Investment Rating - The report assigns a "Buy" rating to BYD Company Limited (1211 HK) with a target price of HKD 503.25, indicating a potential upside of 26.8% from the current closing price of HKD 397.00 [1][10]. Core Insights - BYD's Q1 2025 performance was significantly boosted by strong export growth, with revenue reaching RMB 70.4 billion, a year-on-year increase of 36% [2]. - The company's net profit for Q1 2025 doubled year-on-year to RMB 9.2 billion, with a notable increase in vehicle sales, achieving 1 million units sold, a 60% increase year-on-year [2][7]. - The report highlights BYD's competitive advantage through vertical integration in its supply chain, which has helped maintain a gross margin of 24% despite being in a traditionally weaker sales season [2][7]. Financial Overview - Revenue projections for BYD are as follows: RMB 602.3 billion in 2023, RMB 777.1 billion in 2024, and RMB 977.2 billion in 2025, reflecting a year-on-year growth rate of 42.0%, 29.0%, and 25.8% respectively [6]. - Net profit is expected to grow from RMB 30.0 billion in 2023 to RMB 52.5 billion in 2025, with earnings per share projected to increase from RMB 13.33 to RMB 23.28 over the same period [6]. - The report anticipates that BYD's vehicle sales will reach 5.23 million units in 2025, representing a 23% year-on-year increase, driven by strong export performance and advancements in intelligent driving technology [7]. Market Position and Strategy - BYD is actively expanding its overseas presence, with plans to achieve 800,000 units in overseas sales by 2025, effectively doubling its export volume [7]. - The company is focusing on making advanced driving technology more accessible across its vehicle range, aiming for over 60% of its models to feature high-level autonomous driving systems by 2025 [7]. - The report emphasizes that BYD's strong export growth is expected to enhance its average selling price and gross margin, while its efforts in intelligent driving will solidify its market position in China [7].

Investment Rating - The investment rating for the company is "Buy" [4][10]. Core Views - The company's Q1 performance significantly exceeded expectations, with revenue and net profit for 2024 projected at RMB 77.857 billion and RMB 11.036 billion, respectively, representing year-on-year growth of 8% and 17% [7]. - The stock price has undergone a substantial correction, which is believed to have adequately reflected current uncertainties, including tariff impacts and competitive pressures [7]. - The target price has been adjusted down to RMB 72.50 from RMB 104.80, reflecting a revised valuation based on a 12x P/E ratio for 2025 earnings [7]. Financial Overview - Revenue projections for the company are as follows: RMB 72,251 million in 2023, RMB 77,857 million in 2024, RMB 93,943 million in 2025E, RMB 101,774 million in 2026E, and RMB 110,947 million in 2027E, with a year-on-year growth rate of 79.5% in 2023 and 7.8% in 2024 [3][12]. - Net profit is expected to grow from RMB 9,440 million in 2023 to RMB 12,534 million in 2025E, with a significant year-on-year increase of 162.7% in 2023 [3][12]. - The company has maintained a strong gross margin, with a projected gross margin of 29.9% in 2024, up 2.8 percentage points year-on-year [7]. Performance Metrics - The company reported a significant increase in operating cash flow, reaching RMB 121 billion in Q1, a 73% year-on-year increase [7]. - The earnings per share (EPS) are projected to rise from RMB 4.55 in 2023 to RMB 6.05 in 2025E, reflecting a growth rate of 13.6% [3][12]. - The company’s market capitalization is approximately RMB 92,958.54 million, with a 52-week high of RMB 119.19 and a low of RMB 55.70 [6].

Investment Rating - The report assigns a "Buy" rating for China Ping An Insurance (2318 HK) with a target price of HKD 60.00, indicating a potential upside of 30.6% from the current price of HKD 45.95 [1][10]. Core Insights - The report highlights stable growth in operating profit and an unexpected increase in new business value, with a 34.9% year-on-year growth in new business value driven by various channels [5][11]. - The report notes a significant decline in net profit, down 26.4% year-on-year, primarily due to investment losses and a one-time valuation drop from the consolidation of Ping An Good Doctor [5][11]. - The report emphasizes improvements in the comprehensive cost ratio for property and casualty insurance, which decreased by 3 percentage points year-on-year to 96.6% [5][11]. - The solvency position is strong, with a core solvency ratio of 163.7%, up 47.3 percentage points from the end of 2024 [5][11]. Financial Overview - Revenue is projected to grow from RMB 913,789 million in 2023 to RMB 1,057,335 million in 2025, reflecting a compound annual growth rate (CAGR) of approximately 7.5% [4][11]. - Net profit is expected to recover from RMB 85,665 million in 2023 to RMB 120,657 million in 2025, with a notable increase of 47.8% in 2024 [4][11]. - The report forecasts earnings per share (EPS) to be RMB 6.95 in 2024 and RMB 6.63 in 2025, with a projected price-to-earnings (P/E) ratio of 6.5 in 2025 [4][11]. Business Performance - The first quarter of 2025 saw a 2.4% year-on-year increase in operating profit after tax (OPAT), primarily from the life and health insurance segments, while property and casualty insurance and banking segments experienced declines [5][11]. - The new business value rate improved significantly, reaching 28.3%, an increase of 11.4 percentage points year-on-year, attributed to product structure optimization and cost reduction measures [5][11]. - The average daily trading volume of the stock is reported at 50.03 million shares, with a market capitalization of approximately HKD 924.92 billion [3][11].

