Investment Rating - The report maintains a "Buy" rating for the company with an updated target price of HKD 11.65, reflecting an upside potential of 21.6% based on an 8.5x FY26 target P/E ratio [4][6][19]. Core Insights - The company's FY25 interim results exceeded expectations, with a 32.8% year-on-year increase in net profit attributable to shareholders, reaching RMB 440 million. This growth was driven by a 17.3% increase in total revenue to RMB 4.39 billion, primarily from the smart metering business, which saw a 29.8% revenue increase to RMB 1.88 billion [1][3]. - The company effectively controlled sales, administrative, and R&D expenses, leading to a decrease in financial costs by 5.4% to RMB 59 million, and a reduction in the effective tax rate from 16.9% to 15.1% [1][3]. Revenue Breakdown - Domestic grid customers remain the largest revenue source, with a 21.6% year-on-year increase in related revenue to RMB 1.80 billion, accounting for 41.0% of total revenue. However, overseas customer revenue grew rapidly, increasing by 19.2% to RMB 1.24 billion, representing 30.8% of total revenue, primarily from the smart metering business [2][11]. - The company has commenced operations at its factories in Johor, Malaysia, and PT Willfar in Indonesia, which are expected to further drive overseas business growth [2]. Profit Forecast Adjustments - Following the FY25 interim results, the profit forecasts for FY25-27 have been raised by 9.1%, 9.6%, and 10.1%, respectively, resulting in projected net profits of RMB 980 million, RMB 1.26 billion, and RMB 1.54 billion, with year-on-year growth rates of 38.4%, 28.6%, and 22.9% [3][15].

2025 年 8 月 27 日 星期三 昨日新能源及公用事业港股普遍下跌。不过受到良好中期业绩支持，个别表现突出。例如威胜控股(3393 HK)上涨 11.4%。公司上半年股东净利润同比增长 32.8%，主因(一)收入同比增长 17.3%，其中海外收入上升 19.2%；(二)有效成本 控制，财务支出同比下跌 5.4%。展望下半年，料公司持续受惠于电网客户及非电网客户需求，其中包括数据中心需求。 1 截至 8 月 26 日，51%的恒生综指成份股已公布业绩，其中 56%公司盈利超预期，总体来看，成份股中期业绩的超预期幅度 约为 5.6%。按板块分类，医疗保健公司业绩超预期幅度最大，科技、能源、必选消费则紧随其后，而金融、地产及公用 事业盈利逊预期比率及幅度较大。盈利增长角度，信息科技、医疗保健行业分类指数的综合盈利增长分别达到 158.6%及 124.9%，整体恒生综指的盈利增长则为 12.6%。 行业动态： 汽车板块，周二大部分汽车股延续向上趋势。比亚迪（1211 HK）在泰国的工厂首次出口电动车至欧洲，第一批共约 900 辆，目的地包括英国、德国和比利时等。小鹏汽车（9868 HK）CEO 表示小鹏机器人的 ...

Market Performance - The Hang Seng Index rose by 1.9% to 25,829 points, gaining nearly 500 points and approaching the 26,000 mark[1] - The Hang Seng Technology Index increased by 3.1%, closing at 5,825 points[1] - Market turnover reached HKD 369.6 billion, indicating strong bullish sentiment[1] Sector Highlights - Major technology stocks led the market rally, with Baidu and NetEase both rising over 6%, while Alibaba and Kuaishou gained over 5%[1] - Real estate stocks performed strongly due to new policies in Shanghai aimed at optimizing purchasing limits and credit, boosting market confidence[1] - The automotive sector saw a significant rise, with Dongfeng Group's stock increasing by 54% following a restructuring announcement[4] Economic Indicators - New home sales in 30 major cities fell by 12.9% year-on-year, indicating a continued decline in the real estate market[3] - The average coal price dropped by 15.3% to HKD 149 per ton, impacting the coal sector's profitability[10] Policy and Market Outlook - The market is driven by expectations of interest rate cuts, supportive policies, and strong earnings, particularly in technology and cyclical sectors[2] - The Hang Seng Index's price-to-earnings ratio has recovered to nearly the 80th percentile of the past seven years, suggesting potential for further gains[2] Company Performance - WuXi Biologics reported a 16.1% increase in revenue to RMB 9.95 billion, with a 56.0% rise in net profit, driven by strong demand for antibody-drug conjugates[7] - Yancoal Australia saw a 61.2% decline in net profit to AUD 16 million, attributed to lower coal prices and logistical challenges[10]

