Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 134.69, indicating a potential upside of 74.8% from the current price of HKD 77.05 [3][11]. Core Insights - The automotive gross margin exceeded expectations, with Q2 2025 revenue reaching RMB 18.27 billion, a quarter-on-quarter increase of 15.6%. Vehicle sales were 103,181 units, up 9.8% quarter-on-quarter. The average selling price (ASP) was RMB 164,000, reflecting a slight increase of RMB 1,100 [2][8]. - The company expects Q3 2025 revenue to be between RMB 19.6 billion and RMB 21 billion, with a median quarter-on-quarter growth of approximately 11.9%. The expected delivery volume is between 113,000 and 118,000 units, indicating a median quarter-on-quarter growth of about 11.1% [2][8]. - The company maintains its guidance for profitability in Q4 2025, supported by the launch of new models and improvements in vehicle structure [2][8]. Financial Overview - Revenue projections for the company are as follows: RMB 30.68 billion in 2023, RMB 40.87 billion in 2024, RMB 86.17 billion in 2025, RMB 113.34 billion in 2026, and RMB 125.49 billion in 2027, with significant growth rates expected [7][13]. - The company anticipates a net loss of RMB 10.38 billion in 2023, narrowing to RMB 5.79 billion in 2024, and expects to achieve a profit of RMB 1.5 billion by 2026 [7][13]. - The gross margin is projected to improve significantly, with expectations of 14.3% in 2025 and further increases in subsequent years [15]. Market Position and Future Outlook - The company is optimistic about the upcoming "Kunpeng Super Electric System" and the first range-extended/pure electric platform, which are expected to enter mass production in Q4 2025, contributing positively to gross margins [2][8]. - The introduction of the new generation P7 and the gradual rollout of self-developed Turing chips are expected to support short-term ASP and gross margin improvements [2][8]. - The company is positioned as a high-certainty investment among new energy vehicle manufacturers, with anticipated sales growth driven by the introduction of new models and advancements in autonomous driving technology [2][8].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation of total returns exceeding the relevant industry over the next 12 months [2][17]. Core Insights - The company reported better-than-expected performance in the first half of 2025, with revenue and net profit increasing by 0.8% and 23.0% year-on-year, reaching RMB 239.4 billion and RMB 57.9 billion respectively [6][15]. - The improvement in profitability is attributed to the upgrade of the beer business structure, the release of raw material cost benefits, and effective cost control under the "Three Precision" strategy [6]. - The target price for the company has been raised to HKD 35.90, reflecting a potential upside of 26.9% from the current price of HKD 28.28 [1][14]. Financial Performance Summary - Revenue projections for the company are as follows: RMB 38,932 million in 2023, RMB 38,635 million in 2024, and estimated growth to RMB 39,239 million in 2025, with a compound annual growth rate of 1.6% [5][15]. - Net profit is expected to increase from RMB 5,153 million in 2023 to RMB 5,807 million in 2025, reflecting a year-on-year growth of 22.5% [5][9]. - The beer business showed a revenue increase of 2.6% to RMB 231.6 billion, driven by sales volume growth of 2.2% and a slight price increase of 0.4% [6][8]. Business Segment Analysis - The beer segment's gross margin improved by 2.5 percentage points to 48.3%, while the adjusted EBITDA margin increased by 3.4 percentage points to 35.1% [6][8]. - The white liquor segment faced challenges, with a significant revenue decline of 33.7% to RMB 7.8 billion, attributed to ongoing difficulties in the business banquet scene [6][8]. - The company plans to focus on developing mass-market and light bottle liquor products to reshape its pricing structure and expand coverage in the mid-to-low-end liquor market [6]. Earnings Forecast Adjustments - The earnings forecasts for 2025-2027 have been slightly adjusted, with revenue estimates reduced by 1-5%, while EBITDA and net profit margins are expected to improve by 0.9-1.8 and 0-1.5 percentage points respectively [6][9].

