Investment Rating - The report maintains a "Buy" rating for Angelalign, with an expected target price of HKD 91.89, reflecting a potential upside of 22.8% from the current price of HKD 72.85 [4][6]. Core Insights - Angelalign reported strong fiscal year 2025 results, with revenue increasing by 37.8% year-on-year to USD 370 million and net profit rising by 134.7% to USD 28 million, exceeding estimates by 9% and 140% respectively [1][4]. - The company's total shipment volume grew by 48.1% to 532,400 units, driven by rapid overseas expansion and continued market share growth in the domestic market [1]. - The overseas business remains a key growth driver, with overseas revenue up 102.5% to USD 163 million, and case volume increasing by 82.1% to approximately 256,200 units [2]. - Domestic performance showed resilience, with revenue growing by 10.1% to USD 207 million and case shipment volume increasing by 26.3% to approximately 276,200 units, indicating a more rational competitive landscape [3]. Summary by Sections Financial Performance - For fiscal year 2025, Angelalign's revenue reached USD 370 million, with a year-on-year growth rate of 37.8%. The adjusted net profit was USD 44 million, reflecting a 63.0% increase [5]. - The forecast for fiscal year 2026 anticipates revenue of USD 450 million, representing a 21.4% growth, while adjusted net profit is expected to be USD 56 million, a 28.9% increase [5][11]. Profitability and Margins - The report notes a significant improvement in profitability, with the gross profit margin in the domestic market increasing by 2 percentage points to 65%, offsetting average selling price pressures [3]. - Despite anticipated challenges from global capacity expansion and rising intellectual property litigation costs, the overall profitability is expected to remain strong [1][4]. Valuation Metrics - The report applies a price-to-earnings (P/E) ratio of 18x for the domestic business and a price-to-sales (P/S) ratio of 5x for the faster-growing overseas business, aligning with industry peers [4]. - The target price of HKD 91.89 is derived from a sum-of-the-parts (SOTP) valuation, indicating a robust outlook for both domestic and international operations [10].

Investment Rating - The report maintains a "Buy" rating for Zoomlion with a target price of RMB 12.0 for A-shares and HKD 9.2 for H-shares, based on a projected P/E ratio of 18.6 for 2026 and a 30% discount for H-shares [1]. Core Insights - Zoomlion is expected to achieve a net profit growth of 36% year-on-year in 2025, reaching RMB 4.8 billion, which is 2% higher than expectations and aligns with Bloomberg's consensus [1]. - The fourth quarter of 2025 is projected to see a significant increase in overseas revenue, soaring by 60% to RMB 9.2 billion, contributing approximately 62% to total revenue [1]. - The company plans to distribute a total dividend of RMB 0.4 per share for the year, resulting in a payout ratio of 72% [1]. Financial Summary - Total revenue for 2025 is forecasted to be RMB 52.1 billion, reflecting a year-on-year increase of 14.6% from RMB 45.5 billion in 2024 [2][3]. - Gross profit is expected to rise to RMB 14.6 billion in 2025, a 14.1% increase compared to RMB 12.8 billion in 2024 [2]. - The EBIT (Earnings Before Interest and Taxes) is projected to grow by 34.3% to RMB 5.8 billion in 2025 [2]. - Net profit is anticipated to reach RMB 4.8 billion in 2025, marking a 35.7% increase from RMB 3.5 billion in 2024 [2][3]. Revenue Breakdown - The construction machinery segment is expected to generate RMB 48.1 billion in 2025, up 19.2% from RMB 40.4 billion in 2024 [5]. - Concrete machinery equipment revenue is projected to increase by 25.5% to RMB 10.1 billion, while earth-moving machinery is expected to grow by 45% to RMB 9.7 billion [5]. - Agricultural machinery revenue is forecasted to decline by 23.8% to RMB 3.5 billion [5]. Quarterly Performance - In Q4 2025, overseas revenue is expected to increase by 60% year-on-year, while domestic revenue is projected to grow by 7% [6]. - The total revenue for Q4 2025 is anticipated to be RMB 14.9 billion, reflecting a 35% increase compared to the same quarter in 2024 [6].

