Investment Rating - The aerospace technology industry is rated as attractive for 2026, with Rocket Lab (RKLB) and MDA upgraded from Equal Weight (EW) to Overweight (OW), while Iridium Communications (IRDM) is downgraded from OW to EW [1][4][7]. Core Insights - The aerospace industry is expected to continue benefiting from favorable trends that drove strong performance in 2025, including increased launch frequency, new product introductions, policy support, and market maturation [3][8]. - The report highlights significant growth in the space industry, with record launch activities in 2025, including over 315 successful launches, a year-on-year increase of over 20% [3][17]. - The report emphasizes the importance of government contracts and the integration of aerospace and defense markets, particularly in light of geopolitical dynamics and the U.S. government's support for commercial solutions [3][8][11]. Summary by Sections Launch Providers - Rocket Lab (RKLB) is expected to increase its launch frequency from 21 to 28 missions in 2026, with a target price (PT) raised from $67 to $105 due to recent contract wins [9][45]. - Firefly Aerospace (FLY) plans to launch its Alpha rocket in 2026, with a PT increase from $27 to $33, reflecting improved market conditions and expectations for increased launch frequency [9][38]. Aerospace Services - Iridium Communications (IRDM) has been downgraded to EW with a PT reduction from $37 to $24 due to increased competition and strategic shifts following the SpaceX-Echostar spectrum deal [10][62]. - Viasat (VSAT) has seen a significant stock increase of approximately 305% in 2025, driven by successful satellite launches and improved investor confidence in its defense business [57]. Key Trends - Direct-to-device (D2D) connectivity is expected to mature in 2026, with several new services anticipated to launch, including IRDM's NTN Direct [13]. - The report notes the potential for significant government contracts related to missile defense systems, with MDA upgraded to OW and a PT increase from $32 to $46 due to its favorable positioning in this market [11][16]. Market Dynamics - The report discusses the competitive landscape, highlighting the challenges faced by traditional satellite communication providers like IRDM and GOGO due to emerging competitors like Starlink [58][62]. - The aerospace industry is characterized by a mix of established players and new entrants, with varying performance based on specific market segments and competitive pressures [9][57].

Investment Rating - The report maintains a positive long-term outlook on humanoid robots, although it acknowledges that the industry is still in its early stages and that scaling production will take time [4]. Core Insights - The survey indicates a strong willingness to adopt humanoid robots, with 62% of respondents likely to deploy them in the next three years, suggesting significant potential [9][18]. - However, only 23% of respondents are satisfied with current humanoid robot offerings, highlighting a need for improvements in flexibility, functionality, and pricing [9][66]. - The report emphasizes that the adoption of humanoid robots is expected to accelerate in 2026 and beyond, supported by new models and government incentives [4][41]. Summary by Sections Adoption Intent - 62% of surveyed organizations plan to deploy humanoid robots or significant projects within the next three years, with initial deployments expected to be small [25][32]. - The most likely use cases for humanoid robots include logistics, warehousing, manufacturing, and customer service, aimed at improving productivity and reducing labor costs [25][54]. Product Readiness - Satisfaction with current humanoid robot performance is mixed, with only 23% expressing satisfaction, indicating substantial room for improvement [66][72]. - Key barriers to adoption include limited functionality, high upfront costs, and integration challenges with existing systems [72][79]. Market Dynamics - Unitree is identified as the most actively engaged brand among potential adopters, followed by Deep Robotics and UBTECH [85][87]. - The report notes that brand visibility and media exposure are likely to influence initial adoption decisions, with Unitree leading in brand recognition [97]. Employment Impact - The survey predicts that approximately 11% of jobs may be replaced by robots within the next five years, increasing to 28% over the next ten years [26][61]. Future Expectations - Respondents expect humanoid robots to perform specific tasks rather than general functions, with a strong emphasis on human-robot collaboration and IoT integration as desired future capabilities [71][81].

