Group 1: Market Overview - Hong Kong stocks declined in the afternoon, led by healthcare, real estate, and industrial sectors, while consumer staples, materials, and utilities outperformed, with net inflows from southbound funds amounting to HKD 15.37 billion [1] - A-shares experienced a pullback, with beauty care, real estate, and conglomerates seeing the largest declines, while telecommunications rose and electronics and non-ferrous metals outperformed the market [1] - U.S. stocks rose, driven by energy, information technology, and real estate, while communication services, healthcare, and industrial sectors lagged [1] Group 2: Company Analysis - Meituan - Meituan reported Q2 2025 revenue of RMB 91.8 billion, a year-on-year increase of 11.7%, but 2% lower than Bloomberg consensus estimates; adjusted net profit fell to RMB 1.5 billion, down 89% year-on-year, significantly missing expectations due to strategic investments to maintain market share in the food delivery business [3] - The core local commerce (CLC) segment's operating profit was RMB 3.7 billion, 69% below expectations, while new business losses of RMB 1.9 billion were better than the anticipated RMB 2.4 billion loss [3] - The report maintains an optimistic view on Meituan's competitive advantage in the food delivery sector, despite short-term uncertainties, and adjusts revenue forecasts for 2025-2027 down by 4-6% [3] Group 3: Company Analysis - Ping An Insurance - Ping An reported a 3.7% year-on-year increase in operating profit to RMB 77.7 billion for the first half of 2025, with a 4.9% growth in Q2, slightly exceeding expectations [6] - New business value (NBV) surged by 39.8% year-on-year to RMB 22.3 billion, driven by a 169% increase in the bancassurance channel [6] - The report adjusts 2025-2027 earnings per share forecasts down by 6%/5%/5% to RMB 7.08/7.63/8.16, while raising the 2025 NBV growth forecast to 26% due to several potential catalysts [8] Group 4: Company Analysis - China Resources Mixc Lifestyle - The company reported a 15% year-on-year increase in core net profit for the first half of 2025, with revenue growth of 7% slightly below market expectations [9] - The shopping center operations demonstrated strong performance with a 19% revenue growth, and gross margin increased by 6 percentage points, reaching a record high contribution of 68% [9] - The report maintains a "buy" rating, adjusting the target price down by 3% to HKD 43.86, reflecting a slight downgrade in earnings expectations [9] Group 5: Company Analysis - Meidong Auto - Meidong Auto reported a 100 million RMB operating loss for the first half of 2025, in line with expectations, with new car sales increasing by 8% year-on-year, particularly for Porsche and BMW brands [11] - The report anticipates a rebound for Porsche in the second half of 2025, which could enhance profit margins [12] - The target price is adjusted down to HKD 2.8, based on an 8x FY27E P/E ratio [11]

Core Insights - The report highlights the strong performance of Times Angel, with a 33% year-on-year revenue growth to $160 million in the first half of 2025, driven primarily by rapid expansion in overseas markets [2] - The report maintains a "Buy" rating for Times Angel, adjusting the target price to HKD 86.47 based on a sum-of-the-parts valuation, reflecting a 15x P/E for its mature domestic business and an 8x P/S for its rapidly expanding overseas operations [7] - The report indicates that while domestic case volume remains resilient, pricing pressures are expected to continue, impacting profit margins [6] Company Analysis Times Angel - Times Angel's overseas invisible orthodontics case volume reached 117,200, a 103% increase year-on-year, with overseas revenue growing 123% to $71.62 million [7] - The domestic business saw case volume grow 14% year-on-year to 108,600, but revenue remained flat at $89.68 million due to declining average selling prices [6] - The report anticipates that despite short-term profit margin pressures, the company's strategic investments in compliance and localization will support sustainable global expansion [7] Beike (贝壳) - Beike reported a 11% year-on-year revenue growth to RMB 26 billion in Q2 2025, driven by new home transactions and rental services [8] - The non-GAAP net profit for the quarter was RMB 1.8 billion, a 32% decline year-on-year, reflecting ongoing industry headwinds [8] - The report suggests that Beike is on the right track to improve operational efficiency, which may enhance profitability during industry recovery [8] Luxshare Precision (立讯精密) - Luxshare's revenue and net profit both grew 23% year-on-year in the first half of 2025, with strong growth in communication and automotive sectors [9] - The gross margin improved to 12.0% in Q2 2025, driven by product mix enhancement and operational efficiency [9] - The report highlights potential growth drivers including increased iPhone market share and expansion in the automotive sector [9] BOE Technology (京东方) - BOE's revenue grew 8% year-on-year in the