Core Viewpoint - Haitong International forecasts Green Tea Group (06831) to achieve revenues of 4.91 billion, 6.23 billion, and 7.65 billion CNY for 2025-2027, representing year-on-year growth of 28.0%, 26.7%, and 22.9% respectively, with adjusted net profits of 500 million, 650 million, and 800 million CNY, reflecting year-on-year increases of 37.9%, 30.0%, and 24.3% respectively, assigning a target price of 12.1 HKD based on a 15x PE for 2025, leading to a reasonable market value of 8.2 billion HKD [1] Company Overview - Green Tea is a well-known casual Chinese dining brand founded in 2008 in Hangzhou, characterized by affordable pricing, fusion cuisine, and Chinese aesthetic spaces, holding a 0.7% market share in the casual Chinese restaurant market in mainland China, ranking fourth by revenue and third by the number of restaurants with a total of 465 outlets [2] Industry Insights - The chain restaurant penetration rate in China is continuously increasing, with a projected compound annual growth rate (CAGR) of 8.2% for chain dining from 2024 to 2029, significantly higher than the 6.8% for non-chain dining and the overall average of 7.1%. The casual Chinese dining segment is the fastest-growing niche, expected to reach a market size of 0.5 trillion CNY in 2024, accounting for 17% of the Chinese restaurant market, and projected to grow to 0.8 trillion CNY by 2029, increasing its market share to 19% with a CAGR of 9.1% [3] Competitive Advantages - **Brand Strength**: High brand recognition and effective organizational structure drive growth, with 203 new dishes launched in 2024 and 68.07 million customers served, alongside over 16.2 million members, indicating significant brand loyalty and influence [4] - **Supply Chain Efficiency**: The supply chain combines third-party food processing and direct procurement, enhancing food consistency, safety, efficiency, and supporting rapid expansion. Plans include building small to medium-sized central kitchens in densely populated areas and integrating upstream capacity through partnerships [4] - **Store Expansion Strategy**: The company focuses on a direct-operated model with small store formats, expanding from high-tier to lower-tier cities, with a total of 502 stores by the end of 1H25, an increase of 37 stores from the end of 2024, and plans to open 150, 200, and 213 new restaurants in 2025-2027 [4] Store Performance - Despite a decline in same-store sales growth, average daily sales, and customer spending due to the current economic environment, the company has optimized its store model, reducing the payback period for new stores from 18 months to 14.5 months. The focus on small restaurants and cost optimization in rent and labor is expected to yield an operating profit margin of approximately 17% at the store level in 2025 [5]

Group 1: Company Overview - Green Tea Group is a well-known casual Chinese dining brand founded in 2008 in Hangzhou, focusing on affordable pricing, fusion cuisine, and Chinese aesthetic space [2] - The company holds a market share of 0.7% in the casual Chinese restaurant market in mainland China, ranking fourth by revenue and third by the number of restaurants with a total of 465 locations [2] Group 2: Market Insights - The casual Chinese dining segment is the fastest-growing niche in the Chinese restaurant market, with a projected market size of 0.5 trillion yuan in 2024, expected to grow to 0.8 trillion yuan by 2029, representing a compound annual growth rate (CAGR) of 9.1% [3] - The overall chain restaurant penetration rate in China is increasing, with a forecasted CAGR of 8.2% for chain dining from 2024 to 2029, surpassing the 6.8% growth rate for non-chain restaurants [3] Group 3: Competitive Advantages - The company has a strong brand presence, with high brand loyalty and influence, supported by a structured management system and employee incentive mechanisms [4] - The supply chain is diversified and efficient, combining third-party food processing with direct procurement to enhance food safety and operational efficiency [4] - The company is expanding its footprint in lower-tier cities through a strategy focused on small-sized restaurants, with plans to open 150, 200, and 213 new restaurants in 2025, 2026, and 2027 respectively [4] Group 4: Operational Efficiency - Despite a decline in same-store sales growth and average transaction value, the company is optimizing its store model, reducing the payback period for new store investments from 18 months to 14.5 months [5] - The operating profit margin at the store level is projected to be around 17% in 2025, aided by cost optimization in key areas such as rent and labor [5]

