Group 1 - The core viewpoint of the report is that JD.com (09618.HK) is entering the OTA (Online Travel Agency) market with its hotel PLUS membership plan, which offers a maximum of three years with zero commission for participating hotels [1] - This move follows JD.com's success in the food delivery business, where it achieved peak orders exceeding 25 million on June 1, indicating a further expansion into local lifestyle scenarios [1] - The report suggests that JD.com's expansion may significantly impact Ctrip (携程) due to overlapping customer bases, while it may have a greater effect on Meituan (美团) and Tongcheng Travel (同程旅行) in the local consumption context [1] Group 2 - Despite JD.com's entry, Ctrip's supply chain barriers and Meituan and Tongcheng's advantages in lower-tier markets are expected to be difficult to disrupt in the short term [1] - The current price-to-earnings ratios for JD.com, Meituan, Ctrip, and Tongcheng for 2025 are 7.5x, 17.9x, 15.9x, and 12.5x respectively, all of which are at historical lows [1] - The report emphasizes the need to monitor how the evolving competitive landscape may impact short-term profits for these platforms [1]

Core Viewpoint - The report from CMB International indicates that with the launch of new and updated models, Xiaopeng Motors (Xiaopeng) is expected to see continued growth in sales, average selling price (ASP), and gross margin, maintaining a buy rating with a target price of HKD 134.69 [1] Group 1: New Model Launch - The Xiaopeng G7, officially unveiled on June 11, is positioned as a family SUV and is set to be delivered in Q3 of this year, with a pre-sale price of RMB 235,800 [1][3] - The G7 features two versions, Max and Ultra, and is the first new model from Xiaopeng for 2025 [1] Group 2: Technological Advancements - The G7 is equipped with three Turing AI chips, providing over 2200 TOPS of effective computing power, qualifying it for L3 level autonomous driving capabilities [2] - The vehicle's AI capabilities are enhanced by local deployment of VLA and VLM models, allowing for human-like understanding and decision-making in complex scenarios [2] Group 3: Enhanced User Experience - The G7 features a top-tier AR-HUD developed in collaboration with Huawei, providing an 87-inch projection area that enhances the driving experience by integrating various driving assistance features [3] - The vehicle has a maximum power output of 296 horsepower and a standard range of 702 km, which simplifies the product lineup [3] Group 4: Market Positioning and Sales Performance - Xiaopeng's G series models are differentiated, with the G7 targeting tech-savvy young users and families, priced in the RMB 250,000 range, competing with models like Tesla Model Y and others [4] - Since the launch of the Xiaopeng MONA M03, the company has seen a significant increase in sales, achieving over 30,000 monthly sales for seven consecutive months, with a total of 162,578 vehicles delivered in the first five months of this year, representing a 293% year-on-year growth [4]

Group 1: Battery Production and Sales - In May 2025, China's total production and sales of power and other batteries reached 123.5 GWh and 123.6 GWh, respectively, representing year-on-year growth of 47.9% and 58.1%, with a production-to-sales ratio close to 1 [1] - The power battery installation volume in May was 57.1 GWh, showing a year-on-year increase of approximately 43.1% [1] - The market share of CATL in China's power battery installation volume increased by 3.4 percentage points to 42.9% [1] Group 2: Export Trends - In May, China's power and other battery exports reached 19 GWh, with a year-on-year increase of 23.0% but a month-on-month decrease of 14.6%, accounting for 15% of total sales [5] - The export growth of energy storage and other batteries slowed down due to tariff disturbances, but a partial tariff agreement between China and the US in May 2025 is expected to boost exports in June [5] Group 3: Company Developments - EVE Energy announced plans to list H-shares in Hong Kong to enhance its capital strength and international competitiveness, with a new battery factory in Malaysia expected to start production in Q1 2025 [2] - CATL's research team published findings on lithium metal battery failure mechanisms, aiming to achieve energy density breakthroughs exceeding 500 Wh/kg, which could facilitate the large-scale application of solid-state batteries [4] Group 4: Industry Standards - The China Automotive Engineering Society released the "Full Solid-State Battery Determination Method," establishing a clear definition and standards for solid-state batteries, which will help standardize the market and promote technological collaboration across the industry [3]

