Investment Rating - The report maintains a "Buy" rating for Tencent with a target price of 700 HKD, indicating a potential upside of 34% from the current price of 521 HKD [3][20]. Core Insights - Tencent's 1Q25 revenue reached 180 billion RMB, a 13% year-on-year increase, exceeding market expectations by 2.5%. The gross margin improved to 55.8%, up 3.2 percentage points year-on-year, with adjusted net profit growing by 22% to 61.3 billion RMB [1][2]. - The gaming segment showed strong performance, with domestic game revenue increasing by 24% to 42.9 billion RMB, driven by flagship titles like "Honor of Kings" and the successful launch of new games [1][2]. - AI continues to empower core business areas, particularly in advertising and gaming, contributing to a 20% year-on-year growth in advertising revenue to 31.9 billion RMB [2]. Financial Performance Summary - The report projects FY25E revenue at 724.4 billion RMB, with adjusted net profit expected to reach 254.0 billion RMB, reflecting a growth trajectory supported by AI investments and improved operational efficiency [5][11]. - Management expenses rose by 36% year-on-year, primarily due to one-time overseas expenditures and AI R&D investments, but the overall revenue growth is expected to offset these costs [2][5]. - The report highlights a consistent improvement in gross margins across all segments, with a focus on maintaining profitability despite increased costs associated with AI initiatives [2][3].

Investment Rating - The report maintains a "Buy" rating for the company with a target price adjusted to HKD 173 / USD 44, reflecting a potential upside of 22% from the current price of HKD 141.6 / USD 35.73 [3][5][25]. Core Insights - The company's revenue for Q1 2025 reached RMB 301.1 billion, representing a year-on-year growth of 15.8%, which is better than market expectations, with further acceleration in growth anticipated for Q2 [1]. - The strong growth in revenue is driven by the government's subsidy policies, particularly benefiting the electronics category, which saw a 17.1% year-on-year increase [1]. - The food delivery business is undergoing dynamic adjustments, introducing uncertainty to profit margins, with a gross margin of 15.9% in Q1, up 0.6 percentage points year-on-year [2]. - Adjusted net profit for Q1 increased by 43% to RMB 12.8 billion, exceeding market expectations, with an adjusted net profit margin of 4.2% [2]. Summary by Sections Revenue and Growth - Q1 2025 revenue was RMB 301.1 billion, up 15.8% year-on-year, with product revenue growing 16.2% and service revenue increasing by 14% [1]. - The core categories, particularly electronics, benefited from the government's trade-in policies, leading to a robust growth outlook for Q2 [1]. Profitability - The company reported a gross margin of 15.9% in Q1, an improvement of 0.6 percentage points year-on-year, with adjusted net profit rising to RMB 12.8 billion [2]. - The adjusted net profit margin improved to 4.2%, primarily due to enhanced retail operating profit margins [2]. Business Strategy - The food delivery segment is expanding rapidly, with over one million merchants and nearly 20 million daily orders, although the impact on overall revenue remains limited [2]. - The company is increasing investments in the food delivery sector to enhance user engagement and purchase frequency, but this may introduce uncertainties regarding profit margin improvements [2]. Financial Projections - The report forecasts revenue growth for FY25E at RMB 1,279.2 billion, with adjusted net profit expected to reach RMB 48.4 billion [4]. - The adjusted net profit growth rate is projected to be 5.3% lower than previously estimated due to the anticipated impact of food delivery investments on profitability [3].

Investment Rating - The report maintains a "Buy" rating for the company with a target price raised to $170, indicating a potential upside of 19% from the current price of $142.45 [2][4][17]. Core Insights - The company reported a strong performance in Q1 2025, with revenue of $4.84 billion, a year-on-year increase of 30%. Adjusted EBITDA reached $950 million, exceeding market expectations by 36%, with an adjusted EBITDA margin of 19.6% [1]. - E-commerce revenue grew by 28.3% year-on-year, with GMV increasing by 21.5%. The adjusted EBITDA margin for e-commerce improved to 7.5%, driven by scale expansion, cost optimization, and enhanced monetization capabilities [1]. - The digital financial services segment saw a 58% year-on-year revenue growth, with over 4 million new borrowers and a loan principal of $5.8 billion. The business has been rebranded as Monee, positioning it as one of Southeast Asia's largest unsecured consumer loan companies [2]. - The gaming segment experienced an 8% year-on-year revenue growth, with game revenue increasing by 51.4%, largely due to successful IP collaborations [2]. Summary by Sections Financial Performance - For FY25E, the company expects revenue to reach $21.14 billion, with an adjusted EBITDA of $3.59 billion and a net profit of $1.77 billion, reflecting significant growth from previous years [4][9]. - The adjusted net profit margin is projected to improve to 8.4% by FY25E, with a continued upward trend in profitability expected through FY27E [9]. Business Segments - E-commerce remains a key growth driver, with a focus on local market penetration and resilience against tariff uncertainties due to low cross-border trade exposure [1]. - The digital financial services segment is expected to continue its rapid growth, supported by effective credit risk management and adaptability to macroeconomic changes [2]. - The gaming segment is anticipated to maintain double-digit growth in users and revenue, bolstered by successful game launches and collaborations [2]. Market Position - The company is well-positioned in the market with strong competitive advantages, including localized operations and a robust product offering that minimizes the impact of discretionary spending fluctuations [1][2].