Core Viewpoint - Haitong International maintains an "outperform" rating for Shenzhou Holdings (00861), citing strong order backlog and growth momentum across various business segments [1] Group 1: Financial Performance - In H1 2025, the company achieved revenue of 7.865 billion yuan, a year-on-year increase of 12.04%; net profit attributable to shareholders was 15 million yuan, up 40.70%; and net profit excluding non-recurring items was 15 million yuan, turning from loss to profit [2] - New orders signed in H1 2025 amounted to approximately 9.476 billion yuan, a year-on-year growth of 98%; as of H1 2025, the total order backlog reached 10.441 billion yuan, an increase of 27% [2] Group 2: Business Segment Growth - The company's three main business segments all maintained growth momentum: - Big data products and solutions generated revenue of 1.430 billion yuan, up 12% year-on-year, with a gross profit of 319 million yuan, up 1% [3] - Software and operation services achieved revenue of 2.448 billion yuan, a 13% increase year-on-year, with a gross profit of 312 million yuan, up 18% [3] - Innovation and traditional services reported revenue of 3.987 billion yuan, a year-on-year increase of 11%, with a gross profit of 402 million yuan, up 6% [3] Group 3: Strategic Initiatives - The company continues to advance its "Data x AI" strategy, enhancing its data intelligence technology foundation centered around the "Yanyun Infinity platform" to efficiently build and deploy industry-specific intelligent applications [4] - In the smart supply chain scenario, the company has implemented a comprehensive data intelligence solution that integrates "data-decision-application," achieving deep penetration of "AI for Process" [4] - In the government and enterprise digitalization scenario, the company launched an end-to-end data intelligence solution that integrates DeepSeek's private deployment, successfully deploying it in a municipal service app and creating the first AI intelligent assistant [4]

Group 1 - The report from Haitong International indicates that A-shares are expected to consolidate in September, while Hong Kong stocks may receive short-term support due to easing liquidity pressures and a strengthening RMB [1] - Last week, A-shares experienced significant volatility, with the Shanghai Composite Index rising by 1.5% and the ChiNext Index increasing by 2.1%. Hong Kong stocks also saw gains, with the Hang Seng Index up by 3.8% and the Hang Seng Tech Index up by 5.3% [1] - Following the dovish signals from Powell at the Jackson Hole meeting, gold prices rebounded over 9%. However, recent US inflation data confirmed rate cut expectations, leading to fluctuations in gold prices [1] Group 2 - The report highlights that Alibaba's self-developed chips and the next-generation Qwen3 model have led to a significant rise in stock prices, indicating a continued increase in risk appetite [2] - The liquidity in Hong Kong remains stable, with the HIBOR maintaining stability. The RMB has appreciated moderately against the USD, although a potential rebound in the USD could weaken this support for Hong Kong stocks [2] - Southbound capital inflow surged to HKD 60.8 billion last week, with Alibaba receiving HKD 22 billion of this inflow, totaling HKD 37 billion since September [2]

Group 1 - The report from Haitong International indicates that A-shares are expected to consolidate in September, while Hong Kong stocks may receive short-term support due to easing liquidity pressures and a strengthening RMB [1] - A-shares experienced significant fluctuations last week, with the Shanghai Composite Index rising by 1.5% and the ChiNext Index increasing by 2.1%. Hong Kong stocks also saw gains, with the Hang Seng Index up by 3.8% and the Hang Seng Tech Index up by 5.3% [1] - The Jackson Hole meeting saw Powell release dovish signals, leading to a rebound in gold prices, which increased by over 9%. However, recent US inflation data confirmed rate cut expectations, causing gold prices to fluctuate [1] Group 2 - The liquidity in Hong Kong remains stable, with HIBOR maintaining stability. The RMB has appreciated moderately against the USD, but a potential rebound in the USD may weaken this support for Hong Kong stocks [2] - Southbound capital inflow surged to HKD 60.8 billion last week, with Alibaba receiving HKD 22 billion of inflow, totaling HKD 37 billion since September [2] - The report suggests that the market has fully priced in three rate cuts this year, leading to a strong rebound in A-share technology stocks, while Hong Kong stocks are boosted by Alibaba and Baidu [2]

