Investment Rating - The report does not explicitly state an investment rating for Texas Instruments, but it highlights strong performance and positive outlooks for revenue and EPS growth in the upcoming quarters, suggesting a favorable view of the company's prospects [1][4]. Core Insights - Texas Instruments reported a strong 2Q25 performance with revenue of $4.45 billion, exceeding market expectations, and an EPS of $1.46, also above consensus estimates. The guidance for 3Q25 indicates revenue between $4.5-4.8 billion and EPS of $1.36-$1.6, reflecting a cautious outlook due to tariff uncertainties and market conditions [1][7][10]. - The company noted that the recovery in analog chips is on track, but concerns about tariffs and geopolitical issues may lead to fluctuations in future performance. The outperformance in 2Q25 was attributed to pre-stocking by clients amid tariff uncertainties [1][10]. Summary by Sections Financial Performance - In 2Q25, Texas Instruments achieved a 9% quarter-over-quarter growth and a 16% year-over-year growth in revenue. Key segments showed robust performance: analog chips grew 18% year-over-year, embedded processing increased by 10%, and other businesses rose by 14% [2][8]. - Gross profit reached $2.58 billion with a gross margin of 58%, reflecting a 110 basis points increase quarter-over-quarter. Operating profit was $1.6 billion, with a 35% operating margin, and net profit was $1.3 billion, resulting in an EPS of $1.41, slightly above initial guidance [2][8]. Capital Management - Texas Instruments reported an operating cash flow of $1.9 billion in 2Q25, totaling $6.4 billion over the past 12 months. Capital expenditures were $1.3 billion, with a total of $4.9 billion in the last year. The company returned $6.7 billion to shareholders over the past 12 months through dividends and stock repurchases [3][9]. - The balance sheet remains strong, with cash and short-term investments totaling $5.4 billion and total debt at $14.15 billion, with an average interest rate of 4% [3][9]. Outlook - For 3Q25, Texas Instruments expects revenue in the range of $4.45-4.8 billion and EPS between $1.36-$1.6, with a tax rate of 12%-13%. The company anticipates a cooling in the industrial market after a strong 2Q and a delayed recovery in the automotive sector [4][10]. - The company emphasizes its focus on long-term value creation through investments in manufacturing capabilities, product diversification, and disciplined capital allocation to drive free cash flow growth [4][10].

Investment Rating - The report does not explicitly provide an investment rating for the industry or specific companies within it [24]. Core Insights - The Shanghai Municipal Commission of Economy and Informatization released an action plan to accelerate the development of the next-generation display industry, focusing on Micro LED, silicon-based OLED, and flexible displays, aiming for international advanced levels by 2030 [1][9]. - The action plan emphasizes leveraging Shanghai's semiconductor manufacturing strengths to overcome critical bottlenecks in the display supply chain, enhancing stability and security [2][10]. - The smart glasses market is projected to grow at a compound annual growth rate (CAGR) of 44.7% from 2024 to 2030, with expected sales reaching 14.43 million units by 2030, primarily driven by consumer AR adoption [3][12]. Summary by Sections Event Overview - On July 22, the Shanghai action plan outlines strategies for the next-generation display sector, focusing on end-market demand and establishing a comprehensive industrial system [1][9]. Technological Pathways - The plan identifies two key technological pathways: Micro LED and silicon-based OLED, with a focus on supporting full-color Micro LED microdisplays for mass production [2][3]. Core Areas for Breakthroughs - The report highlights four core areas for breakthroughs: optical waveguides, driver chips, core equipment, and key materials, aiming to enhance supply capabilities and product competitiveness [2][3]. Market Projections - By 2030, consumer AR devices are expected to account for 11.73 million units of the smart glasses market, with glass-based waveguides remaining the dominant technology [3][12]. Key Companies to Watch - Companies of interest include Goertek Optical, Sunny Optical, JBD for Micro LED, Bestechnic for SoC, and XREAL for smart glasses [5][14].