Investment Rating - The report maintains a "Buy" rating for Tencent Music (TME.US/1698.HK) with a target price of $18 or HKD 70, indicating a potential upside of 26% and 28% respectively from current prices [3][5][7]. Core Insights - The company's revenue for Q1 2025 reached RMB 73.6 billion, a year-on-year increase of 8.7%, slightly above market expectations. The adjusted net profit was RMB 21.2 billion, exceeding market expectations by 5.1% [1][3]. - Online music service revenue grew by 16.1% year-on-year, driven by subscription and advertising revenue growth. The music subscription ARPPU reached RMB 11.4, surpassing expectations due to a reduction in discounts for regular members and strong performance from SVIP subscriptions [2][3]. - The report anticipates that ARPPU will become the main driver of music subscription revenue growth in the coming years, with projections of RMB 11.6 in Q2 2025 and RMB 12.1 by Q4 2025 [2]. Financial Projections - The report slightly raises revenue forecasts for FY25E and FY26E by 1% and 0% respectively, and adjusts the net profit forecasts upward by 3% and 1% [3]. - Financial metrics for FY25E include expected revenue of RMB 31.16 billion, operating profit of RMB 12.79 billion, and adjusted net profit of RMB 8.90 billion [4][10]. Market Performance - The current stock price for Tencent Music is $14.33, with a 52-week price range of $9.41 to $15.77, and a total market capitalization of $24.59 billion [5][6]. - The report indicates a strong market position for Tencent Music, supported by its leading industry status and growth in subscription services [3][4].

Investment Rating - The report maintains a "Buy" rating for Qualcomm (QCOM.US) with a target price of $178.3, indicating a potential upside of 17.8% from the current price of $151.34 [1][5]. Core Views - Qualcomm's smartphone shipment forecast remains largely unchanged, with minimal impact from current tariffs and limited pre-purchase behavior from customers [1]. - For FY3Q25, Qualcomm expects smartphone revenue to grow by 10% year-over-year, driven by increased shipments of high-end Android phones and rising average selling prices [1]. - Automotive revenue is projected to increase by 20% year-over-year, benefiting from high adoption rates of smart cockpit technology in new energy vehicles in China [1]. - Internet of Things (IoT) revenue is anticipated to grow by 15%, supported by gains in high-end personal computers, industrial IoT growth, and surging demand for edge AI [1]. - Long-term growth potential in non-mobile business segments is significant, with expectations that non-mobile revenue will reach $22 billion by 2029 [1]. - Qualcomm's forward P/E ratio is currently at 12.7x, down from 15x at the beginning of the year, making it an attractive investment opportunity [1]. Financial Performance and Forecast - In FY2Q25, Qualcomm reported revenue of $10.98 billion, a 17% increase year-over-year, but a 6% decrease quarter-over-quarter, exceeding market expectations [2][10]. - Gross margin for FY2Q25 was 55.0%, slightly down from the previous year and quarter, primarily due to changes in product mix [2][10]. - Operating profit and net profit for FY2Q25 were $3.12 billion (up 33% year-over-year) and $2.81 billion (up 21% year-over-year), respectively, both slightly above market expectations [2][10]. - The guidance for FY3Q25 indicates a median revenue of $10.3 billion, representing a 10% year-over-year growth [2]. - The financial projections for FY2025 and FY2026 have been slightly adjusted based on FY2Q25 performance and FY3Q25 outlook [2][11]. Valuation - The report employs a DCF valuation method, assuming a growth rate of 12% for FY2030-FY2034 and a perpetual growth rate of 3%, with a WACC of 13.8% [3]. - The adjusted target price of $178.3 corresponds to a P/E ratio of 17.4x for FY2025 [3].

