Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 146 / USD 38, indicating a potential upside of 17% for the Hong Kong stock and 24% for the US stock [3][5][6]. Core Insights - The company's Q3 2025 revenue reached RMB 299.1 billion, a year-on-year increase of 14.9%, surpassing market expectations by 1.6%. However, the growth rate of product revenue significantly slowed to 10.5%, primarily due to a high base effect from last year's government subsidies [1][2]. - Service revenue showed strong performance, growing by 30.8%, driven by substantial increases in advertising and logistics revenue, which grew by 23.7% and 35.0%, respectively [1][2]. - The report anticipates that the impact of the high base will be more pronounced in Q4, potentially leading to further deceleration in growth rates [1]. Financial Summary - The adjusted net profit for Q3 2025 decreased by 56% to RMB 5.8 billion, with an adjusted net profit margin of 1.9%, down from 5.1% in the same period last year. This decline was attributed to a 111% increase in marketing expenses related to food delivery subsidies [2][4]. - The overall gross margin for the company was reported at 16.9%, a decline of 0.4 percentage points year-on-year [2]. - The report projects FY25E revenue at RMB 1,337.7 billion, with an adjusted net profit forecast of RMB 29.8 billion [4][8]. Market Performance - The current stock price is HKD 124.4, with a 52-week range of HKD 114.8 to HKD 180.8, and a total market capitalization of HKD 341.2 billion [5]. - The average daily trading volume over the past three months is HKD 1.87 billion [5]. Valuation Metrics - The report provides a forward P/E ratio of 13.2x for FY25E and 8.0x for FY26E, indicating a favorable valuation compared to industry peers [3][4].

Investment Rating - The report maintains a "Buy" rating for Tencent with a target price of 800 HKD, indicating a potential upside of 22% from the current price of 656 HKD [2][4][19]. Core Insights - Tencent's 3Q25 revenue reached 192.9 billion RMB, a year-on-year increase of 15%, exceeding market expectations by 2%. The adjusted net profit was 70.6 billion RMB, up 18% year-on-year, also slightly above market forecasts [1][2]. - The growth in international gaming revenue was robust, increasing by 43% year-on-year to 20.8 billion RMB, driven by Supercell games and new studio acquisitions. Domestic gaming revenue also grew by 15% to 42.8 billion RMB, supported by the successful launch of new games [1][2]. - The advertising revenue for 3Q25 was 35.8 billion RMB, reflecting a 20% year-on-year growth, with stable growth in capital expenditures at 12.9 billion RMB [2]. Financial Performance Summary - For FY25E, the projected revenue is 754.4 billion RMB, with an adjusted net profit forecast of 271.4 billion RMB, representing a growth rate of 27.6% [4][10]. - The gross margin for 3Q25 was reported at 56.4%, a year-on-year increase of 3.3 percentage points, while the adjusted net profit margin reached a new high of 36.6% [1][2]. - The report anticipates continued growth in revenue and profitability, with a projected operating profit of 248.3 billion RMB for FY25E [10].

Economic Growth and Projections - October economic data indicates a slowdown in growth, with a projected Q4 GDP growth rate of 4.2%[1] - The annual GDP growth target of around 5% is expected to be achieved, with policies focusing on implementation[1] - Anticipated budget deficit rate for next year is expected to remain at 4%[1] Consumer Spending and Retail - Retail sales growth in October decreased to 2.9%, slightly better than the market expectation of 2.8%[2] - Durable goods consumption showed mixed results, with communication equipment sales rising to 23.2% while home appliances fell by 14.6%[2] - The "Double Eleven" shopping festival did not generate as much excitement as in previous years, indicating weak consumer demand[1] Industrial Production and Investment - Industrial production growth fell to 4.9%, below the expected 5.5%, influenced by a holiday effect[5] - Fixed asset investment growth declined significantly to -1.7%, lower than the market expectation of -0.8%[3] - Real estate investment continued to weaken, with a year-on-year decline of 14.7% in October[3] Employment and Inflation - The urban unemployment rate improved slightly to 5.1%, better than the expected 5.2%[5] - October CPI inflation rate increased to 0.2%, surpassing the market expectation of -0.1%[6] External Demand and Trade - Export growth turned negative at -1.1% in October, influenced by high base effects and holiday timing[7] - The contribution of net exports to GDP is expected to decline, with a forecasted export growth drop to 3.0% next year[11]

