Investment Rating - The report maintains an "Outperform" rating for the company [2]. Core Views - The company is expected to achieve revenue growth of 5% to 12% year-on-year in FY25, with net profit growth slightly lower than revenue growth, emphasizing a dynamic balance between profit and operational quality [3][12]. - The high-end strategy has shown significant results, with the Guoyuan special A+ products accounting for 64.9% of total revenue in FY24 and a gross profit margin of 82.7%, which is substantially higher than the overall gross profit margin of 74.7% [4][13]. - The company has a clear target for FY25, aiming for revenue of RMB 12.5 billion, net profit of RMB 3.6 billion, and an EPS of RMB 2.9, with a projected target price of RMB 52 based on an 18x PE ratio [5][15]. Financial Performance - The company has maintained over 20% growth in revenue and net profit for three consecutive years from FY21 to FY23, with net profit growth outpacing revenue growth, indicating improved profitability [3][12]. - For FY24, the company is expected to achieve revenue of RMB 11.5 billion and a net profit of RMB 3.4 billion, with a diluted EPS of RMB 2.74 [10]. - The company has a dividend yield of 3.1% for FY24, marking a record high with eight consecutive years of cash dividends [5][15]. Market Strategy - The company is focusing on core segments with tailored strategies for different provinces, aiming for synergistic growth across six regions in FY24 and targeting key markets in Anhui and Shandong for expansion in FY25 [4][14]. - The company has optimized its expense ratios significantly, with reductions in sales, management, and period expense ratios year-on-year [4][13].

Investment Rating - The report maintains an "OUTPERFORM" rating for the company [2][5]. Core Views - The company has successfully achieved an IPO on the Hong Kong stock market, raising HKD 9.177 billion to expand production capacity in refrigeration and automotive sectors, and to develop electromechanical actuators for bionic robotics [3][9]. - The company has shown excellent growth in both refrigeration and automotive sectors, with a revenue of RMB 16.56 billion in the refrigeration sector (YoY +13.1%) and RMB 11.39 billion in the automotive sector (YoY +14.9%) for 2024 [4][10]. - The company is expected to benefit from Chinese appliance renewal policies in 2025, with a strong order backlog in the automotive sector [4][10]. Financial Summary - Revenue projections for the company are as follows: RMB 31.65 billion in 2025, RMB 36.28 billion in 2026, and RMB 41.65 billion in 2027, reflecting growth rates of 13%, 15%, and 15% respectively [2][4]. - Net profit is projected to be RMB 3.73 billion in 2025, RMB 4.34 billion in 2026, and RMB 5.07 billion in 2027, with growth rates of 20%, 17%, and 17% respectively [2][4]. - The diluted EPS is expected to increase from RMB 0.90 in 2025 to RMB 1.22 in 2027 [2][4]. Valuation - The company is assigned a target price of RMB 28.80 based on a 32x PE valuation for 2025, reflecting its growth potential in both existing and new markets [5][11].

Investment Rating - The report maintains an "Outperform" rating for several companies including Jiangsu Heng Rui Medicine, Sichuan Kelun Pharmaceutical, Huadong Medicine, and Changchun High-tech Industry [5][6][24]. Core Viewpoints - Continuous recommendation of innovative drugs and devices, with high growth potential in innovative pharmaceuticals [5][24]. - The National Medical Products Administration has introduced policies to support the innovation of high-end medical devices, which is expected to drive significant innovation in the sector [25]. - The A-share pharmaceutical sector experienced a decline in the third week of June 2025, with the SW pharmaceutical and biological sector falling by 4.4% [8][26]. Summary by Sections Continuous Recommendation of Innovative Drugs and Devices - The report emphasizes the high growth potential in innovative drugs and maintains an "Outperform" rating for key companies [5][6][24]. - Specific companies recommended include: - Jiangsu Heng Rui Medicine - Sichuan Kelun Pharmaceutical - Huadong Medicine - Changchun High-tech Industry - Biopharma/Biotech companies like Innovent Biologics, BeiGene, and Remegen [5][6][24]. A-share Pharmaceutical Sector Adjustment - In the third week of June 2025, the A-share pharmaceutical sector saw a decline, with the SHCOMP down 0.5% and the SW pharmaceutical sector down 4.4% [8][26]. - The report highlights that the relative premium rate of the pharmaceutical sector compared to all A-shares is at a normal level of 79.69% as of June 20, 2025 [18][26]. Hong Kong and U.S. Pharmaceutical Sector Adjustment - The report notes adjustments in the Hong Kong and U.S. pharmaceutical sectors during the same period, with the Hang Seng Healthcare index falling by 7.7% and the S&P 500 healthcare sector down by 2.7% [19][27].

