Investment Rating - The report initiates coverage with an OUTPERFORM rating, targeting a price of HK$269.70 from a current price of HK$214.40 [1]. Core Insights - The company is positioned as a leading player in the ADC industry, with a robust pipeline of 12 self-developed ADC candidates, 7 of which are in clinical development, and aims to become China's equivalent of Daiichi Sankyo [3][8]. - The company has established significant global partnerships, including collaborations with BioNTech and others, with a total transaction value exceeding US$6 billion, enhancing its competitive edge in the ADC market [4][22]. - The management team is highly internationalized and experienced, focusing on unmet clinical needs and demonstrating strong operational efficiency [6][19]. Financial Projections - Revenue projections for FY25-27 are estimated at RMB 9.75 billion, RMB 11.7 billion, and RMB 16.1 billion respectively, with net profits expected to be negative in the initial years but improving towards FY27 [7]. - The company is valued using a DCF model with a WACC of 10.0% and a perpetual growth rate of 3.5%, leading to a target price of HK$269.70 per share [7]. Pipeline and Development - The company has a diverse ADC pipeline targeting various cancers, including DB-1303 (HER2 ADC) and DB-1311 (B7-H3 ADC), with significant clinical progress and potential market sizes of US$2 billion and US$1 billion respectively [31][32]. - The ADC pipeline includes innovative platforms such as DITAC, DIBAC, DIMAC, and DUPAC, which are designed to address both established and emerging clinical needs [9][12]. Clinical Trials and Collaborations - The company is conducting multiple global clinical trials across 17 countries, with over 2,000 patients enrolled, positioning it favorably in the competitive landscape [22]. - Strategic collaborations with major pharmaceutical companies, including BioNTech and GSK, have been established to enhance the development and commercialization of its ADC products [26][28].

Investment Rating - The report maintains an "Overweight" rating for the pharmaceutical industry, specifically recommending innovative drugs and increasing focus on Pharma [1][3]. Core Insights - The report expresses a positive outlook on innovative drugs, highlighting the potential for revaluation in Pharma transitioning from generics to innovative products. Key companies mentioned include Jiangsu Heng Rui Medicine, Hansoh Pharmaceutical Group, Sichuan Kelun Pharmaceutical, Huadong Medicine, and CSPC Pharmaceutical Group [6][27]. - The report emphasizes the promising performance of Biopharma/Biotech companies with innovative pipelines, such as Innovent Biologics, CSPC Innovation Pharmaceutical, Shanghai Allist Pharmaceuticals, and Betta Pharmaceuticals. It also notes the improving profit growth of CXO companies like Wuxi Biologics Cayman, WuXi AppTec, and WuXi XDC Cayman [6][27]. - Recent business development (BD) activities are frequent, indicating strong multinational demand for Chinese innovative drug assets, which outweighs geopolitical risks. This trend supports the stable logic of innovative drug globalization [28]. Summary by Sections Innovative Drugs and Pharma - The report continues to favor innovative drugs and suggests attention to Pharma companies that are transitioning from generics to innovative products. The report lists several companies expected to perform well in this sector [6][27]. A-Shares Performance - In the first week of June 2025, the A-Shares pharmaceutical sector performed in line with the overall market, with the Shanghai Composite Index rising by 1.1% and the SW Pharmaceutical and Biological Technology index also rising by 1.1%. The report ranks the pharmaceutical sector 16th among Shenwan primary industries [29][9]. Hong Kong and U.S. Market Performance - The Hong Kong pharmaceutical sector outperformed the market, with the Hang Seng Healthcare index rising by 4.1% and the Biological Technology index by 5.3%. In contrast, the U.S. pharmaceutical sector performed similarly to the market, with the S&P 500 healthcare sector rising by 1.3% [30][29]. Premium Levels - As of June 6, 2025, the pharmaceutical sector's premium relative to all A-Shares is at a normal level, with a current relative premium rate of 86.84% [20][29].