1. Report Industry Investment Ratings - US stocks - Overweight [33] - European stocks - Equal-weight [35] - Chinese A-shares - Equal-weight [36] - Hong Kong stocks - Equal-weight [37] - Japanese stocks - Equal-weight [38] - Indian stocks - Equal-weight [39] 2. Core Views of the Report - In October, the global stock market generally rose, mainly driven by the AI technology boom. The Japanese stock market led the world, with the Nikkei 225 index soaring 16.64% in a single month. A-shares and Hong Kong stocks both corrected to some extent [32]. - The US economy shows mixed signals. The labor market's prosperity is declining, but inflation is under control. The Fed cut interest rates in October and is expected to cut again in December. The US stock market is expected to benefit from the end of the government shutdown, strong Q3 earnings, and AI development [9][11][35]. - The Chinese economy also presents a mixed picture. Consumption growth has slowed, but exports and imports have increased significantly. Industrial production remains resilient, but the real estate market is accelerating its decline [21][24]. - In the bond market, the yields of US, UK, and Chinese government bonds have changed, influenced by factors such as trade disputes, inflation, and central bank policies [58]. - In the foreign exchange market, the US dollar index strengthened in October, the Japanese yen depreciated unilaterally, and the Chinese yuan remained stable against the US dollar but appreciated against a basket of other currencies [62]. - In the commodity market, gold prices fluctuated, oil prices were weak, and copper prices reached a new high for the year [65]. 3. Summary by Relevant Catalogs 3.1 Stock Market 3.1.1 Global Stock Market Performance in October - The global stock market generally rose, with the Japanese stock market leading at 16.64% growth. A-shares and Hong Kong stocks corrected [32]. 3.1.2 US Stock Market - In October, the three major US stock indexes all had positive monthly returns. The Fed's interest rate cut expectations, strong corporate earnings, and the strength of AI-driven technology stocks dominated market sentiment [35]. 3.1.3 European Stock Market - In October, European stocks showed a mild rebound, ending two months of sideways adjustment, supported by energy stocks, tech stocks' performance, and the ECB's loose policy [35]. 3.1.4 Chinese A-share and Hong Kong Stock Markets - A-shares were highly differentiated in October. The Shanghai Composite Index reached a ten-year high, while the STAR 50 Index fell. Hong Kong stocks were under pressure, especially the Hang Seng Tech Index [36][37]. 3.1.5 Japanese and Indian Stock Markets - The Japanese stock market reached a new high in October. However, due to the potential for the Bank of Japan to raise interest rates and the full release of positive factors, the rating was downgraded from overweight to equal-weight. The Indian stock market rebounded strongly, and the rating was upgraded from underweight to equal-weight [38][39]. 3.2 Bond Market 3.2.1 Primary Market of Chinese Offshore Bonds - In October, 46 bonds were issued in the primary market of Chinese offshore bonds, including 26 US dollar bonds worth $5.52 billion and 20 offshore RMB bonds worth 30.09 billion RMB. Issuance volumes decreased significantly compared to September, but are expected to recover in November and December [45]. 3.2.2 Secondary Market of Chinese Offshore Bonds - As of October 31, 2025, the Markit iBoxx Chinese US dollar investment-grade bond index rose 0.64%, and the high-yield bond index rose 0.17%. The real estate bond index fell 0.06%, the urban investment bond index rose 0.51%, and the financial bond index rose 0.36% [48][50]. 3.2.3 Global Bond Market Performance in October - In October, the performance of major global bond markets varied. The US bond market was influenced by "risk aversion," the UK bond market was affected by inflation and interest rate cut expectations, and the Chinese bond market was volatile [58]. 3.3 Foreign Exchange Market - In October, the US dollar index rose 2.08%. The Japanese yen depreciated unilaterally, and the Chinese yuan remained stable against the US dollar but appreciated against a basket of other currencies [61][62]. 3.4 Commodity Market - In October, gold prices showed a "high and then low" trend, oil prices were weak, and copper prices reached a new high for the year [65]. 3.5 Fund Selection - The report selected various types of funds, including money market funds, investment-grade short-term bond funds, investment-grade bond funds, US stock funds, Chinese stock funds, German funds, and Japanese funds, and provided their performance data [67].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of $35 for US shares and HK$27 for Hong Kong shares, indicating a potential upside of 51% and 56% respectively [5][11]. Core Insights - The company's 3Q25 performance was below expectations, with total revenue of $116 million, representing a 13.5% year-over-year increase but significantly lower than forecasts. The net loss narrowed to $35.96 million, slightly above expectations [2][3]. - The report emphasizes the importance of the core pipeline asset Zoci, which is expected to have multiple data readouts in 1H26 that could positively impact the stock price [1][4]. - The revenue guidance for 2025 has been revised down from $560-590 million to at least $460 million, reflecting a 18%-22% reduction in expected annual revenue [4][11]. Financial Performance Summary - 3Q25 total revenue was $116 million, with product revenue of $115 million, both lower than expected. The product gross margin was 59.5%, continuing a downward trend [2][3]. - R&D expenses were reduced by 27.4% year-over-year to $47.93 million, indicating effective cost control [2]. - The company expects to submit applications for key products by the end of 2025, with global Phase 1 clinical trials for Zoci anticipated to start in 1H26 [11][12]. Pipeline and Future Prospects - The report highlights several upcoming catalysts for Zoci, including updates on intracranial efficacy data and potential registration trials in 2026 [4][11]. - Other pipeline assets are also expected to yield important data, including ZL-1503 and ZL-6201, with readouts anticipated in 2026 [4][11]. Market Expectations - The current market capitalization is approximately $2.56 billion, with a recent average trading volume of $22 million [5]. - The stock has a 52-week price range of $21.6 to $44.3, indicating significant volatility [5].