Group 1: Hansoh Pharmaceutical (3692 HK) - The company is experiencing strong growth driven by innovative drugs and business development (BD) collaborations, with a 14% year-on-year revenue increase to 7.4 billion RMB in 1H25, including 1.7 billion RMB from collaborations [1] - Product sales, excluding collaboration income, grew by 13%, with innovative drug revenue increasing by 22% to 6.1 billion RMB, accounting for 82.7% of total revenue [1] - The company raised its full-year revenue guidance to a high double-digit percentage, maintaining sales targets for Amelot and overall innovative drugs at 6 billion and 10 billion RMB, respectively [1] Group 2: Amelot's Clinical Applications - Amelot's rapid market penetration is primarily driven by its first-line NSCLC indication, with additional approvals for adjuvant and III phase maintenance treatments in the first half of the year [2] - The sales peak forecast for Amelot has been raised to 9.7 billion RMB, with expectations of limited price reductions during the upcoming medical insurance negotiations [2] Group 3: China Biologic Products (1177 HK) - The company reported an 11% year-on-year revenue growth to 17.6 billion RMB in 1H25, driven by innovative product sales and investment income, with adjusted net profit increasing by 101% [3] - Revenue from innovative products grew by 27% to 7.8 billion RMB, contributing 44.4% to total revenue, an increase of 5.8 percentage points year-on-year [3] - The company maintains its guidance for full-year revenue to achieve double-digit growth [3] Group 4: Long-term Growth Drivers - The company is developing a comprehensive pipeline with differentiated self-research products, expecting significant BD opportunities from 2H25 to 2026, focusing on various innovative drug candidates [4][6] - The acquisition of Lixin Pharmaceutical has further expanded the company's oncology pipeline, with management projecting over 35 innovative products by 2027, contributing 60% to revenue [6] Group 5: Tongcheng Travel (780 HK) - The company’s Q2 performance met expectations, with a projected 15% year-on-year revenue growth in core OTA business for Q3, driven by a 10-15% increase in accommodation nights [7] - The full-year core OTA business is expected to grow by 16%, with operating profit margins improving by approximately 2 percentage points due to strategic shifts towards enhancing user ARPU and profitability in new business areas [7]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 25.50, indicating a potential upside of 29.7% from the current price of HKD 19.66 [1][10]. Core Insights - The company's Q2 performance met expectations, with a projected 15% year-on-year growth in core OTA business revenue for Q3, driven by a 10-15% increase in accommodation nights and stable ADR [2][7]. - The overall core OTA business is expected to grow by 16% for the year, with an operational profit margin improvement of approximately 2 percentage points, attributed to a strategic shift towards enhancing user ARPU and profitability in new business areas [2][3]. - Despite a 10% expected decline in revenue from the outbound travel business due to negative impacts in Southeast Asia, the company remains profitable [2]. Financial Forecasts - Total revenue projections for 2025 are set at RMB 19,295 million, reflecting an 11.3% growth rate, with adjustments showing slight decreases from previous forecasts [3][13]. - The accommodation booking segment is expected to generate RMB 5,505 million in revenue, while transportation ticketing is projected at RMB 8,032 million for 2025 [3][8]. - Adjusted operating profit for 2025 is forecasted at RMB 3,756 million, with an adjusted operating profit margin of 19.5% [3][13]. Operational Data - The company reported a robust growth in user base, with annual paying users reaching 252 million, a 10% increase year-on-year [6][7]. - The company's self-owned app remains a key channel for acquiring new users, contributing approximately 8% to core OTA revenue [6][7]. Market Performance - The stock has shown a year-to-date change of 8.02%, with a market capitalization of approximately HKD 45.36 billion [5][12]. - The stock's 52-week high and low are HKD 23.45 and HKD 13.04, respectively [5].