Investment Rating - The report assigns a "Buy" rating to TAL Education Group (TAL US) with a target price of $13.30, indicating a potential upside of 48.9% from the current price of $8.93 [4][15]. Core Insights - The report highlights that TAL Education is focusing on enhancing its profitability in the fiscal year 2026, with a projected revenue growth of 30%, reaching approximately $2.917 billion [2][8]. - The company is expected to benefit from strong demand in quality education training and sales of learning devices, with a significant increase in enrollment driven by the expansion of teaching points [8][9]. - The report emphasizes the importance of AI technology in improving operational efficiency and reducing costs, projecting an adjusted operating profit margin of over 7% for fiscal year 2026, which would be a doubling from fiscal year 2025 [8][9]. Financial Overview - Revenue projections for TAL Education are as follows: $1.49 billion for 2024, $2.25 billion for 2025, $2.917 billion for 2026, $3.418 billion for 2027, and $3.864 billion for 2028, with year-on-year growth rates of 46.2%, 51.0%, 29.6%, 17.2%, and 13.0% respectively [3][16]. - Net profit is expected to increase from $85 million in 2025 to $512 million by 2028, with significant growth rates of 73.6% in 2025 and 107.9% in 2026 [3][16]. - The report notes that the adjusted EPS is projected to rise from $0.14 in 2025 to $0.84 in 2028, reflecting a strong recovery and growth trajectory [3][16]. Market Performance - The stock has shown a 52-week high of $14.79 and a low of $7.42, with a current market capitalization of approximately $4.09 billion [6][15]. - The stock has experienced a year-to-date decline of 10.88% [6]. Strategic Focus - TAL Education is committed to providing high-quality teaching services and content, with ongoing investments in product diversification and channel variety to adapt to different business cycles [8][9]. - The company is also enhancing its brand influence through technology integration, content upgrades, and user experience improvements, including the introduction of new AI-assisted features [8][9].

Investment Rating - The report assigns a "Buy" rating for TAL Education Group (TAL US) with a target price of $13.30, indicating a potential upside of 48.9% from the current price of $8.93 [4][15]. Core Insights - The report highlights that TAL Education is focusing on enhancing its profitability in the fiscal year 2026, with a projected revenue growth of 30%, reaching approximately $2.917 billion [2][8]. - The company is expected to benefit from strong demand in quality education training and sales of learning devices, with a notable retention rate of 80% for its small class offerings [8][9]. - The integration of AI technology is anticipated to improve operational efficiency and reduce costs, aiming for an adjusted operating profit margin of over 7% in fiscal year 2026, doubling from fiscal year 2025 [8][9]. Financial Overview - Revenue projections for TAL Education are as follows: - 2024: $1.490 billion - 2025: $2.250 billion - 2026E: $2.917 billion - 2027E: $3.418 billion - 2028E: $3.864 billion - Year-on-year growth rates are expected to be 46.2% for 2024, 51.0% for 2025, and 29.6% for 2026 [3][16]. - Net profit estimates are projected to increase significantly, with figures of $85 million for 2024, $150 million for 2025, and $307 million for 2026 [3][16]. - The report indicates a significant improvement in earnings per share (EPS), with projections of $0.14 for 2024, $0.24 for 2025, and $0.51 for 2026 [3][16]. Market Performance - The stock has shown a 52-week high of $14.79 and a low of $7.42, with a current market capitalization of approximately $4.09 billion [6][15]. - The stock has experienced a year-to-date decline of 10.88% [6]. Strategic Focus - TAL Education is committed to expanding its product offerings and enhancing its brand influence through technology and content integration, including the launch of new courses and AI-assisted features [8][9]. - The company aims to diversify its channels and adapt to different business cycles to ensure sustained growth [8].