first half of 2025, with net profit increasing by 5% [10] - The automotive display segment outperformed the industry, with high-end products seeing significant growth [10] - The report projects that BOE will continue to grow faster than the industry average in the second half of 2025 [10] EHang (亿航智能) - EHang delivered 68 eVTOL aircraft in Q2 2025, a 39% year-on-year increase, despite lowering its full-year revenue guidance by over 40% [11] - The management emphasizes that the reduction in delivery targets is due to safety considerations rather than a decrease in end-demand [11] - The report maintains a positive outlook on EHang's growth potential in the eVTOL market [11] Green Tea Group (绿茶集团) - Green Tea Group reported positive same-store sales growth despite a decline in average price per item [10] - The report anticipates continued sales growth and margin improvement driven by strong takeaway orders and new product launches [10] - The target price is adjusted to HKD 10.74, reflecting confidence in the company's growth trajectory [11]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 93, indicating a potential upside of 53.0% from the current price of HKD 60.80 [3][9]. Core Views - The company has demonstrated strong profitability during its strategic adjustments, with a slight revenue increase of 0.4% year-on-year in 1H25, reaching RMB 292 million, despite a high base from 1H24 [1]. - The gross margin remains robust at 51.8%, reflecting a year-on-year improvement of 0.5 percentage points, while net profit increased by 14.9% to RMB 77 million, with a net margin of 26.4% [1]. - The company is focused on the industrial-grade long-tail chip market, expanding its product matrix and maintaining a solid IP/EDA design platform, which supports its long-term growth outlook [1][9]. Financial Summary - Revenue projections for FY25E are set at RMB 672 million, with a year-on-year growth rate of 16.1%, down from previous estimates due to capacity constraints [2][10]. - The company expects to maintain a gross margin above 50% and a net margin above 26% in FY25/26E, supported by its business model and self-developed EDA platform [9][10]. - The earnings per share (EPS) is projected to reach RMB 3.20 in FY25E, with a price-to-earnings (P/E) ratio of 17.4 times [2][10]. Market Position - The company is positioned favorably within the semiconductor industry, with a market capitalization of HKD 1,094.4 million and a significant increase in stock performance over the past months [4][6]. - The average P/E ratio of comparable companies in the industry is significantly higher, indicating that the company's current valuation may be attractive [11].

Market Overview - Global markets showed mixed performance, with the Hang Seng Index closing at 25,830, up 1.94% for the day and 28.76% year-to-date [1] - The A-share market is entering a second bullish phase, with significant increases in client margin sizes at securities firms and a notable rise in ETF investments, reaching $681 billion, surpassing Japan [3][4] Company Analysis Pinduoduo (PDD US) - Pinduoduo reported Q2 2025 revenue growth of 7% year-on-year, reaching 104 billion RMB, in line with expectations, driven by online marketing services [5] - Non-GAAP net profit decreased by 5% to 32.7 billion RMB, but exceeded market expectations by 46%, indicating strong operational performance [5] - The target price has been raised by 9% to $146.30, reflecting a positive outlook despite ongoing investments in platform ecosystem enhancement [5] Jiumaojiu (9922 HK) - Jiumaojiu's revenue for the first half of FY25 decreased by 10% to 2.75 billion RMB, slightly below market expectations [9] - The company anticipates closing 40 to 50 additional stores in the second half of FY25, leading to a total of approximately 100 closures for the year [6] - Despite challenges, there are positive signs of stabilization in same-store sales, with a potential rebound expected from store renovations [6][9] ZhongAn Online (6060 HK) - ZhongAn Online's net profit for the first half of FY25 surged by 11.04 times to 668 million RMB, significantly exceeding market expectations [10] - The property and casualty insurance segment saw a 9.3% increase in total premiums, driven by substantial growth in health and auto insurance [10] - The target price has been raised to 23 HKD, reflecting improved profitability and operational efficiency [10] Greentown Service (2869 HK) - Greentown Service reported a 22.6% increase in net profit for the first half of FY25, with total revenue growing by 6.1% [12] - The company has successfully improved operational efficiency, leading to enhanced profit margins despite industry pressures [12][13] - The target price has been adjusted to 6.61 HKD, based on a revised earnings forecast and valuation adjustments [12][15] Baker Hughes (2149 HK) - Baker Hughes achieved a revenue of 292 million RMB in the first half of FY25, a slight increase from the previous year, maintaining strong profitability with a gross margin of 51.8% [18] - The company continues to expand its product offerings and remains a core recommendation in the semiconductor sector [18][19] - The target price remains at 93 HKD, reflecting confidence in long-term growth prospects [19] Tongda Group (698 HK) - Tongda Group's net profit for the first half of FY25 increased by 394%, driven by reduced financial costs and improved operational efficiency [20] - The company is expected to benefit from upgrades in its main business and expansion in its subsidiary's product lines [20] - The target price has been raised to 0.135 HKD, reflecting improved earnings visibility [20]

