Investment Rating - The report maintains a "Buy" rating for AIA Group Ltd. with a target price of HK$89, indicating a potential upside of 53.2% from the current price of HK$58.10 [4][29]. Core Insights - AIA Group reported a strong growth in Value of New Business (VONB) of 13% year-on-year (YoY) in Q1 2025, driven by a 3 percentage point increase in profit margin and a 7% growth in Annualized New Premium (ANP) [1][2]. - The VONB margin reached a record high of 57.5%, attributed to a gradual shift in product mix towards participating long-term savings [1][2]. - The company initiated a US$1.6 billion share buyback program, expected to be completed faster than initially planned, reflecting AIA's commitment to shareholder returns [1][2]. Summary by Sections VONB Growth - Group VONB increased by 13% YoY to US$1.5 billion in Q1 2025, with agency VONB growing by 21% to US$1.22 billion, accounting for 75% of the total [2][3]. - The cooperative VONB saw a decline of 2% to US$400 million due to increased competition in Hong Kong and regulatory tightening in China [2][3]. - Excluding China, bank insurance VONB grew by 21% YoY [2]. Financial Performance - The report projects a total shareholder return of 6.2% for FY2025, with a dividend yield of 3.3% and a buyback yield of 2.9% [1][3]. - The operating profit after tax (OPAT) is expected to grow at a compound annual growth rate (CAGR) of 11% from 2023 to 2026 [1][3]. Valuation Metrics - The stock is valued at a price-to-embedded value (P/EV) of 1.05 times and a price-to-book (P/B) ratio of 1.65 times for FY2025 [3][4]. - The report estimates a forward operating return on equity (ROE) of 15% over the next three years [3].

Investment Rating - The report maintains a "Buy" rating for WuXi AppTec, indicating a potential return of over 15% in the next 12 months [19]. Core Insights - WuXi AppTec reported strong financial performance for Q1 2025, with revenue increasing by 21.0% year-on-year to RMB 9.65 billion, and adjusted non-IFRS net profit rising by 40.0% to RMB 2.68 billion [1][2]. - The TIDES business segment experienced significant growth, with revenue soaring by 187.6% to RMB 22.4 billion, driven by expanded capacity and contributions from oral GLP-1 projects [2]. - Despite ongoing macroeconomic uncertainties, management reaffirmed its annual performance guidance, expecting a revenue growth of 10-15% and an expansion in adjusted non-IFRS net profit margin [1][2]. Financial Summary - For FY25E, revenue is projected at RMB 42.97 billion, reflecting a year-on-year growth of 9.5%, while adjusted net profit is expected to reach RMB 11.61 billion, a growth of 9.7% [4][16]. - The company’s unfulfilled contract amount grew by 47.1% year-on-year to RMB 52.33 billion by the end of Q1 2025, indicating a solid foundation for future growth [1]. - The report also highlights a decrease in the P/E ratio from 16.5 in FY24A to 15.0 in FY25E, suggesting improved valuation attractiveness [4][16]. Shareholder Returns - WuXi AppTec's board proposed a series of shareholder return plans, including maintaining a 30% annual cash dividend payout ratio and a one-time special dividend of RMB 10 billion in 2025 [3]. - The total proposed dividend and buyback plan amounts to nearly RMB 60 billion, representing 62% of the net profit attributable to shareholders for 2024 [3]. Valuation - The target price has been adjusted from RMB 94.05 to RMB 77.22 based on DCF valuation, reflecting a downside risk of 27.7% from the current price of RMB 60.45 [5][6].