Investment Rating - The report maintains a "Buy" rating for the company and recommends it as a top pick in the biotechnology sub-sector [1][12]. Core Insights - The company reported strong performance in Q3 2025, with revenues exceeding expectations due to robust sales of Zepzelca, leading to a slight upward revision of the 2025 revenue guidance and a downward adjustment of operating expenses [1][2]. - Zepzelca achieved over $1 billion in sales for the first time in a single quarter, demonstrating strong growth resilience [3]. - The company has a rich pipeline of catalysts expected in the next 12 months, particularly focusing on two hematology products with data readouts anticipated at the ASH conference [4][11]. Financial Performance - Q3 2025 total revenue reached $1.412 billion, representing a 41.0% year-over-year increase and a 7.4% quarter-over-quarter increase, with product revenue at $1.395 billion [2]. - GAAP operating profit was $163 million, up 85.6% quarter-over-quarter, while adjusted operating profit was $341 million [2]. - The gross margin for products improved to 85.9%, reflecting a 3.7 percentage point year-over-year increase [2]. Revenue Guidance - The company slightly raised its 2025 total revenue guidance from $5.0-5.3 billion to $5.1-5.3 billion, while lowering the GAAP operating expense guidance from $4.1-4.4 billion to $4.1-4.3 billion [4][12]. Target Prices - The target price for the US stock is set at $390, representing a potential upside of 17% from the current price of $332.4 [5]. - The target price for the Hong Kong stock is set at HKD 236, indicating a potential upside of 24% from the current price of HKD 190.4 [6]. - The target price for the A-share is set at RMB 326, reflecting a potential upside of 17% from the current price of RMB 279.0 [7].

Investment Rating - The report maintains a "Buy" rating for Huahong Semiconductor (1347.HK) and Huahong Company (688347.CH) [1][2] Core Insights - Huahong's third-quarter gross margin exceeded market expectations, with a gross margin of 13.5%, up 2.1 percentage points year-on-year and 2.3 percentage points quarter-on-quarter [2] - The company expects fourth-quarter gross margins to remain stable compared to the third quarter, driven by tight capacity and rising wafer prices [1][2] - The revenue for the third quarter was $635 million, a 21% year-on-year increase and a 12% quarter-on-quarter increase, aligning with market expectations [2] - The report projects a target price of HKD 94.0 for Huahong Semiconductor, representing a potential upside of 17%, and a target price of RMB 150.0 for Huahong Company, representing a potential upside of 18% [1][2] Financial Performance Summary - Third-quarter revenue was $635 million, with a net profit of $25.72 million, down 43% year-on-year but up 224% quarter-on-quarter [9] - The company’s EBITDA for 2025 is projected at $758 million, with a net profit forecast of $89 million, reflecting a 53% increase from previous estimates [11] - The report provides a detailed financial forecast for 2023-2027, indicating a revenue growth rate of 19% for 2025 and 2026 [4][11] Valuation Metrics - The current EV/EBITDA and price-to-book ratios for Huahong are 24.4x and 2.7x, respectively, indicating attractive valuation levels [1][2] - The report assigns a target EV/EBITDA of 31.0x for 2025, supporting the target price of HKD 94.0 [2][12]