Group 1 - The core viewpoint of the report indicates that the balance of risks facing the US economy is shifting, with increasing downward risks in the job market as both supply and demand are slowing [3] - The report highlights that the probability of a rate cut in September has significantly increased, with market expectations rising from 75% to 90% following Powell's speech [3] - The future path of interest rate cuts remains dependent on economic data, particularly inflation, employment, and consumption trends [3] Group 2 - The report anticipates that inflation may rebound in August, and a decrease in immigrant labor could offset the impact of slowing labor demand on the unemployment rate, which is expected to remain low [3] - If inflation rises less than the unemployment rate in August, the Federal Reserve may opt for a rate cut in September; conversely, if inflation rises more, the Fed may delay until October [3] - The report suggests that the Federal Reserve may cut rates again in December and that there is significant uncertainty regarding the timing of future cuts next year, influenced by both economic dynamics and the White House's pressure on the Fed [3]

Macro Commentary - The speech by Powell at the Jackson Hole central bank conference was more dovish than expected, interpreted by the market as a signal for a potential rate cut in September. However, two regional Fed presidents later tempered this optimism, indicating that the decision would depend on economic data [2][4]. - Inflation in the U.S. is expected to rebound in August, with a potential impact on the unemployment rate due to a decrease in immigrant labor. If inflation rises less than the unemployment rate, a rate cut in September is likely; otherwise, it may be postponed to October [2][4]. - The Fed is anticipated to cut rates again in December and potentially two more times in the following year [2][4]. Company Analysis Bilibili (BILI US) - Bilibili reported Q2 2025 earnings with total revenue of RMB 7.34 billion, a 20% year-on-year increase, meeting expectations. Adjusted net profit reached RMB 562 million, exceeding consensus estimates by 8% due to better-than-expected control of sales expenses [5]. - For Q3 2025, revenue growth is expected to slow to 4% year-on-year, primarily due to high base pressure from mobile gaming. However, advertising and value-added services are projected to remain resilient [5]. Weishijia (856 HK) - Weishijia's H1 2025 revenue grew by 14% to HKD 45.5 billion, driven by strong demand for AI computing, with cloud revenue increasing by 68% year-on-year. Net profit rose by 36% to HKD 649 million [5]. - The target price has been raised to HKD 14.2, reflecting the increased contribution from AI-related business [5]. CSPC Pharmaceutical Group (1093 HK) - CSPC reported H1 2025 total revenue of RMB 13.3 billion, with core revenue declining by 25% year-on-year. The management expects a rebound in product sales in H2 2025, with at least 5% quarter-on-quarter growth anticipated [6][7]. - The company has completed six external licensing deals since late 2024 and expects to finalize two more significant deals in H2 2025, each exceeding USD 5 billion [7][9]. Li Ning (2331 HK) - Li Ning's revenue for H1 2025 was RMB 14.8 billion, a 3% year-on-year increase, slightly above expectations. However, net profit fell by 11% to RMB 1.74 billion, reflecting challenges in retail sales and increased discounts [11][13]. - The company maintains its FY 2025 guidance, expecting stable sales growth and high single-digit net profit margins, despite pressures from inventory and promotional costs [10][11]. Binjiang Service (3316 HK) - Binjiang Service reported a 12.2% increase in net profit for H1 2025, with total revenue up 22.7%. The basic property management segment showed strong growth, benefiting from improved collection rates and property fee increases [14][16]. - The company aims to achieve a 70% dividend payout ratio and plans to pursue inclusion in the Hong Kong Stock Connect by FY 2026 [16]. Zhaosheng Microelectronics (300782 CH) - Zhaosheng Microelectronics reported Q2 2025 revenue of RMB 948 million, a 25% quarter-on-quarter increase but a 13% year-on-year decline, indicating ongoing weak demand and competitive pressures [17]. - The company has adjusted its revenue forecasts downwards for 2025 and 2026 due to persistent pricing pressures and lower-than-expected demand [17].