Core Insights - The report highlights a strong recovery in the core business of King’s Ray Bio, with a significant increase in revenue and adjusted net profit for 1H25, leading to an upward revision of guidance for the life sciences segment [1][2] - The closing price of King’s Ray Bio is HKD 18.17, with a target price set at HKD 28.75, indicating a potential upside of 58.2% [1] Financial Performance - For 1H25, the company reported a revenue increase of 82% year-on-year to USD 519 million, and an adjusted net profit growth of 510% to USD 178 million [1] - The life sciences segment saw an 11% revenue growth with an adjusted gross margin of 51.0%, and the full-year revenue growth guidance for this segment has been raised to 13-15% [1] - The custom services revenue in the booming bio segment returned to double-digit growth, with 20 new antibody protein drug projects and 30 CGT projects acquired in 1H25 [1] Business Segments - The report details the performance of various business segments: - **Life Sciences**: Revenue growth of 11%, with a full-year growth guidance of 13-15% and a stable gross margin expected [1] - **Booming Bio**: Custom services revenue growth guidance maintained at 15-20%, with expectations for the first non-COVID BLA project in 2H25 [1] - **Baisjie**: Revenue growth of 8% with an adjusted gross margin of 40.4%, focusing on team building and early strain screening [1] Valuation and Ratings - The report maintains a "Buy" rating for King’s Ray Bio, with a slight upward adjustment of revenue forecasts for 2025-2027 by 1-5%, while lowering the net profit forecast for 2025 due to significant net losses [2] - The SOTP (Sum of the Parts) valuation model has been rolled over to 2026, with target valuation multiples for each business segment remaining unchanged [2]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 3.84, indicating a potential upside of 25.5% from the current price of HKD 3.06 [1][2]. Core Insights - The company's performance in the first half of 2025 met expectations, with a revenue increase of 1.2% year-on-year to HKD 224.59 million and a net property income rise of 3.43% to HKD 185.56 million [6][7]. - The distribution per unit (DPU) for the first half of 2025 was HKD 0.131, a decrease of 10.9% year-on-year, but a slight increase of 3.2% quarter-on-quarter [6][7]. - The overall occupancy rate of the company's properties remained high at 97.5% as of June 2025, with four properties maintaining occupancy rates above 95% [6][8]. - The company anticipates stable performance in 2025, with uncertainties primarily in 2026 due to potential rental adjustments following lease renewals with SF Holding [6][8]. - Financial costs are expected to decrease, which may alleviate downward pressure on rents in 2026, as the average borrowing cost fell to 3.95% [6][8]. Financial Overview - Revenue projections for 2025 are estimated at HKD 458 million, with a slight growth of 2.7% year-on-year, while net property income is expected to reach HKD 368 million [5][12]. - The company plans to maintain a distribution payout ratio of 90% for the year, with expected DPU adjustments reflecting current rental levels [6][12]. - The total debt as of mid-2025 was approximately HKD 24.78 billion, a slight decrease from HKD 25.05 billion at the end of 2024 [6][12]. Performance Metrics - The company’s market capitalization is approximately HKD 2,481.32 million, with a year-to-date change of -2.24% [4]. - The 52-week high and low for the stock are HKD 3.26 and HKD 2.56, respectively [4]. - The average daily trading volume is around 0.95 million shares [4].

Group 1: NetEase (NTES US) - The gaming improvement trend for the second half of the year is clear, with new games expected in 2026, leading to a target price increase from $143 to $155, reflecting a potential upside of 19.5% [3] - Q2 2025 results were in line with expectations, with gaming revenue slightly below market expectations but gross margin improvement exceeding expectations [3] - Strong performance of flagship games in July and August indicates a robust recovery in mobile gaming, with a strong year-on-year growth expected in the second half of the year [3] Group 2: NetEase Cloud Music (9899 HK) - The company reported better-than-expected profits for the first half of 2025, leading to a target price increase from HKD 240 to HKD 339, indicating a potential upside of 25.5% [4] - Revenue for the first half of 2025 was HKD 3.83 billion, a year-on-year decline of 6%, primarily due to a decrease in social entertainment revenue, while subscription revenue grew by 15% [4] - Adjusted net profit for the first half was HKD 1.1 billion, exceeding market expectations [4] Group 3: JD Logistics (2618 HK) - The company is experiencing accelerated growth in external integration revenue due to prior investments, with a target price of HKD 18.50, indicating a potential upside of 32.5% [6] - Q2 2025 results met expectations, with revenue driven by the group's food delivery service and profits aligning with forecasts [6] - The company expects continued growth trends in the second half of the year [8] Group 4: JD (JD US) - The company faced higher-than-expected losses in new businesses, but retail revenue and profits are