Company Analysis - Hesai Technology (HSAI US) reported a robust performance in Q3 2025 with total revenue reaching 795.4 million RMB, a year-on-year increase of 47%, exceeding Bloomberg consensus by 1.4% [2] - The non-GAAP net profit was 288 million RMB, while the adjusted net profit, excluding one-time gains from an early-stage tech investment, was 140 million RMB [2] - The management raised the 2025 GAAP net profit guidance to 350-450 million RMB from the previous 200-350 million RMB, reflecting optimism about business growth [5] Market Performance - The Hang Seng Index closed at 26,696, up 0.18% for the day and 33.08% year-to-date [2] - The Shanghai Composite Index fell by 0.39% to 4,003, with the Shenzhen Composite Index down 0.47% to 2,518 [2] - Southbound capital inflow into Hong Kong stocks was 4.467 billion HKD, with notable net purchases in Xiaomi Group, China Mobile, and CNOOC [4] Economic Outlook - The People's Bank of China indicated a commitment to a moderately loose monetary policy, with expectations of a 50 basis point reserve requirement ratio cut in December and two interest rate cuts totaling 20 basis points next year [4] - In the U.S., the Dow Jones Industrial Average reached a historical high, driven by the Senate's approval of a budget bill to end the government shutdown, which is expected to reduce policy uncertainty [4] - U.S. economic data showed a decline in private sector employment by 45,000, marking the largest drop in two and a half years, contributing to a decrease in the dollar index [4] Industry Insights - China Hongqiao (1378 HK) is expected to see further valuation uplift due to nearly full capacity utilization of its aluminum production and stable raw material costs, prompting an upward revision of profit forecasts by 4-5% for 2025-2027 [5] - Hongteng Precision (6088 HK) reported a 13% year-on-year revenue growth in Q3 2025, driven by strong demand for AI products and automotive business, leading to a record gross margin of 23.5% [5] - The target price for Hesai Technology has been set at 26.7 USD, based on a 5.3x sales multiple for 2026, reflecting a 10% premium over industry peers due to its competitive advantages and strong revenue growth prospects [5]

Core Insights - The report highlights a structural upturn in the global PCB and CCL industries driven by AI infrastructure investment, with a projected 12.8% rebound in the PCB market by 2025 and an 18% growth in the CCL sector in 2024, indicating strong pricing power [4] - Pfizer is positioned as a leader in the pharmaceutical industry, with a forecasted 12% growth in non-COVID revenue in 2024, despite facing a patent cliff from 2025 to 2028 [6][7] - The semiconductor industry is experiencing a demand surge due to AI, with significant growth expected in high-performance products, benefiting leading manufacturers [4] Market Performance - The Hang Seng Index closed at 26,649, up 1.55% for the day and 32.85% year-to-date, while the Hang Seng Tech Index rose 1.34% [1] - Southbound capital saw a net inflow of HKD 6.65 billion, with notable purchases in China National Offshore Oil Corporation and Pop Mart, while Alibaba and SMIC saw the most significant net sell-offs [3] Company Analysis - Pfizer's aggressive cost-cutting plan aims to save USD 7.2 billion from 2024 to 2027, with an expected operating profit margin increase to 26.2% in 2024 from 9.6% in 2023 [5] - The report anticipates that Pfizer's revenue will begin to recover in 2029, driven by new product contributions, with a target price set at USD 36.16 [7] - Beike's revenue for Q3 2025 grew by 2.1% year-on-year, with a focus on improving profitability in its core real estate transaction business [8] Industry Trends - The report notes a shift in investment focus towards energy, chemicals, and consumer stocks in the Chinese market, with chemical sector valuations at historical lows, suggesting a potential buying opportunity [3] - Japan's new government is expected to implement expansive fiscal policies, focusing on key sectors such as semiconductors and defense, which may lead to a decline in government bond prices [3]