Group 1 - The report from CMB International indicates that trade uncertainties have eased, leading to a rebound in global stock markets, with US stocks, A-shares, and Hong Kong stocks continuing their upward trend [1] - Apple Inc. launched iOS 26 at WWDC25, enhancing the user experience of its product line, which aligns with market expectations [1] - TSMC reported a 40% year-on-year increase in revenue for May, driven by sustained demand for AI, with projected revenue of NT$320.5 billion for May 2025, reflecting a 40% year-on-year growth despite an 8% quarter-on-quarter decline [1] Group 2 - The report highlights that AI remains a critical technological change for the foreseeable future, with market focus expected to shift back to system construction progress and application monetization as key industry chain companies complete product upgrades in the second half of the year [2] - Investors are advised to pay attention to the domestic substitution process within the technology supply chain, particularly in semiconductor design, equipment, and manufacturing sectors [2] - There is an anticipated marginal improvement in end-user demand in the automotive and industrial sectors, suggesting investment opportunities within these industry chains [2]

Core Viewpoint - The report from CMB International indicates that the mainland real estate sector is showing signs of stabilization after a decline, with new residential property sales expected to reach between 8 trillion to 8.5 trillion yuan in 2025 [1] Group 1: Mainland Real Estate Market - In the first four months of 2025, the national new residential property sales reached 27,035 billion yuan, with a year-on-year decline narrowing to 3.2% [1] - Despite localized supply-demand imbalances, the residential market is anticipated to stabilize in 2025 [1] - Policy measures may include continued stockpiling, revitalizing existing land, supporting current housing sales, adjusting housing finance policies, and promoting the rental market [1] Group 2: Investment Recommendations - The report prioritizes investment in state-owned developers with low valuations, followed by private sector leaders with land reserves in first and second-tier cities, while other private developers are ranked last [1] Group 3: Hong Kong Real Estate Market - The Hong Kong real estate market faces macroeconomic uncertainties, but key positive factors are emerging, such as population recovery and a significant drop in HIBOR, which are expected to stabilize the residential market [1] - Residential prices in Hong Kong are projected to grow by 3%, 5%, and 5% in the second half of 2025 and through 2027 [1] - The retail sector is under pressure due to changes in local and tourist consumption habits, but the trend of consumption from mainland China is alleviating rental pressures, leading to a moderate overall adjustment [1] Group 4: Office Market Outlook - The office market in Hong Kong is facing limited rebound potential due to high vacancy rates and the completion of new projects, necessitating a cautious outlook [1] Group 5: Preference Ranking in Hong Kong Real Estate - The preferred ranking for the Hong Kong real estate sector is: retail REITs > low-debt residential developers > retail property holders > REITs/developers with high office business exposure, with Link REIT being the top choice [1]

Group 1 - The core viewpoint of the report is that Baidu's search advertising revenue is expected to remain under pressure due to AI impacts, with a projected year-on-year decline of 9% to 66 billion RMB for the entire year [1] - The report anticipates a year-on-year decline of 11% and 12% in search advertising revenue for the second and third quarters, respectively, with a slight easing in the decline expected in the fourth quarter [1] - Baidu's operating profit margin for its core business is projected to drop to 14.8% in the second quarter, with an overall annual operating profit margin forecasted to decrease by 1.4 percentage points to 17.8% [1] Group 2 - The report maintains a target price of 96 HKD for Baidu Group based on SOTP valuation [1] - The company is seen as leading in cloud and autonomous driving sectors, which may provide opportunities to reverse the group's valuation [1] - The report suggests monitoring the sustainability of cloud revenue growth and the global promotion of Robotaxi [1]

