Investment Rating - The report maintains a guidance for low single-digit to mid-single-digit revenue growth for the full year [2][9]. Core Insights - Retail performance has shown steady improvement, with overall retail sales value (RSV) decreasing by 1.9% year-on-year in 1QFY26, driven by a 3.3% decline in mainland China and a 7.8% increase in Hong Kong and Macao [2][9]. - The management expects better performance in 2Q compared to 1Q, and better performance in the second half compared to the first half, leveraging the peak wedding season [2][9]. - The franchise channel has shown resilience, outperforming direct-operated stores, with same-store sales in mainland China decreasing by 3.3% year-on-year, while franchise stores remained flat [3][10]. - The proportion of high-margin products continues to expand, with direct sales same-store sales growth (SSSG) for gold products and jewelry inlaid products in mainland China at -1.4% and -2.2%, respectively, while in Hong Kong and Macao, they are +6.6% and +3.3% [4][11]. - E-commerce channels in mainland China saw a 27% year-on-year increase in RSV, contributing 7.6% to total RSV and 16.9% to sales volume, benefiting from strong demand driven by collaborations and promotional events [5][13]. Summary by Sections Retail Performance - The overall retail sales value (RSV) decreased by 1.9% year-on-year in 1QFY26, with a notable decline in mainland China and an increase in Hong Kong and Macao [2][9]. - Management noted that May was the best performing month, and sales continued to improve in July [2][9]. Franchise vs. Direct-Operated Stores - Franchise channels outperformed direct-operated stores, with same-store sales in mainland China showing a narrowing decline [3][10]. - The company closed a net 311 stores in mainland China, focusing on optimizing store performance [3][10]. Product Mix and Margins - The company is focusing on high-margin products, with expectations for the proportion of one-price gold product sales to increase from approximately 20% to 20-23% [4][11]. - Despite rising gold prices, the company expects a year-on-year decrease in gross profit margin (GPM) of 80-120 basis points, partially offset by product mix improvements [4][12]. E-commerce Growth - E-commerce channels are expanding rapidly, with a significant year-on-year increase in RSV, driven by strategic collaborations and marketing efforts [5][13].

Investment Rating - The report does not explicitly provide an investment rating for the industry discussed Core Insights - The 2025 World Artificial Intelligence Conference highlights a significant paradigm shift from a "model-driven" approach to an "intent-driven" approach in artificial intelligence, emphasizing the integration of human goals and values with AI processing [1][11] - Intent-driven intelligence aims to enhance decision-making reliability by incorporating causal reasoning and self-checking capabilities, moving beyond mere statistical outputs to achieve "purpose rationality" [2][12] - Current limitations of the model-driven paradigm, such as hallucination issues and diminishing marginal returns, necessitate breakthroughs at the paradigm level rather than just increasing computational power [3][13] Summary by Sections Section 1: Paradigm Shift - The transition from model-driven to intent-driven intelligence is characterized by the system's ability to autonomously identify and decompose goals without explicit instructions, integrating human values deeply into AI processing [1][11] - This shift requires AI systems to not only generate statistically valid outputs but also to possess capabilities for causal reasoning and self-correction to enhance decision-making reliability [2][12] Section 2: Challenges and Limitations - The report identifies key challenges in realizing the intent-driven paradigm, including the hallucination problem in large models, which threatens decision-making safety and raises ethical concerns [3][13] - The diminishing returns from merely increasing model parameters and data highlight the need for innovative approaches to overcome inherent limitations in current AI systems [3][13] Section 3: Technical Bottlenecks - Three major technical bottlenecks are identified: intent representation, causal reasoning mechanisms, and innovative learning architectures, which are essential for achieving the intent-driven paradigm [4][15] - Addressing these challenges is crucial for developing intelligent systems capable of general task modeling, maintaining decision-making robustness, and achieving deep collaboration with humans [4][15]

