Investment Rating - The report assigns a "Buy" rating for Advanced Micro Devices (AMD US) with a target price raised to $275 from $248, indicating a potential upside of 10% from the current price of $250.05 [4][17]. Core Insights - AMD's 3Q25 performance exceeded expectations, with revenue of $9.246 billion and a Non-GAAP gross margin of 54%. The guidance for 4Q25 is also optimistic, with a revenue midpoint of $9.6 billion and a gross margin of approximately 54.5% [2][7]. - The report highlights strong performance in the data center CPU segment, driven by the successful rollout of the MI350 series and increasing demand for AMD's CPU products, particularly in the context of AI data center expansion [7][10]. - The forecast for AMD's revenue and earnings per share (EPS) has been revised upwards for 2025, 2026, and 2027, reflecting a more optimistic outlook on data center CPU revenue and recovery in gaming demand [7][10]. Financial Overview - Revenue projections for AMD are as follows: - 2023: $22.68 billion - 2024: $25.785 billion - 2025E: $33.995 billion - 2026E: $44.686 billion - 2027E: $59.541 billion - The expected growth rates are 13.7% in 2024, 31.8% in 2025, 31.5% in 2026, and 33.2% in 2027 [3][18]. - Non-GAAP EPS is projected to grow from $2.65 in 2023 to $9.23 in 2027, with significant year-on-year increases [3][18]. Market Position and Strategy - AMD is focusing on expanding its market share in the data center segment, particularly with the introduction of new products like the MI450 series, which is expected to contribute significantly to revenue in 2026 and beyond [10][11]. - The collaboration with OpenAI is seen as a critical factor for AMD's growth, providing opportunities to secure large orders from major cloud service providers and enhance its competitive position in the industry [8][10]. Stock Performance - AMD's stock has shown a significant increase of 107.01% year-to-date, reflecting positive market sentiment and performance expectations [6]. - The stock's 52-week high is $264.33, while the low is $78.21, indicating substantial volatility and potential for growth [6].

Core Insights - The pharmaceutical sector showed signs of marginal recovery in Q3 2025, with a focus on academic conferences, policy changes, and business development catalysts expected in Q4 2025 [1][2] - The Hong Kong pharmaceutical market experienced a pullback in October due to sentiment decline and profit-taking, but the underlying fundamentals remain strong, with an anticipated stabilization in investment sentiment starting November [2] Market Performance - The Hang Seng Healthcare Index fell by 1.3% this week, outperforming the broader market, with traditional Chinese medicine, biopharmaceuticals, and distribution sectors showing better performance [1] - Domestic institutions increased their positions in high-value innovative drug targets, medical device companies, and service-oriented firms, particularly those benefiting from interest rate cuts and downstream demand recovery [1] Investment Recommendations - Focus on innovative drugs such as Sanofi and Deqi Pharmaceuticals, which have rich short-term catalysts and valuations that do not yet reflect the value of core products; companies like Xiansheng Pharmaceuticals, Hutchison China MediTech, and Legend Biotech are significantly undervalued with clear long-term growth logic [2] - In the CXO sector, leading firms benefiting from high downstream demand and marginal financing recovery are recommended, such as WuXi AppTec [2]

Investment Rating - The report assigns a "Buy" rating to New Oriental Education Technology (9901 HK) with a target price of HKD 55.00, indicating a potential upside of 19.9% from the current price of HKD 45.88 [4][8][15]. Core Insights - The report highlights that K12 education may accelerate, boosting shareholder returns and enhancing confidence in the company's growth prospects [2]. - Financial forecasts indicate a revenue growth trajectory, with expected revenues of USD 4.9 billion in 2025, growing to USD 6.875 billion by 2028, reflecting a compound annual growth rate (CAGR) of approximately 12% [3][16]. - The net profit is projected to increase from USD 372 million in 2025 to USD 792 million by 2028, with a notable increase in earnings per share (EPS) from USD 0.32 in 2025 to USD 0.45 in 2028 [3][16]. Financial Overview - Revenue (in million USD) is forecasted as follows: - 2024: 4,314 - 2025: 4,900 - 2026E: 5,413 - 2027E: 6,136 - 2028E: 6,875 - Year-on-year growth rates are expected to be 43.9% in 2024, 13.6% in 2025, and gradually declining to 12.0% by 2028 [3][16]. - Net profit (in million USD) projections are: - 2024: 310 - 2025: 372 - 2026E: 428 - 2027E: 481 - 2028E: 792 [3][16]. Valuation - The report employs a Sum-of-the-Parts (SOTP) valuation method, assigning a price-to-earnings (P/E) ratio of 15x for K12 business and 8x for study abroad business, reflecting expected profit growth rates of +25% and -7% respectively [7][8]. - The target price was adjusted upwards to HKD 55.00 from a previous HKD 46.00, maintaining a "Buy" rating based on the strong demand and growth outlook for K12 education services [7][8].

