Investment Rating - The report maintains a "Buy" rating for Kuaishou Technology with a target price of HKD 70, representing a potential upside of 44% from the current price of HKD 48.75 [3][10][18]. Core Views - The report highlights that Kuaishou's revenue for Q1 2025 reached RMB 32.6 billion, a year-on-year increase of 10.9%, slightly above market expectations. The gross margin was maintained at a high level of 54.6%, and the adjusted net profit was RMB 4.6 billion, with an adjusted net profit margin of 14.0% [8][9]. - The report anticipates a rebound in advertising growth, driven by an increase in daily active users (DAU) to 408 million, a 3.6% year-on-year growth, and a 5.9% increase in total user engagement time. Advertising revenue for Q1 2025 was RMB 18 billion, up 8% year-on-year, with expectations for double-digit growth in Q2 2025 [8][9]. - Kuaishou's AI commercialization is accelerating, with revenue from KuaLing AI exceeding RMB 150 million in Q1 2025, driven by a significant increase in paid professional consumers. The company plans to launch more cost-effective versions to attract a broader user base [8][9]. Financial Summary - Revenue projections for Kuaishou are adjusted to RMB 141.9 billion for FY25, with operating profit expected to reach RMB 19.1 billion and adjusted net profit projected at RMB 20 billion [2][9]. - The report provides a detailed financial forecast, indicating a steady increase in revenue and profits over the next few years, with expected revenues of RMB 162.5 billion by FY27 [2][9]. - The adjusted target P/E ratios are projected at 14.0x for FY25 and 11.0x for FY26, reflecting the company's growth potential and market positioning [2][9].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of 293.9 HKD, indicating a potential upside of 26.0% from the current price of 233.2 HKD [6][16]. Core Insights - The launch of Labubu 3.0 has created a global phenomenon, significantly boosting the brand's visibility and popularity, leading to long queues outside stores and endorsements from celebrities [1][2]. - The overseas popularity of Labubu is expected to drive domestic sales growth, with projections indicating a year-on-year revenue increase of 95%-100% in Q2 2025 compared to Q1 2025 [2]. - The company is shifting its focus to the North American and European markets, with significant revenue growth reported in these regions, outpacing Southeast Asia [3]. - The earnings forecast for 2025 has been raised by 17%, with profit estimates increased by 20%, reflecting strong growth expectations [4]. Summary by Sections Revenue and Profit Forecast - The company is projected to achieve revenues of 25,732 million RMB in 2025, representing a year-on-year growth of 97.4% [5][12]. - The net profit for 2025 is estimated at 7,030 million RMB, with a year-on-year increase of 124.9% [5][12]. Market Performance - The report highlights that the company's stock is currently trading at 26.7 times the estimated P/E for 2026, suggesting a PEG ratio of approximately 0.4x, which is lower than most Chinese consumer stocks [4][6]. - The average daily trading volume over the past three months is reported at 2,127 million HKD, indicating strong market interest [6]. Strategic Focus - The company is actively relocating a majority of its U.S. orders to Vietnam and expanding production capacity in Southeast Asia and Mexico to mitigate potential supply chain risks [3]. - The brand's strong market presence allows it to pass on potential tariff costs to consumers, reducing concerns about trade tensions affecting its U.S. market prospects [3].

