Investment Rating - The report assigns a "Buy" rating to multiple companies in the automotive sector, indicating a positive outlook for their future performance [2][12][13]. Core Insights - In July, the penetration rate of new energy vehicles (NEVs) reached 54%, marking a new high for the year, with expectations for stable growth in the automotive market in August [1][5]. - The retail sales of passenger vehicles in July were 1.826 million units, showing a year-on-year increase of 6.3% but a month-on-month decline of 12.4% [5]. - The cumulative retail sales for the first seven months of 2025 reached 12.728 million units, reflecting a year-on-year growth of 10.1% [5]. - Domestic brands outperformed the overall industry, with retail sales of 1.21 million units in July, a year-on-year increase of 14% [5]. - The report highlights that NEV retail sales in July were 987,000 units, with a year-on-year increase of 12% [5]. Summary by Sections Market Performance - The automotive market entered a sales lull in July, with a slight decline in month-on-month sales but maintained year-on-year growth due to trade-in programs [5]. - The market share of domestic brands increased to 65.9%, while mainstream joint venture brands saw a decline in retail sales [5]. New Energy Vehicles - The NEV penetration rate for the first seven months of 2025 was 50.7%, with July's rate at 54%, an increase of 2.7 percentage points year-on-year [5]. - The report notes that the export of NEVs maintained a strong growth trend, with July exports totaling 213,000 units, a year-on-year increase of 120.4% [5]. Investment Opportunities - The report suggests that the upcoming launch of several new models, including Li Auto's i6 and the new XPeng P7, will enhance market supply and drive retail sales recovery [5]. - Companies to watch include BYD, XPeng Motors, and Geely, all rated as "Buy" due to their potential for growth and market performance [5][12].

Group 1: 华虹半导体 - The company experienced a rebound in gross margin, with a notable demand for power management devices, leading to an upward revision in profit forecasts [1][2] - For Q2 2025, revenue reached $566 million, slightly exceeding guidance, with a gross margin of 10.8%, surpassing expectations [1] - The management indicated that price adjustments made in Q2 2025 will reflect more significantly in Q3 and Q4, with Q3 revenue guidance set between $620 million and $640 million [1][2] Group 2: 和黄医药 - The company faced short-term pressure in H1 2025, with total revenue declining by 9% year-on-year, significantly impacted by competition in mainland China [3][4] - The revenue from oncology and immunology businesses dropped by 15%, leading to a downward revision of the full-year revenue guidance from $350-450 million to $270-350 million [3] - Despite the challenges, the company is expected to achieve operational breakeven in H2 2025 [3][4] Group 3: 爱旭股份 - The company reported a profit of 63 million RMB in Q2 2025, marking a significant turnaround, with a gross margin of 7.4%, up 6.9 percentage points from the previous quarter [9] - The shipment volume of ABC components was 4.03 GW, although it saw an 11% quarter-on-quarter decline, with overseas sales exceeding 40% [9] - The rising prices of silicon wafers since July may compress the profit margins of ABC components, and there are uncertainties regarding the potential cancellation of a 9% export tax rebate on photovoltaic products [9]

Investment Rating - The investment rating for the company is Neutral [2][11]. Core Insights - The company has reported better-than-expected performance, achieving profitability in Q2 2025, with a revenue of RMB 4.31 billion, a quarter-on-quarter increase of 4.2% [6][7]. - The gross margin significantly improved to 7.4%, up 6.9 percentage points from the previous quarter, marking the first profitable quarter since Q4 2023 [6]. - Despite the positive results, uncertainties remain for the second half of the year, leading to a maintained Neutral rating and a target price of RMB 16.50, reflecting a potential upside of 12.6% [6][11]. Financial Overview - Revenue projections for the company are as follows: RMB 27,170 million in 2023, RMB 11,155 million in 2024, RMB 19,370 million in 2025E, RMB 30,386 million in 2026E, and RMB 35,905 million in 2027E, with a significant growth expected in 2025 [5][13]. - The net profit is projected to be RMB 757 million in 2023, a loss of RMB 5,319 million in 2024, and a loss of RMB 337 million in 2025E, with a return to profitability expected in 2026 [5][13]. - The company’s gross margin is expected to recover from -9.9% in 2024 to 5.3% in 2025E, and further improve to 13.8% in 2026E [13]. Market Performance - The stock has a 52-week high of RMB 16.49 and a low of RMB 7.39, with a market capitalization of approximately RMB 26,556.06 million [4]. - Year-to-date performance shows an increase of 32.94% [4]. Component Business Forecast - The company’s ABC component sales are projected to grow from 0.5 GW in 2023 to 20.0 GW in 2025E, with unit prices expected to decrease from RMB 1.22 to RMB 0.73 per watt during the same period [8].

