Investment Rating - The report assigns a "Neutral" rating to the company with a target price of HKD 9.30, indicating a potential downside of 11.6% from the current closing price of HKD 10.51 [2][11]. Core Insights - The company is expected to face continued pressure in Q2 2025 due to centralized procurement and hospital-level medical insurance cost control, but there are optimistic prospects for a recovery in the second half of 2025 and in 2026-2027 as these pressures are expected to ease [2][7]. - The report highlights the company's ongoing research and business development (BD) efforts, which are anticipated to contribute positively to performance, alongside a rebound in the raw materials and functional foods business [2][7]. - The target price has been adjusted upwards to reflect the anticipated recovery and the reasonable current valuation, with positive catalysts and risks already factored into the stock price [2][7]. Financial Forecast Changes - Revenue forecasts for 2025 have been revised down by 1.3% to RMB 29,649 million, with further reductions for 2026 and 2027 [6][14]. - The gross profit for 2025 is projected at RMB 20,161 million, reflecting a slight decrease from previous estimates [6][14]. - The net profit attributable to shareholders for 2025 is now expected to be RMB 5,568 million, an increase of 8.4% from prior forecasts [6][14]. Business Segment Performance - In Q2 2025, the company's pharmaceutical business continued to face challenges, with a 24% year-on-year decline in revenue across almost all therapeutic areas [7]. - The raw materials and functional foods segments showed resilience, with revenues increasing by 12% and 8% year-on-year, respectively [7]. - Management anticipates a revenue growth of over 5% in the second half of 2025 compared to the first half, driven by market expansion and new product launches [7]. Long-term Growth Drivers - The company is focusing on innovative products, particularly in the oncology space, with several key trials expected to progress by the end of the year [7]. - The report emphasizes the importance of BD transactions, with two significant deals expected to close by year-end, which could enhance revenue streams [7]. - The company is actively exploring opportunities in various high-potential areas, including peptide long-acting formulations and mRNA vaccines, which are expected to contribute to future revenue and cash flow [7].

Global Macro - The report highlights that the Federal Reserve is likely to open the door for a rate cut in September, driven by the increasing risks in the employment market outweighing inflation risks [2][3] - The adjustment in monetary policy framework from an average inflation targeting (AIT) to a flexible 2% inflation target reflects the changing economic environment, indicating a shift in response to high inflation and growth conditions [4] - The report suggests that while a rate cut in September is probable, it is more of a preventive measure rather than a signal of an impending recession, as the U.S. economy shows resilience [4][3] Employment and Inflation - The employment market is facing downward risks, with July's non-farm payroll data falling short of expectations and previous months' data being significantly revised downwards, indicating potential overestimation of current employment figures [2][3] - Inflation risks are considered manageable in the short term, with the impact of tariffs expected to be gradual rather than immediate, thus supporting the case for a rate cut [3] - The labor market's downward pressure, influenced by tightening immigration policies, may also help to suppress inflation, further justifying the anticipated rate cut [3] Economic Indicators - The report notes that key economic indicators such as retail and industrial production suggest that the U.S. economy remains robust, with a low likelihood of a recession in the near term [4][26] - The labor participation rate is declining, which may lead to a higher actual unemployment rate than currently reported, complicating the Federal Reserve's data-dependent policy approach [10][12] - The financial conditions in the U.S. are currently easing, which may support continued economic growth and limit the need for aggressive rate cuts [15][18]

Group 1: 卓胜微 (300782 CH) - The company has shifted from profit to loss in 1H25, with revenue in 2Q25 at RMB 948 million, down 13% year-on-year, and losses of RMB 101 million and RMB 147 million for 2Q25 and 1H25 respectively [1] - Management expects cost pressure to approach its peak as production capacity increases, with signs of cost reduction and improved efficiency emerging [1] - Revenue forecasts for 2025 and 2026 have been lowered to RMB 4.17 billion and RMB 5.17 billion respectively, with EPS estimates adjusted to RMB 0.05 and RMB 1.15 [1] Group 2: 哔哩哔哩 (BILI US) - The company reported 2Q25 revenue of RMB 7.3 billion, a 20% year-on-year increase, with adjusted net profit of RMB 560 million, slightly above expectations [2] - Game revenue surged 60% year-on-year driven by the success of "三谋", while advertising revenue also grew by 20% due to increased traffic and AI technology applications [2] - The target price has been raised to USD 32, reflecting a potential upside of 34.7% [3] Group 3: 途虎 (9690 HK) - The company’s performance in the first half of 2025 met expectations, with revenue growth driven by improved market share and profit margins [6] - The target price has been adjusted to HKD 25, indicating a potential upside of 31.2% [6] - The company is expected to maintain double-digit revenue growth and stable profit margins despite industry