Investment Rating - The report assigns a positive investment rating to Solutions, indicating strong performance and growth potential in the telecommunications sector [1][2]. Core Insights - Solutions reported an adjusted net profit of 446 million SAR for Q2 2025, exceeding market expectations, primarily driven by robust performance in IT managed and operational services [1][2]. - The company's EBITDA margin remains strong and is within the FY25 guidance range, with expectations for management to reaffirm this guidance during the upcoming briefing [1]. - Revenue for the company reached 2.902 billion SAR, aligning closely with market expectations, with the private sector being a key driver of revenue growth [2][4]. Summary by Relevant Sections Financial Performance - Net revenue for Q2 2025 was 2.902 billion SAR, reflecting a 3% quarter-over-quarter increase and a 5% year-over-year increase [4]. - The gross profit margin improved to 23% from 21.8% in Q1 2025, while EBITDA was reported at 521 million SAR, slightly above market expectations [2][4]. - Net income for Q2 2025 was 446 million SAR, which is a 24% increase from the previous quarter and a 2% decrease year-over-year [4]. Segment Performance - Core ICT services revenue grew by 5% quarter-over-quarter and 10% year-over-year, indicating strong demand and project development [2][4]. - IT managed and operational services revenue remained stable with a slight increase of 2% year-over-year, showcasing the effectiveness of service integration [2][4]. - Digital services revenue showed a slight decline of 5% year-over-year, indicating potential areas for improvement [4].

宏观研究 /[Table_Date] 2025.07.27 2025-07-28 美日协议提振市场信心，欧央行按兵不动 [Table_Authors] 海外经济政策跟踪 本报告导读： 美日贸易谈判取得进展，提振全球市场情绪，本周全球股市普遍上涨。高利率与高 不确定性下，美国房地产市场需求疲弱，企业资本开支相对谨慎，制造业 PMI 走弱 但服务业表现仍强，经济尚具有韧性。欧央行维持利率不变，9 月或继续按兵不动。 投资要点： 证 券 研 究 报 告 请务必阅读正文之后的免责条款部分 宏 观 研 究 宏 观 周 报 [Table_Report] [Table_Summary] 全球大类资产表现：上周（2025.7.21-2025.7.25），全球大类资产价 格中，主要经济体股市普遍上涨。其中，日经 225 上涨 4.1%，恒生 指数上涨 2.3%，上证综指上涨 1.7%，标普 500 指数上涨 1.5%，发 达市场股票指数上涨 1.4%，新兴市场股票指数上涨 0.7%。大宗商品 价格涨跌互现，其中，COMEX 铜上涨 4.0%，南华商品指数上涨 2.7%， 伦敦金现下跌 0.4%，标普-高盛商品指数下跌 1.1% ...

Investment Rating - The report initiates coverage with an OUTPERFORM rating, setting a target price of HK$13.50 based on a current price of HK$9.83 [1]. Core Insights - Xiaocaiyuan International is positioned as a leader in the mass Chinese cuisine market, with a market share of 0.2% as of 2023, and aims to expand its store count significantly in the coming years [1][6]. - The mass Chinese cuisine market is projected to grow from RMB 3.6 trillion in 2023 to RMB 5.6 trillion by 2028, with a compound annual growth rate (CAGR) of 9.1%, outpacing the overall Chinese cuisine market growth of 8.7% during the same period [2][24]. - Xiaocaiyuan's revenue is expected to increase from RMB 5.21 billion in 2024 to RMB 9.43 billion by 2027, with net profit projected to rise from RMB 581 million to RMB 1.1 billion in the same timeframe [4][15]. Company Overview - Xiaocaiyuan was established in 2013 and has rapidly developed into a leading brand in the mass Chinese cuisine sector, with 673 stores across 14 provinces in China by the end of 2024 [1][6]. - The company focuses on a dual-driven model of "home-style flavor + high cost-performance," catering to diverse regional tastes with a seasonal menu of approximately 45-50 dishes [3][38]. - The company employs a standardized direct operation model, enhancing efficiency and quality control through a comprehensive supply chain system [3][48]. Financial Performance - Xiaocaiyuan's revenue for 2024 is projected at RMB 5.21 billion, reflecting a 14.5% year-on-year growth, with net profit expected to reach RMB 581 million, a 7% increase [4][15]. - The company has shown strong growth in its takeaway business, with revenue from this segment expected to grow by 34.4% year-on-year in 2024 [3][15]. - The operating cash flow is robust, with RMB 9.0 billion expected in 2024, indicating a healthy cash flow situation to support further expansion [22]. Market Dynamics - The mass Chinese cuisine market is benefiting from urbanization, changing family structures, and increasing demand for affordable dining options [2][29]. - The report highlights the potential for growth in lower-tier cities, where consumer demand for quality dining experiences is rising [29][33]. - The competitive landscape is fragmented, with Xiaocaiyuan holding the top position in the mass Chinese dining segment, which is characterized by low market concentration [45].

