Investment Rating - The report maintains a "Buy" rating for Haidilao with a target price of HK$20.40, indicating a potential upside of 41% from the current price of HK$14.47 [1][6]. Core Insights - Haidilao's 1H25 performance was below expectations, with revenue of RMB 20.703 billion, a year-on-year decline of 3.7%. The brand's revenue accounted for 90% of total income, with significant contributions from various city tiers [3][4]. - The company is actively adjusting its operational strategies to improve performance in 2H25, focusing on personalized customer service and enhancing dining experiences to attract younger consumers [4][5]. - Despite a decline in profits and revenue, Haidilao maintains a high dividend payout ratio of 95%, with cash reserves of approximately RMB 6 billion, indicating strong cash flow management [5][6]. Financial Summary - Revenue projections for 2025-2027 are expected to grow at rates of 3.3%, 3.3%, and 3.1%, reaching RMB 441.5 billion, RMB 455.9 billion, and RMB 470.0 billion respectively. Net profit is projected to grow at 2.7%, 3.0%, and 2.9% over the same period [6][7]. - The company reported a net profit of RMB 1.759 billion for 1H25, reflecting a year-on-year decrease of 13.7%, with a net profit margin of 8.5% [3][4]. - The financial outlook remains stable, with a projected P/E ratio of 21 times for 2026, supporting the target price of HK$20.40 [6][7].

Investment Rating - The report maintains a "Buy" rating for Li Ning with a target price of HK$23.30, indicating a potential upside of 15% from the current price of HK$20.28 [2][3]. Core Views - The report highlights that Li Ning's 1H25 performance met expectations, with revenue of RMB 14.817 billion, a year-on-year increase of 3.3%. The gross margin was 50%, slightly down by 0.4 percentage points due to intensified promotional competition in direct sales channels [5][6]. - The report notes that while direct sales did not meet expectations, e-commerce revenue increased, leading to a rise in related expenses. The net profit for 1H25 was RMB 1.737 billion, down 11% year-on-year, with a net profit margin of 11.7% [5][6]. - The report emphasizes that all product categories and channels are performing well, with footwear revenue up 5% and accessories revenue up 24%, while apparel revenue declined by 3% [6][8]. Summary by Sections Financial Performance - Li Ning's revenue for 1H25 was RMB 14.817 billion, with a gross margin of 50%. The net profit was RMB 1.737 billion, reflecting an 11% decline year-on-year [5][6]. - The report projects revenue for 2025 to be RMB 28.686 billion, with a net profit of RMB 2.403 billion, representing a year-on-year decrease of 20.2% [9][12]. Operational Insights - The report indicates a balanced development between online and offline channels, with e-commerce revenue accounting for 31% of total revenue, up 1 percentage point year-on-year. Direct sales revenue decreased due to a reduction in store numbers [6][8]. - The report mentions that Li Ning plans to enhance its outdoor product lines and expects to introduce approximately 5,000 stores for outdoor categories by the end of the year [7][8]. Valuation and Forecast - The report maintains the earnings forecast for Li Ning for 2025-2027, expecting revenue growth of 0.0% in 2025, 2.0% in 2026, and 1.8% in 2027. The net profit is projected to decline by 20.2% in 2025 but recover slightly in the following years [8][9]. - The report assigns a P/E ratio of 22 times for 2026, raising the target price by 21% to HK$23.30, which still offers a 15% upside from the current price [8][9].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of US$28.00, indicating a potential upside of 37% from the current stock price of US$20.37 [4][10]. Core Insights - The company's automotive sales gross margin significantly improved to a historical high of 14.3% in Q2 2025, driven by the launch of new models such as G6 and G9, leading to a substantial revenue increase of 147.6% year-on-year [1][4]. - The management anticipates that the new P7 and X9 models will further boost sales, with pre-sale orders for the new P7 reaching record levels [2][4]. - The company is focusing on solidifying its leadership in intelligent driving and plans to initiate Robotaxi operations in 2026, leveraging its advanced algorithms and effective computing power [3][4]. Financial Performance Summary - In Q2 2025, the company reported automotive sales revenue of RMB 168.8 billion, with a gross profit of RMB 31.7 billion, reflecting a year-on-year growth of 178.9% [1][4]. - The forecast for 2025 includes total revenue of RMB 79.623 billion, with an expected gross margin of 17.6% [12][14]. - The projected delivery volume for 2025 is approximately 451,123 vehicles, with a gradual increase expected in subsequent years [12][20]. Financial Data Overview - The company is expected to achieve a Non-GAAP net loss of RMB 813 million in 2025, improving to a profit of RMB 2.327 billion by 2026 [12][13]. - The earnings per share (EPS) forecast for 2025 is projected at RMB -0.85, with a turnaround to RMB 2.41 in 2026 [7][12]. - The financial outlook indicates a steady increase in revenue and profitability, with significant improvements in gross margins and operational efficiency anticipated [12][14].