Investment Rating - The report maintains an "Outperform" rating for AliHealth with a target price of HKD 5.42 per share [2][21]. Core Insights - The company reported a revenue of RMB 30.60 billion for FY3/25, reflecting a growth of 13.2%, and an adjusted net profit of RMB 1.95 billion, which is a 35.6% increase, leading to a net profit margin of 6.4% [3][15]. - The pharmaceutical self-operated business generated revenue of RMB 26.12 billion (+10.0%), while the e-commerce platform business saw a significant increase to RMB 3.59 billion (+54.0%) due to the consolidation of health advertising business [15][16]. - The second half of the fiscal year showed accelerated growth, with H2 revenue reaching RMB 16.32 billion (+16.0%), driven by the recovery of the pharmaceutical self-operated business [4][17]. Financial Performance Summary - Revenue and profit forecasts indicate steady growth, with FY26 revenue projected at RMB 33.42 billion (+9.2%) and FY27 at RMB 36.14 billion (+8.1%) [20]. - The gross margin for FY3/25 was reported at 24.3%, an increase of 2.5 percentage points, while the overall operating expense ratio remained stable at 19.5% [18][19]. - The company’s free cash flow is expected to grow significantly, with projections of RMB 1.88 billion for FY26 and RMB 2.20 billion for FY27 [10][12]. Valuation and Market Position - The DCF valuation method estimates the company's equity value at HKD 87.12 billion, corresponding to a target price of HKD 5.42 per share, based on a WACC of 8.3% and a perpetual growth rate of 3.5% [21][11]. - The report highlights the company's strategic focus on enhancing its online platform capabilities and expanding its product categories, which is expected to positively impact profitability [19][20].

Investment Rating - The report suggests a positive outlook for the aerospace and defense sectors, recommending a focus on high-performance structural component manufacturers and defense contractors [4]. Core Insights - The aerospace industry is experiencing a robust recovery, with SpaceX targeting 170 orbital launches in 2025, a 27% increase from 2024 [1][18]. - The U.S. is establishing a significant AI data center in the UAE, marking a shift towards global standard output in the AI data center industry [13]. - The industrial robotics sector is expected to maintain a steady installation level of 541,302 units in 2023, with a projected increase in demand driven by re-industrialization and AI data center developments [32][36]. Summary by Sections Global Market Review - The U.S. stock market shows a steady upward trend, with the S&P 500 and Dow Jones Industrial Average reaching significant highs [7][12]. Infrastructure - **Data Centers**: The U.S. and UAE are collaborating on a 5GW AI super data center, involving major tech companies like OpenAI and Nvidia [13][14]. - **Energy Construction**: The U.S. is facing challenges with competitive transmission bidding and has seen a significant increase in solar and wind energy curtailments [16][17]. Aerospace - The aerospace sector is marked by increased launch frequencies and advancements in military drone technology, with notable developments from SpaceX and China's aerospace initiatives [18][19]. Defense - The defense industry is witnessing enhanced cooperation among NATO allies and significant investments in autonomous weapon systems and military technology [29][30]. Robotics - The industrial robotics market is projected to see continued growth, with a focus on automotive and electronics sectors, despite a slight decline in installations in 2023 [32][36]. Industrial Equipment - The price indices for various industrial equipment categories, including motors and generators, show stable trends with some fluctuations, indicating a resilient manufacturing sector [33][41].

Investment Rating - The report indicates a positive outlook for the cosmetics industry, with overall GMV growth slightly exceeding expectations and achieving double-digit growth across platforms [1][7]. Core Insights - The Douyin platform experienced a nearly 30% year-on-year GMV growth from May 13 to early June, with categories like cosmetics outperforming the platform's average growth rate [1][8]. - The Tmall platform showed over 10% year-on-year growth during the same period, with Tmall's growth rate surpassing that of Taobao due to better resource allocation towards high GMV brands [1][8]. - International high-priced cosmetics brands performed exceptionally well, with some brands achieving growth rates of 25-30% on Tmall, driven by strong consumer purchasing power and platform policies favoring high-priced brands [2][8]. - Emerging domestic second-tier cosmetics brands also demonstrated significant growth, with some brands achieving high double-digit or even doubled growth rates due to increased operational efforts and platform support [3][9]. Summary by Sections Platform Performance - Both Douyin and Taobao/Tmall platforms reported double-digit growth in the cosmetics category, with Douyin's GMV growth at nearly 30% and Taobao/Tmall at over 10% [1][7]. - High-priced international brands on Douyin and Tmall saw remarkable performance, with brands like La Mer and SK-II achieving high double-digit growth [2][8]. Brand Dynamics - Domestic second-tier brands like Mao Ge Ping and MARUBI have shown strong growth, attributed to enhanced marketing strategies and platform support [3][9]. - Mid-range domestic and international brands experienced flat growth, with consumers increasingly focusing on value-for-money rather than just price [10]. Discount Strategies - Discount levels on both platforms remained stable, with Douyin offering more attractive discounts for high-priced brands, while Taobao/Tmall saw aggressive promotional efforts from domestic brands [11].

