Investment Rating - The report maintains a "Buy" rating for Alibaba, with a target price adjusted to HKD 166 / USD 170, corresponding to a FY26E P/E of 20x [4][24]. Core Insights - The company reported FY26Q1 revenue of RMB 247.7 billion, a 2% year-on-year increase, which was below market expectations. Excluding certain segments, revenue growth was 10% year-on-year. Adjusted net profit was RMB 33.5 billion, down 18% year-on-year, primarily due to investments in the Taobao flash sale business [2][3]. - Alibaba has restructured its business segments into four main divisions: Alibaba China E-commerce Group, Alibaba International Digital Commerce Group, Cloud Intelligence Group, and Others [2]. - The CMR (Customer Management Revenue) is expected to maintain high growth rates, with a 10% year-on-year increase in FY26Q1, driven by an increase in take rates and improved penetration of software services [3]. - The cloud business is on an upward trajectory, with cloud revenue growing 26% year-on-year to RMB 33.4 billion, driven by strong demand for public cloud services. AI-related revenue has also seen triple-digit year-on-year growth for eight consecutive quarters, now accounting for 20% of external commercial revenue [4]. Summary by Sections Financial Performance - FY26Q1 revenue was RMB 247.7 billion, with a 2% year-on-year growth, and adjusted net profit was RMB 33.5 billion, down 18% year-on-year. The adjusted net profit margin decreased to 13.5% from 16.7% in the same period last year [2]. - The company expects revenue for FY26E to be RMB 1,021.9 billion, with adjusted net profit projected at RMB 147.7 billion [6]. Business Segments - The Chinese e-commerce revenue grew 10% year-on-year to RMB 140.1 billion, with CMR also increasing by 10%. Instant retail revenue rose 12% year-on-year, significantly benefiting from the launch of Taobao flash sales [3]. - International business revenue increased by 19% year-on-year to RMB 34.7 billion, with substantial reduction in losses, nearing breakeven [3]. Market Outlook - The report anticipates that instant retail will contribute an additional RMB 1 trillion in transaction volume over the next three years. The cloud business is expected to continue its growth trajectory, supported by strong demand and AI integration [4][19].

Investment Rating - The report maintains a "Buy" rating for the company and raises the target price for A-shares to RMB 27.20 and for H-shares to HKD 20.00 [3][5][13]. Core Insights - The company's revenue in 1H25 has rebounded, with domestic procurement products showing stable growth and overseas business continuing to maintain a robust growth rate. Despite a decline in gross margin due to procurement impacts, significant reductions in three major expense ratios have driven a rapid increase in net profit [3][13]. - The company reported a revenue of RMB 4.9 billion in 1H25, representing a year-on-year growth of 28%. Domestic procurement products contributed approximately 60% of revenue, while overseas revenue also grew by over 30% year-on-year [3][13]. - The company has received approvals for multiple new products, expanding its product pipeline in various segments, including orthopedics and dental fields [13]. Financial Summary - Revenue Forecast: - 2023: RMB 1,209 million - 2024: RMB 806 million - 2025E: RMB 1,085 million - 2026E: RMB 1,330 million - 2027E: RMB 1,598 million - Year-on-year growth rates: 0.6%, -33.3%, 34.7%, 22.5%, 20.2% [4][15]. - Net Profit Forecast: - 2023: RMB 278 million - 2024: RMB 125 million - 2025E: RMB 261 million - 2026E: RMB 329 million - 2027E: RMB 420 million - Year-on-year growth rates: -9.7%, -55.0%, 109.0%, 26.1%, 27.4% [4][15]. - Valuation Ratios: - PE (A-shares): 31.9 (2023), 70.0 (2024), 33.9 (2025E), 26.9 (2026E), 21.1 (2027E) - PE (H-shares): 20.7 (2023), 45.3 (2024), 22.0 (2025E), 17.4 (2026E), 13.7 (2027E) [4][15].

