Investment Rating - The report rates Futu Holdings as "Outperform" with a target price of HKD 125.00, projecting a P/E of 18 for 2025 and 14 for 2026 [1]. Core Insights - The report highlights the evolving regulatory landscape in Hong Kong's virtual asset sector, emphasizing the implementation of the Virtual Asset Service Provider (VASP) licensing system, which has led to increased institutional participation and product innovation [2][7]. - Hong Kong has become a leader in Asia for virtual asset ETFs, with a total of 6 spot ETFs and 3 futures ETFs currently available, reflecting a growing market for virtual asset investment products [3][38]. - The report discusses the strategic moves by traditional and internet brokers to enter the virtual asset market, including license upgrades and partnerships with licensed virtual asset trading platforms [4][30]. Summary by Sections 1. Current Status of Virtual Asset Development in Hong Kong - The VASP licensing system was implemented in June 2023, requiring all virtual asset trading platforms in Hong Kong to obtain licenses under the Anti-Money Laundering Ordinance [2][9]. - As of now, there are 10 licensed virtual asset trading platforms, 6 spot ETFs, and 3 futures ETFs in Hong Kong, with 38 brokers upgrading to provide virtual asset trading services [7][12]. 2. Current Status of Brokers Offering Virtual Asset Services - Internet brokers are rapidly establishing trading services, with three licensed platforms originating from internet broker backgrounds [3][31]. - Traditional brokers like Victory Securities are transitioning into the virtual asset space, achieving significant trading volumes [33][36]. 3. Insights from the Development of the Blockchain Industry in Hong Kong - Brokers are enhancing their market competitiveness through license upgrades, diversified product strategies, and collaborations with fintech companies [4][43]. - The report notes that brokers are actively pursuing innovative financial products and services to cater to the growing demand in the virtual asset market [43][44].

Investment Rating - The report maintains an "Outperform" rating for the company, indicating an expected relative return exceeding the benchmark index by more than 10% over the next 12-18 months [1][13][19]. Core Insights - The company reported a net income of approximately 126.3 billion yen for Q1 2025, surpassing consensus expectations of 97 billion yen, primarily due to lower costs and a slight decrease in the tax rate [2][4]. - The company has slightly revised its FY2025 guidance downwards, with revenue expectations adjusted from 2,119 billion yen to 1,822 billion yen, and net income from 330 billion yen to 300 billion yen, while maintaining a dividend guidance of 90 yen per share [2][4]. - The company has lowered its average oil price forecast for FY2025 from $75 per barrel to $65 per barrel, and adjusted the USD/JPY exchange rate from 153 to approximately 144 [2]. Summary by Sections Financial Performance - Q1 2025 net sales were 536.9 billion yen, a 4% increase from Q4 2024 but a 10% decrease year-on-year [4]. - The cost of sales for Q1 2025 was 217.2 billion yen, reflecting a 2% increase from Q4 2024 and a 9% decrease year-on-year [4]. - Adjusted net income for Q1 2025 was 126.3 billion yen, a 4% increase year-on-year, while the adjusted diluted earnings per share was 105.38 yen [4]. Guidance and Forecasts - The company has increased its oil and gas production guidance for FY2025 from 633,000 barrels of oil equivalent per day to 654,000 barrels of oil equivalent per day [2]. - The company’s revised guidance reflects a more conservative outlook on oil prices and overall market conditions [2].

Investment Rating - The report maintains an "OUTPERFORM" rating for the company [3][7]. Core Insights - Leapmotor achieved a record-high gross margin of 14.9% in Q1 2025, with revenue reaching RMB 10.02 billion, reflecting a year-on-year growth of 187.1% driven by a 162% increase in vehicle deliveries and improved product mix [4][12]. - The company significantly narrowed its net loss to RMB 130 million, outperforming market expectations due to margin expansion outpacing operating expense growth [12][4]. - Leapmotor's domestic deliveries soared to 87,552 units in Q1 2025, up 162.1% year-on-year, with plans for further expansion in both domestic and international markets [5][13]. Financial Performance Summary - Revenue projections for Leapmotor are RMB 67.6 billion in 2025, RMB 81.2 billion in 2026, and RMB 102.5 billion in 2027, with net profits expected to be RMB 0.6 billion, RMB 3.5 billion, and RMB 6.0 billion respectively [7][15]. - The gross profit margin is expected to improve from 14.0% in 2025 to 18.1% in 2027, indicating a positive trend in profitability [10][15]. - The company has a strong cash position with RMB 25.7 billion in cash as of March 31, 2025, supporting its growth initiatives [12][4]. Market Position and Strategy - Leapmotor's new C10 model features significant upgrades, including a 12% increase in range and enhanced driving dynamics, which are expected to strengthen its competitive position in the market [6][14]. - The company plans to increase its sales outlets and service centers, aiming for a 90% coverage in prefecture-level cities by the end of 2025 [5][13]. - Leapmotor's strategy focuses on a closed-loop business model that leverages scale to reduce costs and enhance market share, driving further product iterations and competitiveness [6][14].