Investment Rating - The report indicates a positive investment outlook for the memory sector, particularly in DRAM and NAND markets, driven by AI demand and expected price increases [1][2]. Core Insights - The memory industry is experiencing a capacity-constrained cycle, with order visibility extending significantly due to AI-driven demand. The risk lies more in execution and transformation rather than demand itself [1]. - A steeper price increase trend is anticipated, with DRAM, HBM, and NAND prices expected to rise rapidly. Innovations and architectural redesigns are enhancing memory efficiency, thereby lowering economic barriers for adoption and expanding the total addressable market for AI [2]. - The bottleneck in memory is becoming a critical challenge, with AI inference demanding significantly more memory capacity and performance than previous models. This shift is expected to drive substantial growth in DRAM and NAND demand [1][27]. Summary by Sections Memory Pricing and Demand - The report forecasts a steep upward cycle in memory pricing, with DRAM and NAND prices expected to increase significantly due to strong AI infrastructure demand. The analysis suggests that pure text AI inference could account for 35% of global DRAM supply and 92% of NAND supply by 2026 [2][39]. - Current supply chain dynamics indicate a tightening of inventory levels, necessitating accelerated capital expenditures, particularly in DRAM, with expectations of substantial greenfield expansions starting in 2027 [2][43]. Investment Opportunities - The report highlights specific companies as favorable investment targets, including Samsung, SK Hynix, Micron in the DRAM space, and traditional memory manufacturers like Winbond. It also points to semiconductor equipment firms benefiting from increased capital expenditures [3][11]. - The focus is on companies that are positioned to benefit from the memory bottleneck, particularly those with strong pricing power in DRAM and NAND markets [3][8]. AI and Memory Demand - The transition from generative AI to agentic AI is expected to significantly increase memory requirements, as these systems demand higher memory capacity for context processing and continuous learning. This shift is anticipated to create a larger market for memory products [26][27]. - The report emphasizes that memory is becoming a critical bottleneck in AI development, with the need for high-bandwidth memory increasing as AI models scale up in complexity and capability [22][26]. Future Market Dynamics - The report suggests that the memory market is entering a phase of significant price inflation, driven by major suppliers reallocating capacity to high-margin server DRAM and HBM to meet AI demand. This has led to a seller's market characterized by high prices and limited supply [43][44]. - The anticipated price increases for DRAM and NAND are projected to be substantial, with quarterly increases expected to range from 50% to 85% depending on the product segment and customer agreements [44][45].

Investment Rating - The investment rating for Pop Mart (09992) is upgraded to "Overweight" by Morgan Stanley [1] Core Insights - Morgan Stanley has raised the target price for Pop Mart from HKD 224 to HKD 302, reflecting a 35% increase [1] - The report emphasizes that Pop Mart's diverse intellectual property and operational capabilities will drive sustainable growth [1] - Although the growth momentum for 2025 may be fully reflected, the long-term growth potential remains underappreciated [1] - Earnings per share forecasts for 2025, 2026, and 2027 have been increased by 6%, 15%, and 21% respectively, indicating a clearer growth path in North America and Europe [1]

Investment Rating - The report maintains a "Buy" rating for China Resources Beer (00291) with a target price of HKD 34 [1] Core Insights - China Resources Beer achieved positive sales growth in April and May, consistent with the sales trend from January to May 2025, benefiting from favorable raw material factors that helped increase gross margin by over 1 percentage point [1] - The company is implementing "Three Precision" initiatives to further reduce operating costs [1] - The management anticipates pressure on the white liquor business revenue this year due to weak demand and high base effects, aiming to avoid losses and impairments [1] Sales Performance by Product - Heineken continues to perform strongly with sales growth exceeding 20% year-on-year - Super X's year-to-date sales have increased by approximately 10% year-on-year - Sales of Old Snow and Amstel have seen over 50% year-on-year growth - Snow Beer Pure Draft experienced a slight single-digit decline in sales year-on-year [1] Sales Performance by Region - The company highlighted strong sales momentum in Guangdong, particularly around the Shenzhen area - It is expected that East China and South China will become key drivers of sales growth in 2025 [1] Sales Performance by Channel - The management noted that demand in the ready-to-drink channel remains weak, although there was a slight improvement in some dining markets in East and South China in May - The company has gained some market share in the nightlife channel - The proportion of ready-to-drink channel sales remains stable, consistent with the end of 2024 levels, at approximately 38-39% [1] Capital Expenditure Plans - Due to strong Heineken sales, the company plans to expand Heineken production capacity in Fujian - In 2025, further investments are planned in maintenance, production line transformation, and the white liquor business - Future capital expenditures are expected to gradually decrease [2] Financial Assumptions - The report uses a discounted cash flow method with a weighted average cost of capital (WACC) of 11.3%, derived from a 3% risk-free rate and a 9.1% risk premium, and a terminal growth rate of 3% [2]