宏观动态： 美国制造业及服务业景气恢复扩张，但价格压力仍高。8 月标普全球美国制造业 PMI 升至 53.3 的超过三年高位，新订单 及新出口订单均较 7 月积极改善，显示需求在扩张。原材料库存及产成品库存指数也分别升至 53.7 及 53.5，反映厂商补 库存意愿较强。关税带来的潜在通胀压力存在，购进价格指数大升至 67.1，而出厂价指数也维持在 60.1 的偏高水平，显 示商品通胀风险仍存。8 月的服务业 PMI 初值则小幅回落至 55.4，但仍处于高位，服务业新订单指数上升，服务价格指数 也保持在高位。 行业动态： 2025 年 8 月 25 日 星期一 每日大市点评 港股大盘上周高台窄幅震荡，恒生指数全周微升 0.3%，收报 25,339 点；恒生科指上升 1.9%，收报 5,647 点。大市日均成 交金额按周增加 3.6%至 2,804 亿港元，港股通全周净流入 178 亿港元。恒生综合行业分类指数表现分化，地产、公用事 业、能源及材料分类指数分别跌 0.6%至 2.2%不等。可选消费及信息科技均上升 1.6%，是表现最好的分类指数。 近期港股表现与 A 股出现背离，主因港股的整体估值已显著修复，叠 ...

Market Overview - The Hang Seng Index fell by 61 points or 0.2%, closing at 25,104 points, with narrow fluctuations around 25,200 points for five consecutive trading days[1] - The Hang Seng Tech Index decreased by 0.8%, ending at 5,498 points, with total market turnover dropping to HKD 239.5 billion[1] - Net inflow from the Hong Kong Stock Connect was HKD 7.46 billion, indicating continued domestic capital support[1] Sector Performance - The biopharmaceutical sector rebounded, with leading companies like Innovent Biologics (1801 HK) and CanSino Biologics (9926 HK) rising by 4.9% and 3.3% respectively[1] - Ping An Good Doctor (1833 HK) reported a 136.8% increase in mid-term net profit, leading to an 11.4% surge in its stock price, reaching a three-year high[1] - The telecommunications, engineering machinery, and certain power generation stocks showed upward movement, while major tech stocks like Alibaba (9988 HK) and Meituan (3690 HK) declined[1] Automotive Sector Insights - Li Auto (9863 HK) saw a significant 16% increase over the past month, but dropped 4.7% after rumors of a potential acquisition by FAW Group were denied[2] - Great Wall Motors (2333 HK) rose by 20% in the past week, attributed to the production launch of its Brazilian factory and a positive market outlook for fuel vehicles[2] - NIO (9866 HK) experienced a 15% increase in stock price ahead of the launch of its new ES8 model[2] Healthcare Sector Developments - The Hang Seng Healthcare Index rebounded by 2.3%, with most major companies seeing stock price increases[3] - Rongchang Biologics (9995 HK) signed a deal with Santen Pharmaceutical (4536 JP) worth a total of HKD 1.395 billion, including a prepayment of HKD 250 million[3] - The demand for the RC28-E injection, targeting age-related macular degeneration and diabetic macular edema, is expected to be strong due to its effectiveness[3] Energy Sector Analysis - China Resources Power (836 HK) fell by 5.9% after reporting a 15.9% year-on-year decline in net profit to HKD 7.87 billion for the first half of FY25[4] - The renewable energy segment showed a slight increase in core earnings, while thermal power core earnings decreased by 2.7% to HKD 2.64 billion[4] Coal Industry Forecast - Yancoal Australia (3668 HK) reported a 61.2% drop in net profit for the first half of FY25, with revenues down 14.8% to AUD 268 million[5][6] - The average coal price fell by 15.3% to AUD 149 per ton, but a rebound is expected in the second half due to seasonal demand[6] - The company maintains its FY25 production guidance of 35-39 million tons of coal[7] Pharmaceutical Sector Performance - Hansoh Pharmaceutical (3692 HK) reported a 14.3% increase in revenue to RMB 7.43 billion for the first half of 2025, with net profit rising by 15.0% to RMB 3.14 billion[11] - The company’s innovative drugs are expected to drive rapid revenue growth, with significant clinical advancements reported[12][13] - Target price for Hansoh Pharmaceutical has been raised to HKD 42.75, maintaining an "overweight" rating[15]