Group 1: Impact of US-China Tariff War on Hong Kong - The US-China tariff war has significantly impacted Hong Kong's role as a transshipment hub, with re-export volumes expected to decline due to tariff pressures. In 2024, exports to the US are projected to reach HKD 295.6 billion, accounting for 6.5% of total exports, with approximately 90% being re-exports [1][11][24] - The logistics of cross-border e-commerce have faced challenges due to the US imposing restrictions on duty-free privileges for small parcels, which has exposed vulnerabilities in Hong Kong's logistics framework [11][24] - There has been a notable trend of foreign capital outflows and a reduction in regional headquarters in Hong Kong, with the number of multinational regional headquarters reaching an 11-year low in 2023 [6][9][24] Group 2: Offshore RMB Business Hub - Hong Kong is positioned as a leading offshore RMB business hub, with the RMB's share in global reserves at 3.6%, making it the only major reserve currency showing consistent growth [2][25] - The RMB clearing and settlement network in Hong Kong handles over 70% of global cross-border RMB payments, with CIPS processing RMB payments amounting to 175 trillion yuan in 2024, a 43% increase year-on-year [15][25] - As of 2023, offshore RMB deposits in Hong Kong have approached HKD 1 trillion, representing about 60% of global offshore RMB deposits [16][25] Group 3: Trade Network Upgrades - Hong Kong is enhancing its trade network by strengthening ties with ASEAN and the Middle East, with exports to ASEAN growing by 18% in 2024, making it Hong Kong's second-largest export market [3][26] - The region is optimizing its supply chain by deepening industrial collaboration with Pearl River Delta cities, promoting high-tech, finance, and logistics sectors [3][26] - Hong Kong aims to maintain its status as an independent customs area while promoting a high-value, innovation-driven economic model [3][26] Group 4: Elevating Financial Hub Status - Hong Kong ranks third in the Global Financial Centre Index (GFCI), with efforts to attract domestic and foreign companies to list in the region [4][19][27] - The city is optimizing its tax and regulatory environment for fund and asset management, increasing support for long-term capital investments and green funds [4][19][27] - Initiatives to enhance fintech competitiveness include scaling smart investing and digital wealth tools, alongside optimizing talent and immigration policies to attract global financial professionals [4][19][27]

[Table_Title] 研究报告 Research Report 19 May 2025 [Table_header2] 奇德新材 (300995 CH) APPENDIX 1 Summary 奇德新材 Guangdong Kitech New Material (300995 CH) 高分子复合改性材料领军企业，碳纤维制品发展空间广阔 Polymer composite modified materials leader, accelerating international layout 孙小涵 Xiaohan Sun xh.sun@htisec.com [Table_yemei1] 热点速评 Flash Analysis [Table_summary] (Please see APPENDIX 1 for English summary) [Table_yejiao1] 本研究报告由海通国际分销，海通国际是由海通国际研究有限公司，海通证券印度私人有限公司，海通国际株式会社和海通国 际证券集团其他各成员单位的证券研究团队所组成的全球品牌，海通国际证券集团各成员分别在其许可的司法管辖区内从事证 券活动。 ...

