Investment Rating - The report maintains a "Buy" rating for Tencent with a target price of HKD 792.53, up from the previous HKD 759.47 [6][35]. Core Insights - Tencent's 3Q performance exceeded expectations with a revenue growth of 15.4%, driven by increases in value-added services, advertising, and fintech revenues, which grew by 16%, 21%, and 10% respectively [1][2]. - The adjusted net profit for 3Q increased by 18%, surpassing expectations by 7%, primarily due to higher earnings from associated companies [1][6]. - The report highlights the potential of Tencent's gaming segment, particularly with the upcoming release of "Delta Action" expected to generate over RMB 18 billion in revenue in 2026 [1][20]. Revenue and Profitability - 3Q revenue reached RMB 192.9 billion, with a year-over-year growth of 15.4%, exceeding the consensus estimate of RMB 188.9 billion [14]. - Gross profit for 3Q was RMB 108.8 billion, reflecting a gross margin of 56.4%, an improvement from the previous year [14]. - The adjusted operating profit margin for 3Q was 37.6%, indicating strong operational efficiency [14]. Gaming Segment Performance - The gaming revenue for 3Q grew by 15% domestically and 43% internationally, driven by titles such as "Honor of Kings" and "Delta Action" [2][20]. - The report anticipates that Tencent's gaming pipeline will peak in 2026, with significant titles set to launch, including "Rock Kingdom: World" and "Honor of Kings World" [2][28]. Advertising and AI Integration - Advertising revenue increased by 21% in 3Q, with AI-driven enhancements contributing to eCPM improvements [3][33]. - The introduction of the AIM+ system is expected to attract more small and medium advertisers, enhancing overall advertising performance [3][33]. Financial Technology Growth - The fintech segment reported a revenue growth of 10% in 3Q, with a gross margin of 50.2% [4][14]. - The WeChat mini-store's GMV is experiencing rapid growth, supported by a low overlap of public and private domain users, indicating potential for further user acquisition [4][12]. Future Outlook - Revenue forecasts for Tencent have been adjusted upward for 2025-2027, with expected revenues of RMB 755.3 billion, RMB 852.3 billion, and RMB 954 billion respectively [35][36]. - The adjusted net profit estimates for the same period are RMB 2,655 billion, RMB 3,012 billion, and RMB 3,443 billion, reflecting a strong growth trajectory driven by AI and gaming [35][36].

Macro Insights - The effectiveness of policy tools on social financing is yet to be fully realized, with October's new RMB loans and social financing both showing a year-on-year decrease, reflecting a weak real estate cycle and the impact of local and corporate debt replacement loans [2][3] - M1 and M2 growth rates have slightly declined but remain relatively fast, with M2 at 8.2% year-on-year and M1 at 6.2% [2][3] Banking Sector - In October, social financing increased by 815 billion RMB, significantly below the expected 1.53 trillion RMB, with a year-on-year decrease of 597 billion RMB, indicating a slowdown in credit demand [3] - The banking sector's configuration value has improved, with recommendations for quality regional banks such as Ningbo Bank, Nanjing Bank, and Chengdu Bank, as well as stable dividend payers like Shanghai Bank and Industrial and Commercial Bank of China [3] Machinery Industry - The FPSO (Floating Production Storage and Offloading) sector is expected to see accelerated order releases due to the transition to deep-sea oil and gas development, supported by a favorable financing environment from the Fed's interest rate cuts [4] - Key companies to watch include CIMC, China Shipbuilding, and Bohai Chemical, which are positioned to benefit from this investment cycle [4] A-Share Market - The A-share earnings cycle is showing signs of improvement, with structural differentiation narrowing, particularly in advanced manufacturing and TMT sectors [5] - Recommendations include focusing on industries with dual supply-demand improvements, such as railways, textiles, and photovoltaic equipment [5] Communication Sector - Gaode Infrared has entered a new phase of mass production for complete equipment systems, with a target price of 18.90 RMB based on a 70x PE valuation for 2026 [6] - The company is expected to benefit from expanding product categories and customer bases in both domestic and international markets [6] AI and Technology - Industrial Fulian is experiencing rapid growth in its AI server business, with Q3 GPU AI server revenue increasing over five times year-on-year, and a positive outlook for Q4 [7] - The company maintains a target price of 100.0 RMB, reflecting strong demand in AI infrastructure [7] Gaming and Entertainment - Aubo Holdings reported a decline in market share to 11.8% in Q3 2025, attributed to the gradual phasing out of satellite entertainment venues and increased competition [8] - The company’s net income decreased by 6% year-on-year, indicating challenges in attracting customers [8] Retail Sector - Gao Xin Retail's revenue for the first half of FY26 was 30.5 billion RMB, down 12.1% year-on-year, with a net loss of 1.2 billion RMB [13] - The new management has outlined a three-year reform plan aimed at improving supply chain and organizational structure, with a projected dividend yield of around 9% [13]