Investment Rating - The report maintains an "Outperform" rating for the company [2][18][20] Core Insights - The company's three growth engines—Consumer Payments, Commercial Payments & Money Flow Solutions, and Value-Added Services—continue to drive revenue growth [4][16][20] - The adjusted EPS for 2QFY25 was $2.76, reflecting a year-on-year increase of 9.9%, surpassing both internal and market expectations [3][15][20] - The company has a target price of $392.04, indicating a potential upside of 7.2% from the current price of $365.86 [2][20] Revenue and Profitability - Total revenue for 2QFY25 was $13.33 billion, a 10.8% year-on-year increase, slightly below expectations [3][15] - Net revenue, after client incentives, grew by 9.3% year-on-year to $9.59 billion, exceeding estimates [3][15] - Key revenue components included: - Services revenue increased by 9.1% to $4.40 billion, driven by a 7.6% rise in payment volume [3][15] - Data processing revenue rose by 10.4% to $4.70 billion, corresponding to an 8.0% increase in processed transactions [3][15] - International transaction revenue grew by 10.3% to $3.3 billion, primarily due to a 13.0% increase in cross-border transaction volume [3][15] Growth Drivers - The Consumer Payments segment benefited from increased payment volume and cross-border transactions [4][16] - Commercial Payments & Money Flow Solutions revenue grew by 13% year-on-year in constant dollars, with a 6% increase in commercial payment transaction volume [4][16] - Value-Added Services revenue accelerated by 22% year-on-year to $2.6 billion, with growth across all product portfolios [6][16] Market Position and Strategy - The company is enhancing global contactless payment penetration through innovations in Tokenization and Tap technology, with emerging markets as key growth areas [8][17][19] - By the end of 2QFY25, global Tap to Pay penetration reached 76%, with the U.S. market surpassing 60% for the first time [19] - The company has entered a partnership with Efecty in Colombia to expand card acceptance scenarios [19] Management Outlook - Management remains optimistic about the company's outlook, maintaining full-year guidance with expected low double-digit growth in net revenue and operating expenses [9][20] - For 3QFY25, adjusted EPS growth is projected to be approximately 17%-19% year-on-year [20] - The company has authorized a new $30 billion multi-year stock repurchase plan, reflecting confidence in future performance [3][20]

Investment Rating - The report initiates coverage with an "Outperform" rating for CATL, with a target price of HK$382 [2][6]. Core Insights - CATL has maintained its position as the global leader in power lithium batteries since 2017, achieving an installed power battery capacity of 339.3 GWh in 2024, with a market share of 37.9% [3][51]. - The company has a comprehensive supply chain layout that mitigates risks associated with raw material price volatility, securing control over critical mineral resources through various investment strategies [4][52]. - Heavy investment in R&D has led to the continuous development of competitive products, including the Kirin Battery and Tianheng Energy Storage System, enhancing the company's market leadership [5][53]. - Revenue forecasts for 2025-2027 are projected at RMB 460.9 billion, RMB 570.9 billion, and RMB 676.9 billion, with net profits of RMB 55.8 billion, RMB 73.1 billion, and RMB 87.3 billion respectively [6][54]. Summary by Sections Company Overview - CATL was established in 2011 and became the global leader in power lithium batteries in 2017, with significant milestones including its listing on the Hong Kong Stock Exchange in 2025 [10][12]. Financial Performance - The company experienced rapid revenue growth from RMB 29.61 billion in 2018 to RMB 328.59 billion in 2022, with a CAGR of approximately 82.52% [12][15]. - In Q1 2025, CATL reported revenue of RMB 84.705 billion, a year-on-year increase of 6.18% [12]. Industry Landscape - The global demand for lithium batteries is driven by the increasing penetration of electric vehicles, with global sales of new energy vehicles expected to reach 22.4 million units by 2025 [23][24]. Supply Chain and Innovation - CATL's integrated supply chain strategy includes investments in upstream resources and partnerships for battery materials, enhancing its competitive edge [4][39]. - The company has established a circular economy model through its Brunp Integration Park, focusing on resource recycling and sustainability [4][42]. Valuation and Forecast - The DCF valuation model supports a target price of HK$382 for CATL, reflecting strong growth potential in the renewable energy sector [6][54].