Investment Rating - The report maintains an "Outperform" rating for Gushengtang with a target price of HKD 67.35 per share, indicating a potential upside from the current price of HKD 33.10 [2][5]. Core Insights - The number of medical visits in Q1 2025 increased by 12.7% year-on-year, reaching approximately 1.21 million, although the growth rate has slowed compared to the previous year [3][10]. - The company is expected to see significant performance contributions in 2025 from mergers and acquisitions (M&A), artificial intelligence (AI), and in-hospital preparations [4][11]. Summary by Sections Financial Performance - Revenue projections for 2025 and 2026 are RMB 3.79 billion and RMB 4.63 billion, respectively, reflecting year-on-year growth of 25.3% and 22.2% [5][11]. - Adjusted net profit is forecasted at RMB 480 million for 2025 and RMB 580 million for 2026, with growth rates of 20.6% and 21.0% [5][11]. - The company maintains a gross profit margin of 30.1% and a return on equity (ROE) projected to increase from 11.0% in 2023 to 15.3% in 2026 [5][9]. Growth Drivers - The company has signed equity transfer agreements with four domestic targets in Q1 2025, with an average valuation of 0.8-1x price-to-sales (PS) [4][13]. - An AI initiative is set to launch in July, expected to contribute RMB 30 million to annual performance by creating digital twins of leading TCM specialists [4][13]. - Plans to introduce 10 new in-hospital preparations in 2025, with anticipated revenue exceeding RMB 50 million [4][13]. Market Position - Gushengtang is recognized as a leading domestic chain in traditional Chinese medical services, benefiting from strong brand power and resilient performance [5][11].

Investment Rating - The report does not explicitly state the investment rating for Pan Asian Microvent Tech (Jiangsu) [1]. Core Viewpoints - Pan Asian Microvent Tech is a leading enterprise in ePTFE materials in China, having achieved localized substitution of TRT film and focusing on R&D, production, and sales across various niche markets including automotive, new energy, consumer electronics, and aerospace [2][3]. - The company has seen continuous revenue and profit growth, with projected revenues of 364 million, 411 million, and 515 million yuan for 2022, 2023, and 2024 respectively, reflecting year-on-year growth rates of +15.11%, +12.64%, and +25.39% [4]. - The rise in revenue and profits is attributed to product diversification, ongoing R&D of core technologies, optimization of customer structure, and advancements in intelligent manufacturing and cost reduction measures [4][5]. Summary by Relevant Sections Company Overview - Founded in November 1995 and listed on the Science and Technology Board in July 2021, the company specializes in ePTFE micro-permeable products, CMD and gas management products, SiO₂ aerogel products, and high-performance wiring harness products [2][3]. - The main products account for 31.57% of the company's revenue in 2024, with CMD and gas management products forming the second growth curve, and aerogel products gradually building the third growth curve [2][3]. Financial Performance - The company's revenue for 2022-2024 is projected at 364 million, 411 million, and 515 million yuan, with net profits of 31 million, 87 million, and 99 million yuan respectively, showing significant growth in 2023 [4]. - The profit growth in 2023 is particularly notable at +176.08% year-on-year, following a decline in 2022 [4]. Market Position and Strategy - The company benefits from the trend of domestic substitution and the expansion of niche markets for high-performance composite materials, particularly in sectors like new energy vehicles and aerospace [5]. - The strategy includes a focus on product diversification and market niches, alongside the promotion of intelligent manufacturing and automation to enhance production capacity and consistency [5].

Investment Rating - The report maintains an "Outperform" rating for multiple companies in the healthcare sector, including JD Health, WuXi Biologics, Alibaba Health, and others, while China National Pharmaceutical Group is rated "Neutral" [1]. Core Insights - The Hang Seng Healthcare Index rose by 0.6% during the week of May 12-16, 2025, outperforming the Hang Seng Index by 8.6 percentage points year-to-date, with a total increase of 25.0% since the beginning of the year [4][30]. - The internet healthcare sector led gains with a 7.7% increase, while other sectors like CXO/research services and pharmaceutical distribution also saw positive growth [5][31]. - The report highlights that despite external volatility, China's pharmaceutical industry is expected to benefit from domestic policy support for innovation and improving procurement conditions [5][31]. Summary by Sections Weekly Performance Review - The Hang Seng Healthcare Index increased by 0.6%, while the Hang Seng Index rose by 2.1% during the specified week [4][30]. - Year-to-date, the Hang Seng Healthcare Index has outperformed the Hang Seng Index by 8.6 percentage points, with a total increase of 25.0% [4][30]. Sub-sector Performance - Internet healthcare saw a significant increase of 7.7%, followed by CXO/research services at 2.6% and pharmaceutical distribution at 1.3% [5][31]. - The pharmaceutical and biotech sectors faced initial pressure due to an executive order from Trump aimed at reducing prescription drug prices, but valuations recovered by the end of the week [5][31]. Market Dynamics - Trump's executive order on May 12 requires pharmaceutical companies to align U.S. drug prices with those in other developed countries, aiming for "most favored nation" pricing [7][34]. - The report suggests that the impact of this order on Chinese pharmaceutical companies will be limited, as most do not generate direct revenue from the U.S. market [15].

