Core Insights - On August 28, Horizon Robotics-W made its debut on the Hong Kong Stock Connect active trading list for the first time in a month [2] - The total trading volume of active stocks on the Hong Kong Stock Connect reached HKD 849.44 billion, accounting for 40.48% of the day's total trading amount, with a net sell amount of HKD 138.75 billion [2] - Among the active stocks, SMIC had the highest trading volume at HKD 171.83 billion, followed by Meituan-W and the Tracker Fund of Hong Kong with HKD 158.03 billion and HKD 119.69 billion respectively [2] Trading Activity Summary - Horizon Robotics-W recorded a trading volume of HKD 24.76 billion on the same day, with a net buying amount of HKD 2.41 billion, and its stock price increased by 14.74% [2][3] - The stocks with the highest number of appearances on the active trading list over the past month were Alibaba-W and Tencent Holdings, each appearing 23 times, indicating strong interest from Hong Kong Stock Connect funds [2] - The trading performance of other notable stocks included Tencent Holdings with a trading volume of HKD 54.76 billion and a net sell of HKD 5.84 billion, and Alibaba-W with a trading volume of HKD 111.42 billion and a net buy of HKD 3.30 billion [2]

Group 1 - Meituan-W has seen continuous net buying from southbound funds for six consecutive days, with a cumulative net buying amount of HKD 50.37 billion, despite a stock price decline of 15.81% [2] - On August 28, the total trading volume of active stocks through the Hong Kong Stock Connect reached HKD 849.44 billion, with a net selling amount of HKD 138.75 billion [2] - On the same day, Meituan-W recorded a trading amount of HKD 158.03 billion through the Hong Kong Stock Connect, with a net buying amount of HKD 3.33 billion [2]

Group 1 - On August 28, 2025, the top three companies by trading volume in the Hong Kong Stock Connect (southbound) were SMIC (00981) with a trading volume of 11.618 billion, Meituan-W (03690) with 9.659 billion, and the Tracker Fund of Hong Kong (02800) with 7.940 billion [1][2] - In the Shenzhen-Hong Kong Stock Connect (southbound), the top three companies were Meituan-W (03690) with a trading volume of 6.145 billion, SMIC (00981) with 5.565 billion, and Alibaba-W (09988) with 4.726 billion [1][2] Group 2 - In the Hong Kong Stock Connect (southbound), the net buying amounts for the top three companies were SMIC (00981) with +0.575 billion, Meituan-W (03690) with +0.630 billion, and Alibaba-W (09988) with +0.706 billion [2] - The Tracker Fund of Hong Kong (02800) had a significant net outflow of -7.885 billion, indicating a strong selling pressure [2] - In the Shenzhen-Hong Kong Stock Connect (southbound), Meituan-W (03690) experienced a net outflow of -0.297 billion, while SMIC (00981) had a net inflow of +0.318 billion [2]

Core Viewpoint - Meituan is committed to improving the experience of its delivery riders by eliminating overtime penalties by the end of 2025 and implementing positive incentives instead [1][2]. Group 1: Overtime Penalty and Incentives - Meituan plans to fully eliminate overtime penalties for delivery riders by the end of 2025, focusing on optimizing algorithms and improving delivery assessment mechanisms [1]. - The company has conducted pilot programs in over ten cities to compare different management models, ensuring stable income for riders while enhancing user experience [1]. - The "Anzhun Card" system, which replaces overtime penalties with a system of points for timely deliveries, was first piloted in Quanzhou in December 2024 [1]. Group 2: Community and Delivery Efficiency - Meituan has collaborated with authorities to implement "Rider-Friendly Communities," improving access for riders in 24,700 communities across 150 cities, benefiting over 680,000 riders monthly [2]. - To address issues with inaccurate user addresses, Meituan will introduce measures such as user location sharing and smart address recommendations starting in 2025 [2]. Group 3: Rider Health and Work Balance - A fatigue prevention measure was introduced, alerting riders after 8 hours of work and mandating a break after 12 hours, with 18% of riders receiving the 8-hour alert and only 0.28% being forced offline [2]. - The platform aims to balance income and health for riders with strategies tailored for those with high order volumes [2]. Group 4: Algorithm Transparency - Meituan has established an algorithm transparency section on its official website and WeChat, providing accessible information to riders and the public [3]. - The company actively seeks external feedback on its algorithms through interviews and surveys to facilitate continuous improvement [3].