Investment Rating - The report assigns an "Outperform" rating to ADNOC Drilling, indicating an expected relative performance exceeding the benchmark index by over 10% in the next 12-18 months [1]. Core Insights - ADNOC Drilling is positioned as the exclusive drilling service provider for the Abu Dhabi National Oil Company (ADNOC) and aims to support ADNOC's strategic goal of achieving a production capacity of 5 million barrels per day by 2027 [2][3]. - The company has a strong focus on sustainable operations and energy optimization, deploying hybrid land drilling rigs equipped with battery storage systems to enhance efficiency and reduce fuel consumption [2]. - ADNOC Drilling has established a progressive dividend policy, targeting a compound annual growth rate of at least 10% in dividends from FY2024 to FY2028, with an expected dividend of at least $867 million for FY2025 [3][4]. Summary by Sections Company Overview - ADNOC Drilling is headquartered in Abu Dhabi and is the sole drilling service provider for ADNOC, with ADNOC holding 78.5% of its shares [2]. - The company is expanding its operations beyond the UAE, having secured pre-qualification in Kuwait and Oman, and is already operational in Jordan [2]. Financial Performance - ADNOC Drilling boasts the highest profit margins in the global oil service industry, with an EBITDA margin of approximately 50%, compared to the industry average of around 18% [3]. - The company has long-term contracts with ADNOC that guarantee minimum returns, with offshore rigs expected to yield an internal rate of return of 11%-13% and onshore rigs between 10%-12% [3]. Growth Strategy - The company is actively expanding its fleet, with plans to increase its total number of rigs from 142 by the end of FY2024 to over 151 by FY2028 [6]. - ADNOC Drilling is also progressing on unconventional drilling projects, with eight rigs currently operational and plans for further expansion based on demand [4]. Market Position - ADNOC Drilling is recognized as one of the fastest-growing energy service companies globally, leveraging its unique business model and operational efficiencies [1][3]. - The company maintains collaborative relationships with Chinese oil service firms, viewing them as partners rather than competitors [6].

Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of HK$42.54, up from a previous target of HK$23.46, reflecting an 81% increase [2][6][15]. Core Insights - The company's revenue for Q1 2025 was Rmb328 million, representing a decline of 9.2% year-on-year and 36.2% quarter-on-quarter. However, profitability improved with a gross profit of Rmb77 million and a gross profit margin of 23.5%, which is an increase of 11.17 percentage points year-on-year [3][13]. - The decline in revenue was primarily due to a drop in shipments of automotive ADAS LiDAR, attributed to a customer solution switch. Conversely, the overall margin improvement was driven by the high-margin Robotics segment [3][14]. - The company expects the EM series to reverse the growth slowdown in the automotive ADAS LiDAR segment, while the Robotics segment is poised for a significant volume ramp-up, creating a second growth curve [4][14]. Financial Performance Summary - Revenue projections for 2025-2027 are Rmb2.366 billion, Rmb3.138 billion, and Rmb5.195 billion, respectively, with corresponding EPS estimates of -0.42, 0.18, and 1.36 [6][15]. - The gross profit margin is expected to improve significantly, reaching 27.1% in 2025 and stabilizing around 31.3% by 2027 [8][11]. - The company anticipates a substantial increase in shipments of both ADAS and Robotics LiDAR products, with total revenue expected to grow significantly in the coming years [8][11].

2025ASCO 揭幕，持续关注创新药 [Table_Industry] 医药 ——国泰海通医药 2025 年 6 月月报 [Table_Invest] 评级： 增持 [Table_subIndustry] 细分行业评级 医药制造业 增持 医药服务业 增持 本报告导读： 2025ASCO 揭幕，中国创新药资产继续在国际舞台上发光发热，持续关注景气度向上 的创新药。 投资要点： 行 业 月 报 证 券 研 究 报 告 请务必阅读正文之后的免责条款部分 股 票 研 究 股票研究 /[Table_Date] 2025.06.02 [table_Authors] 余文心(分析师) 郑琴(分析师) 谈嘉程(分析师) 021-38676666 021-38676666 021-38676666 登记编号 S0880525040111 S0880525040108 S0880523070004 2025-06-03 [Table_Summary] 持续关注景气度向上的创新药：国泰海通医药 2025 年 6 月月度 A 股组合：恒瑞医药、华东医药、科伦药业、贝达药业、信立泰、百 利天恒、泽璟制药、益方生物、艾力斯、药明康德。 ...