Investment Rating - The report maintains a "Buy" rating for Yancoal Australia (3668 HK) with a target price adjusted to HKD 34.70, reflecting a potential upside of 22.9% and a target P/E ratio of 8.5 times for FY25 [4][6][20]. Core Views - The mid-year performance for FY25 was slightly disappointing, with a year-on-year decline in revenue and net profit of 14.8% and 61.2%, respectively, due to lower average coal prices and temporary weather-related logistics issues [1][2]. - However, the outlook for the second half of FY25 is expected to improve, driven by seasonal energy demand and policy changes in China, leading to a forecasted rebound in coal prices [2][3]. Summary by Sections Financial Performance - For the first half of FY25, Yancoal reported revenue of AUD 268 million and a net profit of AUD 16 million, down from the previous year [1]. - The average coal price fell by 15.3% to AUD 149 per ton, with thermal and metallurgical coal prices decreasing by 11.5% and 35.1%, respectively [1]. - Despite an 11.1% increase in coal production to 18.9 million tons, sales volume dropped by 1.8% to 16.6 million tons due to logistical challenges [1]. Future Outlook - The report anticipates a narrowing of the year-on-year decline in coal prices for FY25, with expected average prices of AUD 149 for thermal coal and AUD 219 for metallurgical coal [2]. - The forecast for total coal sales volume for FY25 is projected to increase by 1.3% to 38.2 million tons, with a sales-to-production ratio of 97.2% [2]. Operational Guidance - Yancoal maintains its operational guidance for FY25, targeting coal production between 35 million to 39 million tons, cash operating costs of AUD 89-97 per ton, and capital expenditures of AUD 750-900 million [3]. Adjusted Profit Forecasts - The report adjusts the net profit forecasts for FY25-27 downwards by 9.3%, 8.0%, and 11.0%, respectively, reflecting the updated expectations based on mid-year performance [4][5].

Investment Rating - The report maintains a rating of "Accumulate" for China Construction Industry (830 HK) with a target price adjusted to HKD 1.75 from HKD 1.93, reflecting a potential upside of 17.2% based on a 6.0x FY25 target P/E ratio [5][7][16]. Core Insights - The company's FY25 interim performance was below expectations, with total revenue and net profit declining by 29.3% and 29.8% year-on-year to HKD 3.34 billion and HKD 390 million, respectively. The decline is attributed to a sluggish Hong Kong real estate market, leading to a slowdown in residential and commercial curtain wall projects [1][5]. - New contract signings for curtain wall projects decreased by 27.9% year-on-year to HKD 3.84 billion, with significant drops in both Hong Kong and mainland contracts [1]. - The report highlights a significant drop in new private residential construction in Hong Kong, down 57.0% year-on-year to approximately 6,100 units, indicating market adjustments to alleviate inventory increases [1][2]. Summary by Sections Financial Performance - For FY25, the company reported a total revenue of HKD 3.34 billion and a net profit of HKD 390 million, reflecting declines of 29.3% and 29.8% respectively. The curtain wall revenue from Hong Kong and Macau fell by 32.3% to HKD 2.07 billion, accounting for 62.0% of total revenue [1][12]. - The gross profit margin improved slightly to 17.6%, up from 16.1% in the previous year, despite the overall decline in revenue [12]. Market Positioning - The company continues to focus on high-value cities in mainland China, securing contracts with reputable developers and new economy enterprises. Notable projects include contracts with Swire Properties and Huawei [3]. - The company is also expanding into friendly overseas markets, winning contracts for three projects in Singapore, including a BIPV project at Changi Airport [4]. Financial Projections - The report adjusts the FY25-26 net profit forecasts down by 9.7% and 15.6%, respectively, while introducing a new forecast for FY27. The updated projections indicate a gradual recovery in revenue and profit margins in the coming years [5][6][12].

