement to add Alberto Gandolfi +39(02)8022-0157 | alberto.gandolfi@gs.com Goldman Sachs Bank Europe SE - Milan branch Ajay Patel +44(20)7552-1168 | ajay.patel@gs.com Goldman Sachs International Mafalda Pombeiro +44(20)7552-9425 | mafalda.pombeiro@gs.com Goldman Sachs International Lorenzo Zignani +39(02)8022-2139 | lorenzo.zignani@gs.com Goldman Sachs Bank Europe SE - ...

Market Insights 市场洞察 GS TMT TODAY 5.27.25 ⾼盛科技媒体 电信今⽇简报 2025 年 5 ⽉ 27 ⽇ Futures bid solidly across the board (NDX +150ps / SPX +140bps / RTY +160bps) with Treasuries rallying (10yr rate back below 4.50% / 30yr rate below 5%) after Japan signaled changes to its debt sale plans, fueling speculation that demand for US bonds could rise. Additionally, Trump is delaying his 50% EU tariffs from June 1st to July 9th after a phone call with EU Commission President Von Der Leyen (Trump said it was a "good" call). In ...

Investment Rating - The report does not explicitly state an investment rating for the spirits industry or specific companies within it Core Insights - The spirits industry is currently experiencing a transition period, with companies focusing on stability, channel profits, and product quality rather than aggressive growth targets [3] - There is a noted weak trend in consumption around the Dragon Boat Festival, with only Moutai showing a slight increase in prepayment compared to the previous year [1][6] - Companies are increasingly targeting younger consumers and expanding their brand rejuvenation efforts to capture this demographic [3] Summary by Company Moutai - Moutai has introduced new promotional policies for residential and wedding banquets to stimulate demand, including cash rebates and complimentary honeymoon trips for larger events [13] - The wholesale price of original case Feitian Moutai decreased from Rmb2,165 to Rmb2,125, while unpacked Feitian Moutai's price fell from Rmb2,080 to Rmb2,060 [2][22] Wuliangye - Wuliangye's wholesale price remained stable at Rmb950, with prepayment rates in the first quarter of 2025 reported at 40%-50% [6][22] Guojiao 1573 - Guojiao 1573's wholesale price decreased from Rmb860 to Rmb855, with prepayment rates around 40%-45% [6][22] Yanghe - Yanghe reported a prepayment rate of approximately 45% and is focusing on expanding its sales network [6][8] Gujing - Gujing aims for nationwide expansion and a focus on sub-premium strategies, with a sales network covering over 70% of regions nationwide [7][8] Yingjia - Yingjia targets total sales of Rmb7.6 billion for 2025, reflecting a 3.5% year-on-year increase, and plans to improve dividend payout ratios [11][13] Market Trends - The retail sales of liquor and tobacco in China grew by 5.1% year-on-year in April 2025, indicating a gradual recovery in the market [13] - Spirits companies are focusing on improving retail sell-through, inventory destocking, and channel expansion amid industry-wide growth deceleration [13]