expected to grow by approximately 10% year-on-year in Q3 2025 [9] - The target price remains at $40, reflecting a potential upside of 26.7%, with a focus on improving cross-selling efficiency between food delivery and retail [9] - The company anticipates a narrowing of losses in new businesses by Q4 2025 [9] Group 5: Youdao (DAO US) - The company turned profitable in Q2 2025, focusing on AI and high school education, with a target price of $12, indicating a potential upside of 23% [10] - Revenue growth is supported by strong demand in AI-enhanced high school products and advertising business [10] - The company expects a decline in learning services and hardware revenue but a significant increase in advertising revenue [10] Group 6: Geely Automobile (175 HK) - The company reported a 27% year-on-year revenue increase to RMB 150.3 billion in the first half of 2025, with a net profit growth of 102% to RMB 6.66 billion, exceeding market expectations [11] - The target price is raised to HKD 24.21, indicating a potential upside of 27.8%, driven by improved brand integration and sales growth [11] - The company is expected to benefit from industry trends that reduce price competition, focusing more on configuration and driving experience [11] Group 7: Hesai Group (HSAI US) - The company continues to see high growth in shipments, with a target price of $27.52, indicating a potential upside of 18% [12] - Q2 2025 revenue reached RMB 706 million, with a gross margin of 42.5% [13] - The company expects to achieve a total shipment of 1.4 million units in 2025, with significant growth in ADAS and robotics products [12][13] Group 8: QFIN Technology (QFIN US) - The company achieved a net profit of RMB 1.73 billion in Q2 2025, a year-on-year increase of 25.7%, with a target price of $58, indicating a potential upside of 74.2% [14] - The company is focusing on improving asset quality and enhancing risk control measures [15] - Despite short-term uncertainties from new regulations, the company maintains a strong competitive advantage and attractive valuation [15] Group 9: SF REIT (2191 HK) - The company reported a 1.2% year-on-year revenue increase to HKD 225 million in the first half of 2025, with a target price of HKD 3.84, indicating a potential upside of 25.5% [16] - The overall occupancy rate was 97.5% as of June 2025, with expectations for moderate revenue growth in 2025 [17] - The company anticipates potential rental pressure in 2026 following lease renewals with SF Holdings [17] Group 10: Pharmaceutical Industry - The pharmaceutical sector is expected to see steady growth driven by multiple favorable factors in the second half of 2025, with a focus on high-growth opportunities in biotechnology and prescription drugs [18] Group 11: Internet Industry - E-commerce revenue growth in July 2025 exceeded expectations, with a year-on-year increase of 8.3%, driven by strong performance in communication equipment and home appliances [19] - The industry is benefiting from regulatory measures that promote healthy development and reduce aggressive subsidy strategies [19] - Investment insights suggest that Alibaba's revenue adjustments may offset the impact of flash sales subsidies, while JD's new business investments are expected to stabilize overall profit margins [19]

Investment Rating - The report assigns a "Buy" rating to Geely Automobile (175 HK) with a target price of HKD 24.21, indicating a potential upside of 27.8% from the current closing price of HKD 18.95 [1][9]. Core Insights - The report highlights a significant increase in non-GAAP net profit, exceeding market expectations, and expresses optimism regarding sales performance in the second half of the year, benefiting from industry trends against excessive competition [2][7]. - Geely's revenue for the first half of 2025 reached RMB 150.3 billion, a year-on-year increase of 27%, while the net profit attributable to shareholders was RMB 9.29 billion, a year-on-year decrease of 14%. However, the non-GAAP net profit grew by 102% year-on-year to RMB 6.66 billion, surpassing market forecasts [7][11]. - The report anticipates Geely's sales target for the year to be raised from 2.7 million to 3 million units, supported by the launch of approximately five new key electric and hybrid models in the second half of the year [7][11]. Financial Overview - Revenue projections for Geely are as follows: RMB 179.2 billion in 2023, RMB 240.2 billion in 2024, RMB 335.1 billion in 2025, RMB 395.8 billion in 2026, and RMB 439.1 billion in 2027, with year-on-year growth rates of 21.1%, 34.0%, 39.5%, 18.1%, and 10.9% respectively [3][11]. - The net profit forecast shows an increase from RMB 5.3 billion in 2023 to RMB 21.1 billion in 2027, with a notable jump to RMB 16.6 billion in 2024, followed by a slight decrease in 2025 [3][11]. - The report indicates a projected earnings per share (EPS) of RMB 0.53 in 2023, rising to RMB 2.10 by 2027, with a peak EPS of RMB 1.65 in 2024 [3][11]. Market Performance - Geely's stock has shown a year-to-date increase of 27.87%, with a 52-week high of HKD 20.35 and a low of HKD 7.70 [6][11]. - The average daily trading volume is reported at 102.16 million shares, reflecting strong market interest [6][11].