Group 1: New Oriental Education Technology - The company's overseas business may continue to face pressure, but cost control measures are expected to show results in Q4 [1] - For Q3 of FY2025, revenue decreased by 2% year-on-year; excluding Dongfang Zhenxuan, education and cultural tourism revenue increased by 21% [1] - The adjusted operating profit margin for Q3 was 12%, down from 15% in the same period last year, primarily due to the slowdown in study abroad business revenue growth and investments in cultural tourism [1] - Q4 outlook anticipates a 13% year-on-year increase in core education (including cultural tourism) revenue, with a projected operating profit margin improvement of 1 percentage point [1][2] - The company is currently trading at a price-to-earnings ratio of 12 times for 2025, with an attractive valuation based on expected profit growth of over 15% [2] Group 2: iQIYI - iQIYI's recent world conference highlighted a focus on high-quality content, with over 400 long and short videos announced, and an increased investment in micro-short dramas [3] - The revenue expectation for Q1 is maintained at 7.1 billion yuan, reflecting an 11% year-on-year decline but a 7% quarter-on-quarter increase [3] - Adjusted net profit for Q1 is revised down to 300 million yuan, resulting in an adjusted net profit margin of 4% [3] - The target price for iQIYI is adjusted to $2.40, maintaining a buy rating based on a 10 times price-to-earnings ratio for 2025 [4]

Investment Rating - The report assigns a "Buy" rating to New Oriental Education Technology (9901 HK) with a target price of HKD 46.00, indicating a potential upside of 29.8% from the current price of HKD 35.45 [1][4][14]. Core Insights - The report highlights that the overseas business may still face pressure, but cost reduction and efficiency improvements are expected to manifest in the upcoming quarter [1]. - For the fiscal year 2025, the company is projected to achieve revenue growth of 12.9% and net profit growth of 21.5% [2][9]. - The core education segment contributed 57% of total revenue, with new business revenue growing by 35%, accounting for 27% of total revenue [8][9]. Financial Overview - Revenue for fiscal year ending May 31, 2023, was USD 2,998 million, with projections of USD 4,314 million for 2024 and USD 4,871 million for 2025, reflecting a year-on-year growth of -3.5%, 43.9%, and 12.9% respectively [2][15]. - Net profit for 2023 was USD 259 million, expected to rise to USD 381 million in 2024 and USD 457 million in 2025, with corresponding earnings per share of USD 0.15, USD 0.23, and USD 0.28 [2][15]. - The company’s operating profit margin is projected to be 12.1% for 2025, slightly down from 13.1% in 2024 [8]. Quarterly Performance - In the third quarter of fiscal year 2025, the company reported a revenue of USD 1,183 million, a 2% decrease year-on-year, with adjusted net profit of USD 102 million [8][9]. - The report anticipates a 13% year-on-year increase in core education revenue for the fourth quarter of fiscal year 2025, amounting to USD 1,036 million [8]. Valuation - The current price corresponds to a price-to-earnings ratio of 12 times for 2025, with an expected profit growth of over 15%, indicating an attractive valuation [8][9]. - The report maintains a target price of HKD 46.00, based on a 15 times price-to-earnings ratio for the education services business [8][9].

Investment Rating - The report assigns a "Buy" rating for iQIYI (IQ US) with a target price of $2.40, indicating a potential upside of 28.3% from the current price of $1.87 [1][18]. Core Insights - The report emphasizes the improvement in long series and the effectiveness of investments in micro-short dramas. iQIYI is focusing on high-quality content while adapting to changing viewer attention spans by increasing micro-short drama investments and reducing the number of long series [2][6]. - The company is exploring content e-commerce based on its content ecosystem and user base, currently in a trial operation phase [6]. - The report anticipates a decline in brand advertising revenue due to market pressures, projecting a decrease of 11% year-on-year and 8% quarter-on-quarter to approximately 1.3 billion RMB [6]. Financial Overview - Revenue projections for iQIYI are as follows: - 2023: 31,873 million RMB - 2024: 29,225 million RMB (down 8.3% YoY) - 2025E: 29,118 million RMB (down 0.4% YoY) - 2026E: 31,063 million RMB (up 6.7% YoY) - 2027E: 32,583 million RMB (up 4.9% YoY) [3][19] - Net profit estimates are: - 2023: 2,838 million RMB - 2024: 1,512 million RMB (down 46.5% YoY) - 2025E: 1,643 million RMB (up 9.5% YoY) - 2026E: 2,158 million RMB (up 31.3% YoY) - 2027E: 2,719 million RMB (up 25.9% YoY) [3][19]. - The report notes a projected adjusted net profit of 3.0 billion RMB for Q1 2025, reflecting a decrease due to increased micro-drama investments [6]. Market Position and Performance - iQIYI's market share in the top 20 series and online variety shows is highlighted, with a 38% share in series and a 14% share in online variety shows for Q1 2025, showing a 14% increase and a 5% decrease respectively compared to the previous year [6][10]. - The company is expected to maintain its revenue expectations for 2025, although adjusted net profit expectations have been lowered by 11% to 1.6 billion RMB due to increased content and promotional investments [6]. Upcoming Content - iQIYI has announced over 400 upcoming long and short series, focusing on high-quality content and leveraging popular IPs for commercial value [6][7]. - The report lists several anticipated series and variety shows set to launch in 2025, indicating a robust content pipeline aimed at attracting viewers [7][8].