Investment Rating - The report maintains a "Buy" rating for PICC P&C with a target price adjusted to HKD 20.00, down from HKD 23.60, indicating a potential upside of 35.1% from the current price of HKD 14.80 [1][5][13]. Core Insights - PICC P&C reported a net profit of RMB 40.4 billion for FY25, a year-on-year increase of 25.5%, slightly below the estimated RMB 41.3 billion. The net profit growth slowed to 16.3% year-on-year in the second half of FY25 compared to 32.3% in the first half [1]. - The combined ratio (CoR) improved to 97.5%, up 1.3 percentage points year-on-year, with the automotive and non-automotive CoR at 95.3% and 100.8%, respectively, meeting and missing management's targets [1][2]. - Total investment income rose by 12.8% to RMB 38.6 billion, driven by gains from TPL assets and OCI debt instruments, leading to an increase in total investment yield to 5.8% [1][4]. Financial Performance Summary - The report highlights that the automotive CoR decreased by 1.5 percentage points to 95.3%, achieving management's target of below 96%, while the non-automotive CoR was 100.8%, down 1.0 percentage points [2][3]. - The report anticipates a cautious outlook for the non-automotive CoR, adjusting forecasts for FY26-27E to 97.0% and 96.3%, respectively, while maintaining the automotive CoR forecast [1][2]. - The dividend per share (DPS) increased by 25.9% to RMB 0.68, resulting in a payout ratio of 37.5% [1][12]. Valuation Metrics - The new target price of HKD 20.00 implies a price-to-book (P/B) ratio of 1.28 times for FY26E, reflecting a decrease in the target P/B due to revised earnings estimates [1][13]. - The report indicates that the stock is trading at 0.93 times FY26E P/B, close to its two-year average minus one standard deviation, with a yield of 5.6% [4][13].

Investment Rating - The report maintains a "Buy" rating for BYDE, with a target price of HKD 35.80, reflecting a price-to-earnings ratio of 16.1 times for FY26E [1][3][18]. Core Insights - BYDE's FY25 revenue increased by 1% year-on-year, while net profit decreased by 18%, primarily due to declining gross margins and weak sales from major smartphone clients in the second half of FY25 [1][2]. - For FY26E, management expects stable revenue growth driven by high-end smartphone components, increased automotive content value, and strong performance in AI server business [1][3]. - The report indicates a downward revision of EPS forecasts for FY26-27E by 9-16% to account for FY25 results and headwinds in the smartphone and automotive sectors [1][3]. Revenue Overview - FY25 revenue is projected at RMB 179,477 million, with a slight increase of 1.2% year-on-year, while net profit is expected to decline to RMB 3,514.6 million, a decrease of 17.6% [4][16]. - The revenue breakdown shows assembly revenue growing by 2%, while component revenue is expected to decline by 18% due to iPhone specification adjustments [2][4]. - AI computing revenue is anticipated to grow by 32%, driven by increased server shipments and customer acquisition [2][4]. Future Outlook - The growth drivers for FY26E include stable Apple business, high-end Android growth, and expansion into gaming, smart home, and industrial robotics [3][18]. - The automotive segment is expected to benefit from increased shipments and penetration of smart cockpit and ADAS technologies [3][18]. - AI computing is projected to generate significant revenue, with a target of several billion RMB, driven by AI servers and liquid cooling technologies [3][18]. Valuation - The target price of HKD 35.80 is based on a sum-of-the-parts (SOTP) valuation method, reflecting BYDE's diversified business and growth visibility [18][19]. - The report assigns different price-to-earnings multiples to various business segments, with a 20x multiple for AI computing to reflect its growth potential [18][19].