Global Market Overview - The Hang Seng Index closed at 25,105, down 0.29% for the day but up 25.15% year-to-date [1] - The Shanghai Composite Index rose by 1.16% to 3,771, with a year-to-date increase of 12.51% [1] - The S&P 500 dropped 1.22% to 6,370, with a year-to-date increase of 8.31% [1] Sector Performance - The Hang Seng Financial Index increased by 0.67% year-to-date, while the Hang Seng Industrial and Commercial Index decreased by 0.88% [2] - The Hang Seng Property Index rose by 1.64% year-to-date, and the Hang Seng Utilities Index fell by 1.31% [2] Investment Insights - The report highlights that the Hong Kong stock market is experiencing declines in consumer discretionary, industrials, and materials sectors, while healthcare, telecommunications, and energy sectors are performing well [3] - Southbound capital saw a net inflow of HKD 74.61 million, with Tencent, Meituan, and Xiaomi being the largest beneficiaries [3] - The report anticipates that sectors benefiting from China's capacity reduction and a rebound in U.S. inflation may outperform the market in the coming months [3] Company Analysis: AIA Group - AIA Group's new business value for 1H25 grew by 14% year-on-year to USD 2.838 billion, aligning closely with expectations [4] - The new business value margin increased to 57.7%, the highest since 2023, driven by a shift to dividend insurance products [4][5] - The management has set a target for a 40% CAGR in new business value across nine provinces from FY25 to FY30, indicating significant growth potential [5] Company Analysis: Kuaishou - Kuaishou reported a 13% year-on-year revenue growth to CNY 35 billion for 2Q25, exceeding expectations [7] - The strong performance was attributed to a robust e-commerce business and positive developments in AI monetization [7][8] - The target price for Kuaishou has been raised to HKD 84.0, reflecting confidence in its AI advancements and commercial potential [8] Company Analysis: iQIYI - iQIYI's 2Q25 revenue fell by 11% year-on-year to CNY 6.62 billion, but operating profit exceeded expectations due to cost control [9] - The company anticipates a recovery in core membership and advertising revenue starting in 3Q25, driven by quality content [9][10] - The target price for iQIYI has been adjusted to USD 2.70, based on a 18x FY26E non-GAAP PE ratio [10] Company Analysis: SANY Heavy Industry - SANY Heavy Industry's net profit for 1H25 increased by 46% year-on-year to CNY 5.2 billion, with a strong performance across major machinery products [11] - The company plans to distribute a mid-term dividend of CNY 0.31 per share, marking its first mid-term dividend since 2017 [11] - The target price for SANY has been raised to CNY 24, reflecting an optimistic outlook on the ongoing upcycle in the industry [11] Company Analysis: Tuhu - Tuhu's revenue for 1H25 grew by 11% year-on-year to CNY 7.9 billion, supported by a 14% increase in store count [12] - The company achieved a significant market share increase, with 90% of stores profitable [12][13] - The target price for Tuhu has been raised to HKD 23, reflecting confidence in its long-term growth strategy [13] Company Analysis: iFlytek - iFlytek's revenue for 1H25 reached CNY 300 million, a 30% increase, with strong performance in government sector solutions [14] - The company is expected to face challenges in its B-end business but remains optimistic about recovery in 2025 [14][15] - The target price for iFlytek has been adjusted to HKD 143.59, based on a 13x 2026 forecast sales ratio [15] Company Analysis: AAC Technologies - AAC Technologies reported a decline in gross margin to 20.7% in 1H25, but revenue growth was driven by various product segments [16] - The management's guidance for 2025 is viewed positively, alleviating market concerns about demand and margin [16] - The target price for AAC has been set at HKD 60.55, reflecting its potential in the AI-driven upgrade cycle [16]