Group 1: New Oriental Education Technology - The company reported a revenue increase of 6% year-on-year to $1.523 billion for Q1 FY2026, exceeding expectations by 1% [1] - Adjusted operating profit was approximately $336 million, with an operating margin of 22%, expanding by 1 percentage point year-on-year [1] - The management maintained the revenue guidance for FY2026, expecting a growth rate of 5-10%, with Q2 revenue growth projected between 9-12% [1][2] - The company announced a cash dividend of $190 million and a share buyback plan of $300 million, which is better than previous expectations [1] Group 2: Howie Group - Howie Group achieved a record high quarterly performance in Q3 2025, with revenue of 7.83 billion yuan, a year-on-year increase of 14.8%, and a net profit of 1.18 billion yuan, up 17.3% [3] - The gross margin for Q3 was 30.3%, reflecting a 0.3 percentage point increase quarter-on-quarter [3] - The growth in the automotive CIS segment is expected to drive revenue growth, with increasing demand in smart driving applications [4] Group 3: Valuation and Market Outlook - The valuation outlook for New Oriental's K12 education business remains positive due to steady revenue growth and potential for margin optimization [2] - The target price for New Oriental has been raised to HKD 55.00, reflecting a potential upside of 19.9% [1][2] - Howie Group's target price is maintained at 180 yuan, corresponding to a 35 times P/E ratio for 2026 [4]

Group 1: Company Performance - In Q3 2025, Zhongwei Company reported revenue of 3.1 billion RMB, a year-on-year increase of 50.6%, exceeding previous expectations [1] - The net profit attributable to shareholders for Q3 2025 was 505 million RMB, aligning with prior forecasts [1] - North China Huachuang achieved revenue of 11.16 billion RMB in Q3 2025, reflecting a year-on-year growth of approximately 39% [3] Group 2: Product Development - In Q3 2025, revenue from etching equipment for Zhongwei Company reached 2.32 billion RMB, a year-on-year increase of 35.3% [2] - The thin film deposition product revenue is estimated to be around 204 million RMB, with an upward revision of the annual forecast for 2025 to 630 million RMB [2] - North China Huachuang's gross margin for Q3 2025 was 40.3%, showing resilience despite a slight decline [3] Group 3: Market Outlook - The semiconductor equipment market in China is expected to maintain strong growth, with no signs of slowdown in 2025 [4] - The demand for memory chips remains robust, positively impacting the demand for semiconductor equipment [4] - The revenue forecasts for Zhongwei Company for 2025, 2026, and 2027 have been adjusted to 12.43 billion, 16.07 billion, and 19.21 billion RMB respectively [2] Group 4: Investment Recommendations - Zhongwei Company maintains a "Buy" rating with a target price raised to 325 RMB, indicating a potential upside of 16.3% [1] - North China Huachuang also retains a "Buy" rating, with the target price increased to 500 RMB, suggesting a potential upside of 24.7% [3] - The overall outlook for the semiconductor equipment sector remains positive, with expectations of continued growth driven by domestic demand [4]