Market Overview - On August 19, the Hong Kong stock market showed a lack of direction for two consecutive days, with the Hang Seng Index falling by 54 points or 0.2% to close at 25,122 points. The Hang Seng Tech Index decreased by 0.7% to 5,542 points. The total market turnover reached HKD 278.2 billion, with a net inflow of HKD 18.57 billion into the Hong Kong Stock Connect, primarily into index ETFs [1] Interest Rates and Liquidity - The one-month HIBOR has risen to 2.57%, a two-month high, as the Hong Kong Monetary Authority continues to withdraw HKD liquidity. The Hong Kong-US interest rate spread has narrowed to 1.76%, leading to a strengthening of the Hong Kong dollar. The rising cost of funds in Hong Kong directly impacts corporate financing and investors' margin borrowing costs, potentially reducing the willingness to use leverage [2] - In the medium term, global liquidity is expected to ease, and if the Federal Reserve resumes preventive rate cuts in September, the one-month HIBOR may rise to around 3% before likely reversing downward [2] Automotive Sector - In the automotive sector, Li Auto (9863 HK) reported a half-year vehicle delivery volume of 221,000 units, a year-on-year increase of 155%, with revenue of CNY 24.25 billion, up 174% year-on-year. The company achieved a gross margin of 14.1%, an increase of 13 percentage points year-on-year, and a net profit of CNY 30 million, marking its first profitable half-year. The management has raised the annual sales target to 580,000-650,000 units, a year-on-year increase of 97%-121% [3] Healthcare Sector - The Hang Seng Healthcare Index fell by 1.6%, attributed to a pullback after consecutive gains. Hansoh Pharmaceutical (3692 HK) exceeded market expectations, with a year-on-year revenue increase of 14.3% and a net profit increase of 15.0%. The company's innovative drug product revenue grew rapidly, contributing to a 13.2% increase in total product sales revenue. The sales expense ratio and management expense ratio both decreased, leading to better-than-expected performance [4] Real Estate Sector - The transaction volume of new homes in 30 major cities reached 1.23 million square meters, a year-on-year decline of 15.5%, which is worse than the previous week's decline of 12.3%. The cumulative transaction volume in first-tier cities showed a slight narrowing of declines, with Beijing down 5.4%, Shanghai down 1.5%, Guangzhou up 12.4%, and Shenzhen up 6.3% [5][6] - The inventory-to-sales ratio for commodity housing in ten major cities rose to 121.5, higher than the previous year's 98.7 and the prior week's 119.0 [7] - The land transaction volume in 100 major cities fell by 66.4% year-on-year, with a total area of 7.35 million square meters [8] - Various supportive measures for the real estate market have been introduced across multiple regions, including new initiatives in Tianjin and Fuzhou [9] Policy Outlook - The National Bureau of Statistics reported disappointing figures for July, with new housing starts and completed projects down 15.2% and 29.5% year-on-year, respectively. The overall performance of the real estate market remains weak, but recent policy measures may provide some support [10][12]

Investment Rating - The report maintains a positive outlook on the real estate sector, particularly favoring quality state-owned and local state-owned developers [8][45]. Core Insights - The new housing transaction volume in 30 major cities reached 1.23 million square meters, a year-on-year decline of 15.5%, which is worse than the previous week's decline of 12.3% [1][15]. - The cumulative transaction volume of new homes in Beijing for the year so far is 3.25 million square meters, down 5.4% year-on-year, slightly better than the previous week's decline of 5.6% [2][18]. - The land transaction volume in 100 major cities fell to 7.35 million square meters, a year-on-year decrease of 66.4% [4][33]. - The ratio of inventory to sales for commercial housing in major cities increased to 121.5, up from 98.7 a year ago [3][27]. Summary by Sections New Housing Transactions - The new housing transaction volume in 30 major cities was 1.23 million square meters, down 15.5% year-on-year and down 4.9% month-on-month [1][15]. - The year-on-year changes for first, second, and third-tier cities were -26.8%, -12.1%, and -4.9% respectively [1][15]. Cumulative Transactions in Major Cities - Beijing's cumulative transaction volume for new homes is 3.25 million square meters, down 5.4% year-on-year [2][18]. - Shanghai's cumulative volume is 6.71 million square meters, down 1.5% year-on-year [2][18]. - Guangzhou's cumulative volume is 4.51 million square meters, up 12.4% year-on-year [2][18]. - Shenzhen's cumulative volume is 1.81 million square meters, up 6.3% year-on-year [2][18]. Land Transactions - The land transaction volume in 100 major cities was 7.35 million square meters, down 66.4% year-on-year and down 66.8% month-on-month [4][33]. - First-tier cities saw a 52.0% year-on-year decline in land transaction volume [4][33]. Policy Support Measures - Various regions have introduced supportive measures for the real estate market, including adjustments to housing fund withdrawal policies [5][40]. - The government is expected to continue implementing strong measures to stabilize the real estate market [8][45]. Market Performance - The Hang Seng China Mainland Property Index rose 5.3% last week, outperforming the broader Hang Seng Index by 3.6 percentage points [7][43]. - The report highlights specific stocks to watch, including China Resources Land (1109 HK) and Yuexiu Property (123 HK) [9][46].

