Investment Focus - The market's initial correction is largely complete, and a rebound is expected, particularly in the technology sector [1][8] - U.S. equities rebounded, improving global risk appetite, with Hong Kong and A-shares stabilizing and moving higher, led by the tech sector [1][8] External Liquidity - External liquidity continues to improve, with U.S. September retail sales slowing and PPI below expectations, supporting a December rate cut probability rising to 86% [2][9] - The U.S. Dollar Index fell below 100 to 99.4, while the RMB strengthened to 7.07, with other assets like Bitcoin and gold also experiencing mild rebounds [2][9] Technology Sector - The market focused on developments related to Google, with positive feedback on products like Gemini 3.0 Pro and Nano Banana, and Meta considering significant TPU purchases from Google [3][10] - Google shares rose 7%, while NVIDIA experienced a slight decline of about 1% amid improving liquidity [3][10] - The tech sector in Hong Kong and A-shares saw notable rebounds but have not fully recovered from previous losses, with the ChiNext Index recovering most of its declines [3][10] Real Estate Sector - Vanke faced declines in bond prices due to concerns over large-scale maturities, but some bonds rebounded, indicating no extreme liquidation [4][11] - The sensitivity of the equity market to negative news regarding Vanke is diminishing, with the AH-listed property stocks ending the week higher, suggesting stabilization in the real estate sector [4][11] - The CSRC announced a pilot program for commercial property REITs, aimed at enhancing liquidity in the commercial real estate sector [4][11] Market Activity and Fund Flows - The market experienced a low-volume rebound, with A-share turnover falling to RMB 1.6 trillion and Hong Kong turnover dropping to HKD 150 billion [5][12] - The short-selling ratio in Hong Kong decreased to 12%, below historical averages, while A-share equity ETFs recorded net outflows of RMB 12.4 billion [5][12] - Margin financing turned to a net inflow of RMB 10.6 billion, indicating a re-leveraging phase in the market [5][12] Summary - The market stabilized and rebounded, remaining in a low-volume consolidation phase, with expectations for continued rebound trends [6][13] - The technology sector is expected to continue its rebound, with a focus on the Hang Seng Tech Index and STAR-board names linked to domestic compute infrastructure [6][13] - The real estate sector is stabilizing, with recommendations to watch leading developers with solid fundamentals for rebound opportunities [6][13]

Investment Rating - The report does not explicitly state an investment rating for the industry, but it suggests a focus on companies with optimistic profit improvement prospects. Core Insights - Domestic demand in Japan is diverging, with a rebound in duty-free sales driven by the National Day holiday and a weaker yen, marking the first positive growth in duty-free sales in eight months [3][15]. - Consumers are highly sensitive to prices for daily necessities, leading to increased average transaction values at discount and convenience stores, despite a decline in foot traffic [3][15]. - There is a trend of "downgrading" in dining and clothing consumption, with value brands like Saizeriya and Uniqlo seeing significant increases in customer traffic and same-store sales [3][15]. - Actual household entertainment spending has increased significantly, with travel and savings becoming preferred uses of disposable income, reflecting a mindset of enjoying life while prioritizing financial security amid economic uncertainty [3][15]. - The hotel industry continues to thrive due to a record number of inbound tourists and the depreciation of the yen, with strong demand for luxury goods and cosmetics from visitors [3][15]. Summary by Sections Macro Overview - The Japanese yen has depreciated, and inflationary pressures are rising, with the consumer confidence index slightly increasing to 35.8 in October from 35.3 in September [2][9]. - Real wages contracted by 1.4% year-on-year in September, continuing a nine-month trend of negative growth, while nominal wage growth was only 1.9%, significantly lagging behind inflation [2][9]. - The Producer Price Index (PPI) rose by 2.7% year-on-year in October, maintaining above 2% for four consecutive months, indicating persistent price pressures [2][13]. Essential Consumption - Retail sales in essential goods are showing steady growth despite high prices, with same-store sales for major retailers like Aeon and 7-Eleven increasing by 4.7% and 1.3% respectively in October [4][18]. - The demand for basic food and beverage items remains under pressure, with a year-on-year decline in retail sales for food and beverages recorded at approximately 35.56 billion yen in September [4][18]. Optional Consumption - There is a significant increase in demand for winter clothing, with same-store sales for Uniqlo rising by 25.1% in October, driven by strong sales of winter collections [5][32]. - The restaurant sector has seen same-store sales growth for major chains like Saizeriya and McDonald's, with increases of 16.9% and 8.1% respectively in October [5][28]. - Duty-free sales have turned positive for the first time in eight months, with a year-on-year growth of 7.5% in October, driven by increased tourist spending [5][36]. Stock Market Performance - The consumer sector saw most stocks rise from October 27 to November 27, with retail and food and beverage sectors gaining 5.6% and 4.7% respectively [6]. - Investment recommendations focus on companies like Mercari, which is expected to improve profitability, and Kirin Holdings, which has shown strong operational profit growth [6].

Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 55.97, reflecting a potential upside of 33% [1][8]. Core Views - The company is focusing on its AI-driven cloud integration strategy, which is expected to enhance its growth potential in the AI era. The report highlights the company's ongoing partnerships with major internet firms, which are seen as beneficial for leveraging data and algorithm strengths [3][10]. - The projected EPS for 2025-2027 is RMB 1.31, 2.00, and 2.33 respectively, with a 2026 average PE of 36.31X for comparable companies, justifying a PE of 28X for the company [1][8]. Financial Summary - Total revenue for 2023 is projected at RMB 119.624 billion, with a growth rate of 3.2%. Revenue is expected to reach RMB 145.485 billion in 2025, reflecting a 13.5% increase [2][7]. - Net profit attributable to shareholders is forecasted to be RMB 1.172 billion in 2023, decreasing to RMB 753 million in 2024, but recovering to RMB 1.684 billion by 2027 [2][7]. - The company reported a revenue of RMB 1023.65 billion in the first three quarters of 2025, with a year-on-year growth of 11.79%, while net profit attributable to shareholders was RMB 670 million, down 25.01% year-on-year [4][9]. Strategic Initiatives - The company has announced a 2025 employee stock ownership plan, which aims to raise up to RMB 360 million and reflects confidence in future growth. The plan includes up to 945 participants and a purchase price of RMB 36.87 per share [4][9]. - Strengthening partnerships with major internet companies like ByteDance and Tencent is a key focus, with collaborations aimed at expanding business opportunities and leveraging global platform advantages [4][10].

Investment Focus - Alphabet (GOOGL US) is expected to maintain good visibility in its advertising business due to the gradual release of its valuation under pressure from AI search, with a projected 30%+ growth in cloud business for the year and margin improvement driven by scale effects [1] - Alibaba (BABA US) is anticipated to see a cloud business growth rate of 28%-30%, benefiting from strong momentum in instant retail, with Taobao expected to achieve a 20-30% MAU growth driven by flash purchase [1] - NVIDIA (NVDA US) is projected to achieve strong revenue growth in FY2027, with GB300 series products expected to account for two-thirds of Blackwell series products, and a revenue target of $500 billion over the next five quarters [1] - Tencent (700 HK) is recommended as a top pick, with a target price of 700, driven by steady growth in core gaming and advertising businesses, and a projected near 20% growth rate in advertising [3] - New Oxygen (SY US) is focusing on the light medical beauty sector with a rapid expansion plan, aiming to open 50 self-operated stores by 2025, supported by a strong marketing capability and low customer acquisition costs [3] - Ctrip (TCOM US) is expected to benefit from steady growth in domestic leisure travel and the recovery of outbound travel, with a projected revenue growth of 14% to 71.1 billion yuan in 2026 [3] - Huazhu (HTHT US) is transitioning to a high-margin franchise model, with a target price of $52, supported by a strong recovery in industry RevPar [4] - Futu (FUTU US) is positioned for long-term growth in the virtual asset business, with a user base of 3.1 million and a current valuation offering a safety margin [4] - AIA (1299 HK) is expected to see steady growth in new business value and operational indicators, with a forward PEV of 1.46x [4] - Dongfang Electric (1072 HK) is actively involved in global power station project contracting, with significant opportunities in the U.S. market due to the demand for power supply capabilities [9]

Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 47.84 [4][10][16]. Core Insights - The spin-off of Mandy International aligns with the interests of both 3SBio and Mandy International shareholders, allowing 3SBio to focus on innovative drug development while Mandy specializes in consumer healthcare products [1][4]. - The company is expected to see significant revenue growth, with forecasts of RMB 19.18 billion, RMB 11.90 billion, and RMB 14.05 billion for 2025-2027, respectively [8][16]. - Mandy International has established a leading position in the hair health sector, with flagship Minoxidil products holding approximately 57% and 71% market shares in the hair loss and Minoxidil markets in China for 2024 [4][16]. Financial Summary - Revenue projections for 2023A to 2027E are as follows: RMB 7.816 billion (2023A), RMB 9.108 billion (2024A), RMB 19.178 billion (2025E), RMB 11.895 billion (2026E), and RMB 14.051 billion (2027E), reflecting a CAGR of 21.7% from 2022 to 2024 [3][4][16]. - Net profit attributable to shareholders is forecasted to be RMB 1.549 billion (2023A), RMB 2.090 billion (2024A), RMB 10.214 billion (2025E), RMB 2.813 billion (2026E), and RMB 3.515 billion (2027E) [3][4][16]. - The company’s PE ratio is projected to be 11.75 (2023A), 7.07 (2024A), 7.25 (2025E), 26.33 (2026E), and 21.06 (2027E) [3][4]. Business Development - The spin-off is expected to enhance Mandy International's image among clients and partners, improving its position for business negotiations and attracting more opportunities [4][16]. - Mandy International is focused on developing blockbuster consumer medical products, with a strong emphasis on skin health and weight management solutions [4][16]. - The company has shown stable growth in past performance, with revenue figures of RMB 982 million, RMB 1.23 billion, and RMB 1.46 billion from 2022 to 2024, alongside high gross profit margins [4][16].

Investment Rating - The report maintains an "Outperform" rating for the company [1][4]. Core Insights - The company's revenue showed stable growth in the first half of FY25, with a year-on-year increase of 2.1%, while sales experienced nearly double-digit growth. However, profit margins were temporarily pressured due to rising raw material costs and increased expenses from organizational optimization [10][11]. - The forecasted EPS for FY25-27 is RMB 0.34, 0.38, and 0.41 respectively, with a target price set at RMB 6.12 per share, equivalent to HKD 6.73 at an exchange rate of 0.91 [4][9]. Financial Summary - Total revenue for FY23A was RMB 23,924.37 million, with a slight decrease of 0.3% expected in FY24A. Revenue is projected to grow by 1.7% in FY25E, 3.7% in FY26E, and 2.7% in FY27E [3]. - Gross profit for FY23A was RMB 10,990.92 million, with a forecasted gross profit margin decrease of 1.1 percentage points due to rising costs of imported whole milk powder and palm oil [10]. - Net profit attributable to shareholders for FY23A was RMB 3,990.47 million, with a projected decrease of 7.1% in FY25E, followed by growth of 12.1% in FY26E and 8.1% in FY27E [3][4]. Product Performance - Dairy beverage revenue declined by 1.1% year-on-year, primarily due to a slight drop in Wangzai Milk sales, while other beverage categories grew nearly 40%. The gross profit margin for dairy beverages decreased by 2.5 percentage points [11]. - Rice crackers saw a revenue increase of 3.5% year-on-year, with a gross profit margin increase of 1.3 percentage points, driven by strong growth in emerging channels [11]. - Snack food revenue increased by 7.7% year-on-year, with ice cream and candy categories showing positive growth trends [12]. Market Channels - Snack wholesale and emerging channels performed exceptionally well, with snack wholesale revenue growing significantly and accounting for about 15% of total group revenue. Emerging channels also saw double-digit growth, contributing over 10% to total revenue [12]. - The overseas market continued to show positive trends, with revenue growth in regions such as Japan, India, and Africa [12].