Investment Rating - The report assigns a "Buy" rating to BYD Company Limited (1211 HK) with a target price of HKD 133.00, indicating a potential upside of 27.6% from the current closing price of HKD 104.20 [5][10][11]. Core Insights - The report highlights that sales and profit may remain under pressure in Q4 2025, with export potential expected to be concentrated in 2026 [2]. - The revenue for BYD is projected to grow from RMB 602.3 billion in 2023 to RMB 1,097.8 billion by 2027, with a compound annual growth rate (CAGR) of approximately 16.2% [3][12]. - Net profit is expected to fluctuate, with a decrease from RMB 30.0 billion in 2023 to RMB 35.1 billion in 2025, before rising to RMB 54.3 billion in 2027 [3][12]. - The report notes a significant adjustment in profit forecasts for 2025-2027, with reductions of 16%-23% due to lower-than-expected gross margins and ongoing price wars [8]. Financial Overview - Revenue (in million RMB) is forecasted as follows: 2023: 602,315; 2024: 777,102; 2025E: 838,705; 2026E: 974,290; 2027E: 1,097,816, reflecting a growth rate of 42.0% in 2023 and a decline to 7.9% in 2025 [3][12]. - Net profit (in million RMB) is projected to be 30,041 in 2023, 40,254 in 2024, 35,148 in 2025E, 46,494 in 2026E, and 54,291 in 2027E, with a notable drop of 12.7% in 2025 [3][12]. - The report indicates a decrease in gross margin to approximately 17.9% in 2025, down from 20.2% in 2023, primarily due to competitive pricing pressures and increased costs associated with new technology [8][14]. Market Performance - BYD's stock has shown a year-to-date increase of 17.25%, with a 52-week high of HKD 155.07 and a low of HKD 83.07 [7][11]. - The average daily trading volume is reported at 24.68 million shares, indicating active market participation [7]. Strategic Outlook - The report emphasizes that while domestic sales face challenges, overseas sales are expected to grow significantly, particularly in Southeast Asia, Latin America, and Europe, which could enhance profitability in the medium to long term [8]. - The target price has been adjusted down to HKD 133 from a previous HKD 151, reflecting the revised profit outlook [8].

Key Insights - The external environment continues to improve, with market risk appetite steadily increasing. The Hong Kong stock market experienced adjustments in October, but there has been significant progress in US-China trade negotiations, with both sides reaching a "basic consensus" on key issues such as tariffs and export controls [1] - The Federal Reserve lowered interest rates by 25 basis points in October and announced a pause in balance sheet reduction in December, confirming further easing signals. Meanwhile, mainland China's policies remain consistent and stable, with the Fourth Plenary Session of the Communist Party formally approving the "14th Five-Year Plan," providing policy anchoring for the fundamentals of the Hong Kong stock market [1][2] Monthly Stock Picks - The report highlights three major variables to watch in November: 1) The pace of Federal Reserve rate cuts, with Powell's latest statement indicating that a December cut is "far from a done deal," leading to potential market volatility; 2) Progress in US-China relations and the specifics of the framework agreement; 3) Developments in mainland China's growth stabilization policies [2] - The report emphasizes a focus on "technology growth + defensive stability," balancing offensive and defensive strategies in industry allocation [3] Company-Specific Insights - Futu Holdings (FUTU US), Prosperity Industrial Trust (778 HK), and Alibaba (BABA US/9988 HK) are among the highlighted stocks for November, indicating a focus on quality targets in the technology and defensive sectors [3] - Nvidia (NVDA US) announced numerous collaboration projects at the GTC conference, projecting a market opportunity of $500 billion over the next two years, with a target price raised to $240, indicating a potential upside of 15.9% [5][6] - Longyuan Power (916 HK) reported a net profit decline of 19.8% year-on-year for the first three quarters, but the recovery of subsidy amounts exceeded expectations, with a total new installed capacity of 2.27 GW [16] Industry Trends - The report notes that the healthcare sector's performance has been mixed, with the Hang Seng Healthcare Index declining by 0.9%. However, there is a positive outlook for innovative drugs and CXO companies, with recommendations for specific stocks like 3SBio and WuXi AppTec [17][18] - The report highlights that the beer market in mainland China is expected to take time to recover, but long-term confidence in Budweiser APAC's premiumization strategy remains strong [13][14]