Core Viewpoint - The report from CMB International raises the target price for NetEase Cloud Music (09899.HK) to HKD 240, maintaining a "Buy" rating due to faster-than-expected cost optimization and growth potential in long-term membership revenue [1] Financial Performance - Adjusted net profit forecasts for 2025 and 2026 have been increased by 6% and 9% respectively [1] - The gross profit margin for the first quarter of this year increased by 3.7 percentage points year-on-year to 36.7%, surpassing both the bank's and market expectations [1] Revenue Drivers - The growth in membership subscription revenue, increased income from various professional services, and optimization of live streaming revenue sharing are key contributors to the improved financial performance [1] Market Outlook - There is significant operational space for the paid wall and ARPPU (Average Revenue Per Paying User), indicating a positive long-term outlook for membership income growth [1]

Core Viewpoint - The report from CMB International maintains a target price of HKD 64 for Kuaishou (01024.HK), with Q1 2025 performance meeting expectations, showing a year-on-year revenue increase of 11% and adjusted net profit growth of 4% [1] Financial Performance - Kuaishou's total revenue and adjusted net profit for Q1 2025 increased by 11% and 4% year-on-year, respectively, aligning with expectations [1] - The adjusted net profit margin stands at 14% [1] - E-commerce GMV (Gross Merchandise Volume) grew by 15% year-on-year, also meeting expectations [1] Future Projections - For Q2 2025, e-commerce GMV is projected to increase by 14%, with influencer distribution potentially leading to a slight improvement in commission rates [1] - Advertising revenue is expected to see double-digit year-on-year growth, driven by improved infrastructure and local consumption [1] - The company anticipates that Kuaishou's revenue will exceed USD 100 million for the year [1] Valuation and Rating - CMB International maintains a profit forecast of RMB 20.3 billion for 2025 [1] - Given Kuaishou's advanced video generation capabilities and commercialization potential, a valuation premium is applied, resulting in a target price based on a 13x P/E ratio for 2025 [1] - The rating remains "Buy" with a target price of HKD 64 [1]

Core Viewpoint - The report from CMB International indicates a downward adjustment of Baidu's target price to HKD 96, while maintaining a "Buy" rating, due to the anticipated time required for AI monetization [1] Financial Performance - Baidu's Q1 performance exceeded expectations, with strong results from its cloud business [1] - The company is expected to see a decline in advertising revenue by 11% and 12% year-on-year in Q2 and Q3 respectively, with an overall decrease of 9% to RMB 66 billion for the full year of 2025 [1] Business Segments - The report highlights a projected revenue growth rate of 30% for Baidu's cloud business by 2025 [1] - The AI search content coverage is expected to rapidly advance to over 50% due to cost optimization [1] Strategic Developments - Baidu's Robotaxi initiative is anticipated to accelerate its global expansion, with the number of vehicles expected to exceed 1,000 [1]

Core Viewpoint - The report from CMB International raises the target price for Tencent Holdings to HKD 604, citing stable performance and the development of its AI ecosystem as key factors for this adjustment [1] Group 1: Financial Performance - Tencent's first-quarter performance exceeded expectations, with profit growth continuing to outpace revenue growth [1] - The company is expected to see a 10% increase in total revenue for the second quarter, reaching RMB 1,778 billion, and a 9.6% increase for the full year, totaling RMB 7,235 billion [1] Group 2: AI Investment Impact - The report highlights that Tencent's investments in AI are beginning to show results, contributing to growth across various business ecosystems [1] - Increased capital expenditure and AI investments are anticipated to narrow the gap between operating profit and revenue, with profit growth still expected to outpace revenue growth [1] Group 3: Gaming Sector Outlook - The introduction of new games is expected to alleviate market concerns regarding high comparatives in the gaming sector for the second half of the year [1]