Investment Rating - The report assigns an "Outperform" rating to several companies in the new energy sector, including 阳光电源 (Sunlight Power), 天合光能 (Trina Solar), TCL 中环 (TCL Zhonghuan), 大金重工 (Daikin Heavy Industries), and others, with target prices ranging from 8.54 to 129.78 [1]. Core Insights - Solid-state batteries are emerging as a solution to the dual challenges of energy density and safety, with energy density potentially reaching 500 Wh/kg, significantly higher than traditional lithium-ion batteries [4][21]. - The global market for solid-state batteries is expected to grow rapidly, with shipments projected to reach 36 GWh in 2025 and over 600 GWh by 2030, indicating a significant increase in market penetration from approximately 0.2% in 2024 to an expected 10% by 2030 [38][39]. - China is positioned as a leader in the solid-state battery industry, supported by a comprehensive policy framework and significant market demand, with major companies like 宁德时代 (CATL) and 比亚迪 (BYD) making substantial advancements in production timelines [5][39][50]. Summary by Sections 1. Solid-State Battery Development - Traditional lithium-ion batteries face limitations in energy density and safety, with energy density nearing theoretical limits and safety concerns due to flammable electrolytes [13][19]. - Solid-state batteries utilize solid electrolytes, eliminating flammability risks and enhancing energy density, thus addressing key industry concerns [22][25]. 2. Global Policy Landscape - The development of solid-state batteries has become a strategic priority for major economies, with diverse approaches: Japan focuses on technological leadership, China on rapid commercialization, South Korea on industry integration, and the U.S. on capital-driven innovation [32][33]. - Various countries are implementing supportive policies to foster the growth of the solid-state battery sector, with significant investments in research and development [68]. 3. China’s Market Position - China dominates the global lithium battery market, accounting for 59% of the total installed capacity in 2024, with a strong focus on solid-state battery technology as a key growth area [39][42]. - The Chinese government has elevated solid-state battery research to a strategic level, aiming to secure technological leadership in the next generation of power batteries [50][49]. 4. U.S. Market Dynamics - The U.S. solid-state battery sector is characterized by a focus on startup companies and significant capital investment, with policies aimed at reducing reliance on foreign supply chains and fostering domestic innovation [62][68]. - Major players like QuantumScape and Solid Power are leading the charge in technology validation and partnerships with automotive manufacturers [69][78]. 5. Japan and South Korea’s Strategies - Japan is leveraging its material innovation capabilities to regain leadership in the battery sector, with a focus on solid-state technology as a critical component of its national strategy [83]. - South Korea is enhancing its production capabilities through collaboration among major companies like Samsung SDI and LGES, aiming for accelerated commercialization of solid-state batteries [83].

Financial Performance - Total revenue is projected to reach RMB 8,962 million in 2025, with a growth rate of 9.3% compared to 2024[2] - Net profit attributable to shareholders is expected to be RMB 553 million in 2025, reflecting a significant increase of 90.8% from 2024[2] - The company’s PE ratio is forecasted to decrease from 19.99 in 2024 to 14.04 in 2025, indicating improved valuation attractiveness[2] Investment Strategy - The company plans to raise approximately HKD 494 million through a rights issue at a price of HKD 7.30 per share, with net proceeds allocated 70% for AI and R&D investments and 30% for working capital[8] - The board proposes relocating the company's registration from the Cayman Islands to Hong Kong to simplify compliance and enhance investor confidence[8] Market Position and Growth - The company maintains an "Outperform" rating, with a target price of HKD 13.25 for 2026, based on a forward PE of 20x[7] - The Haiyue foundation models are recognized as a key initiative in supporting SOE reforms and enhancing enterprise intelligence capabilities[8] Risks - Potential risks include slower-than-expected policy advancements, challenges in AI technology commercialization, and intensified market competition[9]