Investment Rating - The report maintains a Neutral rating for the company with a target price adjusted to RMB 76.00, reflecting a potential upside of 0.9% from the current closing price of RMB 75.31 [1][10][8]. Core Insights - The company reported a revenue of RMB 1.07 billion in Q3 2025, showing a year-on-year decline of 1.6% but a quarter-on-quarter increase of 12%. The net profit attributable to shareholders was a loss of RMB 0.23 billion, which is a significant improvement from a loss of RMB 1.01 billion in Q2 2025 [8]. - The L-PAMiD product has begun mass production, leveraging the company's technological advantages in filters to penetrate key customer markets. The 6-inch production line is nearing full capacity, and the 12-inch line has started large-scale shipments [8]. - Recent consolidation in the overseas RF front-end market, particularly the merger between Qorvo and Skyworks, indicates a phase of capacity integration and efficiency improvement in the industry. This could benefit domestic manufacturers in gaining market share [8]. - The report highlights that the RF front-end industry may see significant changes following the implementation of new mobile communication network standards, with recent product launches and upgrades driving performance [8]. Financial Summary - Revenue projections for 2025, 2026, and 2027 have been revised down to RMB 39.2 billion, RMB 49.7 billion, and RMB 57.7 billion, respectively, from previous estimates of RMB 41.8 billion, RMB 51.7 billion, and RMB 61.2 billion [8][9]. - Net profit estimates for 2025, 2026, and 2027 have also been adjusted to losses of RMB 1.32 billion, and profits of RMB 3.67 billion and RMB 5.81 billion, respectively, down from previous forecasts [8][9]. - The report anticipates that depreciation will remain relatively high in 2026, impacting profitability [8].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of RMB 180.50, indicating a potential upside of 10.8% from the current price of RMB 162.94 [1][9]. Core Insights - The company achieved a record high gross margin in Q3 2025, driven by strong cyclical demand, with a year-to-date revenue of RMB 110.5 billion, reflecting a year-on-year increase of 3.7%. The net profit attributable to shareholders for the first nine months of 2025 was RMB 5.31 billion, up 31.6% year-on-year [2][7]. - The report anticipates continued growth in Q4 2025, supported by the high-end model matrix and increasing deliveries of new models, projecting monthly deliveries of approximately 50,000 to 60,000 units [7]. Financial Overview - Revenue projections for the company are as follows: RMB 35.84 billion in 2023, RMB 145.18 billion in 2024, RMB 175.17 billion in 2025, RMB 204.28 billion in 2026, and RMB 213.88 billion in 2027, with significant year-on-year growth rates [6][12]. - The net profit is expected to turn positive in 2024, reaching RMB 5.95 billion, and further increasing to RMB 10.88 billion in 2025, with a projected earnings per share of RMB 7.21 [6][12]. - The company’s gross margin is projected to improve to 27.1% in 2025, reflecting ongoing enhancements in product mix and pricing strategies [14][16]. Market Position and Strategy - The company is positioned to capitalize on the high-end market segment, with a focus on premium electric vehicles. The launch of new models is expected to enhance market share in the RMB 200,000 to 300,000 price range [7][12]. - The upcoming dual listing on the Hong Kong Stock Exchange is anticipated to attract further investor interest, with the company becoming the first luxury electric vehicle manufacturer to list in both A-share and H-share markets [7][9].

Investment Rating - The report assigns a "Leading" investment rating to the pharmaceutical industry as of October 31, 2025 [1] Core Insights - The eleventh batch of centralized procurement has seen significant price reductions, but the overall impact on the companies may be limited. The fourth quarter is expected to bring catalysts that could improve investor sentiment [4] - The report highlights that the pharmaceutical sector has experienced a notable price correction, but the fundamentals remain strong, with an anticipated stabilization in investment sentiment due to upcoming catalysts such as academic conferences and favorable policies [4] Summary by Sections Industry Performance - The Hang Seng Index rose by 2.2% during the week of October 22-29, 2025, while the Hang Seng Healthcare Index fell by 0.9%, ranking 12th among 12 industry indices [4][10] - Sub-industry performance varied, with CXO up by 4.6% and biopharmaceuticals down by 2.3% [4][10] Company Valuation Overview - A detailed valuation table lists various companies with their respective ratings, target prices, and earnings projections for FY25E and FY26E, indicating a generally bullish outlook with multiple "Buy" ratings [3] Institutional Holdings - As of October 28, 2025, the proportion of domestic institutional holdings in the pharmaceutical sector decreased slightly to 21.9%, while foreign holdings remained stable [36][39] - Domestic investors have shown a preference for increasing positions in medical device companies and "AI + healthcare" concepts, while foreign investors have focused on long-term potential in innovative drug companies [39][41] Procurement Insights - The eleventh batch of centralized procurement included 55 drug products, with a selection rate of 57%. The report notes that the impact on the overall revenue of selected companies is expected to be minimal [8][9] - The report identifies specific companies and the number of products selected in the procurement process, indicating a limited revenue contribution from these selections [8][9]