Investment Rating - The report maintains a "Buy" rating for the company and raises the target price to HKD 77.0, indicating a potential upside of 16% from the current price of HKD 66.5 [2][5][7]. Core Insights - The company's net loss attributable to shareholders for the first half of 2025 was better than expected, with revenue reaching RMB 499 million, a year-on-year increase of 812.1%. Product revenue was RMB 169 million, while collaboration revenue was RMB 329 million, up 502.6% year-on-year [5][7]. - The company is focusing on the commercialization of CM310 and preparing for national medical insurance negotiations, with confidence in multiple indications being included in the insurance scheme [5][7]. - The next-generation core pipeline drug, CM512, is being prioritized for development, showing promising safety and efficacy in preclinical studies [5][7]. Financial Performance - For 1H25, the company reported a net loss of RMB 78.84 million, significantly reduced from RMB 337 million in 1H24, primarily due to better-than-expected collaboration revenue and improved gross margins [5][7]. - The company’s cash position improved to RMB 2.8 billion as of June 30, 2025, up from RMB 2.16 billion at the end of 2024, aided by a successful placement in June [5][7]. - Revenue projections for the upcoming years show significant growth, with expected revenues of RMB 823 million in 2025, RMB 1.5 billion in 2026, and RMB 2.3 billion in 2027, reflecting year-on-year growth rates of 92%, 82%, and 54% respectively [7][9].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 300, indicating a potential upside of 21% from the current price of RMB 247.08 [1][2]. Core Insights - The company's performance in 1H25 was significantly under pressure, with revenue of RMB 16.7 billion, a year-on-year decrease of 18%, and a net profit of RMB 4.9 billion, down 33% year-on-year. However, there is a clear expectation for revenue recovery starting in 3Q25, with projected positive year-on-year growth [1][8]. - The report anticipates that the recovery in domestic equipment bidding projects will gradually convert into revenue, leading to further revenue growth in 4Q25. The low base effect from the previous year is expected to accelerate revenue and net profit growth in 2026 [1][8]. Financial Performance and Forecast - The company's revenue and net profit forecasts for the upcoming years are as follows: - Revenue: RMB 34.93 billion in 2023, RMB 36.73 billion in 2024, RMB 37.08 billion in 2025E, RMB 45.94 billion in 2026E, and RMB 53.25 billion in 2027E, with year-on-year growth rates of 15.0%, 5.1%, 1.0%, 23.9%, and 15.9% respectively [2][10]. - Net profit: RMB 11.58 billion in 2023, RMB 11.67 billion in 2024, RMB 11.39 billion in 2025E, RMB 14.49 billion in 2026E, and RMB 17.40 billion in 2027E, with year-on-year growth rates of 20.6%, 0.7%, -2.4%, 27.2%, and 20.1% respectively [2][10]. - The report highlights that the company's international revenue is expected to continue to grow, with a projected double-digit growth rate for the second half of 2025 [1][8]. Segment Analysis - Domestic revenue saw a significant decline of 33% in 1H25, primarily due to prolonged weak bidding conditions for equipment, while international revenue grew by 5%, now accounting for 50% of total revenue [8]. - The report notes that the IVD segment experienced a 16% decline in revenue, attributed to price reductions from centralized procurement and a decrease in testing volumes due to policy changes. However, international IVD business showed resilience with a 12% growth [8].

Investment Rating - The report maintains a "Hold" rating for the company with a target price of HKD 17.71, representing a potential upside of 12.0% from the current price of HKD 15.84 [1][5]. Core Insights - The company's revenue and operating profit margins are under pressure, with management indicating that the second half of 2025 will remain challenging. They expect a year-on-year revenue decline in 2025 of mid to high single digits, while operating profit margins are projected to remain flat [5][12]. - The company has experienced a significant decline in liquid milk revenue, down 11.2% in the first half of 2025, which is much greater than its main competitor, Yili, which saw only a 2.1% decline. This suggests a loss of market share for the company [5][12]. - Management's cautious pricing strategy has led to a substantial drop in sales volume, and while they have reduced sales expenses by 8.4%, this may have been a strategic decision to maintain operating profit margins [5][12]. Financial Performance and Forecast - The company's revenue for 2025 is forecasted to be HKD 82.995 billion, a decrease of 6.4% year-on-year. The core net profit is expected to decline by 14.5% to HKD 3.792 billion [7][13]. - The operating profit margin for 2025 is projected to be 8.3%, slightly up from 8.2% in 2024, but the overall financial outlook remains cautious due to market conditions [12][13]. - The report highlights that the company's performance in the first half of 2025 was primarily supported by lower raw milk prices, but this benefit may diminish as prices stabilize [5][12]. Market Context - The report indicates that the industry is facing prolonged challenges, with weak demand and increased competition expected to persist in the short term. This environment is likely to keep the company's sales prices and profit margins under pressure [5][12]. - The management's guidance suggests that the company is still weighing the balance between revenue and profit margins, indicating a potential shift in focus towards maintaining market share in the second half of 2025 [5][12].