Investment Rating - The report maintains a "Buy" rating for Qualcomm (QCOM.US) with a target price adjusted to $178.3, indicating a potential upside of 17.8% from the current price of $151.34 [1][5]. Core Views - Qualcomm's smartphone shipment forecast remains largely unchanged, with minimal impact from current tariffs and limited pre-purchase behavior observed [1]. - For FY3Q25, Qualcomm expects smartphone revenue to grow by 10% year-over-year, driven by increased shipments of high-end Android devices, which will boost average selling prices [1]. - Automotive revenue is projected to increase by 20% year-over-year, benefiting from high adoption rates of smart cockpit technology in new energy vehicles in China [1]. - Internet of Things (IoT) revenue is anticipated to rise by 15%, supported by growth in high-end personal computers, industrial IoT, and surging demand for edge AI [1]. - Long-term growth potential in non-mobile business segments is significant, with expectations that non-mobile revenue will reach $22 billion by 2029 [1]. - Qualcomm's current forward P/E ratio of 12.7x is notably lower than the beginning of the year at 15x, presenting an attractive investment opportunity [1]. Financial Performance Summary - In FY2Q25, Qualcomm reported revenue of $10.98 billion, a 17% year-over-year increase, although it declined by 6% quarter-over-quarter [10]. - Gross margin stood at 55.0%, down 1.2 percentage points year-over-year and 0.7 percentage points quarter-over-quarter, slightly below market expectations due to changes in product mix [10]. - Operating profit and net profit for FY2Q25 were $3.12 billion (up 33% year-over-year, down 12% quarter-over-quarter) and $2.81 billion (up 21% year-over-year, down 12% quarter-over-quarter), respectively, both slightly exceeding market expectations [10]. - The guidance for FY3Q25 indicates a median revenue of $10.3 billion, representing a 10% year-over-year growth but a 12% quarter-over-quarter decline [2][10]. Valuation - The report employs a DCF valuation method, assuming a growth rate of 12% for FY2030-FY2034 and a perpetual growth rate of 3%, with a WACC of 13.8% [3]. - The adjusted target price of $178.3 corresponds to a FY2025 P/E ratio of 17.4x [3].

Investment Rating - The report maintains a "Buy" rating for the Hong Kong stock and a "Hold" rating for the A-share, with target prices set at HKD 11.7 and CNY 19.6 respectively [5][12]. Core Insights - The company's Q1 2025 performance slightly exceeded expectations, with total revenue reaching RMB 381 million, representing a year-on-year increase of 129.9% and a quarter-on-quarter increase of 22.3% [2][3]. - The revenue from the drug Oubatinib was RMB 311 million, showing a year-on-year growth of 89.2% and a quarter-on-quarter growth of 1.2% [2][3]. - The management has raised the full-year revenue growth guidance for Oubatinib from 30% to 35% year-on-year, driven by strong sales in exclusive indications and market share gains [3][12]. Financial Performance Summary - Q1 2025 net profit attributable to shareholders was RMB 17.97 million, which is an improvement compared to previous losses, primarily due to better-than-expected revenue and lower sales and administrative expenses [2][3]. - The gross margin for product sales improved to 88.4%, up from 85.3% in Q1 2024 and 87% in Q4 2024 [2][3]. - The company expects significant contributions from the MZL indication to Oubatinib's overall revenue, increasing from 30% in 2024 to 50% in 2025 [3][12]. Research and Development Progress - The company is advancing two TYK2 inhibitors, with CP-332 in Phase III clinical trials for AD and CP-448 in Phase III for psoriasis, both expected to complete patient enrollment in 2025 [4][12]. - Key upcoming R&D catalysts include new indication approvals and important data readouts for Oubatinib and other drugs [4][12]. Market Expectations - The current market capitalization is approximately HKD 20.066 billion, with a recent average trading volume of HKD 121 million over the past three months [5][12]. - The stock price has ranged between HKD 4.2 and HKD 11.0 over the past 52 weeks, with the current price at HKD 9.5, indicating a potential upside of 23% to the target price [5][12].