Core Viewpoint - The global general aviation aircraft market is showing robust growth, with total deliveries reaching 1,432 units in the first half of 2025, a year-on-year increase of 4.3%, and market size exceeding $1.225 billion, up 9.9% year-on-year, indicating a positive trend in market value enhancement [1][2]. Market Performance - In Q2 2025, the market saw significant improvement, with deliveries reaching 800 units, a quarter-on-quarter increase of 26.6%, despite a slight year-on-year decline of 5.0%. The market size in Q2 was $721 million, a quarter-on-quarter surge of 43.1% and a year-on-year increase of 0.8% [2]. - The demand for general aviation remains resilient despite macroeconomic uncertainties, with a shift towards higher-end products driving market size growth [2]. Delivery Type Differentiation - The delivery types in the first half of 2025 showed a clear differentiation: piston aircraft deliveries reached 810 units, up 5.1% year-on-year, while turbine aircraft deliveries were 622 units, down 3.3% year-on-year. This trend was more pronounced in Q2, with piston aircraft deliveries at 452 units, showing a quarter-on-quarter increase of 26.3% [3]. - The strong performance of piston aircraft is attributed to the growing popularity of personal and leisure aviation, while turbine aircraft face challenges due to higher costs and longer procurement cycles [3]. Competitive Landscape - The competitive landscape in the global general aviation market is becoming increasingly concentrated, characterized by a "one strong, one leading" dynamic. The leading company, Cirrus, delivered 350 units with a year-on-year growth of 31.0%, capturing 24.4% of the market share [4]. - The second player, Daher, delivered 300 units with a year-on-year growth of 19.0%, maintaining strong growth across quarters. Together, these two companies hold over 45% of the market share, highlighting the trend of resource concentration towards leading firms [4]. Structural Opportunities - Key market drivers include strong demand in North America and the Asia-Pacific region, particularly due to the implementation of low-altitude economic policies in China, which inject new growth momentum into the market [5]. - The increasing share of turboprop and jet aircraft deliveries is optimizing product structure and driving up average unit prices. Additionally, demand in specialized applications such as emergency rescue and business travel is expanding the high-end aircraft market [5]. Investment Recommendations - The industry is expected to maintain steady growth in the second half of 2025, with a focus on three investment directions: opportunities for leading companies to increase market share, value opportunities from the rising share of high-end models, and innovation opportunities from new technology applications [6]. - Companies like Cirrus and Daher are expected to benefit from their product advantages and channel capabilities, while innovations such as electric vertical takeoff and landing (eVTOL) and hybrid technologies are anticipated to drive market growth [6].

Group 1 - The State Council recently issued the "Opinions on Deepening the Implementation of 'Artificial Intelligence+' Action," providing policy support for the large-scale application and commercialization of artificial intelligence [1] - The report anticipates that by 2027, the penetration rate of new-generation intelligent terminals and intelligent agents will exceed 70%, and by 2030, it will exceed 90% [1] - The report emphasizes enhancing AI foundational capabilities, strengthening data supply innovation, and optimizing the application development environment among other measures to bolster AI support capabilities [1] Group 2 - The new generation of the Chinese operating system, Galaxy Kirin OS V11, was officially released at the 2025 China Operating System Industry Conference, featuring significant improvements in user experience, security, and ecosystem richness [2] - Galaxy Kirin is the first domestic operating system to break the one million ecosystem mark, achieving comprehensive compatibility with mainstream domestic CPUs, GPUs, and boards, thus establishing a complete domestic ecosystem [2] - The operating system has been deployed in over 16 million sets and has played a supporting role in major national projects such as the Chang'e lunar exploration and Tianwen Mars exploration [2]

Core Viewpoint - Haitong International slightly adjusted the revenue forecast for Kangzheng Pharmaceutical (00867) for 2025-26E to 8.33/9.30 billion HKD, representing a year-on-year increase of +11.5%/+11.6% [1] - The net profit forecast for the same period was also adjusted to 1.67/1.88 billion HKD, with year-on-year growth of +3.4%/+12.9% [1] - The valuation model was changed to a discounted cash flow (DCF) model to better reflect the long-term value of the pipeline cash flow from Demy Pharmaceutical, with a target price of 18.38 HKD (+85%) [1] Financial Performance - Kangzheng Pharmaceutical achieved a revenue of 4 billion HKD in the first half of the year, a year-on-year increase of +11% [2] - Revenue from exclusive/brand products and innovative products reached 2.9 billion HKD, up +21% year-on-year, which is the core driver of the company's performance recovery [2] - The gross profit margin was 72%, with R&D expenses of 570 million HKD (down -8% year-on-year) and a net profit of 940 million HKD (up +3% year-on-year) [2] Business Growth - The recovery in revenue is attributed to the clearance of the impact from existing centralized procurement products and the steady growth of core products such as Weifurui and Meitai Tong [3] - Exclusive/brand and innovative product sales accounted for 62.1% of total revenue, up from 56.1% in the same period last year [3] - Revenue by segment includes: cardiovascular segment 2.2 billion HKD (+0.6% YoY), digestive/immunity segment 1.4 billion HKD (+4.9% YoY), skin health segment 500 million HKD (+104% YoY), and ophthalmology segment 360 million HKD (+18% YoY) [3] Innovation and Pipeline - The company has three New Drug Applications (NDA) under review, including Dexamethasone and Luracitinib [4] - Approximately ten clinical trials are progressing in China, including treatments for ischemic stroke and specific dermatitis [4] - Other potential products include Povorcitinib and CMS-D001, which are in various stages of clinical trials [4] Spin-off Plans - Kangzheng Pharmaceutical plans to spin off Demy Pharmaceutical for independent listing on the Hong Kong Stock Exchange by April 2025 [5] - The spin-off will be executed through a distribution method, allowing shareholders to directly hold shares in Demy Pharmaceutical [5] - Demy Pharmaceutical's pipeline addresses significant unmet clinical needs in skin diseases, supported by over 650 sales professionals covering more than 10,000 hospitals [5]