Global Market Overview - The Hang Seng Index closed at 25,166, down 0.41% for the day but up 25.45% year-to-date [1] - The Shanghai Composite Index rose by 1.88% to 3,766, with a year-to-date increase of 12.37% [1] - The US markets showed mixed results, with the Dow Jones down 0.05% and the S&P 500 down 0.60%, while the Nasdaq fell by 1.42% [1] Hong Kong Stock Performance - The Hang Seng Financial Index decreased by 0.42% to 44,940, with a year-to-date increase of 27.90% [2] - The Hang Seng Property Index fell by 1.15% to 18,493, but is still up 24.01% year-to-date [2] - Southbound capital saw a net sell-off of HKD 14.68 billion, with major sell-offs in ETFs like the Tracker Fund and Hang Seng China Enterprises [3] Company Insights Guoquan (锅圈) - Guoquan is the leading brand in China's home dining solutions, achieving retail sales of RMB 11.1 billion in 2022, with a market share of 3% [5] - The company operates over 10,150 stores and is expected to generate approximately RMB 6.5 billion in sales for the fiscal year 2024 [5] - Guoquan's C2F model offers advantages to consumers and suppliers, with a diverse product range and a focus on quality and safety [5][6] Baidu - Baidu's Q2 2025 performance exceeded market expectations, with core business revenue of RMB 26.3 billion, a 2% year-on-year decline but 1.6% above consensus [8] - The company is focusing on growth in its autonomous driving and cloud services, which are expected to drive long-term revenue and profit growth [8] Boss Zhipin - Boss Zhipin reported a 10% year-on-year revenue increase to RMB 2.1 billion in Q2 2025, with non-GAAP net profit rising by 31% to RMB 941 million [8] - The company anticipates a revenue growth of 11.4%-13.0% in Q3 2025, driven by an improving supply-demand environment [8] Keren Biotechnology - Keren Biotechnology expects to release significant data at the 2025 ESMO conference, with SKB264 projected to generate sales of RMB 800 million to RMB 1 billion [9][10] - The company is actively advancing multiple Phase III clinical trials for SKB264, targeting various cancer indications [11] WuXi Biologics - WuXi Biologics reported a 16.1% year-on-year revenue increase to RMB 9.953 billion in H1 2025, driven by strong demand in both R&D and manufacturing sectors [13] - The company has raised its full-year revenue growth guidance to 14-16%, reflecting robust client demand [13][14] ZTO Express - ZTO Express has adjusted its annual package volume growth forecast to 14-18%, down from 20-24%, in response to government policies [16] - Despite a 26% year-on-year profit decline in Q2 2025, the company anticipates that single-package prices may exceed expectations, serving as a catalyst for stock price growth [16] China General Nuclear Power Corporation - China General Nuclear Power Corporation issued a profit warning for H1 2025, expecting a net loss between HKD 40 million and HKD 90 million, aligning with previous forecasts [17] - The company has signed an underwriting agreement with its parent company, which is expected to significantly increase contract prices starting in 2026, driving future profit growth [17]

