Group 1 - The core viewpoint of the report is that Ctrip Group's revenue expectations for 2025 and 2026 are maintained, with an 8% increase in the 2025 non-GAAP net profit forecast to 17.7 billion yuan, and the 2026 non-GAAP net profit forecast remaining at 18.9 billion yuan [1] - The company reported a 16% year-on-year increase in revenue for Q2 2025, reaching 14.9 billion yuan, which exceeded market expectations by 1%, primarily due to better-than-expected accommodation revenue [2] - The company achieved a non-GAAP net profit of 5 billion yuan in Q2 2025, surpassing market expectations by 15%, attributed to controlled marketing expenses and higher-than-expected government subsidies [2] Group 2 - Domestic hotel booking revenue for Q2 2025 was 6.2 billion yuan, a 21% year-on-year increase, exceeding market expectations by 3%, driven by higher hotel booking volumes [3] - The company expects a low double-digit year-on-year growth in domestic hotel night volumes for Q3 2025, despite a generally weak performance in the industry during the summer [3] - The company’s outbound travel bookings for Q2 2025 recovered to over 120% of 2019 levels, continuing to outperform the industry’s flight recovery rate of 84% [4] Group 3 - The international OTA booking volume increased by over 60% in Q2, with Trip.com’s revenue share rising to 14%, and inbound travel bookings more than doubling [5] - Despite increased hotel price subsidies from international competitors in Thailand and South Korea, Trip.com maintained over 70% growth in hotel revenue, indicating effective execution of its differentiated strategy [5] - The company is expected to maintain over 50% year-on-year growth in Q3 2025, supported by continued investment in the Asia-Pacific region and expansion in the Middle East [5]

Core Viewpoint - Company maintains revenue expectations for 2025 and 2026, with an 8% increase in 2025 non-GAAP net profit forecast to 17.7 billion yuan, and a maintained forecast of 18.9 billion yuan for 2026 [1] Group 1: Financial Performance - In Q2 2025, company reported a 16% increase in revenue to 14.9 billion yuan, exceeding market expectations by 1%, driven by better-than-expected accommodation revenue [2] - Non-GAAP net profit for Q2 2025 was 5 billion yuan, with a net profit margin of 34%, surpassing market expectations by 15% due to controlled marketing expenses and higher-than-expected government subsidies [2] - The company completed its previously announced $400 million shareholder return plan ahead of schedule and approved a new buyback plan of up to $5 billion in August 2025 [2] Group 2: Domestic Hotel Performance - In Q2 2025, domestic hotel accommodation revenue reached 6.2 billion yuan, a 21% year-on-year increase, exceeding market expectations by 3% due to higher hotel booking volumes [3] - Despite a lackluster industry performance during the summer, the company outperformed the market in night stays, with expectations of low double-digit year-on-year growth in domestic hotel night stays for Q3 2025 [3] Group 3: International Travel Performance - In Q2 2025, company’s outbound flight and hotel bookings recovered to over 120% of 2019 levels, continuing to outperform the industry’s recovery rate of 84% [4] - The company anticipates a slight slowdown in year-on-year growth for outbound revenue due to high base effects from last year's summer travel [4] Group 4: Competitive Landscape - In Q2, international OTA booking volume increased by over 60%, with Trip.com’s revenue share rising to 14% [5] - Despite increased hotel price subsidies from international competitors in Thailand and South Korea, the overall market remains fragmented, and Trip.com’s differentiated strategy has effectively maintained over 70% growth in hotel revenue [5] - The company is also expanding in the Middle East, with expectations of maintaining over 50% year-on-year growth for Trip.com in Q3 2025 [5]

Group 1: Semiconductor Industry - AI infrastructure investment continues to rise, with Nvidia's outlook indicating strong demand [2] - Nvidia reported Q2 FY2026 revenue of $46.7 billion, a year-on-year increase of 56% and a quarter-on-quarter increase of 6%, exceeding Bloomberg consensus estimates [2] - The company's Q2 net profit reached $25.8 billion, reflecting a year-on-year growth of 52% and a quarter-on-quarter growth of 30% [2] Group 2: Ctrip (携程) - Ctrip's Q2 FY2025 revenue was RMB 14.9 billion, a year-on-year increase of 16%, surpassing both internal and market expectations [9] - The non-GAAP operating profit was RMB 4.7 billion, exceeding expectations by 7% and 9% due to better-than-expected operational leverage [9] - The company is expected to maintain resilient growth in travel demand, supported by strong supply chain capabilities and customer service [9] Group 3: SenseTime (商汤科技) - SenseTime reported H1 FY2025 revenue of RMB 2.36 billion, a year-on-year increase of 36%, exceeding expectations by 6% [10] - The adjusted net loss narrowed by 50% to RMB 1.16 billion, driven by operational leverage and organizational adjustments [10] - The company anticipates a 25% year-on-year revenue growth in H2 FY2025, supported by strong demand for AI computing and applications [10] Group 4: Anta Sports (安踏) - Anta's retail sales trends showed a mixed performance, with the main brand experiencing weaker growth while other brands like Descente and Kolon continued to perform strongly [24][25] - The company adjusted its retail growth targets for FY2025, lowering Anta's from high single digits to mid single digits, while maintaining FILA's at mid single digits [25] - Despite challenges, Anta's operational profit margin is expected to remain between 20%-25% due to strict control over operating expenses [25]