Investment Rating - The report maintains a "Buy" rating for J&T Express, reflecting confidence in its competitive advantages and growth potential in Southeast Asia and emerging markets like Brazil and the Middle East [1]. Core Insights - J&T's adjusted net profit for 2025 is projected to grow by 112% year-on-year to $425 million, exceeding consensus estimates by 22% and 16% [1]. - The company is expected to achieve a significant increase in package volume, particularly in Southeast Asia, where it is projected to capture a 34.4% market share, up by 5.8 percentage points year-on-year [1]. - The target price has been raised to HKD 147 from HKD 134, indicating a strong upside potential [1]. Revenue Summary - Total revenue for FY25 is forecasted at $12.158 billion, representing an 18.5% year-on-year growth [3]. - Adjusted net profit for FY25 is estimated at $425.4 million, with an EPS of $4.87 [3]. - The company anticipates continued revenue growth, with projections of $14.117 billion for FY26 and $16.354 billion for FY27 [3]. Operational Highlights - In the first half of 2025, J&T's package volume in Southeast Asia is expected to reach 3.226 billion units, a 57.9% increase year-on-year [2]. - The average selling price (ASP) in Southeast Asia is projected to decrease by 17.9% to $0.61 in 1H25 [2]. - The adjusted EBITDA for the first half of 2025 is forecasted to be $436 million, a 24.2% increase year-on-year [2]. Valuation - The report sets a target EV/EBITDA multiple of 14x for Southeast Asia, reflecting J&T's strong pricing power and market share growth [14]. - For China, a target multiple of 6.5x is established, aligning with major peers [15]. - The overall equity value is estimated at $16.575 billion, leading to a target price of HKD 14.7 [16].

1. Report Industry Investment Rating - No information provided 2. Core Viewpoints of the Report - Maintain a buy rating on ZHOSHK 5.98 01/30/28, believing the market over - reacted to its FY25 results, and the bond offers a good risk - return profile [7] - Maintain a buy rating on LNGFORs, as consistent positive FCF underpins Longfor's credit profile, and the current valuation offers good carry plays [10] 3. Summary by Relevant Catalogs Trading Desk Comments - ZHOSHK 28 rose 1.6pts last Friday due to better - buying flow and less - than - alarming FY25 results. S&P downgraded Zhongsheng to BBB - from BBB with a stable outlook [2] - EHICAR 26 - 27 edged 0.1 - 0.5pt higher, while MEITUA 5 - 10yr tranches widened 1 - 3bps [2] - WESCHI 28 - 29 lost 0.5pt. Fitch revised the outlook on West China Cement to negative from stable and affirmed B ratings [2] - FAEACO 12.814 Perp/LIFUNGs lost 0.2 - 0.4pt [2] - In Chinese properties, LNGFOR 27 - 32/FUTLAN 28/FTLNHD 26 - 29 were 0.3pt lower to 0.2pt higher. Longfor's FY25 revenue declined 23.7% to RMB97.3bn, and GPM decreased from 16.0% in FY24 to 9.7% in FY25 [2] - Seazen Group's FY25 revenue was down 40% to RMB53.1bn [2] - VNKRLE 29 gained 0.5pt, while VNKRLE 27 lost 0.1pt [2] - In SE Asian space, GLPSP Perps/GLPCHI 29 gained 0.1 - 0.8pt, but GLPSP 28 was 0.2pt lower. TOPTB/PTTGC Perps leaked 0.3 - 0.4pt. VEDLN 28 - 33s were 0.2 - 0.6pt weaker [2] - In KR space, HYNMTR/HYUELE and the recent new issues LGENSO 31s traded 2–4bps wider [2] - JP IG credits SUMITR/NTT/SMBCAC/NOMURA/SUMI widened 1 - 3bps amid heavy selling. Japanese and Yankee AT1s and insurance subs were down by up to 1.0pt in the belly and the long end, and lost 0.3 - 0.4pt in the front end [2] - Lower - yielding/IG USD LGFVs closed 50 - 70bps wider on the bid side amid AM selling. Higher - yielding CNH LGFVs were more resilient, but liquidity gradually shrank [2] Last Trading Day's Top Movers - Top Performers: ZHOSHK 5.98 01/30/28 rose 1.6pts to 96.6; GLPSP 4.6 PERP rose 0.8pts to 48.0; ROADKG 5 1/8 01/26/30 rose 0.6pts to 21.0; HYSAN 2.82 09/04/29 rose 0.6pts to 94.0; CHNAAR 6 08/14/28 rose 0.6pts to 99.1 [4] - Top Underperformers: ACPM 4.85 PERP fell 1.2pts to 79.4; HCELEC 4.65 12/29/26 fell 1.2pts to 63.2; BNP 6 7/8 PERP fell 1.0pts to 96.1; LLOYDS 6 5/8 PERP fell 0.9pts to 94.8; SUMIBK 6.45 PERP fell 0.9pts to 97.9 [4] Macro News Recap - Last Friday, S&P (-1.67%), Dow (-1.73%) and Nasdaq (-2.15%) were lower. 