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core View of the Report The report provides a comprehensive update on the fixed - income market, including bond price movements, macro - news, and company - specific financial and operational information. It also highlights potential investment opportunities, such as the recommendation to buy INCLEN 4.5 04/18/27 in the RNW complex [15]. 3. Summary by Relevant Catalogs Trading Desk Comments - Yesterday, the new DBS 3.989 28 was 3bps tighter from RO at par. In Asia IG, HYUELE 2.375 31s was 1bp tighter. SK Hynix repaid KRW3.4tn (cUSD2.5bn) [2]. - In financials, there was selling in STANLNs due to USD9.6bn unlawful transactions allegations. STANLN Perps were down 0.1pt. Yankee AT1s were weaker [2]. - In lifers, JP DAIL 6.2 Perps/MYLIFE 5.8 54s/NIPLIF 6.5 55s were down 0.4pt. KR TYANLI 35 was 1bp tighter. Tongyang Life announced the redemption of USD300mn TYANLI 5.25 Perp on 22 Sep'25 [2]. - In Chinese AMCs, CFAMCI 25/29s were 0.1 - 0.2pt higher. China CITIC FAMC expects its 1H25 net profit to increase 12.5 - 16.3% yoy to RMB6 - 6.2bn [2]. - In HK Corp, there was selling in HYSAN/CPREIT/CKHH/MTRC for profit - taking. HYSAN 4.85/7.2 Perps was 0.4 - 1.1pts lower. MTRC 55 was 1bp wider and MTRC Perps were 0.1 - 0.2pt lower [2]. - In Chinese HY, HONGQI 28s were 1bp tighter. China Hongqiao announced the buy - back of 10.2mn shares for cHKD234mn. GWFOOD 30 was 1.1pts lower. WESCHI 26 was 0.1pt higher [2]. - In Chinese properties, FTLNHD 25 - 26 were 0.2pt higher, FUTLAN 28 was unchanged. Seazen obtained approval for up to RMB1.1bn (cUSD147.5mn) onshore ABS offering and announced a profit warning for 1H25 results [2]. - In SEA, PTTGCs were 0.2 - 1.4pts higher (1 - 4bps tighter). PTT Global Chemical eyes THB30bn (cUSD923mn) from non - core assets monetization. PERTIJs were 1 - 2bps tighter. VLLPM 27 - 29 were down 0.1 - 1.5pts [2]. - This morning, the new ALVGR 6.55 Perp was up 0.5pt from RO at par. China and KR IGs were 1 - 3bps wider. There was profit - taking from BNKEAs/NANYANs. BBLTB subs were 2bps wider. SHIKON 35 was 1bp tighter [3]. - INCLEN 27s/INGPHL 27s/RPVIN27 - 28s were 0.1 - 0.4pt higher after results announcement. CTFSHK 29 was 0.4pt lower this morning [3]. - In the LGFV space, flows were mixed. Higher - yielding (8%+) papers were sought after by HF and RM, while there was profit - taking on 5% - 7% yielding papers. TSIVMG 1.55 29 was up 0.7pt [4]. Macro News Recap On Tuesday, S&P was down 0.59%, Dow was up 0.02%, and Nasdaq was down 1.46%. UST yield was lower, with 2/5/10/30 yields at 3.75%/3.82%/4.30%/4.90% [7]. Desk Analyst Comments - INCLEN's module and cell manufacturing drove 1QFY26 revenue and adj. EBITDA growth [8]. - ReNew Energy (RNW) reported a 71% yoy increase in 1QFY26 revenue to INR39.0bn, with adj. EBITDA rising 43% yoy to INR27.2bn. The manufacturing segment contributed significantly [8]. - In May'25, RNW secured INR8.7bn (cUSD100mn) from Marquee Investment for a 10% stake in its solar manufacturing subsidiary. The investment will expand manufacturing capacity [9]. - RNW's total operational capacity reached 11.1GW in 1QFY26, up 16% yoy. The PLF for wind assets improved to 32.8%, while solar PLF declined to 24.6% [10]. - RNW reiterates its FY26 guidance for adj. EBITDA at INR87 - 93bn and maintains CFe guidance at INR14 - 17bn. 1QFY26 adj. EBITDA represents 29 - 31% of the full - year target [11]. - As of Jun'25, cash and bank balance was INR76.1bn, 6% lower than in Mar'25. 1QFY26 capex was INR5.1bn, down 86% yoy [12]. - RNW's net debt/LTM adj. EBITDA was down to 7.5x in Jun'25 from 8.3x in Dec'24 [13]. - On 2 Jul'25, RNW received a final non - binding offer to be taken private at USD8 per share, a 13.2% increase from the previous proposal [14]. - The analyst maintains a buy on INCLEN 4.5 04/18/27 in the RNW complex [15]. Offshore Asia New Issues - Priced: Ganzhou Urban Investment Holding issued USD250mn, 3 - year bonds at a 4.8% coupon. Tongling State - owned Capital Operation Holding Group issued USD200mn, 3 - year bonds at a 4.65% coupon [20]. - Pipeline: No new issues pipeline today [20]. News and Market Color - Yesterday, 118 credit bonds were issued onshore with an amount of RMB114bn. Month - to - date, 1,319 credit