Investment Rating - The report rates the industry as "Outperform" [1] Core Insights - The power sector is experiencing low attention, with thermal power growth turning positive in May, indicating a potential for long-term opportunities [1][4] - The report highlights that the thermal power sector is expected to maintain high growth rates despite low valuations, suggesting that it remains promising even if short-term declines occur due to coal price rebounds [4] Summary by Sections Industry Overview - The power sector has seen adjustments recently, with specific companies showing varied performance: Huaneng Power International +1.1%, Huadian Power International -2.9%, China Yangtze Power -0.7%, and China Longyuan Power Group H -0.9% during the week of June 16-20 [4] - The electricity price in Jiangsu for June was set at 313 RMB/MWh, reflecting a year-over-year decrease of 23.7% [4] Power Generation Data - In May, the national industrial power generation was 737.8 billion kWh, a year-over-year increase of 0.5%, while the social electricity consumption grew by 4.4% [5] - The year-over-year changes for different power sources in May were as follows: thermal power +1.2%, hydropower -14.3%, nuclear power +6.7%, wind power +11.0%, and photovoltaic +7.3% [5] Emergency Dispatch Pricing - The emergency dispatch pricing structure allocates 80% of net income to users in the exporting province and 20% to power plants, with losses borne entirely by users in the importing province [6] Regional Developments - The Xinjiang Tianshan Gobi wind and solar base, with a total capacity of 14.2 million kW, is expected to transmit 36 billion kWh annually to Chongqing, meeting nearly a quarter of its electricity demand [7] - Shandong province is promoting electric vehicle storage solutions to manage peak demand, with recent pilot programs showing significant participation and energy discharge [8]

Investment Rating - The report maintains an "Outperform" rating for the company [2][10]. Core Insights - The differentiation in the sauce-aroma baijiu sector has intensified, with leading companies benefiting from increased market concentration. Despite pressure on the company's performance in the second half of 2024, proactive inventory control and channel structure optimization are expected to enhance market share and structural upgrades in the long term [3][12]. - The company holds over 100,000 tonnes of high-quality base liquor reserves, ranking third among Guizhou liquor companies, which creates a natural barrier for high-end product supply [3][12]. - The company has expanded into new consumption scenarios, including the "Zhen Shi" banquet scene and premium beer segments, enhancing brand sophistication through innovative marketing strategies [3][12]. - The company's operating net cash flow increased by 116% year-on-year to 780 million yuan in 2024, with a significant improvement in shareholder returns through a dividend payout ratio of 39% [4][13]. - The current valuation is at a historical low, with a trailing twelve-month price-to-earnings ratio of 14.8 times, significantly lower than industry peers, indicating substantial room for valuation recovery [5][14]. - The company is expected to capture a larger market share amid industry concentration trends, with projected net profits for 2025-2027 being 1.50 billion, 1.66 billion, and 1.92 billion yuan, respectively [6][15].

Equity – Asia Research 2025 年全球新能源展望 --哪些可行，哪些不可行 Scott Darling, scott.darling@htisec.com Catherine Li, catherine.dy.li@htisec.com 2025 年 6 月 23 日 （本报告为 2025 年 6 月 19 日发布的英文报告的翻译版，以原稿为准） This research report is distributed by Haitong International, a global brand name for the equity research teams of Haitong International Research Limited ("HTIRL"), Haitong Securities India Private Limited ("HSIPL"), Haitong International (Japan) K.K.("HTIJKK"), Haitong International Securities Company Limited ("HTISCL"), a ...

Group 1: Market Performance - Global stock markets mostly declined, with the S&P 500 down 0.15% and the Hang Seng Index down 1.52%[3] - Commodity prices generally increased, with IPE Brent crude futures rising by 2.85% and the S&P-Goldman Commodity Index up 2.30%[3] - The U.S. dollar index rose by 0.63%, closing at 98.76, while the yuan depreciated slightly against the dollar at 7.18[3] Group 2: Economic Indicators - U.S. industrial output fell by 0.13% year-on-year in May, and the industrial capacity utilization rate decreased to 77.43%[9] - The Eurozone ZEW economic sentiment index rose significantly to 35.3% from 11.6% in the previous month[27] - U.S. retail and food service sales decreased by 3.29% year-on-year in May, indicating a slowdown in consumer spending[17] Group 3: Inflation and Monetary Policy - U.S. inflation expectations declined, with the 1-year and 5-year inflation expectations at 5.1% and 4.1%, respectively[22] - The Federal Reserve maintained the federal funds rate target range at 4.25%-4.5%, indicating a cautious approach amid rising stagflation expectations[31] - The European Central Bank (ECB) is expected to lower interest rates again this year, with current inflation at 1.9% in May, close to the 2% target[32] Group 4: Risks and Uncertainties - Geopolitical risks, particularly related to tariffs and Middle Eastern tensions, are contributing to market volatility and inflation uncertainty[35] - The potential for stagflation is increasing, with the Fed's economic growth forecasts being downgraded and unemployment rate predictions rising[31]

