Group 1 - The Hong Kong stock market has shown strong performance in the first half of the year, with the Hang Seng Index and Hang Seng Tech Index recording semi-annual returns of 20% and 18.7% respectively, ranking among the top global indices [1] - The rebound in the Hong Kong stock market is primarily driven by a decrease in risk premium, while contributions from risk-free interest rates and fundamental earnings improvement are relatively limited [1] - Current favorable conditions for the Hong Kong stock market include a reduction in external environmental disturbances, a shift in Trump's policy focus from tariffs to tax cuts, and a supportive liquidity environment for capital allocation [1] Group 2 - The technology sector is highlighted as having significant investment value, with foreign capital showing sustained confidence through increased allocations to the information technology sector [2] - The adjustment in the technology sector's valuation narrative has led to a moderate level of crowding, indicating potential for upward elasticity and positioning it as a key driver for the next market rally [2] - There is a notable rotation of southbound capital across various sectors, with recent focus shifting towards healthcare and financial sectors, reflecting market interest in high-growth sectors and defensive value in high-dividend stocks [2] Group 3 - The short-selling landscape shows high levels of short interest in cyclical and consumer sectors, while the technology sector is experiencing a convergence of long and short positions [3] - The consumer sector is witnessing a clear divergence, with essential consumption remaining stable while discretionary consumption has seen increased short-selling activity [3] - The concentration of short-selling in the information technology sector is decreasing, supported by continued foreign investment and appropriate allocation from southbound capital [3]

Core Viewpoint - The Hong Kong stock market is currently in a consolidation phase, having largely completed the macroeconomic impact recovery process, with the Hang Seng Index approaching its March high due to themes in new consumption and pharmaceuticals [1][2] Market Conditions - The recent rise in the Hong Kong stock market is supported by a significant reduction in tariff uncertainties and a stabilization of the RMB exchange rate, alongside ample liquidity in the Hong Kong dollar market [2][3] - Despite the favorable liquidity environment, the Hang Seng Technology Index remains in a sideways trend, indicating that strong upward catalysts are still needed for the technology sector [2] Investment Opportunities - The current market conditions present a favorable window for investors, particularly as the technology sector has seen a release of valuation pressure, transitioning from a structural market to a broader rally [3] - The improvement in risk sentiment and liquidity provides a necessary foundation for the next phase of technology stock rallies, with the potential for significant upward movement as the narrative themes evolve [3]

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]

Group 1: Hong Kong Real Estate Market - The Hong Kong real estate market has not shown significant improvement in the first half of the year, but key factors are beginning to turn around [1] - A rebound in population and a significant drop in interest rates, including HIBOR, are expected to restore market confidence, with property prices projected to rise by 3% in the second half of the year and by 5% in both 2026 and 2027 [1] - The decline in HIBOR directly reduces mortgage rates, alleviating payment pressure and providing a good opportunity for first-time buyers and motivating upgrade purchases in the secondary market [1] Group 2: Residential Rental Market - The trend of divergence in residential prices and rental markets has continued into 2023, driven by population inflow and government talent introduction plans, which will increase housing demand and push short-term rental growth [1] - Rental prices are expected to rise by approximately 2% to 3% this year, with areas close to major business districts and key universities projected to see rental increases of at least 5% year-on-year [1] Group 3: Retail Market - Despite changes in tourist consumption habits and average spending levels, an increase in tourist numbers and a slowdown in consumption trends from mainland China are expected to benefit the dining and grocery sectors [2] - High-end shopping centers and core shopping areas are anticipated to remain stable through 2025, although non-tourist and core retail areas may face more significant pressure due to e-commerce challenges [2] Group 4: Office Market - The office market remains cautious, with vacancy rates slightly decreasing from a high of 13.7% in July 2024 to 13.5% in March 2025, but still at elevated levels [2] - Major projects set to complete between 2025 and 2026 will limit the rebound potential of the office market, with Grade A office rents expected to decline by 3% to 5% year-on-year until economic conditions improve [2]

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]