uncertainties [6] Group 4: 先声药业 (2096 HK) - The company achieved a 15% revenue growth and a 21% increase in adjusted net profit in 1H25, driven by a 26% growth in innovative drug revenue [7][8] - Management has updated guidance for 2025-2027, expecting over 15% growth in revenue and adjusted net profit [8] - The target price has been raised to HKD 16.40, reflecting a positive outlook on the company’s growth trajectory [8] Group 5: 恒瑞医药 (1276 HK) - The company reported a 16% revenue growth in 1H25, with innovative drug sales growing over 25% [9][10] - The company plans to repurchase shares worth approximately RMB 10-20 billion, contingent on achieving specific sales growth targets [9] - The target price has been set at HKD 70.40, indicating a potential downside of 9.4% [10] Group 6: 速腾聚创 (2498 HK) - The company’s laser radar sales increased over sixfold year-on-year in 2Q25, with expectations for peak deliveries in the second half of the year [11][12] - The gross margin for the robot business reached 41.5%, contributing to an overall gross margin increase to 27.7% [12] - The target price is maintained at HKD 41.89, reflecting confidence in the company’s growth potential [12] Group 7: 亿纬锂能 (300014 CH) - The company’s battery shipments reached 50 GWh in the first half of 2025, a 46% year-on-year increase, with revenue growing 30% to RMB 28.2 billion [13][14] - Focus is on improving profitability in the energy storage segment, with expectations for recovery in margins [13] - The target price is set at RMB 56.51, indicating a potential upside of 16.5% [14] Group 8: 名创优品 (9896 HK) - The company’s revenue grew 21.1% year-on-year in the first half of 2025, with a 23.1% increase in 2Q25, exceeding previous guidance [15][16] - The management has raised the full-year revenue growth guidance to over 25% [16] - The target price has been increased to HKD 48.70, indicating a potential upside of 24.7% [16] Group 9: 李宁 (2331 HK) - The company reported a 3.3% revenue growth in the first half of 2025, with net profit declining 11% year-on-year [17][18] - Management maintains a cautious outlook for the third quarter, citing challenges in the operating environment [17] - The target price is set at HKD 16.28, reflecting a potential downside of 10.1% [18] Group 10: 友邦保险 (1299 HK) - The new business value grew 14% year-on-year, primarily driven by contributions from Hong Kong and Thailand [19][20] - The company aims for a compound annual growth rate of 40% in new business value from new regions between 2025 and 2030 [19] - The target price is maintained at HKD 84, indicating a potential upside of 14.4% [20] Group 11: 恒基地产 (12 HK) - The company’s revenue fell 18.8% year-on-year in the first half of 2025, with core net profit down 44.4% [21][22] - The target price has been adjusted to HKD 25.90, reflecting a cautious outlook on the company’s performance [22] - The rental income remained stable, with a slight decline of 2.8% [22] Group 12: 越秀服务 (6626 HK) - The company’s revenue remained stable with a 0.1% year-on-year increase, while net profit decreased by 13.7% [23][24] - The company maintains a high dividend payout ratio of 50% [23] - The target price has been slightly adjusted to HKD 4.20, indicating a potential upside of 38.2% [24] Group 13: 中国电力 (2380 HK) - The company’s profit increased by 0.7% year-on-year, outperforming market expectations [25][26] - The company plans to adjust its installation targets for wind and solar power due to new policies [25] - The target price has been slightly lowered to HKD 3.75, maintaining a buy rating [26]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 41.89, indicating a potential upside of 21.4% from the current price of HKD 34.50 [1][10][11]. Core Insights - The company is expected to experience a peak in robot lidar deliveries in the second half of the year, with a significant increase in sales volume and revenue [2][6]. - The gross margin for lidar products is steadily improving, with the overall gross margin rising to 27.7% in Q2 2025, up 4.2 percentage points from the previous quarter [6][7]. - The company has made significant advancements in its self-developed SPAD-SOC chip, which is expected to enhance production capabilities and market competitiveness [6][7]. Financial Overview - Revenue is projected to grow from RMB 1,120 million in 2023 to RMB 4,456 million by 2027, reflecting a compound annual growth rate (CAGR) of approximately 45.2% [5][13]. - The net profit is expected to improve from a loss of RMB 4,331 million in 2023 to a profit of RMB 263 million by 2027, indicating a turnaround in profitability [5][13]. - The company reported a revenue of RMB 455 million in Q2 2025, a 24% increase year-over-year, with a notable 133% increase in gross profit [6][7]. Market Performance - The stock has shown a year-to-date increase of 12.38%, with a 52-week high of HKD 50.40 and a low of HKD 11.02 [4][6]. - The average daily trading volume is approximately 6.78 million shares, indicating active market participation [4]. Sales and Production Metrics - In Q2 2025, the company sold 158,200 units of lidar, a 29% increase year-over-year, with robot lidar sales surging by 632% [6][7]. - The average selling price (ASP) for lidar products was approximately RMB 2,600, reflecting a slight decrease of 5% from the previous quarter [6]. Future Outlook - The company is expected to achieve profitability by 2026, driven by scale effects and improved operational efficiencies [6][8]. - The upcoming release of the AC2 robot in the second half of the year is anticipated to capitalize on the growing demand for embodied intelligence in robotics [6].