Financial System - The international monetary system is evolving towards a structure with a few dominant sovereign currencies competing and balancing each other[5] - The global cross-border payment system is developing towards greater efficiency, security, inclusiveness, and diversity[5] - International financial organizations need to enhance the representation and voice of emerging markets and developing countries[5] Financial Opening - China has significant potential for high-level financial opening, focusing on expanding consumption demand and financial services[13] - The technology finance sector is a vast blue ocean, with initiatives for equity investment in financial asset investment companies and loans for technology enterprise mergers[13] - Green finance is gaining momentum, with foreign institutions introducing ESG rating systems and climate risk management tools into China[13] Capital Market - The capital market aims to promote the integration of technological innovation and industrial innovation, with a focus on deepening reforms through a "1+6" policy framework[15] - The introduction of a growth layer on the Sci-Tech Innovation Board and the restart of the fifth listing standard for unprofitable companies are key measures[15] - There is a push to strengthen the linkage between equity and debt to support technological innovation[15] Foreign Exchange Management - A comprehensive and innovative foreign exchange management system will be established, focusing on convenience, openness, safety, and intelligence[19] - Ten facilitation policies will be implemented in the free trade pilot zones, including optimizing new international trade settlement methods[19] Risk Warning - External factors may cause disturbances in the financial system[22]

Revenue Insights - National general public budget revenue from January to May 2025 was 96,623 billion yuan, a year-on-year decrease of 0.3%[6] - In May 2025, the monthly revenue growth rate was 0.1%, down from 1.9% in April[6] - Tax revenue for the same period was 79,156 billion yuan, a year-on-year decline of 1.6%[8] Central Government Expenditure - National general public budget expenditure from January to May 2025 was 112,953 billion yuan, with a year-on-year growth of 4.2%[9] - In May 2025, the monthly expenditure growth rate was 2.6%, down from 5.8% in April[9] - Central government expenditure increased by 11% in May, while local government expenditure decreased to 0.9%[9] Government Fund Performance - Government fund budget revenue from January to May 2025 was 15,483 billion yuan, a year-on-year decrease of 6.9%[17] - In May 2025, the monthly revenue growth rate was -8.1%, significantly down from 8.1% in April[17] - Government fund budget expenditure from January to May 2025 was 32,125 billion yuan, with a year-on-year growth of 16%[17] Fiscal Policy Outlook - A total of 1,620 billion yuan in central funds has been allocated in January and April to support consumption initiatives[22] - An additional 1,380 billion yuan in central funds is expected to be distributed in the third and fourth quarters[22] - The macro policy direction is expected to remain positive, with potential marginal increases in fiscal measures[22]

Investment Rating - The report does not explicitly state an investment rating for the seasoning industry in Southeast Asia [1]. Core Insights - The Southeast Asian seasoning market is projected to reach USD 20 billion in 2024, with a growth rate of 6.8% expected over the next five years [5]. - Per capita consumption of seasonings in Southeast Asia is estimated at USD 28.8 in 2024, which is lower than China's USD 31.9 [5]. - The average price of seasonings in Southeast Asia is projected to be USD 3.5 in 2024, compared to USD 6 in China [10]. - The region's seasoning market is characterized by a higher consumption share of sauces compared to traditional condiments, indicating a strong reliance on complex flavors in local diets [13]. Summary by Sections Part 1: Southeast Asia Overview - The seasoning industry in Southeast Asia is still in a growth phase, with a per capita consumption of 8.2 kg in 2024, higher than China's 5.3 kg [9]. - The market is diverse, with a wide variety of products including chili sauce, tomato sauce, soy sauce, oyster sauce, and local specialties [13]. Part 2: Country Performance - **Vietnam**: The seasoning industry is expected to generate USD 2.86 billion in revenue in 2024, with a growth rate of 6.7% over the next five years [21]. Local brands dominate the market due to their deep understanding of consumer preferences [27]. - **Indonesia**: The market is projected to reach USD 8.63 billion in 2024, with a growth rate of 6.5% [33]. The industry is driven by urbanization and changing consumption habits, with a notable rise in modern retail channels and e-commerce [33]. - **Singapore, Malaysia, and Thailand**: These countries exhibit higher per capita consumption levels compared to others in the region, driven by higher income levels and a demand for high-quality, branded, and imported seasonings [40][43]. Part 3: Investment Opportunities - The Southeast Asian restaurant market is expected to grow at a compound annual growth rate (CAGR) of 12.6% from 2024 to 2029, supporting the expansion of the seasoning industry [47]. - The growth of Chinese cuisine in Southeast Asia is anticipated to foster the consumption of Chinese seasonings, with the international Chinese restaurant market projected to grow from RMB 227.5 billion in 2020 to RMB 359.4 billion by 2024 [50]. - The young population structure in Southeast Asia, particularly in Indonesia, the Philippines, Malaysia, and Vietnam, is expected to drive demand for seasonings as income levels rise [53].