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings with a target price of HK$685.00, representing a potential upside of 17% from the current price of HK$586.00 [1][7][16]. Core Insights - Tencent's online gaming revenue grew by 22% year-on-year in Q2 2025, with domestic market growth at 17% and international market growth at 35%. The growth was driven by popular titles and new game launches [5][6]. - The advertising revenue increased by 20% year-on-year, supported by AI-driven improvements in ad targeting and user engagement [6][14]. - Financial technology and enterprise services also saw a 10% year-on-year growth, with significant contributions from commercial payments and cloud services [6][14]. - The adjusted operating profit margin reached 37.5%, up 120 basis points year-on-year, indicating improved profitability due to business expansion and higher margins from new services [7][14]. Financial Summary - Revenue projections for 2025 are estimated at RMB 748.6 billion, with a net profit of RMB 255.5 billion and an EPS of RMB 27.46 [8][14]. - The report anticipates continued growth in both domestic and international gaming segments, with revised growth expectations of 16% for domestic and 23% for international markets in 2025 [5][14]. - The adjusted operating profit margin forecasts for Q3 2025 and 2025 are raised to 38.5% and 38.0%, respectively, reflecting strong performance in high-margin business areas [14][15]. Valuation - The SOTP (Sum of the Parts) valuation for Tencent is set at HK$685.00, based on various business segment performance forecasts [16][17]. - The core gaming segment is valued at HK$2.1 trillion, while the advertising segment is valued at HK$1.5 trillion, both based on a 20x P/E ratio for 2025 [17][18].

Investment Rating - The report maintains a "Buy" rating for Zai Lab with a target price of $67.22, indicating a potential upside of 96% from the current price of $34.31 [1][5]. Core Insights - The company's total revenue for 1H25 reached $216 million, a year-on-year increase of 15%, with product revenue netting $215 million and collaboration revenue at $1.73 million. The net loss improved by 33% year-on-year to $89.17 million, with an EPS of -$0.08, showing significant improvement from -$0.14 in 1H24 [3][4]. - The growth in revenue for 2Q25 was primarily driven by core products, with significant increases in patient usage of Efgartigimod and sales of other key products benefiting from market expansion and increased penetration [4][8]. - The company reiterated its full-year revenue guidance for 2025, projecting between $560 million and $590 million, with a goal to achieve profitability in 4Q25 [3][5]. Financial Summary - The financial projections for Zai Lab show a steady increase in revenue from $267 million in 2023 to an estimated $1.181 billion by 2027. The gross profit is expected to rise from $171 million in 2023 to $756 million in 2027, while the net profit is projected to turn positive in 2026 with a net income of $19 million [7].