Investment Rating - The report maintains a positive outlook for SAP, expecting cloud revenue growth of 26-28% year-on-year for 2025, with non-IFRS operating profit guidance of €10.3-10.6 billion [5][17]. Core Insights - SAP's Q2 2025 results showed total revenue of €9.03 billion, a 9% year-on-year increase, with cloud revenue reaching €5.13 billion, up 24% year-on-year, although slightly below market expectations [2][12]. - Non-IFRS operating profit was €2.57 billion, a significant 32% increase year-on-year, exceeding analyst expectations [2][13]. - Free cash flow was particularly strong at €2.36 billion, representing an 83% year-on-year increase, far surpassing market expectations [2][13]. Summary by Sections Financial Performance - Total revenue for Q2 2025 was €9.03 billion, up 9% year-on-year (12% at constant currency), slightly below the expected €9.07 billion [2][12]. - Cloud revenue reached €5.13 billion, a 24% year-on-year increase (28% at constant currency), also below the expected €5.17 billion [2][12]. - Non-IFRS operating profit was €2.57 billion, up 32% year-on-year (35% at constant currency), exceeding the expected €2.43 billion [2][13]. - Non-IFRS earnings per share were €1.50, a 37% increase year-on-year [2][13]. - Free cash flow reached €2.36 billion, an 83% increase year-on-year, significantly above the expected €1.43 billion [2][13]. Business Drivers - The strong performance of the cloud ERP suite contributed to revenue growth, with a 34% increase to €4.42 billion, maintaining over 30% growth for 14 consecutive quarters [2][13]. - Optimization of share-based compensation expenses contributed to profit growth, with a reduction of €331 million year-on-year [2][13]. - The use of Business AI products improved operational efficiency, with productivity on the digital sales platform increasing by 50% [3][14]. Market Expansion and Innovation - SAP released 14 AI agents in Q2 2025, with plans to reach 40 by year-end, enhancing various business scenarios [3][14]. - The company maintained a high closing rate among key customers in the public sector and defense, with significant new customer additions in digital supply chain and human capital management solutions [4][15]. - SAP is expanding its presence in the Chinese market through a strategic partnership with Alibaba, which will deploy SAP Business Suite and explore AI integration [4][16]. Future Outlook - SAP maintains its full-year 2025 guidance, expecting cloud revenue of €21.6-21.9 billion and non-IFRS operating profit of €10.3-10.6 billion [5][17]. - The company remains cautiously optimistic about the second half of the year, driven by advancements in Business AI and strategic partnerships [5][17].

Investment Rating - The report initiates coverage with an OUTPERFORM rating, setting a target price of USD 31.60 for Chagee Holdings, currently priced at USD 25.02 [1][2]. Core Insights - Chagee Holdings, founded in 2017 in Yunnan, aims to connect the world through Eastern tea culture, focusing on three product categories: "First Cup Tea" (light milk tea), "Second Cup Tea" (tea lattes and pure tea), and "Third Cup Tea" (ready-to-drink tea beverages) [1][5]. - As of March 2025, Chagee has established 6,681 stores globally, making it the largest high-end fresh tea brand in China [1][5]. - The company has experienced rapid growth in the fresh tea beverage market, with a projected revenue increase from RMB 12.41 billion in 2024 to RMB 24.42 billion by 2027, reflecting a compound annual growth rate (CAGR) of 26% [1][3]. Financial Forecast and Valuation - Revenue projections for Chagee are RMB 15.11 billion for 2025, RMB 19.39 billion for 2026, and RMB 24.42 billion for 2027, with net profits expected to reach RMB 2.81 billion, RMB 3.57 billion, and RMB 4.34 billion respectively [1][3]. - The report estimates a diluted EPS of RMB 19.23 for 2025, with a gross profit margin (GPM) increasing from 49.6% in 2024 to 56.6% by 2027 [1][3]. Market Position and Competitive Advantage - Chagee has a significant advantage in the "First Cup Tea" segment, with single-store GMV reaching a peak of RMB 574,000 in Q4 2023, four times higher than Q1 2022 [2][28]. - The company maintains a strong brand presence and scale advantage in the light milk tea category, despite increasing competition in the beverage industry [2][31]. - Chagee's overseas expansion has accelerated, with 169 international stores opened by Q1 2025, including locations in Malaysia, Singapore, Thailand, Indonesia, the USA, and Vietnam [2][35]. Product Development and Innovation - The "Second Cup Tea" concept was launched in March 2025, focusing on office areas with a new store format called "CHAGEE NOW," offering freshly brewed tea and baked goods [3][37]. - The "Third Cup Tea" is anticipated to leverage the existing brand and distribution network for ready-to-drink tea products, with significant market potential in the RTD tea segment [3][49]. Operational Efficiency and Supply Chain - Chagee employs a digitalized operational model, enhancing efficiency across product development, supply chain management, and customer engagement [1][16]. - The company has streamlined its supply chain, focusing on a limited number of ingredients, which has resulted in lower logistics costs and improved inventory turnover [1][17]. Franchise Model and Expansion Strategy - Chagee's franchise model, termed "1+1+9+N," ensures a high success rate for new store openings by establishing local subsidiaries before launching franchise operations [1][23]. - The company has achieved a low franchise closure rate of approximately 1.5% in 2024, primarily due to underperforming franchise partners [1][24].