Investment Rating - The report maintains a "Buy" rating for the company and raises the target price to HKD 106 [1][11][12] Core Insights - The company achieved a significant increase in net profit, reaching RMB 12.1 billion in 1H25, driven by strong product revenue growth and operational efficiency [1][6][11] - The internationalization strategy is becoming clearer, with the establishment of a clinical development team in the U.S. and ongoing global Phase III trials for key pipeline assets [1][6][11] - The commercialization strategy for the drug Masitide is progressing well, with early sales trends showing promise and a focus on brand building and channel development [1][8][11] Financial Performance - In 1H25, total revenue reached RMB 59.5 billion, a year-on-year increase of 50.6%, with product revenue at RMB 52.3 billion (+37.3% YoY) and licensing revenue at RMB 6.7 billion (+474.2% YoY) [1][6][11] - The company's Non-IFRS net profit improved significantly from a loss of RMB 1.6 billion in 1H24 to a profit of RMB 12.1 billion in 1H25, indicating strong operational efficiency [1][6][11] - The gross margin for products improved to 84.1% in 1H25 from 82.2% in 1H24, while R&D expenses were controlled at RMB 10 billion, down from RMB 14 billion in the previous year [1][6][11] Pipeline and Future Outlook - The company is focusing on the international development of its oncology pipeline, with two key assets, IBI363 and IBI343, entering global Phase III trials [1][6][11] - Upcoming data readouts for Masitide and other pipeline assets are expected in 2H25, which could further enhance the company's market position [1][11][12] - The company aims to achieve five international Phase III MRCT trials by 2030, supported by a strong cash position of USD 2 billion [1][6][11]

Trade Relations - The US-China tariff truce has been extended for another 90 days, reducing short-term tariff risks, with a 70% probability of maintaining the current status[1] - The average tariff rate imposed by the US on China has increased from 51.8% in May to 54.9% in August due to additional tariffs on steel and aluminum products[7] - There is a 25% chance that the US-China trade conflict may escalate in the coming months[9] Economic Data - July's economic data showed a continued decline, with retail sales growth slowing down, particularly in the automotive and home appliance sectors[14] - Fixed asset investment growth fell to 1.6%, the lowest since October 2020, indicating significant challenges in consumption and investment[19] - Exports in July exceeded expectations, suggesting a potentially better outlook for the remainder of the year, although the overall trend remains downward[27] Policy Outlook - The government is expected to introduce an additional fiscal support of 0.5 to 1.0 trillion yuan, with implementation possibly starting by the end of September[51] - Recent fiscal policies focus on accelerating government bond issuance and implementing measures to stimulate domestic demand[43] - Monetary policy adjustments, including potential interest rate cuts, are anticipated by the end of September, contingent on economic performance and external factors[53] Real Estate Market - Real estate investment continues to face downward pressure, with July showing a significant decline in both property sales and prices[24] - Recent policy changes in major cities aim to optimize housing purchase regulations, indicating a new round of support for the real estate sector[55]