Group 1: Nvidia (NVDA US) - Export controls have exceeded expectations, leading to a downward revision of earnings forecasts and target price, with a new target price of $152, down from $168, indicating a potential upside of 53.7% [3][4] - The company reported a $5.5 billion inventory impairment for FY1Q26 due to difficulties in obtaining export licenses for its H20 chip, which may impact approximately $12 billion in revenue [3] - Financial impacts for FY2H26 are considered manageable, with the Blackwell series products expected to become Nvidia's main offerings post-FY3Q26, and domestic alternatives like Huawei's Ascend 910C may accelerate the shift towards local chip replacements [3] Group 2: Kangfang Biopharma (9926 HK) - The second head-to-head Phase III trial of Ivosidenib has been successful, with the first self-immune product approved, leading to an upward revision of the target price to HKD 115, reflecting a potential upside of 30.1% [5][10] - The approval of the first self-immune product, Ilumya (IL-12/IL-23), for moderate to severe plaque psoriasis showcases significant advantages over competitors, including rapid efficacy and improved patient quality of life [6] - The company is set to initiate a Phase III trial for Ivosidenib combined with chemotherapy for PD-(L)1 refractory NSCLC, expanding its treatment scenarios to a large patient population [5] Group 3: Gaotu (GOTU US) - The company is expected to exceed Q1 2025 revenue and profit forecasts, with a projected 51% year-on-year revenue growth, driven by innovative "star + AI" courses [11] - The gross margin is anticipated to improve to 70% due to better-than-expected revenue and improved offline business profitability, with an adjusted operating profit forecast of 26 million [11] - The target price remains at $4.60, reflecting a 71% potential upside, as the company maintains its full-year revenue and profit expectations [11]

Investment Rating - The report assigns a "Buy" rating to the company 康方生物 (9926 HK) with a target price of HKD 115.00, indicating a potential upside of 30.1% from the current price of HKD 88.40 [1][7][13]. Core Insights - The success of the second head-to-head Phase III trial for the drug 依沃西 (Ivosidenib) has validated its competitive advantage in the lung cancer treatment market compared to PD-(L)1 monotherapy. The trial achieved significant benefits in progression-free survival (PFS) [7]. - The company has received approval for its first autoimmune product, 依若奇单抗 (Ilumya), which is expected to generate peak sales of approximately RMB 1 billion due to its advantages over competitors in treating moderate to severe plaque psoriasis [7]. - The revenue forecasts for 2025-2027 have been adjusted upwards by 0-6%, with peak sales estimates for 依沃西 in mainland China and overseas raised to RMB 6.1 billion and USD 5.7 billion, respectively [7]. Financial Overview - Revenue projections for 康方生物 are as follows: RMB 4,095 million in 2025, RMB 6,091 million in 2026, and RMB 8,680 million in 2027, reflecting growth rates of 92.8%, 48.8%, and 42.5% respectively [6][15]. - The net profit is expected to recover from a loss of RMB 446 million in 2024 to RMB 629 million in 2025, and further increase to RMB 1,982 million in 2026 and RMB 3,557 million in 2027 [6][15]. - The company’s market capitalization is approximately HKD 79.17 billion, with a year-to-date stock price increase of 45.63% [4][6]. Valuation Metrics - The price-to-earnings (P/E) ratio is projected to be 112.8x in 2025, decreasing to 35.8x in 2026 and further to 19.9x in 2027, indicating improving profitability [6][8]. - The book value per share is expected to rise from RMB 5.58 in 2023 to RMB 14.58 in 2027, with a corresponding decrease in the price-to-book (P/B) ratio from 14.94x to 5.72x [6][8].