Investment Rating - The report maintains an "Outperform" rating for TCL Electronics Holdings, with a target price of HKD 13.65 based on a current price of HKD 10.28 [2][5]. Core Insights - The company is expected to achieve a net profit of HKD 950 million to HKD 1.08 billion for the first half of 2025, representing a year-on-year growth of 45% to 65% [3][13]. - TCL's performance in the first half of 2025 was strong, driven by optimized product and distribution channels, as well as high growth in innovative business segments [4][14]. - The global TV shipment volume reached 13.46 million units, a 7.6% increase year-on-year, with Mini LED TV shipments growing by 176% [4][14]. Financial Performance Summary - Revenue projections for TCL are as follows: - 2024: HKD 99.32 billion - 2025: HKD 119.64 billion (up 20%) - 2026: HKD 134.06 billion (up 12%) - 2027: HKD 149.80 billion (up 12%) [2][9]. - Net profit forecasts are: - 2024: HKD 1.76 billion - 2025: HKD 2.30 billion (up 31%) - 2026: HKD 2.85 billion (up 24%) - 2027: HKD 3.37 billion (up 18%) [2][10]. - The diluted EPS is projected to increase from HKD 0.70 in 2024 to HKD 1.34 in 2027 [2][10]. Valuation - The report highlights that TCL's focus on high-end display technology and Mini LED products is expected to enhance profit margins and drive revenue growth [5][15]. - The estimated EPS for 2025-2027 is projected at HKD 0.91, HKD 1.13, and HKD 1.34 respectively, with a PE valuation of 15x for 2025 [5][15].

Core Insights - Public funds continued to increase their holdings in Hong Kong stocks in Q2 2025, with the market value of Hong Kong stocks in the sample of actively managed equity funds rising to 20.0%, up from 19.2% in Q1 2025 [6][10] - The increase in holdings was primarily in small and medium-sized Hong Kong stocks, with the Hang Seng Small Cap Index's component stocks' market value share in the total Hong Kong stock holdings of funds increasing by 5.6 percentage points [6][10] - Sector-wise, public funds mainly increased their positions in the pharmaceutical, light manufacturing, non-bank financials, and banking sectors, corresponding to themes of innovative drugs, new consumption, and dividends [6][10] Fund Holdings Analysis - The report indicates a significant shift in fund holdings, with a reduction in the technology sector, particularly in internet and automotive stocks, which had previously seen substantial gains [6][10] - The technology sector's market value share in fund holdings decreased by 3.7 percentage points, while the media and retail sectors also saw declines [10][12] - Conversely, the consumer sector saw an increase of 3.8 percentage points in market value share, indicating a strategic pivot towards consumer-related investments [10][12] Specific Stock Movements - Notable changes in specific stock holdings include Tencent Holdings decreasing from 21.5% to 17.8%, while Alibaba's share dropped from 10.6% to 6.3% [12] - In contrast, stocks like Kuaishou and Pop Mart saw increases in their holdings, reflecting a shift towards emerging consumer brands [12] - The report highlights a significant increase in holdings for companies like Xinda Biopharmaceuticals, which rose from 1.2% to 3.5%, indicating a growing interest in innovative healthcare solutions [12]