Investment Rating - The report maintains a "Neutral" rating for the company with a target price raised to HKD 25.90, indicating a potential downside of 5.3% from the current price of HKD 27.34 [1][7][10]. Core Insights - The company's performance in the first half of 2025 met expectations, with a revenue decline of 18.8% year-on-year to HKD 9.55 billion, primarily due to a drop in property sales and other income [7][8]. - Core net profit decreased by 44.4% year-on-year to HKD 3.05 billion, attributed to a decline in gross margin and a one-time compensation from the government in the previous year [7][8]. - The company has a backlog of unsold properties worth HKD 12.7 billion, with approximately 66% expected to be recognized in the second half of the year, maintaining a gross margin of 15-20% [7][8]. - Rental income slightly decreased by 2.8% year-on-year to HKD 3.36 billion, with a stable occupancy rate of 93% [7][8]. Financial Overview - Revenue projections for the upcoming years are as follows: HKD 27.57 billion in 2023, HKD 25.26 billion in 2024, HKD 29.02 billion in 2025, HKD 30.50 billion in 2026, and HKD 32.41 billion in 2027, with a projected growth of 14.9% in 2025 [6][12]. - Core earnings per share are expected to be HKD 2.00 in 2023, HKD 2.02 in 2024, HKD 1.90 in 2025, HKD 2.05 in 2026, and HKD 2.29 in 2027 [6][12]. - The company maintains a dividend yield of 6.6% across the forecast period [6][12]. Market Position - The company is positioned within the Hong Kong real estate sector, facing challenges such as price uncertainty in property development and long recovery periods for investment properties [7][10]. - The report highlights that the rental growth potential is primarily driven by the leasing of The Henderson and the upcoming large-scale waterfront projects in Central, expected to be completed between 2026 and 2032 [7][10].

Investment Rating - The report maintains a Neutral rating for the company with a target price of HKD 16.28, indicating a potential downside of 10.1% from the current closing price of HKD 18.11 [2][15]. Core Insights - The company reported a steady performance in the first half of 2025, with revenue increasing by 3.3% year-on-year to RMB 14.82 billion. However, challenges are anticipated in the third quarter due to declining foot traffic and increased marketing expenses related to the Olympics [7]. - The management has maintained its full-year guidance for 2025, expecting flat revenue and a high single-digit net profit margin. The company is currently in an adjustment phase, and the recovery pace in the second half remains uncertain [7]. - The company has a healthy inventory level with a stock-to-sales ratio of four months, despite a net decrease of 51 stores to 7,534 by the end of the first half [7]. Financial Overview - Revenue projections for the company are as follows: RMB 27,598 million in 2023, RMB 28,676 million in 2024, and RMB 29,007 million in 2025, reflecting a growth rate of 7.0%, 3.9%, and 1.2% respectively [6][8]. - Net profit is expected to decline from RMB 3,187 million in 2023 to RMB 2,678 million in 2025, with a corresponding decrease in earnings per share from RMB 1.23 to RMB 1.04 [6][17]. - The company’s gross margin is projected to be 49.1% in 2025, down from 48.4% in 2023, while the net profit margin is expected to decrease to 9.2% in 2025 [8][18]. Market Position and Strategy - The company continues to focus on professional sports categories, with footwear sales growing by 4.9% year-on-year, while apparel sales declined by 3.4%. The running category showed strong growth, with sales increasing by 15% [7]. - The management has increased marketing investments, particularly in collaboration with the Chinese Olympic Committee, to enhance the brand's professional image, despite the anticipated rise in marketing expense ratios in the second half of the year [7].