Investment Rating - The report maintains a "Buy" rating for the Hong Kong stock and a "Hold" rating for the A-share, with target prices set at HKD 11.7 and CNY 19.6 respectively [7][9][10]. Core Insights - The company's 1Q25 performance slightly exceeded expectations, with total revenue reaching CNY 381 million, representing a year-on-year increase of 129.9% and a quarter-on-quarter increase of 22.3% [7][10]. - The revenue from the drug Oubatinib was CNY 311 million, up 89.2% year-on-year and 1.2% quarter-on-quarter, leading to an upward revision of the annual revenue growth guidance for Oubatinib from 30% to 35% [7][10]. - The report highlights the strong sales growth of Oubatinib, driven by the increasing market share in the r/r CLL/SLL segment and the expansion of indications [7][10]. Financial Performance Summary - 1Q25 net profit attributable to shareholders was CNY 17.97 million, which is an improvement compared to previous losses, attributed to better-than-expected revenue and lower sales and administrative expenses [7][10]. - The gross margin for product sales improved to 88.4%, up from 85.3% in 1Q24 and 87% in 4Q24, indicating enhanced operational efficiency [7][10]. - The report projects significant revenue growth for the coming years, with expected revenues of CNY 1.45 billion in 2025, reflecting a 43.9% year-on-year increase [9][10]. Research and Development Progress - The company is advancing two TYK2 inhibitors, with ongoing clinical trials for ICP-332 and ICP-448, expected to yield important data in the coming years [7][10]. - Key upcoming catalysts include new indication approvals and significant data readouts for Oubatinib and other products [7][10]. Market Position and Valuation - The current market capitalization is approximately HKD 20.066 billion, with a recent average trading volume of HKD 121 million over the past three months [2][4]. - The stock has a 52-week price range of HKD 4.2 to HKD 11.0, indicating potential for growth based on the target price [2][4].

Inflation Data Summary - In April, the core CPI inflation rate rebounded to 0.24% from March's 0.06%, but fell short of the expected 0.3%[1] - Overall CPI increased to 0.22% in April from March's -0.05%, also below the market expectation of 0.3%[1] - Year-on-year, the overall CPI decreased by 0.1 percentage points to 2.3%, while the core CPI remained unchanged at 2.8%[1] Sector Analysis - Energy inflation improved significantly, rising to 0.67% in April from -2.39% in March, while food inflation dropped to -0.08%[1] - The core services CPI (super core services CPI) increased to 0.23% in April, driven by a recovery in transportation services[2] - Medical care prices maintained a steady growth rate of 0.51% in April, while entertainment services saw a decline of 0.29%[2] Tariff Impact - The impact of tariffs on inflation remains unclear, with significant effects expected to manifest around July to August[1] - If tariffs had not been increased under Trump's administration, core inflation would likely have continued its previously expected moderate downward trend[1] - The recent trade negotiations have led to a reduction in the expected tariff impact on inflation from 1.1-2.2 percentage points to 0.5-1 percentage points[3] Federal Reserve Outlook - The April inflation data suggests that, excluding tariff factors, the underlying inflation trend remains moderately downward, supporting the expectation of a potential rate cut in July[5] - The Federal Reserve's current stance is cautious, with a focus on upcoming employment data to inform future rate decisions[6] - The overall forecast anticipates 2-3 rate cuts throughout the year, each by 25 basis points[6]

Investment Rating - The report initiates coverage with a "Buy" rating for the company, targeting a price of 857 HKD, indicating a potential upside of 32.8% from the current price of 645.5 HKD [5]. Core Insights - The company's success is attributed to its long-term focus on the high-end market, the unique craftsmanship of ancient gold, and a direct-to-consumer (DTC) model that enhances brand value [2][14]. - The report emphasizes that the company is still in the growth phase of its brand lifecycle, with a projected compound annual growth rate (CAGR) of over 40% in revenue from 2024 to 2028, driven by an expected increase in market share in the ancient gold segment [3][37]. - The company's stock price has shown a strong correlation with gold prices, with a correlation coefficient of 0.94, suggesting that fluctuations in gold prices will continue to impact the company's stock performance [3][8]. Summary by Sections Company Overview - The company has significantly increased its brand awareness and sales since its listing, with stock prices reaching over 20 times the issue price [1]. - The company is positioned as a luxury brand, focusing on ancient gold craftsmanship, which differentiates it from other jewelry brands [14][24]. Financial Performance - Revenue is projected to grow from 3.18 billion RMB in 2023 to 37.11 billion RMB by 2027, with a year-on-year growth rate of 145.7% in 2023 and 167.5% in 2024 [9][10]. - Net profit is expected to increase from 416 million RMB in 2023 to 7.11 billion RMB in 2027, with a remarkable growth rate of 340.4% in 2023 [9][10]. Market Positioning - The company aims to capture a larger share of the ancient gold market, with expectations to increase its market share from 2% in 2023 to at least 8% by 2028 [37]. - The report highlights the company's unique selling proposition, which includes a focus on traditional craftsmanship and a strong brand identity associated with ancient gold [2][14]. Valuation Analysis - The company is currently trading at 27x P/E for 2025 and 19x for 2026, which is significantly higher than the average valuation of other Chinese jewelry brands [54][55]. - The report suggests that the current valuation reflects the company's growth potential and brand value, indicating a favorable investment opportunity [54][55].