Investment Rating - The report maintains a "Buy" rating for Meituan, with a target price adjusted to HKD 120, indicating a potential upside of 17% from the current price of HKD 102.7 [4][7][20]. Core Views - The report highlights that Meituan's revenue for Q2 2025 grew by 11.7% year-on-year to RMB 91.8 billion, which was below market expectations by 2.0%. The gross margin decreased by 8.1 percentage points to 33.1% due to increased rider subsidies and overseas business costs [2][3]. - The competitive landscape in the food delivery industry remains intense, with expectations of increased losses in Q3 2025. The core local business revenue grew by 7.7% year-on-year, significantly lower than market expectations, and operating profit dropped by 76% to RMB 3.7 billion [3]. - Meituan is focusing on enhancing its user experience (UE) and operational efficiency, which is expected to strengthen its competitive position despite the ongoing market challenges. The report anticipates that losses will improve in Q4 2025 as industry subsidies decrease [3][4]. Financial Summary - For FY25E, the report projects revenue of RMB 368.1 billion and a net profit loss of RMB 12.8 billion. The adjusted net profit is expected to be RMB -7.2 billion, with a significant recovery anticipated in FY26E [6][11]. - The report provides a detailed financial forecast, indicating a revenue increase to RMB 469.7 billion by FY27E, with a gradual recovery in operating profit and net profit margins over the forecast period [6][11]. Business Strategy - Meituan is strategically shifting its focus from underperforming segments like Meituan Youxuan to other new retail businesses, while also expanding its international presence through Keeta, which has shown strong growth in order volume and transaction value [4][3]. - The report emphasizes the importance of maintaining competitive pricing and high-quality product offerings to cater to diverse consumer needs, which is crucial for sustaining market share in a highly competitive environment [3][4].

Investment Rating - The report maintains a "Buy" rating for the company, Li Auto (LI.US/2015.HK), with a target price of $26.4, representing a potential upside of 17% for the US stock and a target price of HKD 102.6, representing a potential upside of 16% for the HK stock [2][4][6]. Core Insights - The report highlights that while there are fluctuations in the sales guidance for the third quarter, the gross margin is expected to remain stable. The company is actively adjusting its sales strategies to enhance sales performance, and the upcoming launch of the i6 model is anticipated to boost sales in the fourth quarter [8][29]. - The second quarter gross margin was stable at 20.1%, with total revenue reaching RMB 30.2 billion, a year-on-year decrease of 5% but a quarter-on-quarter increase of 17% [11][12]. - The report indicates a significant adjustment in revenue and profit forecasts for 2025 and 2026 due to expected declines in sales and operating profit [12][29]. Financial Projections - Revenue projections for 2023 to 2027 are as follows: - 2023: RMB 123,851 million - 2024: RMB 144,460 million - 2025E: RMB 121,217 million (down 16%) - 2026E: RMB 135,335 million (up 12%) - 2027E: RMB 151,527 million (up 12%) [3][9]. - Gross margin is projected to be around 20.2% in 2025, with net profit expected to decline significantly in 2025 before recovering in subsequent years [12][29]. Market Expectations - The report notes that the demand for new energy vehicles in China, particularly in the high-end segment, is expected to drive sales growth for Li Auto. The positive market response to pure electric models is anticipated to enhance average selling prices and gross margins [29][36]. - The company is also expected to invest approximately RMB 6 billion in artificial intelligence this year, which is projected to provide a long-term competitive advantage [8][29].