Investment Rating - The report maintains a "Strong Buy" rating for Meituan-W (03690.HK) [1][3] Core Views - The Q2 performance of Meituan was impacted by increased competition, with revenue of 91.84 billion (+11.7%) and adjusted net profit of 1.49 billion (-89.0%) [1][6] - Despite the competitive pressures, the long-term outlook for the company's core domestic business remains positive due to its competitive advantages and growth potential, while overseas operations present new growth opportunities [1][6] Financial Data and Valuation - Revenue projections for the upcoming years are as follows: - 2023: 276.85 billion - 2024: 337.59 billion - 2025E: 370.60 billion - 2026E: 428.95 billion - 2027E: 493.90 billion - Adjusted net profit estimates show significant fluctuations, with a projected loss of 15.60 billion in 2025E, followed by a recovery in subsequent years [2][8] - The target price is set at 141.90 HKD, with the current stock price at 116.3 HKD, indicating potential upside [3][6] Business Segment Performance - Core local commerce revenue growth slowed to 7.7% in Q2, while new business revenue increased by 22.8% [6] - The food delivery segment experienced stable growth in order volume, but profitability was affected by increased competition and subsidies [6] - The in-store segment showed a GTV growth of over 20%, but revenue growth is expected to decline due to competitive pressures [6] Future Outlook - The report anticipates that Q3 will see continued competitive intensity, leading to increased losses in the food delivery segment [6] - Long-term growth potential remains strong, with expectations for core local business GMV to reach approximately 2.7 trillion in 2025E [6][7]

Group 1: Market Overview - The Hong Kong stock market continued to decline, with major indices closing lower despite a rebound in the afternoon, influenced by a drop in Meituan's Q2 earnings, which caused significant pullbacks in tech giants [1] - The Hong Kong Internet ETF (513770) experienced a decline of 1.51%, with a notable premium rate of 0.84% at closing, indicating active buying interest during dips [1] - The Hang Seng Hong Kong Stock Connect Innovative Drug Selected Index fell over 4% but closed down 1.67%, while the Hong Kong Stock Connect Innovative Drug ETF (520880) also saw a decline of 1.72% [3] Group 2: Fund Flows and Performance - The Hong Kong Internet ETF (513770) recorded a net inflow of 870 million yuan over the past 10 days [2] - The Hong Kong Stock Connect Innovative Drug ETF (520880) attracted over 25 million yuan in net inflows in a single day, indicating strong buying interest despite market volatility [3] Group 3: Sector Analysis - The technology sector, particularly AI-related stocks, is expected to benefit from a shift in the Federal Reserve's stance towards a more accommodative monetary policy, which may enhance liquidity in the Hong Kong market [4][5] - The Hong Kong Internet ETF (513770) is positioned to capitalize on the AI trend, as internet companies are seen as key players in AI development and application [5] - The innovative drug sector is facing short-term sentiment challenges due to potential U.S. tariffs on imported drugs, but long-term growth prospects remain strong due to favorable policies and increasing international recognition of Chinese innovative drug assets [6] Group 4: Key Holdings - As of the end of June, the top four holdings in the Hong Kong Internet ETF (513770) are Xiaomi Group-W, Tencent Holdings, Alibaba-W, and Meituan-W, collectively accounting for 54.74% of the fund's total weight [5][7] - The Hong Kong Stock Connect Innovative Drug Selected Index has outperformed other indices, with a year-to-date increase of 101.58%, significantly surpassing the Hang Seng Index and Hang Seng Tech Index [9][10]

