Investment Rating - The investment rating for Luxshare Precision Industry is "Buy" with a target price of Rmb78.00, indicating an expected share price return of 38.0% and an expected total return of 38.6% [7]. Core Insights - The report highlights multiple drivers fueling future growth for Luxshare, including strong performance in the communication and vehicle businesses, solid key customer relationships, and limited impact from memory price fluctuations [1][9]. - The communication business is expected to maintain a high growth target for 2026, with steady domestic growth and rapid overseas expansion anticipated [2]. - The vehicle business, particularly the Leoni segment, is outperforming expectations, with profitability targets likely to be achieved ahead of schedule [3]. - The wearable devices segment is projected to perform positively in 2026, while smartphone shipments are expected to remain stable with improved product mix and average selling price [4]. - The Wingtech business is focusing on operational efficiency and profitability rather than volume growth [5]. Summary by Sections Communication Business - The communication business is set for high growth in 2026, with domestic growth steady and overseas projects expected to break through in the coming quarters [2]. - Luxshare is a leader in electrical interconnect solutions, particularly in 448G connectivity, which secures strategic cooperation with upstream suppliers [2]. Vehicle Business - The Leoni business is performing better than expected, with the potential to exceed breakeven targets this year and achieve prior profit targets a year ahead [3]. - The focus for the first three years will be on operational improvement and profitability, leveraging Leoni's global exposure for North American expansion [3]. Key Customer Business - Luxshare is optimistic about the wearable devices market for 2026, including smartwatches and TWS buds, while smartphone shipments are expected to remain similar to 2025 but with an improved product mix and average selling price [4]. Wingtech Business - The priority for the Wingtech business is to enhance operational efficiency and profitability, with less emphasis on volume or market share [5].

Investment Rating - The report does not explicitly state an investment rating for the industry or specific companies within it Core Insights - There is a sustained household allocation towards equity, with gradual relocations of household assets from property and deposits to the equity market. High net worth individuals are showing more interest in private/customized secondary market products, while general retail investors prefer industry/thematic ETFs due to lower risk appetite [2] - China brokers are experiencing a reacceleration in investment banking business, with regulators becoming more accommodative towards equity raising for onshore companies, particularly in H-shares. A robust deal pipeline is noted, with 88 companies in the H-share IPO pipeline [3] - M&A activity is expected to be more selective and strategic, focusing on enhancing sub-segment strengths and generating synergies rather than merely increasing asset scale [4] - There is a marginal relaxation in capital raising for China brokers, with proposals for general mandates for H-shares issuance, which could lead to potential equity raising opportunities [7] Summary by Sections Household Asset Allocation - Households are gradually shifting assets from property and deposits to equities, with a preference for passive equity index-linked products over actively managed funds due to lower risk appetite [2] Investment Banking - The investment banking business is seeing a reacceleration, particularly in H-shares, with a significant number of companies in the IPO pipeline. The focus is on industries benefiting from policy support [3] M&A Strategy - Future M&A activity is anticipated to be more strategic, with leading brokers likely to acquire mid/small-sized players rather than merging with other leading brokers due to regulatory complexities [4] Capital Raising - China brokers are observing a marginal relaxation in capital raising, with potential new equity raising opportunities under proposed mandates for H-shares issuance [7]

Investment Rating - The investment rating for Jiangxi Copper is "Buy" with a target price of HK$27.90, indicating an expected share price decline of 12.2% from the current price of HK$31.76 [6]. Core Insights - The long-term treatment charge and refining charge (LT TC/RC) for copper concentrate is expected to be lower year-on-year in 2026, reflecting a tight supply situation as the LT TC/RC covers approximately 80% of total purchased overseas copper concentrate in 2025, down from 90% in previous years [1][2]. - The company plans to avoid large-scale maintenance work for copper smelting capacity until the LT TC/RC price for the next year is determined, with an anticipated increase in the percentage of spot TC/RC in the fourth quarter of 2025 if the LT TC/RC price remains low [3]. - Management believes that the impact of anti-involution on the copper smelting industry will primarily affect new capacity rather than existing capacity, as copper demand is expected to continue increasing, thus limiting the impact on copper prices [4]. - The copper foil business is projected to incur a net loss in 2025, but strong orders for lithium battery copper foil since September 2025 are expected to improve profitability in 2026, despite processing fees not significantly increasing [5]. Summary by Sections Valuation - Jiangxi Copper's H-shares are valued at HK$27.90 based on a combination of discounted cash flow (DCF) and price-to-book (P/B) fair values, with a DCF valuation yielding an NPV-per-share of HK$32.90 and a P/B valuation yielding HK$22.90 [8].