Investment Rating - The report maintains a "Hold" rating for Pinduoduo (PDD.US) with a target price of $100, indicating a potential downside of 3% from the current price of $102.98 [1][7][17]. Core Insights - The company's profit has significantly declined, with a 45% year-over-year drop in adjusted net profit for Q1 2025, falling short of market expectations by 39% [7]. - Revenue growth for Q1 2025 was 10%, which is below market expectations by 6%, marking a slowdown from the previous quarter's growth of 24% [7]. - The report highlights that the revenue from Temu, a key service, has also slowed, with a growth rate of only 6% in Q1 2025 compared to 33% in the previous quarter [7]. - Increased sales expenses have not translated into significant revenue growth, with sales expenses rising by 43% year-over-year, leading to a net profit margin decline to 17.7% [7]. - The report anticipates further challenges in overseas business due to unaccounted tariff impacts, suggesting a high level of uncertainty moving forward [7]. Financial Projections - The projected revenue for FY25 is adjusted to RMB 428.2 billion, with an expected adjusted net profit of RMB 79.8 billion [2][8]. - The adjusted target P/E ratio for FY25 is set at 13x, with future projections indicating a decrease to 7.5x in FY26 and 6.5x in FY27 [2][8]. - The report outlines a significant increase in sales expenses, which are expected to continue impacting profit margins negatively [7]. Market Expectations - The market's price expectations for Pinduoduo range from $85 to $180, with the current target price set at $100 [3][7]. - The report indicates that the company lacks short-term catalysts for growth, contributing to the decision to maintain the "Hold" rating [7].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price adjusted to 22 USD / 173 HKD, reflecting a potential upside of 23% from the current price [3][6]. Core Insights - The company reported a revenue of 7.0 billion RMB for Q1 2025, representing a year-on-year growth of 24%, slightly above market expectations. The adjusted net profit reached 362 million RMB, significantly exceeding market forecasts due to effective cost control, resulting in an adjusted profit margin of 5.2% [1][2]. - Monthly active users (MAU) grew by 7.8% year-on-year to 368 million, driven by promotional activities, with a focus on user retention being crucial for future growth. Daily active users (DAU) increased by 4.2% to 107 million [2]. - Advertising revenue increased by 20% year-on-year, benefiting from user growth and enhanced commercial value, with expectations of an 18% year-on-year increase in Q2 [2]. - The gaming segment saw a revenue of 1.73 billion RMB, a 76% increase year-on-year, primarily driven by the game "Three Kingdoms: Strategy of the World" [2]. Summary by Sections Financial Performance - The company’s revenue structure improved, with a gross margin of 36.3%, showing an increase of 8.0 percentage points year-on-year and 0.2 percentage points quarter-on-quarter. The gross margin is expected to improve slightly in Q2 [2]. - Financial forecasts indicate a revenue growth trajectory, with projected revenues of 30.25 billion RMB for FY25 and 32.49 billion RMB for FY26, alongside an expected adjusted net profit of 1.94 billion RMB for FY25 [5][8]. User Metrics - The report highlights the importance of user retention and engagement, noting that the MAU and DAU figures are critical indicators of the company's growth potential [2]. Market Position - The report emphasizes the company's strong performance in the gaming sector and the gradual release of advertising value, which are key drivers for future growth [3].

Investment Rating - The report maintains a "Hold" rating for the company with a target price of $14 [3][12]. Core Views - The company's 1Q25 revenue decreased by 5.0% year-on-year, aligning with market expectations, while adjusted net profit was RMB 2.3 billion, maintaining a high profit margin of 8.8%. Active user numbers fell by 4% year-on-year, but SVIP users grew by 18%, contributing 51% of online GMV. Total order volume declined by 6%, with GMV remaining stable, and the apparel category showed positive growth [2][3]. - For 2Q25, the company provides cautious guidance, expecting revenue to decline by 5% to 0%. However, there are signs of improved consumer confidence, with sales momentum picking up in April and May. The company remains cautious about the 618 sales due to ongoing promotional activities and consumer sensitivity to subsidies. The company anticipates double-digit growth in SVIP numbers for the year, which is expected to help return to growth in the second half of the year [2][3]. - The company has returned over $400 million to shareholders year-to-date and commits to returning no less than 75% of 2024 profits to shareholders, corresponding to an attractive return rate of approximately 12.7% [2]. Financial Summary - The report forecasts FY25E revenue at RMB 107.048 billion and FY26E revenue at RMB 111.685 billion, with corresponding P/E ratios of 6.1x and 5.8x [3][5]. - The adjusted net profit is projected to be RMB 8.806 billion for FY25E and RMB 9.285 billion for FY26E, with a stable profit margin expected throughout the year [5][11]. - The company’s total market capitalization is approximately $7.374 billion, with a recent average trading volume of $62.4 million over the past three months [5][12].