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company reported a revenue growth of 14.9% year-on-year in Q3 2025, reaching 299.1 billion RMB, which exceeded both the consensus and the firm's expectations [1] - Non-GAAP net profit for the same period was 5.8 billion RMB, a decline of 56.0% year-on-year, but still better than expected due to better-than-expected operating profit in the retail segment and non-recurring gains [1] - The report highlights the improvement in operational efficiency and the potential for narrowing losses in the food delivery segment, alongside a robust growth trend in daily necessities sales [1][3] Summary by Sections Revenue and Profitability - The total revenue for JD Retail in Q3 2025 was 250.6 billion RMB, with a year-on-year increase of 11.4% and operating profit of 14.8 billion RMB, up 27.7% [2][11] - The report notes that the revenue from the electronic products category grew by 4.9% to 128.6 billion RMB, while daily necessities saw an 18.8% increase to 97.5 billion RMB [2] User Growth and Engagement - Active user numbers grew by 40% year-on-year in Q3 2025, with annual active users surpassing 700 million [3] - The frequency of purchases per user also increased by 40% year-on-year, indicating improved user engagement [3] Operational Efficiency - The food delivery segment achieved a double-digit growth in GMV quarter-on-quarter, driven by increased order volume and improved order structure [3] - The report emphasizes the narrowing of overall operating losses in the food delivery business, attributed to enhanced supply chain efficiency and disciplined investment [3] Profit Forecast and Valuation - The company adjusted its non-GAAP net profit forecasts for 2025-2027, with expected profits of 30.5 billion RMB in 2025, 38.1 billion RMB in 2026, and 51.1 billion RMB in 2027 [4][18] - The target price based on SOTP valuation is set at 51.04 USD per ADS and 198.32 HKD per ordinary share, reflecting a valuation multiple of 17.2x, 13.7x, and 10.2x for 2025, 2026, and 2027 respectively [21][23]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 100.0 RMB [6][5]. Core Insights - The company is poised to capitalize on the strong demand for AI infrastructure, achieving a balance between volume and profitability. The revenue from GPU AI servers is expected to continue its rapid growth, with Q3 revenue increasing over five times year-on-year and a strong outlook for Q4 [1][2]. - The company anticipates improvements in gross margin due to the ramp-up of new products, enhanced yield rates, and increased self-supply value of components. The outlook for Q4 remains optimistic, with expectations of significant revenue growth [1][3]. - The AI server and 800G switch businesses are experiencing exponential growth, with CSP AI server revenue expected to increase over four times year-on-year in Q4, and the 800G switch revenue projected to grow over 4.5 times [2][4]. Summary by Sections Revenue Growth - The company reported a year-on-year revenue increase of over three times for CSP AI servers and over five times for GPU AI servers in Q3. For Q4, CSP AI server revenue is expected to grow over four times year-on-year, while GPU AI server revenue may also exceed five times growth [2][4]. - The overall cloud computing business, including AI servers, is projected to grow by 83.6%, 103.3%, and 24.5% in 2025, 2026, and 2027 respectively, with its contribution to total revenue increasing significantly [2][15]. Profitability and Margin - The gross margin for the first three quarters of 2025 was 6.8%, consistent with the previous year. The company expects this margin to improve in Q4 due to successful product launches and cost efficiencies [3][5]. - Factors supporting margin improvement include successful mass production of new products, increased self-supply value of key components, and strong customer partnerships that enhance profitability [3][4]. Market Outlook - The report highlights a robust investment outlook for AI infrastructure, with North America's top five CSPs expected to invest over 390 billion USD in data centers by 2025. Global AI infrastructure capital expenditure is projected to exceed 1 trillion USD by 2030 [4][5]. - The company anticipates that the demand for 800G switches will continue to grow, with expectations of doubling shipment volumes annually, indicating a strong market for AI cluster construction [4][5]. Financial Projections - The company forecasts net profits of 353.2 billion RMB, 550.1 billion RMB, and 627.8 billion RMB for 2025, 2026, and 2027 respectively, with corresponding EPS of 1.78, 2.77, and 3.16 RMB [5][10]. - The projected revenue for 2025 is 892.2 billion RMB, with a year-on-year growth rate of 46.5% [10][15].