Investment Rating - The report maintains a "Buy" rating for the company, with an updated target price of HKD 653, representing a potential upside of 18.3% from the current price of HKD 552 [2][11]. Core Insights - The company's Q2 performance exceeded expectations, driven by better-than-expected growth in hotel business and an increase in market share. The trend of improving marketing efficiency in mainland China is expected to continue. Despite increased competition in overseas markets, the impact on overall profitability is manageable. The valuation has been rolled forward to 2026, with a target price adjustment based on a 20x P/E ratio for 2026 [2][6]. Financial Performance Summary - For Q2 2025, total revenue reached RMB 14.864 billion, a year-on-year increase of 16%, slightly above market expectations. The hotel segment grew by 21%, transportation by 11%, and vacation services by 5% [6][7]. - The adjusted net profit for Q2 was RMB 4.846 billion, showing a year-on-year increase of 13% [8][14]. - The company expects Q3 revenue to grow by 15%, driven by an 18% increase in hotel bookings, with continued expansion in market share in mainland China [6][8]. Earnings Forecast Changes - Revenue forecasts for 2025E, 2026E, and 2027E are RMB 61.611 billion, RMB 69.659 billion, and RMB 78.590 billion, respectively, with growth rates of 15.4%, 13.1%, and 12.8% [5][14]. - Adjusted operating profit for 2025E is projected at RMB 17.981 billion, with a margin of 29.2% [5][14]. - The adjusted net profit for 2025E is expected to be RMB 17.974 billion, with a net profit margin of 29.2% [5][14]. Market Position and Competitive Landscape - The company is well-positioned in the competitive landscape of the mainland China market, benefiting from effective marketing strategies and a strong recovery in travel demand [2][6]. - The recovery in outbound travel bookings has surpassed pre-pandemic levels, indicating robust growth potential [6][7].

Core Viewpoint - Ctrip Group's stock price has reached a new high following strong earnings results, reflecting positive market sentiment and robust financial performance [1] Financial Performance - For the second quarter of 2025, the company reported a net profit attributable to shareholders of 9.123 billion yuan, an increase of 12.01% year-on-year, with basic earnings per share of 13.82 yuan [1] - Total revenue for the same quarter was 28.714 billion yuan, representing a year-on-year growth of 16.21% [1] - For the quarter ending June 30, the net profit attributable to shareholders was 4.846 billion yuan, up 26.43% year-on-year, with basic earnings per share of 7.34 yuan [1] - Revenue for this quarter was 14.864 billion yuan, showing a year-on-year increase of 16.23%, exceeding expectations [1] - Adjusted EBITDA for the quarter was 4.9 billion yuan, compared to 4.4 billion yuan in the same period last year, with an adjusted EBITDA margin of 33%, down 2 percentage points year-on-year [1] Stock Buyback Plan - The board of directors approved a new share repurchase plan, authorizing the company to buy back up to 5 billion USD (approximately 39 billion HKD) of its issued ordinary shares and/or American Depositary Shares (ADS) [1]

Group 1: Nvidia - Blackwell Ultra deployment is progressing smoothly, but uncertainties remain regarding exports to China. FY2Q26 revenue reached $46.7 billion with a Non-GAAP gross margin of 72.7%, exceeding previous guidance [1] - Management has guided a median revenue of $54 billion for FY3Q26, with a median gross margin of 73.5%. If export conditions allow, an additional $2-5 billion in revenue could be generated [1] - The launch of Spectrum XGS and the progress of the Rubin series are in line with expectations, although the performance improvement of Rubin over Blackwell remains unclear [2] Group 2: Ctrip Group - Ctrip's Q2 performance exceeded expectations, with hotel business growth surpassing forecasts and market share continuing to rise. The company is well-positioned in the current competitive environment [3] - The target price has been adjusted to HKD 653 based on a 20x 2026 P/E ratio, maintaining a buy rating [3] Group 3: Meituan - Meituan's Q2 revenue grew by 12% year-on-year, but adjusted net profit fell by 89% due to irrational competition in the industry [6] - The company expects intensified competition in the third quarter, leading to a projected loss exceeding 15 billion yuan [6][7] Group 4: China National Heavy Duty Truck Group - The company reported a 4.2% year-on-year increase in revenue for the first half of 2025, with net profit rising by 4.0%, aligning with market expectations [8] - The target price is set at HKD 26.45, reflecting a 9.9x P/E ratio for 2025, with a focus on structural recovery in heavy truck sales [8] Group 5: China Innovationpay - The company experienced a 31.7% year-on-year revenue increase in the first half of 2025, with a significant 109.7% growth in energy storage battery revenue [9] - The target price is maintained at HKD 24.77, anticipating a concentrated release of delivery capacity in 2026 [10] Group 6: Innovent Biologics - The company reported a 37% year-on-year increase in product revenue for the first half of 2025, with net profit reaching 830 million yuan [11] - The target price has been raised to HKD 105, reflecting a positive outlook on the company's pipeline and commercialization efforts [12] Group 7: China Life Insurance - The company saw a 6.9% year-on-year increase in net profit for the first half of 2025, although growth has slowed compared to Q1 [18] - The target price has been adjusted to HKD 30, based on a 1.4x P/B ratio for 2025 [19] Group 8: China Pacific Insurance - The company achieved a 32.3% year-on-year increase in net profit for the first half of 2025, with strong performance in both underwriting and investment [20] - The target price has been raised to HKD 24, reflecting improved profitability and competitive advantages [21] Group 9: Yasheng Group - The company reported an 8.3% year-on-year decline in total revenue for the first half of 2025, primarily due to proactive business scale adjustments [22] - The target price is maintained at HKD 3.20, with expectations for recovery as margins stabilize [23] Group 10: XinAo Energy - The company experienced a slight 1% year-on-year decline in core profit for the first half of 2025, meeting market expectations [24] - The target price has been adjusted to HKD 73.66, reflecting a cautious outlook on retail gas demand [24]