Summary of Key Points Core Viewpoint - The Hong Kong stock market experienced significant net selling from northbound capital, with a total net sell of 204.41 billion HKD on August 28, 2023, indicating a cautious sentiment among investors [1]. Group 1: Northbound Capital Activity - Northbound capital saw a net sell of 132.97 billion HKD through the Shanghai Stock Connect and 71.44 billion HKD through the Shenzhen Stock Connect [1]. - The most bought stocks included SMIC (00981), Kangfang Biotech (09926), and Huahong Semiconductor (01347), while the most sold stocks were the Tracker Fund of Hong Kong (02800), Hang Seng China Enterprises Index (02828), and Tencent (00700) [1]. Group 2: Stock Performance and Predictions - SMIC received a net buy of 8.92 billion HKD, while Huahong Semiconductor had a net buy of 4.63 billion HKD, reflecting a renewed interest in chip stocks [6]. - Kangfang Biotech saw a net buy of 5.11 billion HKD, supported by positive clinical trial results for its drug [6]. - China Life (02628) received a net buy of 3.83 billion HKD, with expectations of steady growth in profits and new business value (NBV) [7]. Group 3: Sector Trends and Market Sentiment - The technology sector showed mixed results, with Meituan (03690) and Alibaba (09988) receiving net buys of 3.33 billion HKD and 3.29 billion HKD, respectively, while Tencent faced a net sell of 5.83 billion HKD [7]. - The AI sector is expected to be a key driver for Hong Kong tech stocks, with improved market sentiment due to easing trade tensions between China and the U.S. [7]. - Horizon Robotics (09660) reported a revenue increase of 67.6% year-on-year, indicating strong growth in the autonomous driving market [8]. Group 4: ETF and Fund Flows - Northbound capital also sold off ETFs, with the Tracker Fund of Hong Kong (02800) and Hang Seng China Enterprises Index (02828) facing net sells of 118.86 billion HKD and 47.76 billion HKD, respectively [9]. - Despite the selling pressure, there is an expectation for continued foreign capital inflow into the Chinese market, although the importance of foreign capital in the Hong Kong market has decreased [9].

Core Viewpoint - The retail industry is undergoing a profound transformation, with traditional hypermarkets facing significant challenges due to changing consumer behaviors and the rise of new retail formats [2][3]. Group 1: Retail Transformation - The decline of hypermarkets is attributed to their inability to adapt to the rapid shift towards digital and diversified shopping channels, leading to a loss of consumer interest [3][4]. - Consumers are increasingly favoring online platforms and quick delivery services, which has resulted in a dramatic shift in shopping habits away from traditional stores [3][5]. Group 2: Channel Dominance Breakdown - The traditional dominance of hypermarkets is being challenged by new retail formats that offer lower operational costs and more efficient supply chains, such as community group buying and vertical niche players [5][6]. - The average rent for hypermarkets has increased by 8%-12% annually, while new retail formats maintain significantly lower rent costs of 3%-5% [5][6]. Group 3: Pricing and Consumer Behavior - The pricing strategy of hypermarkets is becoming less effective as e-commerce platforms like JD.com leverage direct sourcing to offer 15%-20% lower prices [6][7]. - The rise of live-streaming e-commerce has further disrupted traditional pricing models, with significant price reductions becoming commonplace [7][22]. Group 4: Consumer Demand Shifts - Consumers are moving from planned purchases to a model characterized by "infinite shelves," where online platforms provide vast product selections and competitive pricing [10][11]. - The demand for instant gratification is leading to a preference for minute-level response times in retail, with 62% of young consumers favoring quick delivery options [12][13]. Group 5: Experience and Lifestyle Proposals - Modern consumers prioritize shopping experiences and lifestyle alignment over mere product functionality, as seen in the success of membership-based models like Sam's Club [14][15]. - Retailers must focus on creating unique shopping experiences that resonate with consumer lifestyles to remain competitive [15][39]. Group 6: Emerging Retail Formats - Vertical niche players are gaining market share by offering specialized products and efficient operations, leading to a 25% decline in sales for traditional hypermarkets in certain categories [17][18]. - Community group buying platforms are rapidly expanding in lower-tier markets, with a user base of 678 million and a transaction scale of 322.8 billion yuan in 2023 [19][20]. Group 7: Supply Chain and Operational Challenges - Hypermarkets face significant supply chain inefficiencies, with average inventory turnover days around 60, compared to 28 days for newer formats like Hema [33][35]. - The reliance on a heavy asset model is proving detrimental, as many hypermarkets are unable to maintain profitability with declining foot traffic and high operational costs [33][34]. Group 8: Future Directions - The retail landscape is polarizing, with companies needing to choose between becoming "price killers" focused on efficiency or "emotional pharmacies" that prioritize customer experience [39]. - Successful retailers will need to innovate and adapt their business models to align with evolving consumer expectations and market dynamics [39].