Group 1: Company Overview - 豪威集团 (OmniVision Technologies) - The automotive intelligent driving business is driving record high revenues, with a closing price of RMB 121.22 and a target price of RMB 180.00, indicating a potential upside of +48.5% [1] - The net profit for 1H25 was in line with expectations, with a median net profit of RMB 1.98 billion and revenue median of RMB 13.87 billion, attributed to a slowdown in smartphone shipments affecting image sensor product revenues [1][2] - The automotive CIS chip market share is steadily increasing in panoramic and action camera segments, contributing to a historical high in revenue for 2Q25 [1] Group 2: Financial Projections - 豪威集团 (OmniVision Technologies) - Revenue forecasts for 2025/26 have been adjusted down to RMB 31.1 billion and RMB 36.8 billion, respectively, with slight adjustments to net profit estimates for the same years [2] - The diluted EPS for 2025/26 is projected at RMB 3.98 and RMB 5.24, maintaining a target price of RMB 180, corresponding to a 39x average P/E ratio for 2025/26 [2] Group 3: Company Overview - 高途 (Gaotu Techedu) - The education business shows strong performance with a projected 31% year-on-year revenue growth for Q2 2025, driven by robust growth in K9 business and better-than-expected growth in high school segments [3] - Despite controlled offline business investments and ongoing operational efficiency improvements, increased AI-related expenditures have led to an adjusted operational loss of RMB 250 million for Q2 [3] - The target price for Gaotu is set at USD 4.80, reflecting a 33% potential upside based on a 15x P/E ratio for online education [3] Group 4: Company Overview - 百济神州 (BeiGene) - The company reported a 41% year-on-year revenue growth in Q2 2025, reaching USD 1.3 billion, exceeding market expectations [6] - Sales of the drug Zejula increased by 49% year-on-year to USD 950 million, with significant growth in both the US and European markets [6] - The target price for BeiGene has been raised to HKD 225.00, indicating a potential upside of +23.2% [6][7] Group 5: Financial Projections - 百济神州 (BeiGene) - Revenue guidance for the full year has been raised to a range of USD 5.0 billion to USD 5.3 billion, with a gross margin target of 80-90% [6] - The company has also increased its peak sales forecasts for Zejula and another drug, with projected peak sales of USD 7.3 billion and USD 900 million, respectively [7]

Group 1: AMD - The MI350 series is expected to drive revenue growth in the second half of 2025, with management guiding a median revenue of $8.7 billion for Q3 2025, exceeding previous expectations [1][2] - Q2 2025 revenue reached $7.7 billion with a Non-GAAP gross margin of 43.3%, both surpassing forecasts [1] - The target price for AMD has been raised to $196, reflecting a potential upside of 12.4% based on a 35x P/E ratio for 2026 [2] Group 2: Property Trust - The property trust reported a slight revenue decline of 2.0% year-on-year to HKD 854.5 million for the first half of 2025, with net property income down 3.2% to HKD 612.6 million [3][7] - Distributable income and distribution per unit (DPU) increased by 2.1% and 1.0% year-on-year, respectively, aligning with expectations [3] - The average interest cost decreased significantly to 3.5%, down 60 basis points year-on-year, which is expected to support further increases in DPU [3] Group 3: Internet Industry - Tencent's domestic revenue decreased by 12% year-on-year, while overseas revenue showed a positive growth of 5% [8][9] - New game launches are expected to mitigate the impact of high revenue bases in the second half of the year, with an estimated annual game revenue growth of 12% [9] - NetEase's domestic revenue grew by 5%, driven by new game contributions, indicating a stable performance in the mobile gaming sector [8][9]