Market Performance - Southeast Asia ETF rose by 1.69%, driven by expectations of monetary easing, supporting continued market recovery[5] - The Southeast Asia ETF outperformed Latin America, India, and the UK, lagging only behind China[34] - The Southeast Asia Technology ETF gained 4.32%, outperforming the broader Southeast Asia ETF by 2.62 percentage points[34] Country-Specific Performance - iShares MSCI Indonesia ETF rose by 1.66%, underperforming by 0.03 percentage points, supported by a U.S.-Indonesia trade agreement and interest rate cuts[38] - iShares MSCI Singapore ETF increased by 4.91%, outperforming by 3.21 percentage points, indicating a stable upward trend[38] - iShares MSCI Thailand ETF surged by 6.21%, outperforming by 4.51 percentage points, as tariff risks were largely priced in[38] - iShares MSCI Malaysia ETF fell by 1.97%, underperforming by 3.66 percentage points, despite a central bank interest rate cut[38] - Global X MSCI Vietnam ETF jumped by 11.79%, outperforming by 10.10 percentage points, buoyed by a trade agreement and strong economic resilience[38] Trading Volume and Liquidity - Global X FTSE Southeast Asia ETF had a trading volume of 118,000 shares, a decrease of 2.7%[13] - iShares MSCI Indonesia ETF trading volume increased by 39.7% to 6.982 million shares[14] - iShares MSCI Singapore ETF trading volume decreased by 25.4% to 448,600 shares[14] - Global X MSCI Vietnam ETF trading volume surged by 100.5% to 291,000 shares[14] Economic Indicators - Vietnam's GDP grew by 7.96% year-on-year in Q2 2025, with a forecast of 8% growth for the full year[25] - The Thai SET index rose by 7.74%, reflecting positive market sentiment amid ongoing trade negotiations[19] - Malaysia's central bank cut interest rates by 25 basis points to 2.75%, the first cut in five years, but market reaction was muted[21]

Investment Rating - The report maintains an "Outperform" rating for Geely Automobile Holdings with a target price of HK$28.85 [2][4][15]. Core Insights - Geely's vehicle sales reached 1.409 million units in the first half of 2025, with expectations for significant growth in the second half due to a faster rollout of new models, likely exceeding the revised target of 3 million units for the year [4][15]. - The merger with Zeekr is expected to enhance Geely's core EV assets and strengthen its group platform strategy, aligning with the "One Geely" vision [5][16][17]. - The report forecasts vehicle deliveries of 3.11 million, 3.56 million, and 4.00 million units for 2025, 2026, and 2027, respectively, with NEV penetration rates of 56%, 57%, and 65% [4][15]. Financial Projections - Revenue is projected to grow from RMB 240.19 billion in 2024 to RMB 322.07 billion in 2025, with a year-on-year growth rate of 34% [9][10]. - Net profit is expected to remain stable at RMB 16.61 billion in 2025, with projected EPS of RMB 1.65, RMB 1.91, and RMB 2.07 for 2025, 2026, and 2027, respectively [9][10][13]. - The gross profit margin is anticipated to improve gradually, reaching 16.5% in 2025 and 16.8% by 2027 [9][10]. Strategic Merger Details - The merger with Zeekr, finalized on July 15, 2025, involved Geely acquiring all outstanding shares of Zeekr for approximately US$2.4 billion, with shareholders given the option of cash or stock [5][16]. - This merger is seen as a strategic move to consolidate resources, enhance operational efficiency, and secure core assets under Geely's control [6][19]. Product Launch Pipeline - Geely plans a robust product launch schedule in the second half of 2025, including several new models across its brands, which is expected to support the sales target of 3 million units [7][17].