2/5 - year UST yield was lower while 10/30 - year UST yield was higher. 2/5/10/30 - year yield was at 3.88%/4.06%/4.44%/4.98% [5] Desk Analyst Comments - ZHOSHK: The market over - reacted to the profit warning. Maintain buy on ZHOSHK 5.98 01/30/28, considering the company's positive FCF, net debt reduction, and comfortable liquidity [6][7] - LNGFOR: Consistent positive FCF underpins Longfor's credit profile. Maintain buy on LNGFORs [9][10] Longfor Analysis - In FY25, Longfor's revenue fell 23.7% yoy to RMB97.3bn, gross profit declined 53.8% yoy to RMB9.4bn, and GPM compressed to 9.7% from 16.0% in FY24 [13] - Longfor recorded a core attributable loss of RMB1.7bn in FY25, compared to a profit of RMB7.0bn in FY24 [14] - As of Dec'25, Longfor's unrecognized sales were RMB99.1bn, and margin pressure remains significant [14] - Longfor continued to generate positive FCF, delivering RMB5.8bn in FY25, and expects RMB5 - 10bn in FY26 [15] - In FY25, Longfor extended the average debt tenor to 12.1 years from 10.3 years and lowered the average funding cost to 3.5% from 4.0% [19] - Longfor passed through the debt repayment hump in FY25, repaying onshore bonds totaling RMB13.5bn and offshore loans totaling cRMB16.6bn [20] - The next USD bond maturity will be Apr'27, and the outstanding amount of Longfor's offshore USD bonds is USD2bn. Expect more repurchases [20] Offshore Asia New Issues - No new issues were priced today [22] - There are no new issues in the pipeline today [24] News and Market Color - Regarding onshore primary issuances, 140 credit bonds were issued last Friday with an amount of RMB74bn. Month - to - date, 2,286 credit bonds were issued with a total amount of RMB1,838bn, a 6.7% yoy increase [26] - Australia is increasing oversight of the private credit industry [26] - Bank of East Asia tapped RMB250mn dim sum bond BNKEA 2.95 09/09/29 [26] - China Oil and Gas FY25 revenue down 14% yoy to HKD15.2bn (cUSD1.9bn) [26] - Seazen Group FY25 revenue down 40% yoy to RMB53.1bn (cUSD7.7bn) [26] - Greentown plans to issue onshore 3 - year MTN up to RMB1bn [26] - JD.com's planned purchase of German consumer electronics retailer Ceconomy has not been approved by Austrian regulators [26] - Moody's upgraded Sammaan Capital by one notch to B1 from B2 on RBI approval for proposed capital infusion by Avenir; outlook changed to positive from revise for upgrade [26] - Lai Sun Development 1HFY26 adjusted EBITDA down 23% yoy to HKD379.1mn (cUSD48.4mn) [26] - San Miguel CEO said Petron remains available for repurchase by the Philippine government; Petron purchased Russian crude oil [26] - SoftBank Group is raising a USD40bn bridge loan to back a plan to invest an additional USD30bn in ChatGPT maker OpenAI Group [26] - A group of lenders loaned INR25.8bn (cUSD271.7mn) to Vedanta Ltd in Mar'26 [26] - Fitch revised the outlook of West China Cement to negative from stable; B rating affirmed [26]

Industry Insights - The electrolytic aluminum industry faces heightened supply risks following the attack on EGA's Al Taweelah smelter in Abu Dhabi, which has suffered significant damage due to missile and drone strikes [2][6][7] - EGA's production capacity accounts for approximately 2% of global electrolytic aluminum supply by 2025, indicating a substantial impact on the market [7] - The attack is viewed as a planned action, suggesting that more smelting facilities in the Middle East could be at risk, further increasing supply-side concerns [7] Company Analysis - BYD's 4Q25 earnings fell short of expectations, with net profit down 18% compared to forecasts, attributed to a decrease in gross margin and lower financial income [8][9] - The company is expected to benefit from increased exports and energy storage solutions, projecting a sales volume of 5 million units in 2026, with 1.5 million units coming from exports [8][9] - BYD's revenue is anticipated to grow by 9% and 8% in 2026 and 2027, respectively, maintaining a gross margin of 17.8% [9] Company Analysis (Continued) - Great Wall Motors reported a 16% year-on-year revenue increase in 4Q25, reaching a record high, with core net profit aligning with expectations