Investment Rating - The report maintains a "Buy" rating for Advanced Micro Devices (AMD) with a target price of $134.2, indicating a potential upside of 16.7% from the current price of $115.0 [1][4][17]. Core Insights - AMD is positioned as a key beneficiary of the surge in demand for AI large model computing, particularly in the GPU chip segment. Despite facing a negative impact of approximately $1.5 billion on revenue in 2025 due to U.S. export controls, the data center business is expected to achieve strong double-digit growth this year [1][2]. - The MI350 large-scale production is anticipated to drive growth in the data center segment in the second half of the year. AMD is also gaining market share in CPUs for personal computers and servers, which will support growth in both client and data center businesses [1][2]. - The gaming and embedded product segments are expected to maintain growth in the latter half of the year. AMD's forward P/E ratio of 25.4x is significantly lower than last year's peak of 53.4x, making it an attractive investment opportunity [1][2]. Financial Performance and Forecast - AMD's revenue for Q1 2025 was $7.44 billion, a 36% year-over-year increase, with a gross margin of 50.2%. The company expects Q2 revenue to grow by 27% year-over-year, despite a slight decline from Q1 [2][10]. - The financial projections for AMD from 2023 to 2027 indicate a steady increase in revenue, with expected revenues of $31.6 billion in 2025 and $36.5 billion in 2026, reflecting growth rates of 23% and 16% respectively [3][11]. - The net profit is projected to reach $3.13 billion in 2025, with a significant increase in non-GAAP basic earnings per share expected to be $4.0 [3][11]. Valuation - The report employs a DCF valuation method, assuming a growth rate of 12%-20% for AMD from 2030 to 2034, with a perpetual growth rate of 3% and a WACC of 12.0%. The adjusted target price of $134.2 corresponds to a 2025 P/E ratio of 33.2x [2][11].

Investment Rating - The report maintains a "Hold" rating for Tesla (TSLA.US) and raises the target price to $374.8, indicating a potential upside of 8% [1][3]. Core Insights - Short-term automotive sales are under pressure, with a significant decline in revenue and profits expected in 2025 due to global economic conditions and production line adjustments for new models. However, long-term growth potential remains strong due to advancements in autonomous driving and robotics technology [1][9]. - The current price-to-earnings (P/E) ratio for Tesla is 145x, reflecting the market's expectations for future growth despite current challenges [1]. Financial Projections - Revenue projections for 2023 to 2027 show a peak in 2026 at $116.9 billion, with a projected revenue decline in 2025 to $96.8 billion, followed by a recovery in subsequent years [2][10]. - Net profit is expected to decrease significantly in 2024 to $7.1 billion, with a further decline to $5.95 billion in 2025, before rebounding to $8.9 billion in 2026 and $12.1 billion in 2027 [2][10]. - The report highlights a projected basic earnings per share (EPS) of $1.85 in 2025, down from $4.72 in 2023, with a gradual increase to $3.75 by 2027 [2][10]. Performance Analysis - In Q1 2025, Tesla's revenue fell by 9% year-over-year to $19.3 billion, with automotive sales revenue declining by 20% [11]. - The gross margin for automotive sales decreased to 15.2% in Q1 2025, down from 17.8% in Q1 2024, indicating pressure on profitability [11]. - The report notes that Tesla's automotive delivery volume decreased by 13% year-over-year in Q1 2025, reflecting challenges in maintaining sales growth [11]. Valuation Methodology - The report employs a sum-of-the-parts valuation method, arriving at a target price of $374.8, which corresponds to a P/E ratio of 136x for 2026 [14].

Investment Rating - The report maintains a "Hold" rating for Tesla (TSLA.US) and raises the target price to $374.8, indicating a potential upside of 8% from the current price of $347.68 [1][3]. Core Insights - Short-term automotive sales are under pressure, with a significant decline in revenue and profits expected in 2025 due to global economic conditions and production line adjustments for new models. However, long-term growth potential remains strong due to advancements in autonomous driving and robotics technology [1][9]. - The report highlights Tesla's localized production capabilities in North America, Europe, and China, which position the company well to navigate global tariff changes [1]. - The current price-to-earnings (P/E) ratio for Tesla is noted at 145x, reflecting the market's expectations for future growth despite current challenges [1]. Financial Projections - Revenue projections for Tesla show a decline in 2025 to $96.823 billion, a 1% decrease year-over-year, followed by a recovery with expected growth of 21% in 2026 and 15% in 2027 [2][13]. - Net profit is forecasted to drop significantly in 2025 to $5.950 billion, a 16% decrease from the previous year, before rebounding to $8.876 billion in 2026 and $12.068 billion in 2027 [2][13]. - The report provides detailed financial metrics, including a projected basic earnings per share (EPS) of $1.85 in 2025, which is a 42% decrease from prior estimates [13]. Performance Analysis - In the first quarter of 2025, Tesla reported a 9% year-over-year decline in revenue to $19.335 billion, with automotive sales revenue down 20% [11]. - The gross margin for automotive sales decreased to 15.2%, reflecting increased operational costs and competitive pressures [11]. - The report emphasizes the importance of Tesla's investments in AI and robotics, which are expected to enhance future profitability and operational efficiency [9].