Consumption - The consumption market shows a divergence between goods and services, with service consumption, particularly travel, experiencing a surge during the summer[2] - In the automotive sector, wholesale and retail sales increased compared to the previous week, with year-on-year growth rates also improving[4] - Food prices have seen a decline, with agricultural product prices dropping, while the price of Moutai liquor fell by 1.1% week-on-week[4] Investment - Special bond issuance accelerated, with a cumulative issuance of CNY 2.6 trillion by July 19, 2025, marking the highest issuance for the same period since 2020[18] - New home sales in 30 cities continued to decline seasonally, with a year-on-year drop of 25.7%, while the proportion of second-hand homes rose to a historical high of 72%[18] Trade - The Baltic Dry Index (BDI) surged by 29.9% week-on-week, driven by increased shipments of Brazilian iron ore and tight shipping capacity[21] - Port operations have become more frequent, with the number of ships docking for imports and exports increasing compared to the previous week[21] Production - Overall production is improving, with electricity demand rising due to high temperatures, and industries such as steel, petrochemicals, and automobiles showing increased operating rates[23] - The operating rate for PTA and polyester has also risen, indicating a recovery in the petrochemical sector[26] Prices - The Producer Price Index (PPI) and Consumer Price Index (CPI) are both showing marginal increases, with industrial prices rising by 1.2% week-on-week[37] - The price of carbon lithium has increased by 4.5% week-on-week, while prices for PTA and polyester continue to decline[37] Liquidity - The US dollar index rose by 59 basis points, surpassing 98 points, reflecting the resilience of the US economy[40] - The central bank's net liquidity injection was CNY 13.011 trillion, maintaining a reasonable level of liquidity in the market[39]

Investment Rating - The report indicates a positive outlook for the RISC-V industry in China, suggesting a strong potential for growth and market share acquisition in the coming years [5][21]. Core Insights - The 2025 RISC-V China Summit highlighted the rapid development and diversification of the RISC-V ecosystem in China, with significant contributions from various sectors including education, wireless applications, general-purpose control, and computing [2][14]. - High-performance CPUs such as Alibaba's Xuantie C930 and the Xiangshan processor are entering practical use, with mass production expected within one to two years, marking a significant advancement in China's chip design capabilities [5][19]. - The report emphasizes the strong competitive advantage of endpoint solutions, particularly in the MCU and embedded systems segments, where companies have established differentiated products validated by market performance [3][20]. Summary by Sections Event Overview - The 5th RISC-V China Summit took place from July 16 to 19, 2025, in Shanghai, featuring over 100 companies and research institutions, with more than 1,000 attendees and over 500,000 online viewers [1][13]. Industry Development - China's RISC-V industry is flourishing across multiple domains, with a comprehensive landscape formed across consumer electronics, IoT, control, and computing fields [2][14]. - The report notes that the RISC-V architecture is being increasingly integrated into various applications, including AI, automotive, and embedded systems, showcasing a diversified approach to ecosystem development [2][18]. High-Performance CPU Advancements - Significant advancements in high-performance CPUs were noted, with the Xuantie C930 achieving 15/GHz on SPECint2006 benchmarks and the Xiangshan processors showing competitive performance against established architectures [3][15]. Endpoint Solutions - Companies like ESWIN and WCH are successfully differentiating their offerings in the MCU and embedded systems markets, with ESWIN's RISAA platform and WCH's QingKe RISC-V MCUs achieving substantial sales [3][16]. IP Core Leadership - China is leading in the IP core segment, with notable achievements such as the NA900 automotive-grade RISC-V CPU IP certified to ISO26262 standards, indicating a strong position in the global IP ecosystem [3][17]. Government Support and International Collaboration - The report highlights strong national support for RISC-V development, with government initiatives facilitating ecosystem integration and international collaboration during the summit [5][18].