Report on the Investment Rating of the Hong Kong Real Estate Industry - The report maintains a "Buy" rating for The Link Real Estate Investment Trust (778 HK) and provides ratings for other companies in the Hong Kong real estate, mainland real estate, and property service sectors, including "Buy" and "Neutral" ratings [1][5] Core Viewpoints of the Report - The performance of The Link Real Estate Investment Trust in the first half of 2025 was stable, with the distribution per unit (DPU) in line with expectations. The Hong Kong retail portfolio remained resilient, and the occupancy rate was maintained at a high level. The decrease in interest expenses in the first half of the year offset the decline in revenue, and the dividend yield was over 7%. The report maintains a "Buy" rating with an unchanged target price of HK$5.86 [1] Summary of Relevant Content Performance in the First Half of 2025 - Revenue decreased slightly by 2.0% year-on-year to HK$854.5 million (HK$871.8 million in the first half of 2024). Net property income decreased by 3.2% to HK$612.6 million (HK$633.1 million in the first half of 2024). The distributable income and DPU increased by 2.1%/1.0% year-on-year to HK$377.1 million/18.41 HK cents, approximately 48.8% of the full-year forecast DPU of 37.71 HK cents [1] Retail Portfolio and Occupancy Rate - With the completion of the asset enhancement project of +WOO, the occupancy rate increased by 0.9 percentage points year-on-year to a high level of 95.0% (94.1% in the first half of 2024). 11 out of 17 malls had an occupancy rate of over 96%. The asset enhancement plan for The Metropolis Plaza was postponed, and the company planned to re-let the previously vacated areas. It was expected that the overall occupancy rate would further improve in the second half of the year, driving up rents. As of the end of June 2025, approximately 72% of the tenant portfolio was composed of daily necessities and essential services (by area and rent). The company planned to optimize the tenant portfolio and expected the overall rent of the malls to remain stable in the second half of the year [1] Interest Expenses - Due to the significant decline in HIBOR starting in May 2025, the overall average interest cost in the first half of 2025 was 3.5%, a year-on-year decrease of 60 basis points. The actual borrowing cost excluding the fair value change of derivative financial instruments decreased by 12.6% year-on-year to HK$173.3 million (HK$198.1 million in the first half of 2024). Approximately 50% of the company's floating-rate liabilities would continue to benefit from the decline in HIBOR in the second half of the year, saving more interest expenses to support the increase in DPU [1] Ratings and Target Prices of Other Companies - The report provides ratings and target prices for other companies in the Hong Kong real estate, mainland real estate, and property service sectors, including "Buy" and "Neutral" ratings, and calculates the potential upside for each company [5]

Investment Rating - The report assigns a "Buy" rating to several companies in the automotive sector, including BYD (1211 HK), XPeng Motors (9868 HK), and Geely Automobile (175 HK) [8]. Core Insights - The report highlights that the new energy vehicle market maintained a year-on-year growth in July, despite a slowdown in delivery growth due to the traditional off-season for passenger car sales [2][4]. - The overall delivery volume for new energy vehicles in July showed a year-on-year increase of 11.2% but a month-on-month decrease of 6.2% [6]. - The report anticipates an improvement in overall sales in August as the traditional peak sales season approaches [4]. Summary by Relevant Sections Company Performance - BYD delivered 341,030 vehicles in July, a slight year-on-year increase of 0.1% but a month-on-month decrease of 9.7% [6]. - Li Auto delivered 30,731 vehicles in July, reflecting a significant year-on-year decrease of 39.7% and a month-on-month decrease of 15.3% [6]. - XPeng Motors achieved a record delivery of 36,717 vehicles in July, marking a year-on-year increase of 229.4% and a month-on-month increase of 6.1% [6]. - NIO delivered 21,017 vehicles in July, with a year-on-year increase of 2.5% but a month-on-month decrease of 15.7% [4]. - Leap Motor delivered 50,129 vehicles in July, showing a year-on-year increase of 127% and a month-on-month increase of 4% [4]. Market Trends - The report notes that the penetration rate of new energy vehicles has remained above 50% for four consecutive months, indicating a strong market presence [2]. - The report expects that the upcoming launch of new models from various manufacturers will enhance market supply and drive sales during the peak season [4]. Future Outlook - Analysts are optimistic about the performance of BYD, XPeng Motors, and Geely following their new model launches and strategic initiatives [4].