Investment Rating - The report maintains a "Buy" rating for Coinbase with a target price of $410.00, indicating a potential upside of 29.0% from the current price of $317.93 [3][4]. Core Insights - The company is steadily advancing its vision of an "Everything Exchange" by integrating decentralized exchanges and expanding into derivatives, tokenized assets, and prediction markets, thereby enriching the variety of tradable assets on its platform [1][9]. - A clearer regulatory framework for crypto assets in the U.S. presents both competition and opportunities, as Coinbase collaborates with more financial institutions to provide crypto asset infrastructure services, creating incremental revenue opportunities [1][9]. - Coinbase is exploring new business opportunities, including stablecoin payments and the Base App blockchain application, with early progress being positive [1][9]. Financial Summary - For FY23A, Coinbase reported sales revenue of $3,108 million, with a projected increase to $6,564 million in FY24A and $7,403 million in FY25E [2][10]. - The net profit is expected to rise significantly from $94.9 million in FY23A to $2,579.1 million in FY24A, before slightly declining to $2,278.2 million in FY25E [2][10]. - The earnings per share (EPS) is projected to increase from $0.40 in FY23A to $10.43 in FY24A, then decrease to $8.71 in FY25E [2][10]. Market Performance - The market capitalization of Coinbase is approximately $83.12 billion, with an average trading volume of $1,441.4 million in March [4]. - The stock has shown a 52-week high of $419.78 and a low of $151.47, indicating significant volatility [4]. Shareholder Structure - Major shareholders include Brian Armstrong with 13.4% and The Vanguard Group with 9.5% [5].

Investment Rating - The report initiates coverage with a "Buy" rating and sets a target price of $36.16, indicating a potential upside of 48.0% from the current price of $24.43 [1][3][16]. Core Insights - Pfizer maintains a leading position in the global pharmaceutical industry, with robust growth in its non-COVID core business, projected to grow by 12% year-over-year in 2024. However, the company faces a significant patent expiration wave from 2025 to 2028, with seven blockbuster drugs losing patent protection [1][7][19]. - The company has implemented an aggressive cost-cutting plan aiming to save $7.2 billion from 2024 to 2027, which has already shown positive results, with operating margins expected to rise significantly [5][8][15]. - Pfizer's innovative pipeline is being restructured, with several promising products expected to drive long-term growth, including Elrexfio, SSGJ-707, and MET-097i, which are anticipated to contribute significantly to revenue by 2035 [9][10][11][15]. Financial Summary - Pfizer's revenue is projected to decline in 2025, 2026, and 2027 by 0.8%, 0.9%, and 5.8%, respectively, primarily due to the decrease in COVID-related product sales and the impact of patent expirations [2][15]. - The adjusted net profit for FY24 is estimated at $13.1 billion, reflecting a year-over-year growth of 87% [2]. - The adjusted PE ratio for 2025 is forecasted at 8.05, with a dividend yield of 7.1%, indicating an attractive valuation [16]. Pipeline and Growth Potential - Pfizer's pipeline includes several high-potential candidates, with expected combined revenues reaching $44.2 billion by 2035, representing 46% of total revenue [9][15]. - Key products in the pipeline include: - Elrexfio, targeting multiple myeloma, with significant clinical advantages over competitors [10]. - SSGJ-707, a PD-1/VEGF dual antibody, expected to become a cornerstone product in oncology [11][12]. - MET-097i, a GLP-1 receptor agonist, showing promising weight loss results with fewer dosage increments [13][15]. Market Position and Challenges - Pfizer's market leadership is supported by a comprehensive capability from research to commercialization, but it faces challenges from the expiration of patents and the impact of the Inflation Reduction Act (IRA) on drug pricing [18][21]. - The company is actively pursuing mergers and acquisitions to bolster its product pipeline and mitigate risks associated with patent expirations and declining sales from older products [23][29].