Investment Rating - The report assigns a target price of HKD 121.2 for Anta Sports (2020.HK), indicating a potential upside of 19.3% from the current price of HKD 101.6 [1]. Core Insights - Anta's management has adjusted the annual revenue guidance for the Anta brand from high single-digit growth to mid single-digit growth due to weaker retail performance in July and August, although recent trends show improvement [4]. - The company continues to optimize and upgrade its channels, focusing on enhancing store efficiency rather than significantly increasing the number of stores [4]. - Anta's multi-brand strategy is deepening, with other brands like Descente and Kolon showing strong revenue growth, contributing to overall profitability [4]. - The first half of 2025 saw a 14.5% year-on-year increase in net profit to RMB 7.03 billion, aligning with market expectations [5]. Financial Performance - Revenue for 2023 is projected at RMB 62.36 billion, with a year-on-year growth of 16.2%, and expected to reach RMB 80.95 billion by 2025 [6]. - The net profit for 2023 is estimated at RMB 10.24 billion, reflecting a significant year-on-year increase of 34.9% [6]. - The operating profit margin for the first half of 2025 is reported at 26.3%, indicating operational efficiency improvements [9]. Brand Performance - The Anta brand's gross margin decreased by 1.7 percentage points due to a higher proportion of e-commerce sales, while the operating profit margin increased by 1.5 percentage points, aided by government subsidies [5]. - The Fila brand's gross margin fell by 2.2 percentage points, primarily due to increased retail discounts [5]. - Other brands, including Descente and Kolon, experienced a 61% year-on-year revenue growth in the first half of 2025, contributing to 19% of total revenue [4]. Market Position - Anta's market capitalization stands at HKD 285.213 billion, with an average daily trading volume of HKD 876.3 million over the past three months [1]. - The stock has traded within a 52-week range of HKD 68.35 to HKD 107.5, reflecting market volatility [1].

Investment Rating - The report maintains a "Buy" rating for the company, Lixun Precision, with a target price of RMB 52.8, indicating a potential upside of 17% from the current price of RMB 44.98 [1][5][22]. Core Insights - The company has shown steady growth in net profit, with a year-on-year increase of 23% in Q2 and an expected median growth of 22% in Q3. This growth is attributed to the synergy across various business segments, particularly in components and assembly for major clients, as well as significant revenue growth in the communications and automotive sectors [5][7]. - The report highlights that the automotive business, including the recently consolidated Lainie and ODM business, is expected to contribute positively to both revenue and profit in the coming years. Additionally, the company is poised for growth in AI servers and automotive smart cockpit technologies [5][9]. Financial Projections - Revenue projections for Lixun Precision are as follows: - 2023: RMB 231,905 million - 2024: RMB 268,795 million - 2025E: RMB 329,659 million (22.6% YoY growth) - 2026E: RMB 386,681 million (17.3% YoY growth) - 2027E: RMB 429,648 million (11.1% YoY growth) [2][6][9]. - Net profit projections are: - 2023: RMB 10,953 million - 2024: RMB 13,366 million - 2025E: RMB 16,673 million (25% YoY growth) - 2026E: RMB 20,937 million (26% YoY growth) - 2027E: RMB 25,418 million (21% YoY growth) [2][6][9]. Valuation - The report employs a sum-of-the-parts valuation method, assigning target price-to-earnings ratios for different business segments: - Consumer Electronics: 21x - Computers: 10x - Automotive: 35x - Communications: 34x - Industrial and Others: 20x - This results in a target price of RMB 52.8, reflecting a potential upside of 17% [5][10].

Investment Rating - The report maintains a "Buy" rating for the company, Xiaomi Group, with a target price of HKD 75.0, indicating a potential upside of 43% from the current price of HKD 52.55 [1][3][27]. Core Views - The short-term and long-term fundamentals of Xiaomi show growth potential, driven by strong demand in the new energy vehicle sector and ongoing investments in technology such as chips and AI [1][2]. - The company is expected to achieve a smartphone shipment of 175 million units in 2025, with high-end products supporting margin growth [1][3]. - The IoT segment is projected to grow nearly 50% due to the expansion of major appliances and overseas business [1][3]. - The internet business is anticipated to maintain stable revenue growth and high margins due to a growing user base [1][3]. - The automotive segment is expected to exceed the delivery target of 350,000 units, with scale effects and high-end models improving margins [1][3]. Financial Projections - Revenue is forecasted to grow from RMB 270.97 billion in 2023 to RMB 756.75 billion by 2027, with a compound annual growth rate (CAGR) of approximately 20% [3][12]. - Adjusted net profit is expected to increase significantly from RMB 19.27 billion in 2023 to RMB 71.50 billion in 2027, reflecting a CAGR of around 39% [3][12]. - The target price corresponds to a price-to-earnings (P/E) ratio of 29.9x, indicating room for valuation growth [2][13]. Segment Valuation - The report employs a sum-of-the-parts valuation method, assigning target P/E ratios of 23.0x for smartphones, 27.0x for IoT, and 20.0x for internet services, along with a target price-to-sales (P/S) ratio of 2.5x for electric vehicles [2][13]. - The total valuation for Xiaomi is estimated at HKD 75.0, based on projected revenues and net profits across its business segments [2][13].