Investment Rating - The industry investment rating is In-Line [5]. Core Insights - The United States and Mexico are negotiating a trade deal to remove the 50% tariff on steel imports, allowing Mexico to export tariff-free steel to the US up to a certain volume [1]. - The US was a net exporter of steel to Mexico in 2024, exporting approximately 4.78 million tons while importing around 3.51 million tons [4]. - The potential shift to a tariff-rate quota (TRQ) system for Mexico could negatively impact long steel producers, as Mexico is a net exporter of rebar and wire drawn products [3]. Summary by Sections Section 232 Overview - Section 232 was enacted in 2018, imposing a 25% tariff on all steel imports and 10% on aluminum, with exemptions granted to Canada, Mexico, and Australia [2]. - In early June 2025, President Trump reinstated a 50% tariff on steel and aluminum imports, removing all prior exemptions [2]. Trade Dynamics - In 2024, the US imported approximately 154,000 tons of rebar from Mexico but exported only about 4,000 tons, indicating a significant trade imbalance in this category [4]. - The US imported around 233,000 tons of wire rod from Mexico while exporting just 45,000 tons, further highlighting the trade dynamics [4]. Company Ratings - Cleveland-Cliffs Inc (CLF.N): Equal-weight rating as of February 15, 2024, with a price of US$8.02 [56]. - Commercial Metals Company (CMC.N): Equal-weight rating as of December 19, 2024, with a price of US$50.67 [56]. - Nucor Corp (NUE.N): Overweight rating as of August 14, 2024, with a price of US$124.68 [56]. - Steel Dynamics Inc (STLD.O): Overweight rating as of March 7, 2025, with a price of US$133.81 [56]. - US Steel (X.N): Equal-weight rating as of February 3, 2025, with a price of US$53.89 [56].

Investment Rating - The report indicates an "Overweight" (OW) fundamental stock rating for several companies, suggesting a positive outlook for these stocks [2][24]. Core Insights - The alpha model MOST has outperformed for the fourth consecutive month, returning +12.4% over the past 12 months, with a significant portion of gains occurring in the current calendar year [2][19]. - The ASX200 index is trading at a forward multiple of 18.7x, which is 1.5x P/E points above the lows observed on April 7, reflecting a 16.4% increase since that date [11][13]. - Growth factors have been the best performing, with a composite growth factor return spread of +5.7% in May, while quality stocks with low leverage and high profitability have also shown strong gains [3][4]. Summary by Sections Stock Ideas - Top-ranked stocks with an OW rating and upside to price targets include ABB, BHP, EDV, IPH, MMS, ORI, PME, QAN, QBE, RDX, and SIG [2][24]. - High-quality companies preferred by the MOST model include ABB, APE, AX1, BHP, COL, DTL, EDV, FMG, IPH, PME, PMV, QBE, and RDX [4][5]. Market Observations - In May, high beta and volatile stocks outperformed, with the broader equity markets advancing from April lows [3]. - The ASX200 has adjusted higher, now trading at 18.7x 12-month forward P/E, indicating a shift in market sentiment towards higher valuations [8][11]. Performance Metrics - The MOST model has shown strong cumulative growth, with high-scoring stocks returning +5.9% in May, while low-scoring stocks returned +5.3% [19][22]. - The report highlights that multiple expansion has been a key driver of index returns, despite a moderation in earnings signals [11][16]. Screens and Stock Ratings - The report categorizes stocks into various buckets based on market capitalization and investment style, providing tailored stock ideas for different investment disciplines [4][10]. - Bottom-ranked stocks with an Underweight (UW) rating include WBC, ORG, and SFR, indicating a negative outlook for these companies [27][28].