Market Overview - Global markets showed mixed performance with the Hang Seng Index closing at 22,008, up 0.16% year-to-date increase of 29.10% [1] - The US markets continued to rebound, with the Dow Jones up 0.75% and the S&P 500 up 0.58%, reflecting a year-to-date increase of 7.53% and 16.58% respectively [1][3] Industry Insights - The equipment manufacturing sector reported Q1 2025 earnings, with SANY Heavy Industry exceeding expectations with a 56% year-on-year profit increase, driven by an 18% revenue growth [4] - The pharmaceutical company WuXi AppTec reported a strong Q1 2025, with revenue up 21% to 9.65 billion yuan and a non-IFRS net profit increase of 40% to 2.68 billion yuan [4][6] - Mindray Medical's revenue for 2024 was 36.7 billion yuan, a 5.1% increase, but faced challenges in the domestic market with a 12.1% decline in Q1 2025 revenue [7][8] Company Analysis - WuXi AppTec maintained its full-year guidance despite macro uncertainties, expecting a 10-15% revenue growth in its continuing operations for 2025 [4][6] - Mindray Medical's overseas revenue grew by 21.3% in 2024, accounting for 44.7% of total revenue, indicating strong international market performance [7] - Luckin Coffee reported a 41% year-on-year sales increase in Q1 2025, driven by strong same-store sales growth and rapid store expansion [11][12] Investment Ratings - SANY Heavy Industry is rated as a "Buy" with a focus on its excavator business cycle and overseas growth potential [4] - WuXi AppTec is also rated as a "Buy," with a target price of 77.22 yuan, reflecting confidence in its growth despite external challenges [6] - Mindray Medical is rated as a "Buy," with a target price of 249.19 yuan, anticipating recovery in domestic sales in the latter half of 2025 [8]

Investment Rating - The report maintains a "BUY" rating for Mindray, indicating a potential return of over 15% over the next 12 months [16]. Core Insights - Mindray's revenue for 2024 is reported at RMB 36.7 billion, reflecting a year-on-year growth of 5.1%, while the attributable net profit is RMB 11.7 billion, up 0.7% year-on-year [1][2]. - The gross profit margin (GPM) has decreased by 1.1 percentage points year-on-year to 63.1%, attributed to pricing pressures on IVD reagents and mid- to low-end medical equipment, as well as weaker IVD testing demand [1]. - Domestic revenue fell by 5.1% year-on-year to RMB 20.3 billion in 2024, with significant declines in the PMLS and MIS segments due to weak hospital procurement [8]. - Overseas revenue grew by 21.3% year-on-year to RMB 16.4 billion, accounting for 44.7% of total revenue, with Asia-Pacific being a key growth driver [8]. - The target price has been adjusted to RMB 249.19 from a previous target of RMB 328.81, reflecting a downside potential of 15.4% from the current price of RMB 215.85 [3]. Financial Summary - For FY24, revenue is projected to grow to RMB 40.2 billion in FY25, with a year-on-year growth rate of 9.4% [2][13]. - The adjusted net profit for FY25 is estimated at RMB 12.3 billion, representing a growth of 6.5% year-on-year [2][13]. - The report indicates a decline in gross profit and operating profit forecasts for FY25E, with revenue expectations revised down by approximately 7.85% [9]. Share Performance - The market capitalization of Mindray is reported at RMB 261.7 billion, with a 52-week high of RMB 324.50 and a low of RMB 211.59 [3]. - The stock has experienced a decline of 20.4% over the past six months [5]. Shareholding Structure - The major shareholders include Smartco Development Limited with 27.0% and Magnifice (HK) Limited with 24.5% [4].

Market Overview - Global markets showed mixed performance with the Hang Seng Index closing at 21,972, down 0.04% for the day but up 28.89% year-to-date [1] - The A-share market experienced a slight decline, with the Shanghai Composite Index down 0.20% and the Shenzhen Composite Index down 0.93% [3] - Southbound capital recorded a net inflow of HKD 2.03 billion [3] Company Analysis BYD Electronics (285 HK) - The company reported flat earnings for Q1 2025, primarily due to weak demand for high-end smartphones and potential tariff impacts on Apple’s assembly business [4] - The gross profit margin improved by 0.4 percentage points to 6.3% quarter-on-quarter, but decreased by 0.6 percentage points year-on-year [4] - Management maintains a positive outlook for 2025, citing growth in Apple assembly, stable Android business, strong automotive demand, and growth in servers/robots [4] Wentech Technology (600745 CH) - The company’s revenue decreased by 19.4% year-on-year to RMB 13.1 billion, but net profit surged by 82.3% to RMB 261 million [5] - The gross margin recovered to 14.0%, indicating resilience in the semiconductor business [5] - The company is transitioning to focus on semiconductor business after divesting its ODM operations, which is expected to drive future growth [5] Li Ning (2331 HK) - Retail sales growth deteriorated in April 2025, with management noting a decline in offline channels due to adverse weather and a challenging macro environment [6][7] - Despite the challenges, the company maintains its full-year guidance, expecting stable sales growth and high single-digit net profit margins [6] - The company’s Q1 retail sales growth was in line with expectations, with online channels performing strongly [7] China Pacific Insurance (2601 HK) - The company reported a 39% year-on-year increase in new business value for Q1 2025, exceeding expectations [11][12] - However, the group’s net profit fell by 18.1% to RMB 9.63 billion, primarily due to declines in bond fair value and mismatches in yield curves [11] - The management expects operational profit to maintain low single-digit growth for the year, supported by business transformation [13] Zhejiang Dingli (603338 CH) - The company’s EBIT grew by only 2% year-on-year to RMB 440 million, with net profit increasing by 42% due to non-operating income [10] - The company faces challenges from unpredictable U.S. tariff policies, which may impact demand for its products in the U.S. market [10] - The target price remains at RMB 44, reflecting a cautious outlook on profitability [10] 康方生物 (9926 HK) - The company continues to show promise with its drug AK112, which has demonstrated efficacy in clinical trials against competitors [9][10] - The ongoing trials in overseas markets are expected to yield significant data, enhancing the drug's potential for approval and market entry [9][10] - The target price for 康方生物 is set at HKD 108.03, maintaining a buy rating based on the drug's promising results [10]