Investment Rating - The report maintains a "Buy" rating for the company and raises the target price to HKD 9.6, indicating a potential upside of 16% from the current price of HKD 8.31 [2][3]. Core Insights - The company's performance in the first half of 2025 (1H25) is stable, with a revenue of RMB 350 million, representing a 17% year-over-year increase. The gross margin is reported at 70.1%, a decrease of 2.6 percentage points year-over-year. The net loss attributable to shareholders is RMB 69.88 million, narrowing by 2% compared to the same period last year [2][3]. - The heart valve business is evolving from a focus on aortic stenosis (AS) to multiple indications including aortic regurgitation (AR) and transcatheter edge-to-edge repair (TEER). The company has three core valve products nearing commercialization, expected to be approved in 2026, which will contribute to revenue growth starting in 2027 [2][3][12]. - The neurointerventional segment has experienced a slowdown in revenue growth due to the impact of centralized procurement, but is expected to achieve over 20% year-over-year growth as procurement volumes stabilize [2][3]. Financial Performance Summary - For 1H25, the company reported revenues of RMB 350 million, with a gross profit margin of 70.1%. The net loss attributable to shareholders was RMB 69.88 million, showing improvement from the previous year [2][3]. - Revenue projections for the upcoming years are as follows: RMB 748 million in 2025, RMB 939 million in 2026, and RMB 924 million in 2027, with year-over-year growth rates of 21.5%, 25.6%, and -1.6% respectively [3][9]. - The company anticipates a gradual increase in revenue from its core products, with significant contributions expected from new product launches in 2027 [2][3][12]. Product Pipeline Overview - The company has a robust pipeline with several products in various stages of development. Key products include TaurusTrio (AR TAVR), TaurusNXT (third-generation AS TAVR), and GeminiOne (TEER), all expected to receive regulatory approval in 2026 [2][12]. - The company is also preparing for international market entries, with submissions for FDA and CE certifications for its products underway [2][12][13].

Investment Rating - The report maintains a "Buy" rating for Xiaopeng Motors (XPEV.US/9868.HK) [2][8] - The target price for Xiaopeng Motors (XPEV.US) is raised to $27.4, representing a potential upside of 15% [2][4] - The target price for Xiaopeng Motors-W (9868.HK) is raised to HKD 106.9, representing a potential upside of 16% [5][8] Core Insights - Xiaopeng Motors is entering a new product strength cycle, with models like MONA, P7+, G6, G9, and G7 driving sales growth and margin improvement [8] - The company expects to achieve breakeven in Q4 2025, supported by strong sales and improving gross margins [8] - The guidance for Q3 2025 indicates a median sales volume of 115,500 vehicles, a year-on-year increase of 148% and a quarter-on-quarter increase of 12% [8] Financial Forecasts - Revenue projections for Xiaopeng Motors from 2023 to 2027 are as follows: - 2023: RMB 30,676 million - 2024: RMB 40,866 million (33% YoY growth) - 2025E: RMB 76,780 million (88% YoY growth) - 2026E: RMB 105,987 million (38% YoY growth) - 2027E: RMB 141,072 million (33% YoY growth) [3][12] - Gross margin is expected to improve from 1.5% in 2023 to 17.9% in 2027 [3][12] - Net loss is projected to decrease from RMB 10,376 million in 2023 to a profit of RMB 4,206 million by 2027 [3][12] Valuation Methodology - The report employs a sum-of-the-parts valuation method, assigning a sales multiple of 2.2x for automotive sales and 5.0x for services and other revenues, leading to a target price of $27.4 for Xiaopeng Motors [8][16] - The target price for Xiaopeng Motors-W is derived similarly, resulting in HKD 106.9 [8][16] Recent Performance - In Q2 2025, Xiaopeng Motors reported revenue of RMB 18,274 million, a 125% increase year-on-year, with a gross profit of RMB 3,167 million [11] - The gross margin for Q2 2025 was 17.3%, up from 14.0% in Q2 2024 [11] - Vehicle sales volume reached 103,181 units in Q2 2025, a 242% increase year-on-year [11]