despite a slight decline in gross margin [10][11] - The new platform is expected to enhance pricing competitiveness, with an upward revision of sales expectations for the WEY brand to 200,000 units in 2026 [10][11] - The company anticipates a 19% increase in net profit for 2026, reaching 11.8 billion yuan, supported by export growth and product structure optimization [11] Company Analysis (Continued) - GAC Group's 4Q25 performance met profit warnings, with revenue up 22% year-on-year, although net losses were reported due to increased impairment losses [12][13] - The launch of the Qijun brand in collaboration with Huawei is expected to be a key catalyst for stock performance, alongside a target to double export volumes to 250,000 units by 2026 [12][13] - The company is projected to narrow net losses to 4.8 billion yuan in 2026, supported by cost reduction efforts [13] Company Analysis (Continued) - Innovent Biologics reported a strong 2025 performance with total revenue reaching 13 billion yuan, driven by new product launches [18][19] - The company is transitioning towards a fully integrated global biopharmaceutical company, with significant partnerships enhancing its development capabilities [19][20] - Key catalysts for 2026 include pivotal clinical data readouts for IBI363 and IBI343, which could significantly impact the company's valuation [20] Company Analysis (Continued) - Kangfang Biotech achieved a 52% increase in product sales in 2025, with expectations for further growth driven by new indications being added to the national insurance directory [22][23] - The company is focusing on global expansion for its key products, with pivotal trials underway for its lead assets [25][26] - Anticipated data readouts for IBI363 and IBI343 in 2026 are expected to be significant value drivers for the company [24][25] Company Analysis (Continued) - Xunfei Medical reported a 24.7% revenue increase in 2025, although growth was slower than expected in the G-end business [26][27] - The company is expanding its customer base significantly, with services now covering over 77,000 grassroots medical institutions [27][28] - The synergy between G-end and B-end businesses is expected to enhance long-term revenue growth resilience, with a shift towards more recurring revenue models [28][29] Company Analysis (Continued) - China Tower's FY25 revenue grew by 2.7% to 100.4 billion yuan, with net profit increasing by 8.4% [30][31] - The company experienced a decline in EBITDA due to increased bad debt provisions and reduced asset disposal gains [31] - A dividend payout of 0.458 yuan per share was announced, reflecting a payout ratio of 77% [31]

Investment Rating - The report maintains a BUY rating for GAC Group, indicating a potential return of over 15% over the next 12 months [3][9]. Core Insights - The launch of GAC's first model co-developed with Huawei, the GT7, in June 2026 is expected to be a positive catalyst for the company's shares [1][9]. - GAC aims to double its export volume to 250,000 units for its homegrown brands in the current year, which is anticipated to improve gross profit margins [9]. - The report projects a narrowing of GAC's net loss to RMB 4.8 billion in FY26E, supported by cost reductions and stabilization of equity income [1][9]. Financial Summary - Revenue is expected to decline from RMB 96.54 billion in FY25A to RMB 95.88 billion in FY26E, before recovering to RMB 102.37 billion in FY27E [2][11]. - The net profit is projected to improve from a loss of RMB 8.78 billion in FY25A to a loss of RMB 4.84 billion in FY26E, and further to a loss of RMB 1.23 billion in FY27E [2][11]. - The report estimates that GAC's gross profit will turn positive in FY26E, reaching RMB 483 million, compared to a loss of RMB 2.7 billion in FY25A [11][14]. Valuation - The target price for GAC's H-shares is set at HK$4.20, reflecting a sum-of-the-parts valuation approach [3][13]. - The valuation of GAC's consolidated businesses is estimated at HK$3.40 per share, while its joint ventures and associates are valued at HK$0.80 per share [13][14]. - The report indicates a target price for A-shares at RMB 9.00, based on an A/H premium of 142% [3][13].

