Investment Rating - The investment rating for the humanoid robotics industry is generally positive, with a focus on component stocks such as Sanhua (Buy), LeaderDrive (Neutral), and Best (Neutral) [30]. Core Insights - The humanoid robotics industry is progressing towards commercialization by integrating generalizable intelligence with practical applications, relying on four core technologies: algorithms, data, computing power, and hardware [5][19]. - The industry forecast anticipates shipments of 20,000 units in 2025 and 1.4 million global humanoid robot shipments by 2035 [30]. Summary by Sections Industry Overview - A recent field trip to humanoid robot companies in Beijing and Shenzhen highlighted a consensus on the need for robots to combine intelligence with practical applications [1]. - The focus is shifting towards developing the "brain" of humanoid robots, with significant investments in data factories to collect real-world interaction data [1][12]. Technology Development - The Vision-Language-Action (VLA) model is recognized as a feasible solution for humanoid robots, integrating vision and action to enhance task execution [6][7]. - High-quality real-world data is deemed critical for training models, with a requirement of approximately 10 million hours of data to achieve general-purpose autonomy [12][11]. Data Collection and Infrastructure - Companies are investing between US$100 million to US$200 million in data factories to support the extensive data collection needed for training [12]. - There is an ongoing debate regarding the effectiveness of different types of data (2-D video, teleoperational data, and simulation data) for training embodied AI systems [11]. Computing Power - Nvidia's Jetson Orin is currently the dominant computing platform, although local startups are exploring partnerships with Huawei to build domestic computing infrastructure [18]. Hardware Innovations - Dexterous hands are identified as a key focus for hardware improvement, essential for fine motion control and data collection [19]. - The humanoid robot pricing ranges from US$15,000 to US$100,000, with expectations of cost reductions through scale production and component optimization [23]. Practical Applications - Initial commercial opportunities are seen in industrial applications such as materials handling and sorting, while consumer applications are still considered distant due to regulatory hurdles [20][22]. - Companies report achieving up to 95% accuracy in materials handling tasks, with small-scale adoption expected to begin in 2025-2026 [20].

22 May 2025 | 9:10PM SGT Global Refining Fundamentals improving on supply delays, closures and crude outlook The refining setup is increasingly echoing the 2015-17 upcycle, with favorable feedstock dynamics (OPEC+ returning barrels, strong non-OPEC supply) combined with tightening global refining supply-demand. This time, the tightness is more supply driven. Our tracking shows several new refineries slated for 2025-27 are delayed, while fresh capacity closure announcements continue in developed markets. We ...

We hosted Meitu (1357.HK, Not Covered) CFO on May 21 at our TechNet Conference China 2025. Key discussions were around productivity tools growth, AI foundation model, and product line-up. Overall, management is positive on the expansion of AI productivity tools to improve efficiency and generate high-quality content (images, talking head videos etc.) within seconds. The number of subscribers continues to grow, and management see significant upside in the paying ratio vs. overseas AI productivity software. D ...

23 May 2025 | 2:03AM HKT Xiaomi Corp. (1810.HK): Released XRING flagship SoC and 4G baseband chip; Positive read from YU7 technology highlights; Buy On the 15th anniversary strategic product launch event on May 22, Xiaomi officially released XRING O1, Xiaomi's first self-designed 3nm flagship SoC (System-on-Chip) carried on its flagship Xiaomi 15S Pro smartphone model and premium Xiaomi Pad 7 Ultra tablet model, and XRING T1, Xiaomi's first self-designed 4G baseband processor carried on Xiaomi Watch S4 eSIM ...

Investment Rating - The report provides a mixed investment rating for various companies in the basic materials sector, with specific recommendations such as "Buy" for companies like Angang-H and Conch-H, while others like Maanshan-A and Chinacoal-H are rated as "Sell" [10]. Core Insights - The overall sentiment in the basic materials sector is that current demand is less concerning than previously anticipated, with a notable deceleration in local government special refinancing bond issuance impacting infrastructure recovery [1]. - Current Chinese demand for cement and construction steel is reported to be 12-14% lower year-on-year, while copper demand has increased by 9% [1]. - The downstream order book trend has remained mostly stable month-on-month, with 31% of respondents indicating a lower trend in May for basic materials [2][3]. Summary by Sections Downstream Demand Snapshots - Infrastructure recovery has paused due to a lack of funding for new projects, leading to weak cement shipments [1]. - The demand for construction materials is showing signs of weakness, particularly in cement and construction steel, while copper demand remains resilient [1]. Steel Production - Steel production cuts are in preparation, with a potential reduction in prices if these cuts are implemented [1]. - The report notes that rush orders following the reduction of US-China tariffs were limited, primarily driven by Southeast Asia [1]. Commodity Prices - The pricing for steel and cement has remained stable, while prices for aluminum and copper have improved, contrasting with the softening of coal and lithium prices [1]. Specific Company Insights - Angang-H is rated as "Buy" with a target price of CNY 2.40, indicating a potential upside of 45% [10]. - Conch-H is also rated as "Buy" with a target price of CNY 29.00, reflecting a 37% upside potential [10]. - Companies like Maanshan-A and Chinacoal-H are facing downward pressure, rated as "Sell" with target prices significantly lower than current prices [10].

22 May 2025 | 9:39PM JST Japan Economics Analyst Is China Exporting Deflation? (Ota) Tomohiro Ota +81(3)4587-9984 | tomohiro.ota@gs.com Goldman Sachs Japan Co., Ltd. +852-2978-1802 | andrew.tilton@gs.com Goldman Sachs (Asia) L.L.C. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to www.gs.com/research/hedge.html. c45a43530f604d12bcb9a82b5aa6b9f6 Akira Otani +81(3)45 ...