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 1.21, up from a previous target of HKD 0.75 [5][7]. Core Insights - The company reported a revenue of HKD 4.947 billion for FY26H1, representing a year-on-year increase of 33%, primarily driven by strong growth in IP derivatives, particularly from Aliyu [1]. - The net profit attributable to the parent company reached HKD 520 million, a 54% increase year-on-year, attributed to the excellent performance of Aliyu and a reduction in investment losses [1]. - Adjusted EBITA was HKD 550 million, a decrease of 14%, but when excluding a one-time financial asset impairment reversal of HKD 160 million from the previous year, the adjusted EBITA showed a 14% increase [1]. Summary by Sections IP Derivative Business - The IP derivative business generated revenue of HKD 1.16 billion, a significant year-on-year increase of 105.31%. The segment's performance was impacted by a one-time loss due to the shutdown of Jinli Naju, but the IP licensing business saw rapid growth, benefiting from collaborations with various IP brands [2]. Ticketing and Live Entertainment - Revenue from the company's performance content and technology business was HKD 1.339 billion, up 14.54% year-on-year. The growth was driven by ticket sales, although the pace was moderated by limited supply of performance content and venue resources [3]. Film and Series Production - Revenue from film-related businesses declined to HKD 1.064 billion, down 15.22% year-on-year. However, the series production business saw a remarkable increase of 693.44%, with revenue reaching HKD 484 million, driven by investments in high-quality content [4]. Profit Forecast and Valuation - The profit forecast has been revised upwards, with expected net profits for FY26-FY28 projected at HKD 915 million, HKD 1.16 billion, and HKD 1.374 billion, respectively. The target valuation for FY26 is set at 36 times PE, reflecting the ongoing high growth in the derivative business [5].

Investment Rating - The investment rating for the company is "Buy" with a target price of $30.72 [1] Core Views - The company reported Q3 2025 revenue of RMB 795 million, representing a year-over-year increase of 47.5% and a quarter-over-quarter increase of 12.6%. The GAAP net profit was RMB 256 million, marking a significant turnaround from losses, with a quarter-over-quarter growth of 481% [1] - The company anticipates laser radar shipments to exceed 600,000 units in Q4, with revenue expected to surpass RMB 1 billion [1] - The company is well-positioned for continued growth in ADAS and Robotics products, supported by its technological advantages in optical chips, which are expected to maintain stable gross margins [1] Summary by Sections ADAS Sector - The company shipped 380,759 units of ADAS laser radar in Q3, a year-over-year increase of 193.1% and a quarter-over-quarter increase of 25.4%. Demand from major domestic OEMs like Xiaomi, Leap Motor, and BYD has driven this growth [2] - Exclusive supply agreements have been signed with the top two core customers for 2026, and the company has secured L3 level laser radar orders from a top 3 new energy vehicle manufacturer, expected to start supply in the second half of 2026 [2] - The anticipated mass production of L3 autonomous driving vehicles is expected to increase the value of laser radar per vehicle to between $500 and $1,000 [2] Robotics Sector - The company shipped 60,639 units of robotic laser radar, reflecting a year-over-year increase of 1311.9%. The robotics market is rapidly expanding, becoming a significant growth driver for the company [3] - The company has become a supplier for various global Robovehicle and Robot projects, with mechanical rotating radar maintaining high gross margins [3] - By 2026, the company expects to double its robotic business shipments and is exploring new application areas such as smart cities and industrial automation, aiming to become a comprehensive provider of perception and AI solutions [3] Valuation - The target price remains at $30.72, supported by strong demand in the intelligent driving and robotics sectors. The company’s shipment forecasts for 2025, 2026, and 2027 are 1.41 million, 2.16 million, and 2.95 million units, respectively [4] - Revenue forecasts for 2025, 2026, and 2027 are RMB 3.27 billion, RMB 4.73 billion, and RMB 6.39 billion, with net profit estimates of RMB 712 million and RMB 1.1 billion for 2026 and 2027, respectively [4]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 21.55 [7][5] Core Insights - The company has shown a significant reduction in losses, with a net loss of USD 266 million in the first three quarters of 2025, down from USD 1.25 billion in Q3 2024 [1] - CARVYKTI's sales are on a strong upward trend, with Q3 sales reaching USD 524 million, representing a 19% quarter-over-quarter increase and an 83% year-over-year increase [2][3] - The company aims to achieve USD 3 billion in revenue by 2035, with various business segments expected to grow at different rates [4] Summary by Sections Financial Performance - For the first three quarters of 2025, CARVYKTI generated sales of USD 1.332 billion, a 112% year-over-year