Group 1 - The Hang Seng Index opened up by 0.39%, while the Hang Seng Tech Index rose by 0.8% [1] - Ctrip Group increased by over 5%, Li Auto by nearly 3%, Kuaishou by over 2%, and JD Group and Baidu Group by over 1% [1] Group 2 - According to Zhongtai International, despite the significant recovery in Hong Kong stock valuations, the Hang Seng Index's forecast PE has returned to nearly the 80th percentile of the past seven years [1] - External monetary policy uncertainty has decreased, and internal policies such as "anti-involution" and industrial support are being strengthened, providing upward support for the market [1] Group 3 - Guotai Junan Securities noted that a rate cut in September seems likely, and given that Hong Kong stocks have significantly retraced their excess relative to A-shares this year, the A-H market will return to a unified starting line [1] - Changes in corporate earnings will drive the performance differences between the two markets [1] Group 4 - Huatai Securities released a strategy report indicating that foreign capital still has room to increase allocation to the Chinese market [1] - Factors include the likelihood of easier overseas liquidity due to monetary policy and financial regulation, as well as an improvement in domestic fundamentals and potential appreciation of the RMB [1] - However, it is noted that the importance of foreign capital in the Hong Kong stock market has decreased, with southbound capital accounting for over 40% of trading in interconnectivity stocks, making the sustainability of future inflows a key focus [1]

Core Insights - Ctrip (TCOM.US) experienced a significant increase of over 12%, closing at $73.22 [1] - The company reported a net revenue of RMB 14.843 billion for Q2, representing a year-on-year increase of 16.22% [1] - Ctrip's net profit attributable to the company was RMB 4.846 billion, reflecting a year-on-year growth of 26.43% [1] Business Performance - The international business segments of Ctrip continued to show strong growth in Q2 [1] - Total bookings on the international OTA platform increased by over 60% year-on-year [1] - Bookings for inbound tourism surged by over 100% year-on-year [1] - Bookings for outbound hotels and flights have surpassed 120% of the levels seen in the same period before the pandemic in 2019 [1]

Market Performance - The three major U.S. indices closed higher, with the S&P 500 index surpassing 6500 points, setting a new closing record [1] - The Dow Jones increased by 71.67 points (0.16%) to 45636.9 points, while the Nasdaq rose by 115.02 points (0.53%) to 21705.16 points [1] - In European markets, the DAX30 index fell by 14.66 points (0.06%), while the CAC40 index rose by 18.67 points (0.24%) [1] Commodity Prices - Light crude oil futures for October delivery rose by $0.45 to $64.60 per barrel (0.70% increase) [2] - Gold prices increased by 0.57%, reaching $3416.55 per ounce, while COMEX gold futures rose by 0.83% to $3477.20 per ounce [3] - LME copper prices rose by $62 to $9818 per ton, while LME nickel increased by $132 to $15263 per ton [3] Macro News - The IMF's Gita Gopinath warned about the fragile state of the global bond market, highlighting rising debt levels [4] - The U.S. government has begun publishing GDP data on public blockchains, indicating a recognition of blockchain technology [4] Corporate News - Boeing is seeking EU approval for a $4.7 billion buyback of Spirit AeroSystems, with a decision expected by September 30 [6] - Trump threatened to impose significant tariffs on countries that implement digital taxes, following discussions with Meta Platforms' CEO Mark Zuckerberg [6]

Core Viewpoint - Ctrip (TCOM.US) experienced a significant increase of over 12%, reaching $73.22, driven by strong financial performance in Q2 [1] Financial Performance - The company's net revenue for Q2 was RMB 14.843 billion, representing a year-on-year increase of 16.22% [1] - Ctrip's net profit attributable to the company was RMB 4.846 billion, showing a year-on-year growth of 26.43% [1] Business Growth - The international business segments continued to show robust growth, with total bookings on the international OTA platform increasing by over 60% year-on-year [1] - Inbound travel bookings saw a remarkable growth of over 100% year-on-year [1] - Bookings for outbound hotels and flights have surpassed 120% of the levels seen in the same period before the pandemic in 2019 [1]