Investment Rating - The report maintains a BUY rating for Wingtech with a target price (TP) unchanged at RMB52, indicating a potential upside of 54.6% from the current price of RMB33.64 [1][3]. Core Insights - Wingtech's 1Q25 earnings showed a revenue decline of 19.4% YoY to RMB13.1 billion, while net profit surged by 82.3% YoY to RMB261 million. The gross profit margin (GPM) improved to 14.0% [1]. - The company is undergoing a transformation phase following the divestment of its ODM business, focusing solely on the semiconductor segment, which is expected to be the core growth driver due to strong demand in AI servers, recovering consumer and industrial markets, and increasing penetration of electric vehicles (EVs) [1][8]. - The semiconductor segment delivered resilient growth with revenue up 8.4% YoY to RMB3.7 billion in 1Q25, benefiting from a surge in shipment volumes [8]. Financial Summary - Revenue for FY25E is projected at RMB25.643 billion, a significant decline of 65.2% YoY, while net profit is expected to rebound to RMB2.437 billion [2][11]. - The gross margin is forecasted to improve to 26.3% in FY25E, with net profit margin (NPM) expected to be 9.5% [9][11]. - The ODM business recorded a revenue of RMB9.4 billion, down 24% YoY, and incurred a net loss of RMB164 million, which will no longer impact the company's financials post spin-off [8]. Market Position and Performance - Wingtech's market capitalization stands at RMB41.8 billion, with an average turnover of RMB624.1 million over the past three months [3]. - The share performance over the past month shows a slight increase of 0.8%, while the six-month performance reflects a decline of 15.5% [5]. - The company is expected to benefit from the market re-rating on a pure-play semiconductor basis following the divestiture of its low-margin business [8].

Investment Rating - The report maintains a "Buy" rating for Baidu with a target price of $146.70, representing a potential upside of 61.7% from the current price of $90.74 [2][3]. Core Insights - Baidu is actively promoting its business transformation by integrating more generative AI-related search results to enhance user experience and engagement. Although the monetization of these search results has not yet begun, it is expected to start by the end of Q2, which should help boost advertising revenue growth and operating profit margins [9]. - The company has introduced several AI applications, including the Wenxin large model 4.5 Turbo and X1 Turbo, which feature multi-modal capabilities, strong reasoning, and reduced costs. The input price for the 4.5 Turbo model is only 0.8 RMB per million tokens, and the output price is 3.2 RMB, marking an 80% price reduction compared to its predecessor [1]. - Baidu's cloud business is anticipated to maintain strong revenue growth driven by increasing demand for digitalization and AI solutions, supporting overall revenue growth for the group [9]. Financial Summary - The financial forecast for Baidu shows expected sales revenue of 137,622 million RMB in FY25, with a projected growth rate of 3.4%. The adjusted net profit is estimated at 26,943.5 million RMB, reflecting a slight decrease of 0.2% [10]. - The company’s sales revenue for FY23A was 134,598 million RMB, with a year-on-year growth of 8.8%. However, FY24A is projected to see a decline of 1.1% in sales revenue [11]. - The adjusted net profit margin is expected to stabilize around 19.6% by FY27E, with a return on equity projected at 7.6% [12].