Investment Rating - The report maintains a "Hold" rating for the company with a target price of HK$77.00, which is slightly below the current stock price of HK$77.05, indicating no significant upside potential [3][4]. Core Insights - The company's shipment volumes for mobile camera lenses and camera modules in July 2025 showed a year-on-year decline of 14.6% and 2.9%, respectively, while automotive lens shipments increased by 28.8% year-on-year [3][4]. - The stock price increased by 15.2% from May 12 to August 11, 2025, outperforming the Hang Seng Index, which rose by 7.8% during the same period, attributed to easing market sentiment regarding US-China tariff issues [3][4]. - The report suggests that the company is focusing on mid-to-high-end projects, leading to an improved product mix, but overall shipment volumes are still declining year-on-year [4]. Financial Summary - The company is projected to achieve revenues of RMB 43,459 million in 2025, with an estimated earnings per share (EPS) of RMB 2.98 [6]. - The price-to-earnings (P/E) ratio is expected to be 23.5x in 2025, which is slightly above the industry average, reflecting the company's anticipated compound annual growth rate (CAGR) of EPS exceeding the industry average from 2024 to 2027 [4][6].

Investment Rating - The report maintains a "Hold" rating for SK Hynix with a target price of KRW 255,245, up from KRW 188,633, indicating a 35% increase in target price [3][9][19]. Core Insights - The report highlights that SK Hynix's revenue for Q2 2025 was KRW 22.2 trillion, a year-on-year increase of 35% and a quarter-on-quarter increase of 26%, exceeding expectations due to significant shipments of NAND and DRAM products [7][12]. - Despite the strong performance in Q2 2025, the report anticipates that NAND demand will remain weak, leading to lower-than-expected net profits for NAND, HBM, and traditional DRAM in the second half of 2025 and 2026 [7][8][9]. - The report adjusts the earnings per share (EPS) estimates for 2025 and 2026, increasing the 2025 EPS estimate to KRW 40,677 (up 10%) and the 2026 EPS estimate to KRW 39,952 (up 9%) [3][14]. Financial Summary - Revenue projections for 2025 and 2026 have been raised by 8.9% and 7.8%, respectively, primarily due to increased NAND shipments and price increases for DRAM products [13][15]. - The report projects a net profit of KRW 28,952 billion for 2025, reflecting a 46% year-on-year growth, but notes that this is 6.2% lower than the market consensus [15][18]. - The financial data indicates a significant increase in operating income and net profit margins, with a projected net profit margin of 32.9% for 2025 [10][15]. Market Comparison - The report compares its forecasts with market consensus, showing that SK Hynix's revenue estimates for 2025 and 2026 are slightly above market expectations, while net profit estimates are below [18]. - The report emphasizes the potential impact of industry competition and demand fluctuations on SK Hynix's financial performance, particularly in the NAND and DRAM segments [9][19].

Investment Rating - The report maintains a "Buy" rating for JD Logistics with a target price of HK$23.28 [3][9]. Core Views - JD Logistics is expected to benefit from the Chinese government's subsidy policies, leading to accelerated revenue growth in Q2 2025 [1][9]. - The expansion of the workforce to support new business initiatives may pressure short-term profit margins, with a forecasted decline in gross margin from 11.9% in Q2 2024 to 10.9% in Q2 2025 [2][9]. - The completion of the acquisition of Kuayue Express is anticipated to significantly reduce minority interests, potentially increasing the net profit attributable to shareholders by approximately 15% for the full year 2025 [2]. Summary by Sections Revenue Growth - Q2 2025 revenue is expected to grow faster year-on-year, driven by increased consumer demand for home appliances and electronics due to government incentives [1]. - Revenue projections for 2025 are estimated at RMB 205.51 billion, reflecting a 12.4% increase from 2024 [10]. Profitability - Gross margin is projected to decline to 10.9% in Q2 2025, influenced by rising labor costs from workforce expansion [2]. - Non-IFRS net profit margin is expected to decrease to 5.0% in Q2 2025, down from 5.6% in Q2 2024 [2]. Valuation - The current trading P/E ratio is 10.6 times the expected earnings for 2025, which is considered attractive compared to domestic peers [3]. - The target price of HK$23.28 suggests a potential upside of 77% from the current price of HK$13.16 [4][9]. Financial Projections - The report forecasts a steady increase in earnings per share (EPS), with estimates of RMB 1.18 for 2025, RMB 1.32 for 2026, and RMB 1.56 for 2027 [4][10]. - The expected revenue growth rates for 2025 and 2026 are 12.4% and 9.0%, respectively [10].