Investment Rating - Maintain BUY rating for Great Wall Motor with a target price of HK$19.00 for H-shares and RMB26.00 for A-shares, reflecting an upside of 52.2% and 24.5% respectively from current prices [3][8] Core Insights - Great Wall Motor's 4Q25 revenue reached an all-time high of RMB69 billion, representing a 16% year-over-year increase, surpassing previous forecasts by 9% [8] - The gross profit margin (GPM) for FY25 was reported at 18.0%, showing resilience despite a year-over-year decline of 1.5 percentage points due to increased competition [8] - The company is optimistic about its new platform, Guiyuan, which allows for diverse powertrains and a high parts sharing ratio, expected to enhance competitiveness and pricing [8] - The product mix is improving, with a focus on the Wey brand and rising exports, which are projected to sustain GPM and average selling prices [8] Financial Summary - Revenue projections for FY25 are set at RMB222.8 billion, with a growth forecast of 10.2% year-over-year, and expected to rise to RMB254.5 billion in FY26 [2][10] - Net profit for FY25 is estimated at RMB9.87 billion, reflecting a decline of 22.3% year-over-year, but is expected to rebound to RMB11.77 billion in FY26, a growth of 19.3% [2][10] - The earnings per share (EPS) for FY25 is projected at RMB1.15, with a P/E ratio of 9.5x, indicating a favorable valuation compared to historical performance [2][10] Sales and Volume Forecast - The sales volume for the Wey brand is revised upwards by 20,000 units to 200,000 units for FY26, doubling from FY25 [8] - Total sales volume for Great Wall Motor is maintained at 1.49 million units for FY26, with export volumes expected to increase by 3% to 620,000 units [8] Margin and Profitability - The GPM is expected to widen to 18.1% in FY26, supported by a 1% increase in average selling price to RMB171,000 [8] - The operating profit margin for FY25 is projected at 5.2%, with expectations of maintaining similar margins in FY26 [10][11]

Investment Rating - The report maintains a "BUY" rating for Xunfei Healthcare, indicating potential returns of over 15% over the next 12 months [12]. Core Insights - Xunfei Healthcare reported FY25 revenue of RMB 915 million, reflecting a year-on-year growth of 24.7%, which was approximately 4% below estimates due to slower G-end growth in the second half of the year [1]. - The G-end growth decelerated significantly from 87% YoY in 1H25 to 4% YoY in 2H25, primarily due to centralized provincial procurement affecting project pricing [1]. - The B-end business showed robust recovery in 2H25, achieving a full-year growth of 31.1% YoY after a weaker first half [1]. - The attributable net loss narrowed by 51.1% YoY to RMB 65 million, driven by improved operating leverage [1]. - The company is focusing on solidifying its G-end leadership, accelerating B-end hospital penetration, and leveraging GBC synergy to develop C-end patient services as a long-term growth engine [1]. Financial Performance - Revenue projections for FY26E, FY27E, and FY28E are RMB 1,119 million, RMB 1,347 million, and RMB 1,599 million respectively, with YoY growth rates of 22.3%, 20.4%, and 18.7% [2]. - The attributable net profit is expected to improve from a loss of RMB 65 million in FY25 to a loss of RMB 40 million in FY26E, narrowing further to RMB 21 million in FY27E, and turning positive with a profit of RMB 3 million in FY28E [2]. - The earnings per share (EPS) is projected to improve from a loss of RMB 0.54 in FY25 to a loss of RMB 0.33 in FY26E, and finally to a profit of RMB 0.03 in FY28E [2]. Market Position and Strategy - Xunfei Healthcare has expanded its client base significantly, serving over 77,000 primary healthcare institutions and 600+ graded hospitals by the end of 2025 [1]. - The company achieved full coverage of its General Practice CDSS across all 90 counties in Zhejiang and secured its first out-of-province imaging cloud platform project in Guangxi [1]. - C-end patient management services revenue increased by 29% YoY to RMB 273 million, accounting for approximately 30% of total revenue, indicating a strategic shift towards a more recurring patient-paid business model [1]. - The communication conversion rate for paying patients reached 50% in 2025, with the Net Promoter Score (NPS) improving from 35% to 50% [1]. Valuation and Target Price - The target price for Xunfei Healthcare has been revised to HK$ 92.55, down from a previous target price of HK$ 143.59, reflecting a 33% upside from the current price of HK$ 69.60 [3]. - The target price is based on a price-to-sales (P/S) ratio of 9x for the 2026 estimates [1].