Investment Rating - The report does not explicitly state an investment rating for the industry or specific companies involved in the AI sector Core Insights - The WAIC 2025 showcased unprecedented public interest in AI, with significant participation from over 800 companies and more than 3000 cutting-edge exhibits, marking the largest scale in its history [1][7] - The focus of the conference included key themes such as large model applications, computing power infrastructure, AI for science, and the integration of AI in various sectors including finance and healthcare [2][7] - Investment opportunities are shifting from individual GPU cards to full server racks, emphasizing the importance of computing power, model optimization, and AI infrastructure [8][15] Summary by Sections Core Technologies - The emphasis has shifted from individual chip performance to comprehensive solutions, with discussions focusing on efficient utilization of fragmented computing resources and low-power designs [2][12] - Major companies like Huawei and ZTE showcased advanced computing solutions, highlighting the integration of AI chips and servers into practical applications [3][4][5] Industry Applications - WAIC 2025 demonstrated a deeper commercialization of AI, with applications spanning robotics, smart glasses, and healthcare, reflecting a significant increase in participation from state-owned enterprises and international companies [7][13] - The event achieved record-breaking ticket sales and attendance, indicating a growing public enthusiasm for AI technologies [7][13] Smart Devices - The focus on embodied intelligence was evident, with dynamic usage scenarios presented through interactive exhibits that showcased advancements in humanoid robotics and smart glasses [8][14] - Notable product launches included Alibaba's Quark AI Glasses and China Telecom's Tianyi AI Glasses, which attracted significant public interest [8][14]

Investment Rating - The report indicates a negative market reaction expected for Dow's Q2 2025 performance despite adjusted net income meeting market expectations, primarily due to the strong profitability in its performance materials and coatings segment [1][2]. Core Insights - Dow reported an adjusted net income of $42 million for Q2 2025, exceeding market expectations of a $90 million loss, driven by better-than-expected performance in its high-performance materials and coatings business [2]. - The company aims to achieve over $6 billion in cash flow by 2026 through short-term cash support and profit growth leverage, while also adjusting its dividend policy based on economic cycles to enhance financial flexibility [1]. - The performance materials and coatings segment generated $213 million in operating income, a 4% year-over-year increase, attributed to seasonal demand for architectural coatings and increased sales of downstream silicone products [2]. - Conversely, the industrial intermediates and infrastructure segment reported an operating loss of $185 million, impacted by declining sales in polyurethane and construction chemicals, partially offset by growth in industrial solutions [2]. - The packaging and specialty packaging segment's revenue was $71 million, falling short of market expectations due to a decline in overall profit margins [2]. Summary by Sections Financial Performance - Q2 2025 adjusted net income was $42 million, a 147% quarter-over-quarter increase, but a 91% year-over-year decline [4]. - Revenue for Q2 2025 was $10.1 billion, a 3% decrease quarter-over-quarter and a 7% decrease year-over-year [4]. - Adjusted EBITDA for Q2 2025 was $703 million, reflecting a 26% decrease quarter-over-quarter and a 53% decrease year-over-year [4]. Segment Performance - **Performance Materials & Coatings**: Revenue of $2.129 billion, with operating income of $152 million, a 210% increase quarter-over-quarter [4]. - **Industrial Intermediates & Infrastructure**: Revenue of $2.786 billion, with an operating loss of $185 million, a significant decline from previous quarters [4]. - **Packaging & Specialty Packaging**: Revenue of $5.025 billion, with operating income dropping to $71 million, a 90% year-over-year decline [4].

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The report emphasizes China's ambition to establish a leadership role in global AI governance, proposing a new framework that focuses on inclusive sharing, innovative cooperation, and joint governance of AI [2][8] - The "Action Plan for Global AI Governance" released during the conference outlines a systematic governance philosophy aimed at balancing development and security while promoting AI as an international public good [2][9] - The report highlights the importance of supporting developing countries, particularly in the Global South, to bridge the "intelligence divide" through capacity building and technology sharing [4][10] Summary by Sections Event Overview - On July 26, 2025, Premier Li Qiang attended the World Artificial Intelligence Conference in Shanghai, emphasizing AI's role in economic growth and proposing the establishment of a World AI Cooperation Organization [1][7] Governance and Development - The report reflects a dual-track approach to governance, advocating for a balance between innovation and security, with specific measures to manage risks associated with AI development [3][9] - The core principles of the governance framework include "for good and for the people, respect for sovereignty, and development-oriented" [2][8] Inclusivity and Support for Developing Countries - The report stresses the need for inclusivity in AI governance, with a focus on assisting developing countries to enhance their AI capabilities [4][10] - Specific articles in the "Action Plan" call for international cooperation to help these countries develop AI technologies according to their national conditions [4][10] Open Cooperation and Multi-Stakeholder Engagement - The report advocates for an open and cooperative global ecosystem, encouraging participation from various stakeholders, including governments, international organizations, and civil society [5][11] - It emphasizes the need to build a governance model that acknowledges the complexity of AI governance and promotes collective action [5][11]