Report Industry Investment Rating No relevant information provided. Core Viewpoints of the Report - The Asia IG space was unchanged to 2bps tighter overall this morning, led by MEITUAs and CCAMCLs [4] - China's exports contraction in Oct underscores rising growth pressure in 4Q, and the country is on track for price reflation [4] - Macau gaming bonds are considered lower - beta and good carry plays, with MPEL and STCITY being top picks [10] Summary by Relevant Catalogs Trading Desk Comments - Last Friday, new CCAMCL 28 and CCAMCL Float 30 tightened 6bps from RO at T + 80 and SOFR + 100 respectively. Sellers were seen on existing CCAMCL 27 - 28s. The secondary China IG space was 1 - 4bps wider [2] - The MEITUA curve widened by 2 - 4bps. NSINTW 41 was 4bps wider, and the rest of TW lifers traded 1 - 2bps wider. NWDEVLs were 0.7pt lower to 1pt higher [2] - EHICAR 26 - 27 were 0.3pt higher. EHICAR is preparing to refinance EHICAR 26 - 27 through onshore loans and a new offshore bond issuance [2] - In Macau gaming, MGMCHI 26 - 31s/SANLTD 27 - 31s/STCITY 28 - 29s/ WYNMAC 27 - 34s were unchanged to 0.1pt higher, while MPEL 27 - 32s were 0.3pt lower to 0.1pt higher [2] - In Chinese properties, VNKRLE 27 - 29 edged 0.5 - 0.7pt higher, and GRNLGR 29 lost 2.2pts [2] - In Korea space, HYNMTRs/KORELEs traded two ways but closed largely unchanged. Japan IG space was unchanged to 3bps wider with selling flows on NTT/KUB [2] - Japanese and Yankee AT1s insurance hybrids were stable. The SEA IG space was unchanged to a touch wider. Small buying was seen on OCBCSP 35s from PBs. MEDCIJ 26 - 30s were 0.1pt lower to 0.1pt higher [2] - VLLPM 27 - 29s were 0.8pt lower to 0.2pt higher [2] - There were thin two - way interests in LGFVs. RMs continued to seek CNH onshore AAA - guaranteed issues, while lower - yielding CNH names remained heavy. Higher - yielding LGFVs remained sporadic. CDECST 6 1/2 11/18/27 gained 0.9pt [3] Desk Analyst Comments - NWDEVL launched holistic exchange offers for all of its 5 perps and 6 USD bonds with a total outstanding amount of cUSD6.8bn to exchange into a new perp with an initial coupon rate of 9% and a bond due 2031 with a coupon rate of 7%. The maximum new perp and bond to be issued will be USD1.9bn [8] - The exchange considerations include 2 cash pts for perp holders but no upfront cash for bondholders. Exchanging perps is NWD's priority, and if the exchange offers succeed, it will help NWD reduce net debts and net coupon payments by 7 - 7.5% and c1% respectively on a pro - forma basis [8] - MPEL and STCITY had solid 3Q25 results, and their active liability management supports their credit profiles. MPEL and STCITY are top picks in the Macau gaming sector, and WYNMAC 27 and 29 are yield pick - up plays [10] - In 3Q25, MPEL reported an 11.4% yoy increase in operating revenue to USD1.3bn and adj. EBITDA up 16.3% to USD352mn. However, its GGR market share declined [13] - COD Macau delivered strong adj. EBITDA in 3Q25, up 27.1% yoy to USD207mn. Hotel occupancy improved, and RevPAR increased [14] - Studio City's adj. EBITDA up 12.8% yoy to USD105mn in 3Q25, supported by higher mass table hold and strong slot performance. Non - gaming revenue was solid [15] - MPEL closed some satellite casinos and Mocha clubs in Sep'25, and more closures are expected. Resource reallocation is expected to have an immaterial impact on operating performance [16] - Near - term revenue growth catalysts for MPEL include newly opened facilities and ongoing conversions. As of Sep'25, MPEL held USD1.5bn cash and USD2.6bn undrawn facilities [17][18] - Total debts of MPEL stood at USD7.5bn as of Sep'25. Studio City repaid a bond in 3Q25, and MPEL redeemed bonds in Sep'25, reducing near - term refinancing risk [19] Macro News Recap - Last Friday, S&P (+0.13%), Dow (+0.16%) and Nasdaq (-0.21%) were mixed. 