Core Viewpoint - Haitong International slightly adjusted the revenue forecast for Kangzheng Pharmaceutical (00867) for 2025-26E to 8.33/9.30 billion HKD, representing a year-on-year increase of 11.5%/11.6% [1] - The net profit forecast for the same period was adjusted to 1.67/1.88 billion HKD, reflecting a year-on-year growth of 3.4%/12.9% [1] - The valuation model was changed to a discounted cash flow (DCF) model to better reflect the long-term value of the pipeline cash flow from Demy Pharmaceutical, with a target price of 18.38 HKD (+85%) [1] Financial Performance - Kangzheng Pharmaceutical achieved a revenue of 4 billion HKD in the first half of the year, a year-on-year increase of 11% [2] - The revenue from major exclusive/brand products and innovative products was 2.9 billion HKD, up 21% year-on-year, which is the core driver of the company's performance recovery [2] - The gross profit margin was 72%, with R&D expenses of 570 million HKD (down 8% year-on-year) and a net profit of 940 million HKD (up 3% year-on-year) [2] Business Growth Drivers - The recovery in revenue is attributed to the clearance of the impact from existing centralized procurement products and the steady growth of core products such as Weifurui and Meitai Tong [3] - Exclusive/brand and innovative product sales accounted for 62.1% of total revenue, up from 56.1% in the same period last year [3] - Revenue by segment includes 2.2 billion HKD from cardiovascular, 1.4 billion HKD from digestive/immunity, 500 million HKD from skin health (up 104%), and 360 million HKD from ophthalmology [3] Innovation and Pipeline - The company has three NDA applications under review and approximately ten clinical trials progressing in China, including treatments for ischemic stroke and atopic dermatitis [4] - Potential products in development include Povorcitinib and CMS-D001, targeting various conditions [4] Spin-off Plans - Kangzheng Pharmaceutical plans to spin off Demy Pharmaceutical for independent listing on the Hong Kong Stock Exchange by April 2025 [5] - Demy Pharmaceutical's pipeline addresses significant unmet clinical needs in skin diseases and has over 650 sales professionals covering more than 10,000 hospitals [5]

Group 1 - The core viewpoint of the report is that Haitong International initiates coverage of Beisen Holdings (09669) with an "Outperform" rating, projecting revenue growth and profitability improvements in the coming years [1] - The company is expected to achieve revenues of 1.135 billion, 1.335 billion, and 1.563 billion yuan for the fiscal years 2026-2028, representing year-on-year growth rates of 20.1%, 17.6%, and 17.1% respectively [1] - The projected net profit for the parent company is expected to be -61 million, 55 million, and 200 million yuan for the same fiscal years, with earnings per share (EPS) of -0.08, 0.08, and 0.27 yuan [1] Group 2 - Beisen adheres to an "integrated HCM SaaS" strategy, having served over 6,000 medium to large enterprises, and is the only Chinese provider with a unified open PaaS platform for cloud HCM solutions [2] - The company’s iTalentX platform covers the entire lifecycle of human resource management, from recruitment to resignation, which is expected to enhance its competitive advantage and accelerate AI transformation [2] - Beisen's AI initiatives have shown significant progress, with the launch of AI product development in early 2024 and successful commercialization by August of the same year, achieving an annual recurring revenue (ARR) of over 6 million yuan by the end of the 2025 fiscal year [2]