Market Overview - On August 18, despite a lack of direction in the Hong Kong stock market, individual stocks showed good performance, with the Hang Seng Index down 93 points or 0.4% to close at 25,176 points, while the Hang Seng Tech Index rose 0.7% to 5,579 points [1] - The market saw a trading volume exceeding 311.9 billion HKD, indicating active trading. Net inflow from the Stock Connect decreased to 870 million HKD [1] - The overall market performance was stable, with 959 stocks rising, highlighting increased investor interest in high-performing stocks and industry leaders [1] Economic Analysis - Since July, the momentum of economic recovery in China has weakened, and the Hang Seng Index's valuation has significantly recovered, with a forecasted PE of approximately 11 times, returning to levels seen in 2018-2019 [2] - The risk premium is at a historical low, and the AH premium has reached a near six-year low. A technical correction in the index is considered a normal phenomenon within a high-level fluctuation [2] - The ample liquidity in the market supports Hong Kong stocks, while the 10-year Chinese government bond yield has risen to 1.78%, indicating a shift towards asset rebalancing from bonds to stocks [2] Real Estate Sector - The new housing transaction volume continued to decline year-on-year, with a reported 1.23 million square meters sold in 30 major cities, down 15.5% year-on-year [3] - The decline in transaction volume was worse than the previous week's 12.3% drop, with a month-on-month decrease of 4.9% [3] Industry Dynamics Consumer Sector - 361 Degrees (1361 HK) announced a strategic partnership with Stand Robot, focusing on wearable robots and high-performance materials, which positively impacted its stock price, rising 2.3% [4] Automotive Sector - The automotive sector saw a rally, with Great Wall Motors (2333 HK) rising 10.2%, driven by favorable sales and performance news [4] - Other automotive stocks like Geely (175 HK) and BYD (1211 HK) also saw increases of 2.6% and 0.8%, respectively [4] Innovative Pharmaceuticals - The innovative drug sector saw most major companies rise, with a focus on expanding medical insurance coverage and supporting pharmaceutical innovation [5] - China Biopharmaceutical (1177 HK) reported steady growth in the first half of the year, while Haijia Medical (6078 HK) forecasted a decline in revenue and net profit but improved cash flow due to reduced receivables [5] New Energy and Utilities - The new energy and utilities sector experienced narrow fluctuations, with some stocks like Harbin Electric (1133 HK) and Weisheng Holdings (3393 HK) rising by 1.3% and 4.5%, respectively [6] - Hong Kong and China Gas (1083 HK) reported expected mid-term results but saw a decline of 7.2% in stock price, possibly due to profit-taking [6] Company-Specific Updates China Water Affairs (855 HK) - The company announced an increase in water prices for a new supply project in Hubei, with price hikes of 9.6% to 64.4% effective from September 1 [7] - Two additional water supply projects are entering the hearing stage, with a total daily supply capacity of 104,000 tons [8] - The likelihood of a full acquisition offer for Kangda Environmental (6136 HK) is low, and it is not expected to impact the company's financial status [9] - The target price for China Water Affairs has been raised to 6.90 HKD, reflecting a potential upside of 11.1% [10] 361 Degrees (1361 HK) - The company reported a revenue increase of 11.0% to 5.71 billion RMB in the first half of the year, with a net profit of 860 million RMB, also up 8.6% [12] - The children's clothing segment showed strong performance, with a 25.8% increase in sales [13] - E-commerce revenue grew by 45% to 1.82 billion RMB, driven by promotional events and new product launches [14] - The target price for 361 Degrees has been adjusted to 7.74 HKD, corresponding to a 10 times FY26E PE ratio [15]