2/5 year UST yield was lower, and 2/5/10/30 year yield was at 3.55%/3.67%/4.11%/4.70% [7] China Economy - China's exports slumped to negative in Oct, with notable drops to developed countries and moderation to emerging markets. Trade surplus dropped 5.9% to US$90.1bn, indicating 4Q25 GDP faces downward pressure [21][22] - Imports moderated in Oct, dragged by intermediate products. The narrowing trade surplus and weaker durable goods consumption weighed on growth [24][25] - China is expected to face growth headwinds in 4Q, and policymakers may introduce more moderate easing measures. Export growth is expected to decelerate from 5.9% in 2024 to 3% in 2025, and import growth may slow down from 1.1% to 0.5%. USD/RMB rates may appreciate [21][26] - China's CPI YoY recovered to 0.2% in Oct from -0.3% in Sep, above market expectation. Core CPI continued to pick up, and food price increased. PPI marked the first positive MoM growth in a year and narrowed its YoY contraction [28][29] - Demand - driven reflation is likely to be more sustainable than supply - induced price increases. Policymakers may enhance fiscal support for households and the real estate sector in 4Q25. A 10bps LPR cut and 50bps RRR cut are expected by the central bank in Nov or Dec [32][33] Offshore Asia New Issues - Priced: Jingfa Overseas Investment issued 82mn USD in 3 - year bonds with a 4.3% coupon and was priced at 4.3%, unrated [35] - Pipeline: The Government of HKSAR plans to issue 3 - year bonds, rated Aa3/AA +/AA - [36] News and Market Color - Last Friday, 59 credit bonds were issued onshore with an amount of RMB51bn. Month - to - date, 447 credit bonds were issued with a total amount of RMB512bn, a 42.3% yoy increase [37] - Danantara will invest IDR 20tn (cUSD1.2bn) to build chicken farms in Indonesia [37] - Dalian Wanda will open four Wanda Plazas in Dec'25 [37] - ReNew secured USD331mn in debt financing from the Asian Development Bank for a renewable project [37] - JSW Group plans to set up a battery cell manufacturing joint venture in India [37] - Nomura scraps the plan to reactivate the London proprietary trading desk [37] - Media reported NWD has no plans for another LME, and NWD/Chinachem's K11 Art Mall sale talks are on hold [37] - Power Finance 1HFY26 interest income rose 12.8% yoy to INR563.3bn (cUSD6.4bn) [37] - SJM's satellite casino Casino Legend Palace will stop operation on 12 Nov'25 at 11.59pm [37] - Nvidia asks TSMC to ramp up chip supplies [37] - Thai Oil 9M25 EBITDA fell 25.2% yoy to THB11.6bn (cUSD359mn) [37] - Vedanta Resources formed a new US - based unit to control mines in Zambia, and Adani Enterprises is the highest bidder to acquire Jaiprakash Associates [37]