Investment Rating - The industry investment rating is "In-Line" [5][10]. Core Insights - China's total absolute non-domestic Available Seat Kilometers (ASK) was 76% of 2019's level as of June 9, 2025, reflecting a 12% year-over-year increase but a slight decrease of 1% week-over-week [10]. - Excluding US routes, the recovery of China's absolute non-domestic ASK reached 86% of 2019's level [10]. - Capacity additions were noted on Hong Kong (+2%) and US (+1%) routes, while reductions occurred on Macau (-1%) and Korea (-1%) routes [10]. - Significant year-over-year increases in ASK were observed for Japan (+35%), Korea (+25%), Hong Kong (+17%), and US (+13%) routes, while Macau (-15%) and Thailand (-31%) saw decreases [10]. - Seat capacity for Japan, Thailand, and Korea routes reached 106%, 47%, and 94% of 2019 levels, respectively, while US routes were at 29% [10]. Summary by Relevant Sections International Air Capacity - Non-domestic ASK was 76% of 2019's level as of June 9, 2025, compared to 77% the previous week [2]. - Total seat capacity has recovered to approximately 80% of 2019's level [5]. Capacity Recovery - The report highlights that total absolute non-domestic ASK was -1% week-over-week and +12% year-over-year [10]. - Specific route recoveries include Japan at 106%, Korea at 94%, and US routes at 29% of 2019 levels [10]. Company Ratings - Air China Limited (601111.SS) rated Equal-weight, Air China Limited (0753.HK) rated Overweight [62]. - Cathay Pacific Airways (0293.HK) rated Equal-weight, China Eastern Airlines (600115.SS) rated Equal-weight [62]. - China Southern Airlines (600029.SS) rated Equal-weight, COSCO SHIPPING Energy Transportation (1138.HK) rated Overweight [62].

Investment Rating - The investment rating for ZoomInfo Technologies Inc is Equal-weight [5]. Core Insights - ZoomInfo announced a ~6% reduction in its global workforce to align resources with its strategy to focus on upmarket customers, expecting to achieve $28 million in annualized savings [1][2]. - The restructuring is anticipated to enhance margin expansion opportunities in FY26, with a potential operating margin of 37.5%-38% [2][3]. - The company expects down-market revenue to decline further, but the overall downside risk to FY25 revenue is viewed as less concerning [2][3]. Summary by Sections Workforce Reduction and Strategy - The workforce reduction is primarily focused on sales representatives servicing down-market customers, allowing for a more efficient growth model targeting larger deal sizes with upmarket clients [1]. - The company plans to flow through the majority of the savings from the workforce reduction, which was included in the guidance provided alongside Q1 earnings [1][2]. Financial Outlook - For FY25, revenue is expected to decline by approximately 1% year-over-year, with down-market revenue projected to deteriorate towards mid to high-teens declines [2]. - The guidance for FY25 margin is set at 35.9%, with expectations for minimal expansion, while FY26 forecasts suggest a margin of 36.6% [2][3]. Valuation and Market Position - The current market capitalization of ZoomInfo is approximately $3.588 billion, with a price target set at $12.00 [5]. - The company operates within the software industry, which is viewed as attractive, indicating a positive outlook for the sector [5].

Investment Rating - The investment rating for Telefonica Brasil SA is Overweight [7][79]. Core Insights - The report outlines a strategy based on five pillars to enhance Free Cash Flow (FCF): 1) ARPU uplift, 2) Churn reduction, 3) Regulatory tailwinds, 4) Leasing cost optimization, and 5) Lower CAPEX intensity [3][4][5][6]. Summary by Sections Product Initiatives - Brazil's competitive landscape remains positive despite new entrants like NuCel, with price hikes expected to support revenue growth in Q2 2025. The focus is on high-quality convergent offers, which account for over 80% of fiber net additions. Management aims to increase ARPU and reduce broadband fiber churn from 1.5% to closer to 1% [4]. Cost Initiatives - Cost optimization is targeted through regulatory upgrades and leasing cost reductions. The transition from concession to authorization is expected to yield one-off benefits and recurring savings as legacy networks are phased out. Additionally, further reductions in tower leasing costs are anticipated due to market consolidation [5]. CAPEX Trends - The CAPEX/Revenue ratio is projected to decline as major investments for 5G and fiber-tower connections are completed. Future efforts will focus on increasing FTTH penetration and scaling network sharing agreements, which will help reduce CAPEX intensity [6]. Financial Projections - The report forecasts an improvement in FCF margins from 5% in 2024 to 16% in 2026, driven by successful execution of the outlined strategies. The current valuation is noted to be 18% below its 2021 average, indicating potential upside [7].