Investment Rating - The report assigns a "Buy" rating for Jiangsu Hengrui Pharmaceuticals with a target price of Rmb123.000, indicating an expected share price return of 95.5% and an expected total return of 95.9% [4]. Core Insights - Jiangsu Hengrui Pharmaceuticals is positioned as a leading global biopharma, ranking No.2 in the size of its originated pipeline and No.3 in pipeline growth, benefiting from China's status as a significant source of global innovation [4][6]. - The report highlights that approximately 30% of global innovative drug trials originate from China, and about one-third of global innovative pipelines are from China-headquartered companies, indicating a robust growth trajectory for the industry [2][3]. - The Chinese pharmaceutical market shows significant potential for growth in innovative drugs, which currently account for only about 14% of total drug sales in hospitals, compared to much higher percentages in developed markets [3]. Summary by Sections Globalization and Innovation - Jiangsu Hengrui has made substantial progress in globalization, with over 20 global trials ongoing and a diversified portfolio across key therapeutic areas [6]. - The company leverages global partnerships and in-house capabilities to maximize innovation impact, with a strong record in out-licensing and strategic partnerships since 2018 [6]. Market Dynamics - The report notes that the demand for affordable innovation from China is expected to thrive due to increasing pricing pressures and the loss of exclusivity for leading multinational corporations [2]. - China's commitment to supporting innovative drugs is underscored by strong government backing for commercial health insurance, which is anticipated to improve coverage for innovative drugs in the future [3]. Financial Valuation - A discounted cash flow (DCF) approach is used to assess the fair value of Jiangsu Hengrui Pharmaceuticals, with a terminal growth rate of 4% and a weighted average cost of capital (WACC) of 8.3% [7].

Investment Rating - The investment rating for Kingnet is "Buy" with a target price of Rmb31, indicating an expected share price return of 47.1% and a total expected return of 48.5% [3][8]. Core Insights - Kingnet's monetization potential through the 996 Game Center is significant, with a current daily active user (DAU) count of 450K and a target of 500K DAU by year-end. The company plans to diversify revenue streams through partnerships with larger publishers and new monetization methods such as live-streaming and cloud gaming services [2][3]. - The company is actively pursuing AI initiatives, with the EVE tool set to launch its second testing phase soon, and the AI game development tool Soon showing early customer adoption. Kingnet aims to position itself as a comprehensive game publisher and service platform [5][6]. - Kingnet's game pipeline includes innovative genres and partnerships with well-known IPs, focusing on both domestic and international markets. The company is selective in licensing new IPs to enhance market share [6][7]. Summary by Sections 1. Monetization Potential - Kingnet's 996 Game Center is expected to expand its market share and revenue through various monetization strategies, including ads, live-streaming, and secondary item trading. The management anticipates improved margins due to user base expansion and diversified revenue streams [2][3]. 2. AI Initiatives - The EVE AI tool is on track for a launch by year-end, with ongoing testing focused on technical optimizations. Kingnet's AI game development tool, Soon, is gaining traction among long-tail developers, indicating a positive outlook for future AI products [5][6]. 3. Game Pipeline - Kingnet is set to beta test new games based on popular IPs and is focusing on developing Wuxia RPGs from renowned authors. The company is strategically licensing innovative IPs to strengthen its market position [6][7].

Flash | 16 Nov 2025 18:22:27 ET │ 11 pages Zijin Mining (2899.HK) What's New from Citi 2025 China Conference: Mine Gold and Copper Output Maintain Decent Growth CITI'S TAKE We hosted meetings for Zijin Mining on Nov 13th at our China Conference in Shanghai. Ms. Krystal Chen, IR Manager, attended the meeting. Below are our key takeaways. Mine gold output – Mine gold output is 65t in 9M25, +20% YoY, mainly driven by newly acquired Akyem mine and increasing output from Sawaya'erdun gold mine. Mgmt. expects the ...

Flash | 19 Nov 2025 12:36:46 ET │ 12 pages Han's Laser Technology (002008.SZ) What's New from Citi 2025 Industrial Tour | IT Upcycle May Start from 2026 CITI'S TAKE We met with Han's Laser (HL) Board Secretary, Mr. Du Yonggang, on 19 November. In addition to the PCB business upturn driven by stronger demand from AI PCB makers, Mr. Du believes that the next upcycle of the IT business – mainly for Apple (AAPL.O) – could start from 2026 onwards driven by not only iPhone 18 in 2026 but also iPhone's 20th annive ...