Group 1: Automotive Industry Analysis - The automotive industry is experiencing a strong push towards the implementation of intelligent driving technologies, with a significant increase in the adoption of lidar systems in vehicles priced below 150,000 yuan. In the first half of 2025, 1.044 million passenger cars in mainland China were equipped with lidar, representing a year-on-year increase of 83.14% [1][2] - The report highlights the importance of monitoring the regulatory developments for Level 3 conditional autonomous driving within the next year, which is expected to enhance the value per vehicle and benefit key suppliers in the industry [1][2] - The long-term outlook suggests that the robotics market, particularly consumer-grade robots, is poised for significant growth, with expectations of over 10 million humanoid robots shipped by 2035, coinciding with an increase in lidar integration [1][2] Group 2: Company Ratings and Market Position - The report initiates coverage on Hesai Technology and RoboSense, both of which lead the global lidar market. Both companies are expected to release ADAS lidar systems suitable for vehicles priced under 200,000 yuan in 2024, priced below 200 USD, aligning with the trend of democratizing intelligent driving [2] - The report assigns a "Buy" rating to Hesai Technology (HSAI US) with a target price of 27.52 USD and RoboSense (2498 HK) with a target price of 41.89 HKD, indicating confidence in their market positions and growth potential [2] Group 3: Tencent Holdings Performance - Tencent Holdings reported a total revenue growth of 15% year-on-year in Q2 2025, surpassing market expectations. Key segments such as gaming and marketing saw growth rates of 22% and 20%, respectively [3][5] - The gross margin improved by approximately 3.6 percentage points to 57%, driven by high-margin businesses including local gaming and video services [3][5] - The forecast for Q3 2025 anticipates an overall revenue growth rate of 11%, slightly above previous market expectations, with social, gaming, and marketing segments expected to grow at rates of 7%, 13%, and 18%, respectively [3][5] Group 4: Banking Sector Insights - In July, the net increase in new RMB loans decreased by 50 billion yuan year-on-year, primarily due to seasonal factors and weak credit demand. However, the total social financing (TSF) increased by 1.16 trillion yuan, reflecting a year-on-year increase of 3.893 trillion yuan, mainly driven by government bonds [6] - The report indicates that despite the decrease in new RMB loans, social financing continues to provide strong support to the real economy, with government initiatives expected to boost consumer loan growth [6]

Investment Rating - The report maintains a "Buy" rating for several companies in the banking sector, indicating an expectation of total returns exceeding the relevant industry over the next 12 months [16]. Core Insights - In July, new RMB loans decreased by 50 billion, a year-on-year reduction of 310 billion, primarily due to weak credit demand during the off-peak season [1][2]. - The total social financing (社融) in July was 1.16 trillion, a year-on-year increase of 389.3 billion, with government bonds being the main source of this financing [1][2]. - M1 growth rate was 5.6% and M2 growth rate was 8.8%, both showing a month-on-month increase [3][4][9]. - Despite a net decrease in new RMB loans in July, social financing still showed a year-on-year increase, indicating continued financial support for the real economy [1]. Summary by Sections New RMB Loans - In July, new RMB loans saw a net decrease of 50 billion, with short-term loans and medium to long-term loans also experiencing declines [2]. - The total new RMB loans for the first seven months of 2025 amounted to 1.287 trillion, reflecting a year-on-year decrease of 660 billion [2]. Social Financing - The new social financing in July was 1.16 trillion, with a significant contribution from government bonds, which amounted to 1.244 trillion, a year-on-year increase of 555.9 billion [1][2]. - For the first seven months of 2025, total social financing reached 23.99 trillion, up 51.2 billion year-on-year [2]. Deposits - New RMB deposits in July were 500 billion, a year-on-year increase of 1.3 trillion, primarily driven by non-bank financial institution deposits [1][2]. - Resident deposits saw a net decrease of 1.11 trillion, while non-bank financial institutions added 2.14 trillion in deposits [1][2]. Economic Support Measures - The report highlights the government's recent initiative to boost consumption through fiscal subsidies for eligible personal consumption loans, which is expected to stimulate demand and promote growth in personal loans [1].