Investment Rating - The report maintains a "Buy" rating for Kingsoft Office with a 12-month target price of Rmb446, indicating an upside potential of 58.2% from the current price of Rmb282 [11]. Core Insights - Kingsoft Office is recognized as the largest domestic office productivity software provider in China, with its WPS software offering similar functionalities to Microsoft Office while providing additional services such as cloud storage and collaboration [8]. - The company is focusing on expanding its WPS AI user base, with Monthly Active Users (MAU) growing 8% year-over-year to 647 million by the end of Q1 2025, driven by the introduction of AI features [2][3]. - The WPS 365 platform for enterprise users has shown strong growth, achieving Rmb151 million in revenue for Q1 2025, a 63% year-over-year increase, supported by the adoption of State-Owned Enterprises (SOE) and other enterprises [3]. - Customized AI models have been launched for industry clients, significantly reducing hardware costs by 90% and improving paper writing quality by 72% [4][7]. Summary by Sections User Base Expansion - The MAU of WPS AI reached 19.7 million by the end of 2024, representing 3% of the total MAU, with management emphasizing efforts to enhance user engagement through features like a 7-day AI trial for new users [2]. WPS 365 Growth - The WPS 365 platform is highlighted for its comprehensive capabilities in office software, collaboration, and AI, providing a one-stop solution for enterprise users [3]. Customized AI Solutions - Kingsoft Office has developed customized AI models, including a government model with deep reasoning capabilities, which have led to significant cost reductions and quality improvements for clients [4][7]. Investment Thesis - The investment thesis is supported by expectations of increased Average Revenue Per User (ARPU) from the transition to a new membership system, subscription growth from enterprise clients, and long-term opportunities in AI [8].

Investment Rating - The report maintains a Buy rating for JD.com Inc. with a 12-month target price of US$50 and HK$194 for the Hong Kong listing, indicating an upside potential of 48.6% and 46.4% respectively [2][16]. Core Insights - JD.com is viewed as an underappreciated differentiated business within the Chinese internet sector, benefiting from domestic consumption policies and category expansion, which are expected to drive further valuation multiple expansion [2]. - The company anticipates sustained healthy growth momentum in JD Retail, expecting double-digit growth in both top line and profit, supported by enhanced procurement capabilities [1]. - The food delivery segment is seen as a synergistic extension of JD Retail, enhancing user engagement and attracting new customers while improving fulfillment efficiency [1][11]. Summary by Sections JD Retail Outlook - JD.com expects continued double-digit growth in JD Retail, driven by improved procurement capabilities and economies of scale [1]. - The company has observed healthy user retention and positive repeat purchase rates among early food delivery users [1]. Food Delivery Business - Food delivery is integrated into JD's broader retail strategy, enhancing user experience and increasing consumption frequency [1]. - The company aims to differentiate its food delivery service through quality offerings and lower merchant charges, while also focusing on user engagement and operational improvements [11]. Financial Projections - JD.com projects total revenue growth from Rmb1,158.8 billion in 2022 to Rmb1,484.2 billion by 2027, with a compound annual growth rate (CAGR) of approximately 6% [12]. - The gross profit margin is expected to stabilize around 16% over the forecast period, with net income projected to grow from Rmb44.7 billion in 2022 to Rmb58.7 billion by 2027 [12].

Investment Rating - The report rates both Weichai Power's A- and H-shares as Buy [16]. Core Insights - Weichai Power is on track with sales of large-bore engines, maintaining its full-year target and showing positive development in blended average selling price (ASP) [1]. - The company anticipates that the impact of the replacement policy will become more visible by June, as local government implementations vary [1][10]. - Weichai is committed to developing a strong new energy powertrain business and may consider acquisitions to support this growth [1][15]. - Shareholder return enhancement is a focus, with plans for increased cash dividends and share buybacks [1][15]. Sales and Market Performance - Sales volume for large-bore engines reached 2,400 units in Q1, with April achieving 800 units, reflecting a 50% year-over-year increase [10]. - The domestic market's contribution to sales has risen to 40%, up from 30% in 2024 [10]. - The blended ASP for large-bore engines increased to RMB 450,000 from RMB 430,000 in 2024 [10]. - The full-year sales volume target is set at 120,000 units, with expectations for data-center application engines to stabilize at 2,500 to 2,600 units over the next two years [10]. Strategic Focus and Future Outlook - Weichai's long-term strategy includes focusing on new energy powertrains, off-highway machinery engines, overseas expansion, and aftermarket services [15]. - The company is exploring acquisition targets in new energy powertrains and humanoid robots [15]. - Management expects total industry sales of 950,000 units, with potential upward revisions depending on the implementation of the replacement policy [10]. Financial Projections - Revenue for 2024 is projected to be RMB 1.5 billion, with expectations to increase to RMB 4-5 billion in the current year [11]. - The expected net profit for the current year is RMB 100 million [11]. - The company anticipates a robust free cash flow profile, yielding approximately 10-20% from 2025 to 2027 [14].

Ryan M. Nash, CFA +1(212)902-8963 | ryan.nash@gs.com Goldman Sachs & Co. LLC Americas Diversified Financials 1Q25 mutual fund and hedge fund Financials positioning analysis We assess Financials sector mutual fund and hedge fund positioning, using 13F data from the GS equity strategy team's reports (Mutual Fundamentals and Hedge Fund Trend Monitor). Mutual funds (MFs) decrease exposure to Financials in aggregate, with Financials seeing the biggest QoQ decrease in 1Q25 of any sector in the S&P 500, Financials ...