Investment Rating - The report does not explicitly provide an investment rating for the industry or specific companies [1]. Core Insights - The second round of IRA negotiation prices will be effective in 2027, with 15 drugs added, 11 of which will see price reductions of at least 50%, and the highest reduction reaching 85% [4]. - The average price reduction across the drugs is 52%, effective January 1, 2027 [4]. - Small molecule drugs are exempt from price negotiations for 9 years post-approval, while biologics are exempt for 13 years [4]. - The largest price cut is for the diabetes drug Janumet/Janumet XR, reducing from $526/month to $80/month, an 85% reduction [4]. - The smallest cut is for the rare disease drug Austedo/Austedo XR, reducing from $6623/month to $4039/month, a 38% reduction [4]. - Semaglutide's three trade names will see a reduction from $959/month to $274/month, a 71% reduction [4]. - Acalabrutinib will reduce from $14228/month to $8600/month, a 40% reduction [4]. - Medicare Part D spending could save 44%, approximately $12 billion, with an estimated 5.3 million beneficiaries using these drugs [4]. - The impact of IRA negotiations is expected to be limited due to the imminent patent cliffs, as many small molecules will have been on the market for over 9 years by the time prices are implemented [4]. Summary by Sections Price Negotiation Results - The second round of Medicare negotiations added 15 drugs, with significant price reductions [4]. - The average price reduction is 52%, with the highest reduction being 85% for Janumet/Janumet XR [4]. Drug-Specific Price Changes - Janumet/Janumet XR: from $526 to $80/month (85% reduction) [4]. - Austedo/Austedo XR: from $6623 to $4039/month (38% reduction) [4]. - Semaglutide: from $959 to $274/month (71% reduction) [4]. - Acalabrutinib: from $14228 to $8600/month (40% reduction) [4]. Financial Implications - Estimated savings for Medicare Part D could reach $12 billion, accounting for 44% of costs [4]. - Approximately 5.3 million beneficiaries will be affected, representing 15% of total prescription drug coverage costs [4]. Market Context - The report highlights the limited impact of IRA negotiations due to the approaching patent cliffs for many drugs [4]. - Global pharmaceutical companies may increase acquisitions in response to the challenges posed by patent expirations [4].

Investment Rating - The report maintains an "Outperform" rating for Super Hi International Holding [2][15]. Core Views - The company has shown improvement in table turnover rates and is steadily advancing its multi-brand strategy. The revenue for 3Q25 reached USD 210 million, a year-on-year increase of 7.8%, while net profit attributable to shareholders decreased by 90.4% to USD 3.609 million due to increased foreign exchange losses [3][4][15]. Financial Performance Summary - Revenue projections for 2025-2027 are maintained at USD 856 million, USD 952 million, and USD 1.064 billion, reflecting year-on-year growth rates of 10.0%, 11.2%, and 11.7% respectively [8][15]. - Net profit attributable to shareholders is forecasted to be USD 40 million in 2025, USD 50 million in 2026, and USD 70 million in 2027, with corresponding growth rates of 102.4%, 23.5%, and 25.6% [8][15]. - The gross profit margin is projected to be around 66.3% in 2025, with net profit margins of 5.2%, 5.7%, and 6.4% for 2025, 2026, and 2027 respectively [8][15]. Operational Insights - The company’s restaurant operations generated USD 200 million in revenue for 3Q25, a 5.1% increase year-on-year, driven by network expansion and enhanced brand influence [4][5]. - The takeaway business saw significant growth, with revenue increasing by 69.2% to USD 4.4 million, attributed to product optimization and strategic marketing collaborations [4][5]. - The average table turnover rate improved to 3.9 times per day, reflecting the effectiveness of the company's customer and employee incentive strategies [5][6]. Market Position and Valuation - The target price is set at HKD 18.4, corresponding to a market capitalization of HKD 11.98 billion, based on a price-to-sales (P/S) ratio of 1.8 [2][15]. - The company’s current market capitalization is approximately HKD 9.25 billion, with a share price of HKD 14.22 as of November 27, 2025 [2][15].