Investment Rating - The report assigns a neutral rating to the company with a target price of HKD 70.40, indicating a potential downside of 9.4% from the current closing price of HKD 77.75 [6][11]. Core Insights - The company has experienced significant growth in innovative drug sales, with a year-on-year revenue increase of 16% in 1H25, driven by a 23% increase in innovative drug sales, which now account for 55% of product sales revenue [6][12]. - The management plans to increase R&D investment while keeping the total R&D expenditure as a percentage of total revenue below 30% [6]. - The company has achieved several business development (BD) milestones, including the approval of six innovative drugs in 1H25 and expectations to launch 47 new products and indications from 2025 to 2027 [6][12]. Summary by Sections Financial Performance - In 1H25, the company reported a revenue of approximately RMB 20 billion from collaboration income, up from RMB 14 billion in 1H24 [6]. - The gross margin improved by 0.4 percentage points to 86.6%, with a notable decrease in selling, general, and administrative (SG&A) expenses and R&D expense ratios [6][12]. - The projected revenue for 2025 is RMB 32,543 million, with a net profit forecast of RMB 7,698 million [12]. Business Development - The company has successfully completed three overseas agreements in 2025, including a deal with GSK valued at approximately USD 12 billion [6]. - The management's targets for the employee stock ownership plan include achieving over 25% annual growth in innovative drug sales and submitting 5-8 new drug applications each year from 2025 to 2027 [6]. Valuation - The report raises the revenue forecast for 2025-2027 by about 2% and the net profit forecast by 7-8% to reflect the contributions from various BD transactions and expected improvements in profit margins [6][12]. - The DCF valuation model indicates a fair value of HKD 70.40 per share, with no premium or discount applied to the Hong Kong shares compared to A-shares [6][7].

Investment Rating - The report maintains a "Buy" rating for the company, Miniso (9896 HK), with a target price raised to HKD 48.70, indicating a potential upside of 24.7% from the current price of HKD 39.06 [1][8][12]. Core Insights - The company's Q2 performance exceeded expectations, with management raising guidance for overall revenue growth to over 25% for the year, up from the initial guidance of over 22.8% [2][7]. - The domestic same-store sales are expected to achieve positive year-on-year growth, while the overseas market continues to expand, with a net increase of 94 stores in Q2 [7][8]. - The revenue for the first half of the year grew by 21.1% year-on-year to RMB 9.39 billion, driven by overseas markets and the Top Toy segment [7][8]. Financial Overview - Revenue projections for the years 2023 to 2027 are as follows: - 2023: RMB 13,839 million - 2024: RMB 16,994 million - 2025E: RMB 21,158 million - 2026E: RMB 24,835 million - 2027E: RMB 28,388 million - Year-on-year growth rates for revenue are projected at 37.2% for 2023, 22.8% for 2024, and 24.5% for 2025 [3][14]. - Net profit estimates are: - 2023: RMB 2,253 million - 2024: RMB 2,618 million - 2025E: RMB 2,564 million - 2026E: RMB 3,364 million - 2027E: RMB 3,967 million [3][14]. - The adjusted net profit for 2025-2027 has been revised down by 13-14% to RMB 28-40 billion due to more conservative margin assumptions [8][9]. Market Performance - The stock has shown a year-to-date decline of 16.98%, with a 52-week high of HKD 52.05 and a low of HKD 25.05 [6][12]. - The average daily trading volume is 11.84 million shares, with a market capitalization of approximately HKD 47.92 billion [6][12].