Investment Rating - The report assigns an "Outperform" rating to multiple companies within the discretionary consumption sector, indicating a positive outlook for their performance relative to the market [1][3][5]. Core Insights - The pet and U.S. hotel sectors have shown the best performance this week, with valuations in most sectors still below the average of the past five years [1][4][13]. - The report highlights that the average increase for leading companies in the pet sector was 9.1%, driven by favorable trade negotiations and the commencement of the 618 pre-sale [4][15][17]. - Valuation analysis indicates that most sub-sectors are trading below their historical averages, suggesting potential investment opportunities [5][9][19]. Sector Performance Review - Weekly performance rankings: Pet > U.S. Hotel > Credit Card > Cosmetics > Gambling > Sportswear > Luxury Goods > Snacks [7][14]. - Monthly performance rankings: Pet > U.S. Hotel > Gambling > Cosmetics > Sportswear > Credit Card > Luxury Goods > Snacks [14]. - Year-to-date (YTD) performance rankings: Pet > Luxury Goods > Cosmetics > Snacks > Credit Card > U.S. Hotel > Sportswear > Gambling [14]. Valuation Analysis - As of May 16, 2025, the expected P/E ratios for various sectors are as follows: - Sportswear: 15.6x (77% of 5-year average) - Luxury Goods: 18.4x (52% of 5-year average) - Gambling: 14.2x (23% of 5-year average) - Cosmetics: 36.8x (91% of 5-year average) - Pet: 50x (51% of 5-year average) - Snacks: 24.3x (37% of 5-year average) - U.S. Hotel: 29.4x (18% of 5-year average) - Credit Card: 32x (61% of 5-year average) [5][9][18][19].

Investment Rating - The report does not explicitly provide an investment rating for the luxury goods industry, but it highlights significant trends and performance metrics that could inform investment decisions. Core Insights - There is a notable divergence in purchasing intent for luxury goods, with high-net-worth individuals (HNWIs) maintaining robust consumption while the middle class shows a significant decline in luxury purchasing intent [2][9]. - High-end brands exhibit significant performance differentiation, with MIU MIU showing strong growth momentum, while GUCCI continues to face challenges [3][10]. - The jewelry sector demonstrates steady growth, particularly during holiday periods, with brands like Van Cleef & Arpels leading in performance [4][11]. - Sales of high-end skincare products are weakening, while consumers are increasingly focused on value-for-money in cosmetics [4][12]. - The gold jewelry sector is performing well, with Laopu Gold emerging as a key growth driver [4][13]. Summary by Sections Purchasing Intent and Consumer Behavior - In 2024, the middle class (annual household income of 1.5 million to 5 million RMB) showed a double-digit year-on-year decline in luxury purchasing intent, while HNWIs, particularly black card and platinum card holders, maintained mid-single-digit growth in consumption [2][9]. Brand Performance - High-end brands like Hermès, LV, Dior, CHANEL, and Prada experienced a "high open low walk" sales growth pattern in early 2025, with MIU MIU standing out for its strong performance, while GUCCI has been under pressure with continuous negative growth [3][10]. Jewelry Sector - Jewelry brands, including Bulgari, Tiffany, and Cartier, maintained moderate growth, with Van Cleef & Arpels showing the strongest performance among jewelry brands [4][11]. Skincare and Cosmetics - Sales growth for high-end skincare products has slowed, with brands like Lancôme and La Mer particularly affected. Consumers are prioritizing cost-effective makeup options, prompting high-end brands to enhance customer loyalty through personalized services [4][12]. Gold Jewelry Sector - Laopu Gold has significantly outperformed competitors in the gold jewelry sector, with positive sales growth in early 2025. The brand's expansion strategy is supported by increased store area and prime location allocation in shopping malls [4][13].