Investment Rating - The report maintains a "Buy" rating for the company and raises the target price to HKD 77.0, indicating a potential upside of 16% from the current price of HKD 66.5 [2][5][7]. Core Insights - The company's net loss attributable to shareholders for the first half of 2025 was better than expected, with revenue reaching RMB 499 million, a year-on-year increase of 812.1%. Product revenue was RMB 169 million, while collaboration revenue was RMB 329 million, up 502.6% year-on-year [5][7]. - The company is focusing on the commercialization of CM310 and preparing for national medical insurance negotiations, with confidence in multiple indications being included in the insurance scheme [5][7]. - The next-generation core pipeline drug, CM512, is being prioritized for development, showing promising safety and efficacy in preclinical studies [5][7]. Financial Performance - For 1H25, the company reported a net loss of RMB 78.84 million, significantly reduced from RMB 337 million in 1H24, primarily due to better-than-expected collaboration revenue and improved gross margins [5][7]. - The company’s cash position improved to RMB 2.8 billion as of June 30, 2025, up from RMB 2.16 billion at the end of 2024, aided by a successful placement in June [5][7]. - Revenue projections for the upcoming years show significant growth, with expected revenues of RMB 823 million in 2025, RMB 1.5 billion in 2026, and RMB 2.3 billion in 2027, reflecting year-on-year growth rates of 92%, 82%, and 54% respectively [7][9].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 300, indicating a potential upside of 21% from the current price of RMB 247.08 [1][2]. Core Insights - The company's performance in 1H25 was significantly under pressure, with revenue of RMB 16.7 billion, a year-on-year decrease of 18%, and a net profit of RMB 4.9 billion, down 33% year-on-year. However, there is a clear expectation for revenue recovery starting in 3Q25, with projected positive year-on-year growth [1][8]. - The report anticipates that the recovery in domestic equipment bidding projects will gradually convert into revenue, leading to further revenue growth in 4Q25. The low base effect from the previous year is expected to accelerate revenue and net profit growth in 2026 [1][8]. Financial Performance and Forecast - The company's revenue and net profit forecasts for the upcoming years are as follows: - Revenue: RMB 34.93 billion in 2023, RMB 36.73 billion in 2024, RMB 37.08 billion in 2025E, RMB 45.94 billion in 2026E, and RMB 53.25 billion in 2027E, with year-on-year growth rates of 15.0%, 5.1%, 1.0%, 23.9%, and 15.9% respectively [2][10]. - Net profit: RMB 11.58 billion in 2023, RMB 11.67 billion in 2024, RMB 11.39 billion in 2025E, RMB 14.49 billion in 2026E, and RMB 17.40 billion in 2027E, with year-on-year growth rates of 20.6%, 0.7%, -2.4%, 27.2%, and 20.1% respectively [2][10]. - The report highlights that the company's international revenue is expected to continue to grow, with a projected double-digit growth rate for the second half of 2025 [1][8]. Segment Analysis - Domestic revenue saw a significant decline of 33% in 1H25, primarily due to prolonged weak bidding conditions for equipment, while international revenue grew by 5%, now accounting for 50% of total revenue [8]. - The report notes that the IVD segment experienced a 16% decline in revenue, attributed to price reductions from centralized procurement and a decrease in testing volumes due to policy changes. However, international IVD business showed resilience with a 12% growth [8].

Investment Rating - The report maintains a "Hold" rating for the company with a target price of HKD 17.71, representing a potential upside of 12.0% from the current price of HKD 15.84 [1][5]. Core Insights - The company's revenue and operating profit margins are under pressure, with management indicating that the second half of 2025 will remain challenging. They expect a year-on-year revenue decline in 2025 of mid to high single digits, while operating profit margins are projected to remain flat [5][12]. - The company has experienced a significant decline in liquid milk revenue, down 11.2% in the first half of 2025, which is much greater than its main competitor, Yili, which saw only a 2.1% decline. This suggests a loss of market share for the company [5][12]. - Management's cautious pricing strategy has led to a substantial drop in sales volume, and while they have reduced sales expenses by 8.4%, this may have been a strategic decision to maintain operating profit margins [5][12]. Financial Performance and Forecast - The company's revenue for 2025 is forecasted to be HKD 82.995 billion, a decrease of 6.4% year-on-year. The core net profit is expected to decline by 14.5% to HKD 3.792 billion [7][13]. - The operating profit margin for 2025 is projected to be 8.3%, slightly up from 8.2% in 2024, but the overall financial outlook remains cautious due to market conditions [12][13]. - The report highlights that the company's performance in the first half of 2025 was primarily supported by lower raw milk prices, but this benefit may diminish as prices stabilize [5][12]. Market Context - The report indicates that the industry is facing prolonged challenges, with weak demand and increased competition expected to persist in the short term. This environment is likely to keep the company's sales prices and profit margins under pressure [5][12]. - The management's guidance suggests that the company is still weighing the balance between revenue and profit margins, indicating a potential shift in focus towards maintaining market share in the second half of 2025 [5][12].