Group 1: Baidu (BIDU US) - Traditional search continues to face pressure, but the value of the second and third growth curves has become apparent [1] - In Q2 2025, Baidu's core revenue decreased by 2% year-on-year, with adjusted operating profit and profit margin down 37% and 10 percentage points respectively [1] - Advertising revenue fell by 15% year-on-year, negatively impacted by AI search transformation, while intelligent cloud revenue grew by 27% due to enhanced AI capabilities and demand for end-to-end AI product solutions [1][2] - For Q3, it is expected that the proportion of generative search content will continue to rise, impacting Baidu's search advertising exposure, with anticipated advertising revenue declines of 25% and 15% in Q3 and Q4 respectively [2] - The target price is maintained at $99, indicating a potential upside of 14.1% [1][2] Group 2: iQIYI (IQ US) - Summer content is expected to drive marginal improvement in core business, with new regulations releasing long-term growth potential [3] - In Q2 2025, revenue decreased by 11% year-on-year due to lackluster content performance, but adjusted operating profit was better than expected at 59 million yuan [3] - The new broadcasting regulations are expected to positively impact financial performance by enhancing content diversity and production efficiency [3] Group 3: Kingsoft (3888 HK) - Short-term gaming revenue is under pressure, but office AI monthly active users are growing rapidly [6] - In Q2, revenue declined by 7% due to high base effects from key games, while operating profit margin decreased due to increased AI investment and marketing costs [6] - Office business remains robust, with AI monthly active users reaching nearly 30 million, a 50% year-on-year increase [6] Group 4: Futu Holdings (FUTU US) - Earnings continue to exceed expectations, with the target price raised to $220 [7] - In Q2, net profit grew by 112.7% year-on-year, driven by strong growth in asset clients and wealth management assets [7] - The company benefits from the rising risk appetite of investors in the Hong Kong stock market [7] Group 5: ZhongAn Online (6060 HK) - 1H25 earnings exceeded expectations, leading to an upward revision of the target price [8] - The net profit for 1H25 was 668 million yuan, surpassing the full-year profit of 2024 [8] - The growth in premium income is primarily driven by health ecosystems and consumer finance [8][9] Group 6: Xiaomi Group (1810 HK) - Automotive performance in Q2 2025 was impressive, while smartphone business adjustments were in line with expectations [13] - Revenue for Q2 was 116 billion yuan, with automotive revenue growing by 40% [13] - The management maintains a sales target of 350,000 vehicles for the year, with expectations of achieving profitability in the automotive sector by Q4 2025 [13][14] Group 7: Longyuan Power (916 HK) - The company's performance in the first half of the year was weaker than expected, but the annual new installed capacity target remains unchanged [15] - Net profit for the first half decreased by 13.6% to 3.52 billion yuan, primarily due to lower utilization hours and electricity prices [15] - The company aims for a total of 5 GW of new installed capacity for the year [15] Group 8: China Resources Power (836 HK) - The company's renewable energy profits were slightly below expectations, maintaining a target of 10 GW for new wind/solar installations [16] - The company reported a 15.9% year-on-year decline in profits, but core profits remained stable [16] - New installed capacity for renewable energy surged fourfold to 4.8 GW in the first half [16][17]

Investment Rating - The report maintains a Neutral rating for WuXi Biologics (2269 HK) with a target price of HKD 34.00, indicating a potential upside of 11.0% from the current closing price of HKD 30.62 [1][12]. Core Insights - The company's performance in the first half of 2025 (1H25) shows a continued recovery trend, with a strong order intake of 86 new contracts, marking a historical high for the first half of the year. However, there are concerns regarding the impact of changes in overseas financing and market dynamics on early-stage clinical projects, leading to a decrease in revenue from this segment [2][6]. - The management has raised the full-year revenue growth guidance to a range of 14-16%, up from the previous 12-15%, while maintaining a positive free cash flow outlook [6][7]. - The report highlights that the long-term growth drivers for the company remain strong, particularly through its proprietary technologies and the increasing number of projects in hand, which have grown by 10% compared to the end of 2024 [6][7]. Financial Summary - Revenue for 2025 is projected at RMB 21,312 million, with a growth forecast of 16% for 1H25 compared to the previous period. The gross profit is expected to reach RMB 9,157 million, reflecting a gross margin of 43.0% [5][13]. - The adjusted net profit for 2025 is estimated at RMB 5,005 million, with a net profit margin of 23.5% [5][13]. - The company’s market capitalization is approximately HKD 124.64 billion, with a year-to-date stock price increase of 74.37% [4][12]. Order and Project Insights - In 1H25, the company secured 86 new comprehensive projects, with over 70% being dual/multi-antibody and ADC projects. The report notes that the number of M-end projects has increased to 24, with expectations to complete 25 PPQ projects in 2025 [6][7]. - The report emphasizes the importance of proprietary technology in generating future revenue streams, including collaboration income and sales commissions [6][7]. Market and Regional Performance - Revenue growth in North America was 20%, while the Chinese mainland saw an 8.5% decline due to financing environment impacts. Japan and South Korea showed strong performance, indicating potential for further growth in these regions [6][7].