Investment Rating - The report maintains a positive sector view on humanoid robots, with a top pick being UBTECH and recommendations to accumulate stocks of Hengli Hydraulic, Leader Drive, and Shuanghuan Drive due to recent stock weakness [1]. Core Insights - Humanoid robot revenues are expected to grow exponentially in 2026, with all five companies visited during the Citi Industrial Tour anticipating at least a doubling of revenues compared to 2025 [1]. - The production ramp-up by Chinese and leading US humanoid robot makers is driving this growth, supported by accelerated supply chain build-up and increased capacity [1]. - Orbbec's humanoid robot revenue is projected to increase from Rmb10 million in 2025 to Rmb100-200 million in 2026, with key customers including UBTECH and AgiBot [2]. - UBTECH is enhancing its data collection capabilities through partnerships with training centers, which is expected to boost future shipments [3]. - Lingyi iTech anticipates humanoid robot orders to reach Rmb1 billion in 2025, with a target to grow revenue to Rmb10 billion by 2030 [4]. - Leader Drive expects its humanoid robot product shipments to at least double in 2026, driven by aggressive production guidance from key customers [5]. - Rongtai is expanding its micro ball screw capacity to support a leading US humanoid robot maker's production ramp-up to 3,000 units per week by Q1 2026 [5]. Summary by Company Orbbec - Revenue growth from Rmb1 million in 2024 to Rmb10 million in 2025, with a potential increase to Rmb100-200 million in 2026 [2]. UBTECH - Main products include Walker S1/S2 for industrial applications, with a forecast of humanoid robot shipments reaching at least 500 in 2025 and 2,000 in 2026 [9]. Lingyi iTech - Aims for humanoid robot revenue of Rmb10 billion by 2030, with significant orders expected in 2025 [4]. Leader Drive - Approximately 20% of revenue in 9M25 came from humanoid robot products, with expectations for significant growth in 2026 [5]. Rongtai - Preparing to support a production increase to 3,000 humanoid robots per week by Q1 2026, with plans to expand capacity to 5,000 per week by the end of 2026 [5].

Investment Rating - The report assigns a "Buy" rating for China Tourism Group Duty Free Corp (CTGDF) [4] Core Insights - Encouraging sales trends have emerged since the new duty-free policy took effect on November 1, with Hainan offshore duty-free sales increasing by 34.86% year-on-year during the first week of November [1][2] - The online platform in Hainan saw a significant growth in Gross Merchandise Value (GMV) of 40.4% during the Double 11 shopping festival, indicating a positive shift in consumer behavior [1][2] - The number of buyers has shown positive growth, particularly in categories such as mobile phones and gold accessories, suggesting a recovery in consumer spending [2] - Management expresses confidence in peak season performance, supported by new policies, marketing campaigns, and concert events in Hainan [2] Sales Performance - Hainan offshore duty-free sales reached Rmb506 million during the first week of November, with a notable increase in per capita spending by 30.5% year-on-year [2] - Daily sales exceeded Rmb100 million on November 11, indicating strong consumer engagement during the shopping festival [2] - The growth in sales is attributed to a combination of new policies, a wealth effect, and a low base from the previous year [1] Pricing Strategy - The company has adopted a less aggressive pricing discount strategy this year, focusing on balancing gross profit margin (GPM) and sales [2] - Over 200 popular cosmetics SKUs are offered weekly, with 80% having a price advantage compared to competitors [2] Category Performance - The cosmetics category has shown recovery, with positive growth since Q3 2025, while luxury goods performance remains mixed [3] - The watch category has lagged, whereas gold & jewelry and boutique categories have experienced growth [3] Valuation - The DCF-based target price for CTGDF is set at Rmb78, reflecting the long-term structural growth potential of its duty-free business [6]

Investment Rating - The investment rating for China Pacific Insurance is "Buy" with a target price of HK$40.50, implying an expected share price return of 17.7% and an expected total return of 21.3% [5][8]. Core Insights - The growth for 2026 is anticipated to be driven by both agency and banca channels, with the banca channel expected to achieve 20-30% year-on-year growth due to increased collaboration with state-owned banks [2]. - The company plans to shift its product strategy towards protection products in 2026, anticipating a compound annual growth rate (CAGR) of 8-15% in the health insurance space over the next 3-5 years [4]. - The dividend per share (DPS) growth is linked to operating profit after tax (OPAT) growth, with management expecting single-digit OPAT growth in the coming three years [5][7]. Summary by Sections Growth Channels - Management expects single-digit growth in regular first-year premiums (FYP) from the agency channel, while the banca channel is projected to grow by 20-30% year-on-year [2]. - The agency channel's productivity has seen a double-digit uplift, contributing over 90% to the agency channel's new business value (NBV) [2]. Investment Portfolio - The sector allocation among high dividend stocks is well diversified, with 7-9% in banks, transportation, urban public utilities, telecom, metals, and oil and gas sectors, and 5-6% in food and beverage and utilities sectors [3]. - H shares account for approximately 20-30% of total equity investments, representing a low single-digit percentage of the total investment portfolio [3]. Product Strategy - The shift towards protection products is driven by the lack of anticipated pricing rate cuts and regulatory guidance on health insurance development [4]. - There is potential for growth in critical illness (CI) product sales by increasing the sum insured, as these products are long-term plans [4]. Valuation - The target price of HK$40.50 is derived using a sum-of-the-parts (SOTP) approach, projecting a first-stage growth of 13% over three years, followed by 5% and a terminal growth of 2% [8].