Investment Rating - The report maintains a "Buy" rating for the company and raises the target price to HKD 106 [1][11][12] Core Insights - The company achieved a significant increase in net profit, reaching RMB 12.1 billion in 1H25, driven by strong product revenue growth and operational efficiency [1][6][11] - The internationalization strategy is becoming clearer, with the establishment of a clinical development team in the U.S. and ongoing global Phase III trials for key pipeline assets [1][6][11] - The commercialization strategy for the drug Masitide is progressing well, with early sales trends showing promise and a focus on brand building and channel development [1][8][11] Financial Performance - In 1H25, total revenue reached RMB 59.5 billion, a year-on-year increase of 50.6%, with product revenue at RMB 52.3 billion (+37.3% YoY) and licensing revenue at RMB 6.7 billion (+474.2% YoY) [1][6][11] - The company's Non-IFRS net profit improved significantly from a loss of RMB 1.6 billion in 1H24 to a profit of RMB 12.1 billion in 1H25, indicating strong operational efficiency [1][6][11] - The gross margin for products improved to 84.1% in 1H25 from 82.2% in 1H24, while R&D expenses were controlled at RMB 10 billion, down from RMB 14 billion in the previous year [1][6][11] Pipeline and Future Outlook - The company is focusing on the international development of its oncology pipeline, with two key assets, IBI363 and IBI343, entering global Phase III trials [1][6][11] - Upcoming data readouts for Masitide and other pipeline assets are expected in 2H25, which could further enhance the company's market position [1][11][12] - The company aims to achieve five international Phase III MRCT trials by 2030, supported by a strong cash position of USD 2 billion [1][6][11]

Trade Relations - The US-China tariff truce has been extended for another 90 days, reducing short-term tariff risks, with a 70% probability of maintaining the current status[1] - The average tariff rate imposed by the US on China has increased from 51.8% in May to 54.9% in August due to additional tariffs on steel and aluminum products[7] - There is a 25% chance that the US-China trade conflict may escalate in the coming months[9] Economic Data - July's economic data showed a continued decline, with retail sales growth slowing down, particularly in the automotive and home appliance sectors[14] - Fixed asset investment growth fell to 1.6%, the lowest since October 2020, indicating significant challenges in consumption and investment[19] - Exports in July exceeded expectations, suggesting a potentially better outlook for the remainder of the year, although the overall trend remains downward[27] Policy Outlook - The government is expected to introduce an additional fiscal support of 0.5 to 1.0 trillion yuan, with implementation possibly starting by the end of September[51] - Recent fiscal policies focus on accelerating government bond issuance and implementing measures to stimulate domestic demand[43] - Monetary policy adjustments, including potential interest rate cuts, are anticipated by the end of September, contingent on economic performance and external factors[53] Real Estate Market - Real estate investment continues to face downward pressure, with July showing a significant decline in both property sales and prices[24] - Recent policy changes in major cities aim to optimize housing purchase regulations, indicating a new round of support for the real estate sector[55]

Investment Rating - The report assigns a target price of HKD 121.2 for Anta Sports (2020.HK), indicating a potential upside of 19.3% from the current price of HKD 101.6 [1]. Core Insights - Anta's management has adjusted the annual revenue guidance for the Anta brand from high single-digit growth to mid single-digit growth due to weaker retail performance in July and August, although recent trends show improvement [4]. - The company continues to optimize and upgrade its channels, focusing on enhancing store efficiency rather than significantly increasing the number of stores [4]. - Anta's multi-brand strategy is deepening, with other brands like Descente and Kolon showing strong revenue growth, contributing to overall profitability [4]. - The first half of 2025 saw a 14.5% year-on-year increase in net profit to RMB 7.03 billion, aligning with market expectations [5]. Financial Performance - Revenue for 2023 is projected at RMB 62.36 billion, with a year-on-year growth of 16.2%, and expected to reach RMB 80.95 billion by 2025 [6]. - The net profit for 2023 is estimated at RMB 10.24 billion, reflecting a significant year-on-year increase of 34.9% [6]. - The operating profit margin for the first half of 2025 is reported at 26.3%, indicating operational efficiency improvements [9]. Brand Performance - The Anta brand's gross margin decreased by 1.7 percentage points due to a higher proportion of e-commerce sales, while the operating profit margin increased by 1.5 percentage points, aided by government subsidies [5]. - The Fila brand's gross margin fell by 2.2 percentage points, primarily due to increased retail discounts [5]. - Other brands, including Descente and Kolon, experienced a 61% year-on-year revenue growth in the first half of 2025, contributing to 19% of total revenue [4]. Market Position - Anta's market capitalization stands at HKD 285.213 billion, with an average daily trading volume of HKD 876.3 million over the past three months [1]. - The stock has traded within a 52-week range of HKD 68.35 to HKD 107.5, reflecting market volatility [1].