Investment Rating - The report maintains a "Buy" rating for Tencent with a target price of 700 HKD, indicating a potential upside of 34% from the current price of 521 HKD [3][20]. Core Insights - Tencent's 1Q25 revenue reached 180 billion RMB, a 13% year-on-year increase, exceeding market expectations by 2.5%. The gross margin improved to 55.8%, up 3.2 percentage points year-on-year, with adjusted net profit growing by 22% to 61.3 billion RMB [1][2]. - The gaming segment showed strong performance, with domestic game revenue increasing by 24% to 42.9 billion RMB, driven by flagship titles like "Honor of Kings" and the successful launch of new games [1][2]. - AI continues to empower core business areas, particularly in advertising and gaming, contributing to a 20% year-on-year growth in advertising revenue to 31.9 billion RMB [2]. Financial Performance Summary - The report projects FY25E revenue at 724.4 billion RMB, with adjusted net profit expected to reach 254.0 billion RMB, reflecting a growth trajectory supported by AI investments and improved operational efficiency [5][11]. - Management expenses rose by 36% year-on-year, primarily due to one-time overseas expenditures and AI R&D investments, but the overall revenue growth is expected to offset these costs [2][5]. - The report highlights a consistent improvement in gross margins across all segments, with a focus on maintaining profitability despite increased costs associated with AI initiatives [2][3].

Investment Rating - The report maintains a "Buy" rating for the company with a target price adjusted to HKD 173 / USD 44, reflecting a potential upside of 22% from the current price of HKD 141.6 / USD 35.73 [3][5][25]. Core Insights - The company's revenue for Q1 2025 reached RMB 301.1 billion, representing a year-on-year growth of 15.8%, which is better than market expectations, with further acceleration in growth anticipated for Q2 [1]. - The strong growth in revenue is driven by the government's subsidy policies, particularly benefiting the electronics category, which saw a 17.1% year-on-year increase [1]. - The food delivery business is undergoing dynamic adjustments, introducing uncertainty to profit margins, with a gross margin of 15.9% in Q1, up 0.6 percentage points year-on-year [2]. - Adjusted net profit for Q1 increased by 43% to RMB 12.8 billion, exceeding market expectations, with an adjusted net profit margin of 4.2% [2]. Summary by Sections Revenue and Growth - Q1 2025 revenue was RMB 301.1 billion, up 15.8% year-on-year, with product revenue growing 16.2% and service revenue increasing by 14% [1]. - The core categories, particularly electronics, benefited from the government's trade-in policies, leading to a robust growth outlook for Q2 [1]. Profitability - The company reported a gross margin of 15.9% in Q1, an improvement of 0.6 percentage points year-on-year, with adjusted net profit rising to RMB 12.8 billion [2]. - The adjusted net profit margin improved to 4.2%, primarily due to enhanced retail operating profit margins [2]. Business Strategy - The food delivery segment is expanding rapidly, with over one million merchants and nearly 20 million daily orders, although the impact on overall revenue remains limited [2]. - The company is increasing investments in the food delivery sector to enhance user engagement and purchase frequency, but this may introduce uncertainties regarding profit margin improvements [2]. Financial Projections - The report forecasts revenue growth for FY25E at RMB 1,279.2 billion, with adjusted net profit expected to reach RMB 48.4 billion [4]. - The adjusted net profit growth rate is projected to be 5.3% lower than previously estimated due to the anticipated impact of food delivery investments on profitability [3].