bonds were issued, raising RMB1,183bn, a 3.7% yoy increase [22]. - The US government is exploring ways to get stakes in companies like Taiwan Semiconductor Manufacturing, Micron, and Samsung [22]. - BHP plans to cut annual capex to USD10bn in FY28 - 30 from USD11bn in FY26 - 27 and will sell Carajas copper assets in Brazil for up to USD465mn [22]. - Media reported CK Asset was approached for short - term financing or equity investment opportunities [22]. - Seazen expects 1H25 profit to fall by up to 48% yoy to RMB500 - 700mn (cUSD69.6 - 97.5mn) [22]. - HPCL - Mittal Energy will purchase USD56.39mn of HMELIN 5.45 10/22/26 and USD85.55mn of HMELIN 5.25 04/28/27 in tender offers [22]. - LG Electronics aims to expand in the Indian home electronics market [22]. - Powerlong 1H25 loss will widen to up to RMB2.9bn (cUSD403mn) [22]. - West China Cement will hold fixed income investor meetings from 26 Aug'25 [22]. - Xiaomi 1H25 revenue rose 38.2% yoy to RMB227.3bn (cUSD31.6bn) and plans to enter the European EV market by 2027 [22].

Market Overview - Global markets showed mixed performance, with the Hang Seng Index down 0.58% and the Shanghai Composite Index up 0.83% [1][3] - The US markets experienced declines, particularly in technology and consumer discretionary sectors, while defensive sectors like consumer staples and utilities saw gains [3] Hong Kong Stock Performance - The Hang Seng Financial Index fell by 1.08%, while the Hang Seng Real Estate Index dropped by 1.99% [2] - Despite the overall decline, selected sectors such as essential and discretionary consumer goods showed positive performance [3] Company Insights: China Biologic Products - China Biologic Products reported a 10.7% year-on-year revenue increase to 17.57 billion yuan in 1H25, with adjusted net profit rising 101.1% to 3.09 billion yuan [4][5] - The company’s innovative product revenue grew by 27.2%, accounting for 44.4% of total revenue, indicating strong market demand [5][6] - The firm is expected to maintain double-digit growth guidance for the year, driven by its robust pipeline and market expansion [6][7] Company Insights: Hansoh Pharmaceutical - Hansoh Pharmaceutical achieved a 14.3% year-on-year revenue increase to 7.43 billion yuan in 1H25, with net profit rising 33.4% to 3.14 billion yuan [8][9] - The company confirmed strong business development (BD) income, primarily from collaborations with MSD and GSK [9][10] - Hansoh's innovative drug sales are projected to exceed 10 billion yuan in 2025, supported by a strong pipeline and ongoing clinical trials [10][11] Company Insights: Xiaomi Group - Xiaomi reported a 31% year-on-year revenue increase and a 75% rise in net profit for Q2 2025, driven by strong performance in electric vehicles and IoT [12][13] - The company is adjusting its smartphone shipment guidance downward due to rising BOM costs, but remains optimistic about long-term growth strategies [12][13] - The new target price for Xiaomi is set at 62.96 HKD, reflecting a valuation based on segment performance [12] Company Insights: XPeng Motors - XPeng Motors reported a 14.3% gross margin in Q2 2025, exceeding expectations, while net losses narrowed compared to previous quarters [13][14] - The company is focusing on cost reduction and scale effects to improve profitability, with expectations for breakeven in Q3 2025 [14][15] - XPeng's sales forecast for 2025 has been adjusted to 450,000 units, with a target price of 28 USD [14][15] Company Insights: Palo Alto Networks - Palo Alto Networks reported a 15.8% year-on-year revenue increase to 2.5 billion USD in Q4 FY25, with non-GAAP net profit rising 28.9% [15] - The company is positioned as a key beneficiary in the generative AI era, with expectations for continued revenue and profit growth [15]