Investment Rating - Maintain BUY rating for Alphabet with a target price of US$218.00, down from the previous target of US$234.00, reflecting a 33.0% upside from the current price of US$163.85 [3][8]. Core Insights - Alphabet reported 1Q25 total revenues of US$90.2 billion, a 12% year-over-year increase, and operating income of US$30.6 billion, up 20% year-over-year, exceeding consensus estimates due to effective cost control in selling and marketing expenses [1][2]. - The company anticipates continued pressure on earnings growth in FY25 due to increased capital expenditures and accelerated depreciation [1][5]. - Alphabet's advertising business remains strong, with Google Search and other revenues growing by 10% year-over-year to US$50.7 billion in 1Q25, driven by sectors like financial services and retail [5][6]. - Google Cloud revenue grew by 28% year-over-year to US$12.3 billion in 1Q25, with operating profit margin improving to 17.8% [5][6]. Financial Summary - Revenue projections for FY25E are set at US$390.7 billion, with net profit expected to reach US$120.2 billion, reflecting an 8.5% increase from previous estimates [6][10]. - The company plans to maintain its FY25 capital expenditure guidance at US$75 billion, with a focus on key investment areas to drive long-term growth [1][5]. - Alphabet's operating margin improved to 33.9% in 1Q25, with a notable decrease in selling and marketing expenses [5][10]. Valuation - The target price of US$218.00 is based on a 22x FY25E P/E ratio, which is a premium to the sector average of 20x, reflecting Alphabet's leadership in the global advertising market and its potential to leverage AI [8][9].

Investment Rating - The report maintains a "Buy" rating for Baidu with a target price of $146.70, representing a potential upside of 61.7% from the current price of $90.74 [2][9]. Core Insights - Baidu is actively promoting its business transformation by integrating more generative AI-related search results to enhance user experience and engagement. Although the monetization of these search results has not yet begun, it is expected to start by the end of Q2, which should help boost advertising revenue growth and operating profit margins [9]. - The company has introduced several AI applications, including the Wenxin large model 4.5 Turbo and X1 Turbo, which feature multi-modal capabilities, strong reasoning, and reduced costs. The input price for the Wenxin 4.5 Turbo is only 0.8 RMB per million tokens, and the output price is 3.2 RMB, marking an 80% price reduction compared to its predecessor [9]. - Baidu's cloud business is anticipated to maintain strong revenue growth driven by increasing demand for digitalization and AI solutions, supporting overall revenue growth for the group [9]. Financial Summary - The financial forecast for Baidu shows expected sales revenue of 137,622 million RMB in FY25, with a projected growth rate of 3.4%. The adjusted net profit is expected to be 26,943.5 million RMB, reflecting a slight decrease of 0.2% [10][11]. - The company’s operating profit is projected to be 21,430 million RMB in FY25, with a slight increase in operating margin to 15.6% [11]. - Baidu's total assets are expected to grow from 427,780 million RMB in FY24 to 457,698 million RMB in FY25, indicating a healthy balance sheet [11].

Investment Rating - Maintain BUY rating for the company, indicating a potential return of over 15% over the next 12 months [1][3][16] Core Views - The company's 1Q25 earnings are on track, demonstrating high earnings quality despite ongoing vehicle model transitions. Sales volume and gross margin are expected to meet full-year forecasts [1][9] - New models such as Han L, Tang L, and Titanium 3 are anticipated to boost sales from 2Q25. The company may engage in a price war in 2H25 to maintain market share, but its earnings quality is expected to keep net profit per vehicle above RMB10,000 [1][9] - The company’s overseas sales volume reached 0.2 million units in 1Q25, exceeding prior expectations [9] Financial Summary - Revenue projections for FY25E are RMB 970,122 million, with a year-on-year growth of 24.8% [2][11] - Net profit for FY25E is estimated at RMB 57,457 million, reflecting a year-on-year growth of 42.7% [2][11] - The gross margin for FY25E is forecasted at 19.7%, with operating profit expected to be RMB 71,663 million [11][12] - The company’s earnings per share (EPS) for FY25E is projected at RMB 19.09, with a price-to-earnings (P/E) ratio of 19.5x [2][11] Price Target - The target price for the company's H shares is set at HK$470.00, representing an upside of 18.4% from the current price of HK$397.00 [3][9] Quarterly Performance - In 1Q25, the company achieved a net profit of RMB 9.2 billion, with a gross margin of 20.1% [9][10] - Sales volume in 1Q25 was 1,000,804 units, a 59.8% increase year-on-year [10]