Macro Economic Overview - China's CPI year-on-year growth has turned positive, driven by rising food prices and core inflation, with the core CPI growth reaching a six-month high of 1.2% [5] - PPI recorded its first month-on-month increase in a year, with a year-on-year decline narrowing, indicating a potential improvement in profitability for leading enterprises [5] - China's exports have significantly declined in October, particularly to developed countries, highlighting increasing economic growth pressures [6] Industry Insights - The MSCI China Healthcare Index has risen by 59.5% year-to-date, outperforming the MSCI China Index by 24% [6] - The healthcare sector has seen a recent pullback of 10% since October, presenting opportunities in undervalued stocks [6] - The demand for innovative drug research and development is recovering, supported by capital market financing and increased overseas clinical trials [6] Company Analysis - BeiGene (百济神州) has shown continuous improvement in profitability, with a strong sales growth trend driven by its drug Zanu, which is gaining market share in the CLL market [10] - The company achieved a revenue of $3.81 billion in the first nine months of 2025, a 43% year-on-year increase, and expects to exceed its revenue guidance for the fiscal year [10] - BeiGene's operational efficiency has improved, with a reduction in sales and management expenses as a percentage of product sales, leading to a net profit of $125 million in Q3 2025 [10] Investment Recommendations - The report recommends a cautious approach in the healthcare sector, focusing on undervalued stocks such as 三生制药 (3SBio), 固生堂 (Gusongtang), and others [9] - BeiGene is rated as a "Buy" with a target price raised to $392.43, reflecting its strong market position and growth potential in the CLL market [12] - Hua Hong Semiconductor (华虹半导体) reported a record revenue of $635 million in Q3 2025, with a maintained "Hold" rating and a target price of HKD 68, indicating that its valuation is already reflected in the current market price [12]

Investment Rating - The report maintains a "Buy" rating for several companies in the pharmaceutical sector, indicating a potential upside of over 15% in the next 12 months [30]. Core Insights - The MSCI China Healthcare Index has increased by 59.5% since early 2025, outperforming the MSCI China Index by 24.0%. However, the healthcare sector has recently experienced a 10% pullback, presenting opportunities in undervalued stocks [1]. - The report emphasizes the importance of overseas clinical advancements for authorized innovative drug pipelines, which are expected to be significant catalysts for stock price increases [3]. - The report highlights a recovery in domestic innovative drug research and development demand, driven by a resurgence in capital market financing and an increase in the scale of innovative drug transactions abroad [1][3]. Summary by Sections Industry Overview - The report suggests a more conservative investment approach, focusing on undervalued stocks within the pharmaceutical sector. It notes that the recent healthcare insurance negotiations and the implementation of the 11th batch of centralized procurement have led to reduced market attention [3]. - The report identifies key products to watch in the upcoming healthcare negotiations, including drugs from companies like 信达生物 and 康方生物, among others [3]. Company Recommendations - The report recommends buying shares in 三生制药, 固生堂, 巨子生物, 药明合联, 信达生物, and 中国生物制药, citing their strong potential for growth and favorable market conditions [3]. - Specific companies are highlighted for their promising clinical trial results and strategic partnerships, such as 三生制药's collaboration with Pfizer on global clinical trials [3]. Valuation Metrics - The report provides a valuation table for recommended companies, showing target prices and potential upside percentages. For example, 固生堂 has a target price of 48.28 with a 62% upside potential [2].