Investment Rating - The report does not explicitly provide an investment rating for the industry or specific companies discussed Core Insights - The report highlights the evolution of AI technology through three major phases: visual AI, natural language processing, and the current multimodal and generative AI era, emphasizing the importance of multimodal thinking chains for future advancements [2][12] - SenseTime's latest model, SenseNova 6.5, showcases significant improvements in multimodal fusion, inference performance, and cost-effectiveness, with a 20% increase in pre-training data volume and a 35% rise in inference throughput, while reducing inference costs to 30% of previous levels [3][14] - The report discusses the transition of AI from being merely a productivity tool to a results-driven force, exemplified by SenseTime's "Little Raccoon" assistant, which automates complex tasks and allows users to pay for outcomes rather than processes [4][15] - SenseTime's "Wuneng" platform aims to empower the robotics industry by integrating advanced visual perception, navigation, and multimodal interaction capabilities, facilitating real-time recognition and interaction with the physical world [5][16] Summary by Sections Event Overview - On July 27, 2025, SenseTime hosted a forum discussing AI advancements, where CEO Xu Li reviewed the development phases of AI and introduced the SenseNova 6.5 model and the "Little Raccoon" assistant [1][12] AI Development Phases - The report outlines the shift from reliance on manually labeled image data to the integration of multimodal data, which aligns more closely with human learning methods, thereby expanding knowledge boundaries [2][13] SenseNova 6.5 Model - The SenseNova 6.5 model features a "multimodal long thinking chain" that enhances its ability to process complex data, achieving performance comparable to top industry models while significantly lowering costs [3][14] Commercialization of AI - The report addresses the "tool trap" in AI applications, advocating for a shift towards AI that produces tangible results, as demonstrated by the capabilities of the "Little Raccoon" assistant [4][15] Future Outlook - SenseTime's focus on embodied intelligence through the "Wuneng" platform represents a strategic move to bridge digital and physical interactions, enhancing the capabilities of robots in real-world applications [5][16]

Investment Rating - The report maintains a positive outlook on innovative drugs and the industry chain, recommending continuous attention to this sector [1][5][24]. Core Viewpoints - The report highlights the sustained high prosperity of innovative drugs, with a focus on companies likely to see a revaluation, such as Jiangsu Heng Rui Medicine, Hansoh Pharmaceutical Group, 3SBio, and Huadong Medicine. It also emphasizes Biopharma/Biotech companies with innovative pipelines entering a growth phase, including PATEO, Innovent Biologics, BeiGene, and others [1][5][24]. - The A-share pharmaceutical sector outperformed the market in the third week of July 2025, with a 4.0% increase compared to a 0.7% rise in the Shanghai Composite Index. The report notes that the premium of the pharmaceutical sector relative to all A-shares is currently at a normal level of 86.8% [7][25][16]. - The Hong Kong pharmaceutical sector showed outstanding performance, with the Hang Seng Healthcare index rising by 12.0% and the Hong Kong Biotechnology index increasing by 13.6% during the same period [21][25]. Summary by Sections 1. Continuous Focus on Innovative Drugs and Industry Chain - The report emphasizes the ongoing high demand for innovative drugs and recommends companies such as Heng Rui Medicine, Hansoh Pharmaceutical, and others for potential investment [1][5][24]. 2. Performance of A-Shares Pharmaceutical Sector - In the third week of July 2025, the A-share pharmaceutical sector led with a 4.0% increase, outperforming the overall market. Notable sub-sectors included chemical raw materials and chemical preparations, with gains of 7.0% and 6.8% respectively [7][11][25]. 3. Performance of Hong Kong and U.S. Pharmaceutical Sectors - The Hong Kong pharmaceutical sector performed exceptionally well, with significant gains in the Hang Seng Healthcare and Biotechnology indices. In contrast, the U.S. pharmaceutical sector underperformed, with a decline of 2.5% in the S&P 500 Healthcare Select Sector [21][25].