Investment Rating - The report maintains a "Buy" rating for BYD, with target prices adjusted to HKD 114.30 for the Hong Kong stock and RMB 117.0 for the A-share, indicating potential upside of 18% and 20% respectively [2][4][6]. Core Insights - BYD's overseas sales are experiencing rapid growth, and profitability is beginning to improve despite a slight year-on-year decline in overall vehicle sales in Q3 [6][8]. - The company has implemented cost control measures that have shown effectiveness, leading to improved per-vehicle profitability in Q4 [6][8]. - The report anticipates continued high growth in overseas vehicle sales, which will enhance profitability [6][8]. Financial Performance and Forecast - Revenue projections for BYD from 2023 to 2027 are as follows: - 2023: RMB 602,315 million - 2024: RMB 777,102 million - 2025E: RMB 804,538 million - 2026E: RMB 876,166 million - 2027E: RMB 974,622 million - The revenue growth rates are projected at 42% for 2023, 29% for 2024, and lower rates thereafter [3][7]. - Gross profit margin is expected to decline from 20.2% in 2023 to 17.9% in 2025E, with net profit projected to reach RMB 34,084 million in 2025E [3][9]. Sales and Profitability - In Q3 2025, BYD's revenue was RMB 194,985 million, a 3% decrease year-on-year, with net profit at RMB 7,823 million, down 33% year-on-year [8]. - The average selling price of vehicles was RMB 141,260, reflecting a 2% decrease compared to the previous year [8]. - The report highlights a significant increase in overseas vehicle sales, which grew by 146% year-on-year [6][8]. Valuation Methodology - The valuation is based on a sum-of-the-parts approach, assigning different price-to-earnings ratios to various segments: - New energy vehicles: 32.0x - Mobile and electronic businesses: 20.7x - Other businesses: 10.0x - The target prices correspond to a 2025E P/E ratio of 27.5x for the Hong Kong stock and 30.9x for the A-share [10].

Investment Rating - The report maintains a "Hold" rating for the company, with target prices set at HKD 75 for the Hong Kong stock and RMB 96.7 for the A-share [1][8]. Core Insights - The company reported a revenue of RMB 620 million in Q3 2025, representing a year-on-year increase of 33.1% and a quarter-on-quarter increase of 8.7%. The net loss attributable to shareholders narrowed to RMB 100 million, a decrease of 65.2% year-on-year and 48.3% quarter-on-quarter, slightly better than expectations [2][3]. - The gross margin for Q3 2025 was 84.6%, showing a year-on-year increase of 3.1 percentage points, while R&D expenses decreased by 29.9% year-on-year [2][3]. - The commercialization performance of the drug TaiTasi was slightly better than expected, with sales of RMB 380 million in Q3 2025, up 41.4% year-on-year. The drug VidiXimab achieved sales of RMB 240 million, up 21.4% year-on-year [3][4]. Financial Performance Summary - For the full year, the company expects a reduction in losses of approximately 50%, consistent with previous guidance. The revenue forecast for 2025 is RMB 2.889 billion, with a year-on-year growth of 68.9% [2][9]. - The net loss for 2025 is projected to be RMB 130 million, with a return to profitability expected in 2026 with a net profit of RMB 91 million [9][10]. - The company’s total market capitalization is approximately HKD 57.3 billion, with a recent average trading volume of HKD 681 million over the past three months [4][6]. Product Pipeline and Market Outlook - The company is focusing on the development of RC148 (PD-1/VEGF) for NSCLC, with plans to prioritize its clinical trials. The management has observed promising efficacy and safety in early trials [4][8]. - The ongoing national medical insurance negotiations for TaiTasi and VidiXimab are crucial, as moderate price reductions could positively impact stock performance [3][4].

Investment Rating - The report maintains a "Buy" rating for the company, with an increased target price of HKD 30 for the Hong Kong stock and RMB 39.6 for the A-share [10][19]. Core Insights - The company has experienced a significant acceleration in new orders, particularly in the laboratory services segment, leading to an upward revision of the full-year revenue growth guidance to 12%-16% [3][10]. - The acquisition of Bai Aode is expected to enhance the company's service capabilities in the laboratory services sector, attracting more clients and projects [2][9]. - The revenue for Q3 2025 was approximately RMB 3.64 billion, reflecting a year-on-year increase of 13.4% and a quarter-on-quarter increase of 9.1%, aligning with expectations [2][3]. Summary by Sections Revenue and Profitability - For the first nine months of 2025, the overall new orders increased by over 13% year-on-year, with laboratory services showing a growth rate of over 12% [3][4]. - The CMC segment achieved a revenue growth of 12.7% year-on-year and 29.6% quarter-on-quarter in Q3 2025, driven by strong new orders and project deliveries [9][10]. - The gross margin for Q3 2025 was 34.3%, stable year-on-year and up 0.6 percentage points quarter-on-quarter [2][3]. Client Contributions - The top 20 pharmaceutical companies contributed a revenue growth of 22.2% year-on-year in Q3 2025, despite a slight slowdown from the first half of the year [4][10]. - The management indicated that the strategic expansion with top clients has led to impressive growth across CMC, laboratory services, and bioscience services [4][9]. Future Outlook - The company anticipates that the recovery of overseas financing and a strong performance in the Chinese capital market will lead to a more pronounced recovery among small and medium clients in 2026 [3][10]. - The report projects a slight adjustment in the company's adjusted net profit for 2025E to RMB 1.664 billion, reflecting a year-on-year decrease of 7.2% [11][12].