Macro Overview - China's economy is significantly slowing down, with GDP growth expected to drop from 5.2% in the first three quarters to 4.6% in the fourth quarter, resulting in an annual growth of 5% [10] - The PMI for October fell to its lowest level since 2008, indicating weakening demand and supply pressures [10] - High-frequency economic activity indices show a slight increase but remain at low levels, suggesting a challenging economic environment [10] - Industrial profits are showing signs of recovery, with a year-on-year growth rate rebounding to 3.2% in September [11] Technology Sector - The technology sector remains optimistic, with significant growth in AI computing and demand for edge devices [2] - The semiconductor index has outperformed major indices, with a cumulative increase of 51% from early 2025 to late October [2] - Key investment opportunities include companies involved in AI applications, semiconductor localization, and high-dividend assets [2][9] Semiconductor Industry - The semiconductor sector has seen strong performance, with major indices showing significant gains compared to broader market indices [2] - The industry is expected to maintain a volatile pattern as investors shift focus towards 2026 [2] - Key investment themes include the comprehensive development of the AI industry chain and the deepening localization of semiconductors [2] Internet Sector - The internet sector is focusing on companies with solid fundamentals and growth potential, particularly those benefiting from AI trends [3] - Recommendations include Tencent, Alibaba, and Kuaishou, which are expected to see growth driven by AI applications [3][6] Automotive Industry - The automotive sector is experiencing a slight recovery, with expectations of increased demand due to year-end purchasing incentives [7] - Key companies to watch include Geely and Leap Motor, which are anticipated to report better-than-expected earnings [7] Real Estate and Property Management - The real estate market remains weak, with significant declines in contract sales for major developers [7] - Despite the challenges, there are expectations for policy easing to support the sector [7] - Recommended stocks include Longfor Group and Beike, which are positioned to benefit from market recovery [7] Insurance Sector - The insurance sector has shown strong performance in Q3, with significant year-on-year profit growth for major companies [8] - Key players like China Life and Ping An are expected to benefit from improved investment returns and new business value growth [8] Consumer Sector - The consumer sector is facing challenges, with a general trend towards cautious spending among consumers [4] - Recommendations focus on low-cost, high-emotion products and sectors benefiting from domestic brand substitution [4][5] - Companies like Luckin Coffee and Farmer's Spring are highlighted as potential investment opportunities [6][9]

Economic Indicators - The US services PMI rose to 52.4 in October, up from 50 in September, indicating economic expansion and surpassing market expectations of 50.8[2] - The services PMI corresponds to an annualized GDP growth rate of 1.2%[2] - The manufacturing PMI decreased to 48.7 in October from 49.1 in September, below the expected 49.5, indicating contraction[2] Employment and Inflation - ADP private sector employment increased by 42,000 in October, recovering from a loss of 29,000 in September, suggesting a slowdown in job losses[1] - The price index for services rose to 70, the highest since 2022, indicating persistent inflation pressures in the services sector[2] - Core inflation is beginning to stabilize due to tariff transmission and reduced labor supply[1] Federal Reserve Outlook - The Federal Reserve is expected to implement two rate cuts this year, with a potential pause in December, targeting a year-end federal funds rate around 3.8% (target range 3.75%-4%) [1] - Further rate cuts may occur next year, with a target federal funds rate of 3.25%-3.5% by year-end as economic growth stabilizes and inflation recedes[1]

Global Market Overview - The Hang Seng Index closed at 25,935, down 0.07% for the day but up 29.29% year-to-date [1] - The US markets showed a rebound with the Dow Jones up 0.48% and the S&P 500 up 0.37%, while the Nasdaq increased by 0.65% [1] - European markets also rose, with the DAX up 0.42% and the CAC up 0.08%, reflecting a positive economic outlook despite some regional challenges [1] Hong Kong Stock Performance - The Hang Seng Financial Index decreased by 0.12% while the Hang Seng Industrial Index fell by 0.05%, but the Hang Seng Utilities Index rose by 0.59% [2] - Southbound capital saw a net inflow of HKD 10.373 billion, with notable purchases in Southbound Hang Seng Technology, Alibaba, and Xiaomi [3] Industry Insights - The internet sector in the US saw leading companies like Microsoft, Google, and Amazon report strong demand, leading to a 25.7% year-on-year revenue growth in Q3 2025 [4] - Capital expenditures for cloud service providers surged to USD 93.1 billion, a 71% increase year-on-year, indicating robust investment in infrastructure [4] - AI investments are showing a mixed impact on profit margins, with cloud-related capital expenditures affecting profitability but still supporting steady profit growth [4] Economic Indicators - The Eurozone's composite PMI rose to 52.5, the highest in 29 months, indicating a strong recovery in the services sector, particularly in Germany [3] - In the US, the ISM services PMI exceeded expectations, reaching an 8-month high, while the ADP employment data showed an increase of 42,000 jobs, suggesting stabilization in the job market [3]