Core Viewpoint - The competition between Didi and Meituan in Brazil's food delivery market has intensified, leading to multiple lawsuits and a strategic battle for market share in a rapidly growing sector [1][12]. Group 1: Market Entry and Competition - Didi entered the Brazilian market by acquiring local ride-hailing platform 99 in January 2018, which has since evolved to include services like 99Moto and 99Pay, amassing 50 million active users [2][3]. - Meituan announced its entry into the Brazilian market with its food delivery service Keeta, planning to invest $1 billion over the next five years [3][12]. - The Brazilian food delivery market is dominated by iFood, which holds approximately 80% market share, posing a significant challenge for both Didi and Meituan [3][9]. Group 2: Legal Disputes - The competition has escalated to legal disputes, with three lawsuits filed between Didi's 99Food and Meituan's Keeta, including claims of trademark infringement and unfair competition [6][7]. - A Brazilian court issued an injunction against 99Food regarding sponsored ads on Google, while Keeta filed a lawsuit against 99 for allegedly restricting restaurant partnerships [6][7]. Group 3: Market Potential and Growth - Brazil's food delivery market is experiencing a compound annual growth rate of 17.6%, with significant potential for expansion as the market penetration rate is only 16.1% as of 2023 [9][11]. - The Latin American food delivery market has grown from $7.497 billion in 2018 to $37.918 billion in 2023, indicating a robust growth trajectory [9]. Group 4: Strategic Advantages - Didi's established ride-hailing operations in Latin America provide a foundation for its food delivery services, allowing it to leverage existing resources and operational expertise [11]. - iFood has announced a significant investment of 17 billion reais (approximately 22 billion yuan) to counter the new competition from 99Food and Keeta [12][14].

Group 1 - A total of 59 stocks reached a 52-week high as of August 28, with the top three being 汇思太平洋 (08147) at 35.71%, 万宝盛华 (02180) at 31.33%, and 协鑫新能源 (00451) at 27.27% [1] - The closing prices and highest prices for the top three stocks are as follows: 汇思太平洋 closed at 0.325 and peaked at 0.475, 万宝盛华 closed at 7.200 and peaked at 7.880, 协鑫新能源 closed and peaked at 0.700 [1] - Other notable stocks that reached new highs include 威讯控股 (01087) at 18.81% and 百能国际能源 (08132) at 18.56% [1] Group 2 - The report also highlights 52-week lows, with 美团－Ｗ (03690) experiencing a decline of 12.78%, followed by 美团－ＷＲ (83690) at -12.36% [2] - The lowest prices for the top three stocks that reached new lows are 美团－Ｗ at 101.000, 美团－ＷＲ at 92.550, and 慧源同创科技 (01116) at 0.219 [2] - Other significant declines include 维立志博－Ｂ (09887) at -9.10% and 今海医疗科技 (02225) at -9.09% [2]