Group 1: TAL Education (好未来教育) - The K12 education training business is performing steadily with a revenue of $580 million for Q1 FY2026, representing a 39% year-over-year increase. Adjusted operating profit reached $25 million, exceeding expectations [1] - The strong demand for small class tutoring and increased enrollment due to the expansion of teaching points are driving revenue growth. Sales of learning machines also showed healthy year-over-year growth, supported by the launch of new products [1] - For Q2 FY2026, the overall revenue growth is expected to be around 30%, maintaining the full-year revenue growth forecast at 28% with an adjusted operating profit margin projected to exceed 7%, doubling from FY2025 [1][2] Group 2: NIO Inc. (蔚来汽车) - The pricing strategy for the L90 model is aggressive, with the starting price set at RMB 265,800, which is lower than the previously announced pre-sale price. This pricing is expected to boost sales significantly [3] - The successful launch of the L90 model is anticipated to lead to stable monthly sales exceeding the market expectation of 5,000 units, paving the way for the upcoming L80 model [3][4] - Despite a 50% rebound from its low, NIO's 2025 price-to-sales ratio remains at 0.85, which is lower than its peers, indicating potential for continued stock price recovery [4]

Investment Rating - The report maintains a "Buy" rating for several companies in the biotechnology sector, including Legend Biotech (LEGN US), and others like 3SBio (1530 HK), Innovent Biologics (1801 HK), and more, indicating a positive outlook for these stocks [7]. Core Insights - The upcoming centralized procurement of biosimilars in mainland China is expected to impact multiple major products, with the first round of information collection already initiated [2]. - The report emphasizes that the impact of this procurement on company performance and product sales will likely be felt starting in 2026, as the process is expected to take longer due to the novelty of biosimilar procurement in China [2]. - Companies such as China Biologic Products, Innovent Biologics, and Hengrui Medicine are highlighted as key players with multiple products involved in the procurement process, warranting close attention to pricing and allocation results [2][3]. - The report suggests that the impact on innovative drugs will be limited, as the products involved in the procurement are off-patent and already have competing biosimilars [2]. Summary by Sections Section: Centralized Procurement - The centralized procurement for biosimilars is officially starting, with a focus on eight monoclonal antibody products [2]. - The information collection phase is expected to last 1-2 months, with a longer timeline anticipated for rule formulation and final product inclusion [2]. Section: Company Focus - Key companies to watch include China Biologic Products, Innovent Biologics, and Hengrui Medicine, with respective products in the procurement process [2]. - The report recommends monitoring the pricing and allocation outcomes closely for these companies [2]. Section: Innovative Drugs - The report indicates that the eight monoclonal antibodies involved in the procurement are already off-patent and have existing biosimilars, suggesting limited impact on innovative drugs still under patent [2]. - Continuous attention is advised for the upcoming national medical insurance negotiations and the establishment of commercial insurance innovative drug directories [2].

Investment Rating - The report assigns a "Buy" rating to TAL Education (TAL US) with a target price of $13.30, indicating a potential upside of 21.6% from the current closing price of $10.94 [1][13]. Core Insights - The K12 education training business is showing robust performance, driven by strong demand for quality education services and sales of learning devices [2][6]. - The financial outlook is positive, with projected revenue growth of 46.2% in 2024, 51.0% in 2025, and a steady decline to 13.2% by 2028 [3][14]. - The company is expected to maintain a strong growth trajectory in its learning services, with an estimated growth rate exceeding 30% [6][7]. Financial Overview - Revenue projections for TAL Education are as follows: $1,490 million in 2024, $2,250 million in 2025, $2,881 million in 2026, $3,422 million in 2027, and $3,873 million in 2028, reflecting a consistent upward trend [3][14]. - Net profit is expected to rise from $85 million in 2025 to $512 million by 2028, with significant growth rates in the initial years [3][14]. - The report highlights a Non-GAAP net profit of $150 million in 2025, increasing to $296 million in 2026, and $436 million in 2027 [3][14]. Performance Metrics - The report indicates a projected operating profit margin of over 7% for the fiscal year 2026, doubling from the previous year [6][7]. - The company’s earnings per share (EPS) are forecasted to grow from $0.14 in 2025 to $0.83 by 2028, demonstrating strong profitability potential [3][14]. - The price-to-earnings (P/E) ratio is expected to decrease from 78.2 in 2024 to 13.1 by 2028, indicating improving valuation as earnings grow [3][14]. Market Position - TAL Education is positioned favorably within the K12 education sector, with a strong market share in learning devices, achieving nearly 28% market share in sales [6][7]. - The company is expanding its product offerings, including AI learning devices aimed at enhancing educational experiences [6][7].