Investment Rating - The report maintains a "Buy" rating for Li Ning with a target price of HK$19.30, reflecting a 5% increase from the previous target price [3][6]. Core Views - The report anticipates a 2% year-on-year revenue growth and a 16% decline in net profit for the first half of 2025, with expected revenue of RMB 14.63 billion [1][6]. - The performance of Li Ning's running shoe matrix is strong, but the basketball category remains under pressure, leading to a forecasted retail discount increase in Q2 2025 [1][2]. - The report suggests that the company will continue to expand its product range, particularly in outdoor products, with a goal of introducing approximately 5,000 stores by the end of the year [2]. Financial Summary - Revenue projections for 2025-2027 are maintained at RMB 28.686 billion, RMB 29.249 billion, and RMB 29.787 billion respectively, with a slight decrease in net profit estimates for the same period [3][4]. - The expected net profit for 2025 is revised down to RMB 2.403 billion, reflecting a 20.2% year-on-year decline, with a net profit margin of 8.4% [3][4]. - The report highlights a projected gross margin decrease of 0.6 percentage points to 48.8% for 2025 [7]. Valuation Metrics - The report assigns an 18x P/E ratio for 2026, leading to a target price of HK$19.30, which indicates a 19% upside potential from the current stock price of HK$16.28 [3][6]. - Historical P/E ratios for Li Ning have fluctuated between 10-15x over the past two years, suggesting a continuation of the range trading logic unless there is a fundamental change [2][3].

Investment Rating - The report maintains a "Hold" rating for Micron Technology (MU US) with a target price of US$107.00, indicating a potential downside of 12% from the current price of US$122.24 [1][19][20]. Core Insights - The report highlights that Micron's revenue and net profit for the second half of FY25 are expected to meet market expectations, but there are concerns that the revenue and net profit forecasts for FY2026-27 are overly optimistic [6][10][19]. - The report notes that the recent price increases in DRAM products, particularly DDR4 and DDR5, are driven by limited supply and strategic production cuts by major players like Micron and Samsung [7][11][19]. - The report emphasizes that while Micron's HBM revenue exceeded expectations, the predictability of new orders is declining, and there has been a decrease in contract prices for traditional DRAM and NAND products [8][20]. Summary by Sections Investment Rating and Price Target - The investment rating is "Hold" with a target price of US$107.00, up from a previous target of US$84.00, reflecting a 27% increase in the target price [2][19]. Earnings Forecast Adjustments - The report adjusts the earnings per share (EPS) estimates for FY2025 to US$7.14 (up 11%), FY2026 to US$10.42 (up 31%), and FY2027 to US$6.29 (up 12%) [2][10]. Revenue and Profitability Outlook - Revenue for FY2025 is projected at US$36,766 million, with a growth rate of 46%, while FY2026 revenue is expected to reach US$49,992 million, reflecting a growth rate of 36% [10][19]. - The report indicates that the market's expectations for Micron's revenue and net profit in FY2026-27 are too high, with projected net profits lower than market consensus by 10.1-48.2% [10][12][20]. Market Comparison and Price Trends - The report compares Micron's revenue forecasts with market predictions, noting a slight positive deviation for FY2025 but a negative deviation for FY2026 [5][18]. - The report highlights significant price increases in DRAM products, particularly due to supply constraints and production cuts by major manufacturers [7][11]. Valuation Methodology - The report employs a sum-of-the-parts (SOTP) valuation approach, assigning a P/E multiple of 10x for the DRAM segment and 5x for the NAND segment, leading to a total valuation of US$116.83 billion [19][21].