increase, with Q3 sales alone at USD 524 million [1] - The company forecasts revenues of USD 973 million, USD 806 million, and USD 933 million for 2025, 2026, and 2027 respectively, with corresponding net profits of USD 11 million, USD 66 million, and USD 355 million [5][10] Business Growth and Strategy - The company is expanding its treatment indications with ongoing Phase III clinical trials for CARTITUDE-5 and CARTITUDE-6 [3] - The production capacity is expected to reach 10,000 cases annually by the end of 2025, with new facilities in Belgium and the U.S. coming online [3] Valuation and Market Position - The estimated market value of the company is HKD 470.93 billion, with a breakdown of HKD 259.49 billion for ongoing operations and HKD 211.45 billion for the equity in its joint venture [13][15] - The report highlights a price-to-sales (PS) ratio of 4.14x for 2026, reflecting a 20% discount to comparable companies [13]

Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of HKD 2.18 [1][10]. Core Insights - The company reported a revenue of RMB 30.5 billion for the first half of FY26, a year-on-year decrease of 12.1%, and a net loss attributable to shareholders of RMB 1.2 billion, which aligns with the profit warning range [6][10]. - The new management has outlined a three-year transformation plan focusing on supply chain, store, and organizational structure reforms, with a commitment to high dividend payouts [6][9]. - The company declared an interim dividend of HKD 0.085 per share, with an expected annual dividend yield of approximately 9% [6]. Financial Performance - Revenue for FY26 is projected to be RMB 64.755 billion, reflecting a decline of 9.5% compared to the previous year [5][12]. - The net profit attributable to shareholders is expected to be RMB 38.85 million for FY26, a significant drop of 90.41% year-on-year [5][12]. - The company’s gross margin improved by 0.7 percentage points to 25.3% due to product mix optimization and increased private label penetration [8][9]. Strategic Initiatives - The company is implementing a nationwide procurement model to enhance pricing power, with a goal of achieving a 10% contribution from private label sales over the next three years [9]. - Store renovations are underway to transform locations into community lifestyle centers, with plans to complete over 200 store renovations within three years [9]. - The company aims to increase online sales contribution to 40-50% over the next three years, supported by the establishment of front warehouses [9]. Market Conditions - The competitive landscape has intensified, leading to a decrease in average transaction value, with same-store sales declining by 11.7% [7][9]. - Online sales showed resilience with a 7.4% increase in order volume, contributing to a 2.1% growth in online same-store sales [7][9]. - Rental income decreased by 7.0% year-on-year due to ongoing tenant restructuring and temporary impacts from store renovations [7].

Investment Rating - The report maintains a "Buy" rating for the company [7][5]. Core Views - The company is expected to see a 5.3% year-over-year decline in revenue for Q3 2025, amounting to $440 million, while adjusted net profit is projected to decrease by 22% to $108 million [1][5]. - The strategic focus for the second half of the year includes increased investment in AI to enhance search quality and strengthen advertising infrastructure [1]. - The company is shifting its strategy towards a multi-faceted approach of "Focus + Recommendation + Hot Topics," which has led to improved user engagement, with a 12% year-over-year increase in total video viewing time in Q3 [1][3]. Revenue and Advertising Insights - Q3 and Q4 advertising revenue is expected to decline by 6% and 5% respectively, primarily due to a high base from the previous year [2]. - The advertising demand from the e-commerce and automotive sectors is anticipated to continue its stable growth, while sectors like food and beverage, and apparel are expected to show weaker performance [2]. - The smartphone sector is facing a traditional off-season, with a reported 0.6% year-over-year decline in smartphone shipments in Q3 2025 [2]. Strategic Developments - The company has shifted its strategy to focus on three key areas: personalized recommendation streams, social-based attention streams, and hot topic streams centered around trending searches [3]. - The number of high-quality creators on the platform is expanding, with the number of top-tier creators reaching 18,000 and secondary tier creators increasing by 57% to 110,000 [3]. - The advertising revenue sharing plan has been optimized to encourage more quality content creation, with the revenue share for targeted tasks increasing to 55% [3]. Commercialization and User Engagement - The "Smart Search" feature is expected to initiate a small-scale commercialization pilot in Q4, enhancing user interaction and retention [4]. - The current integration of Smart Search into social interaction scenarios allows users to verify content and engage in extended reading based on posts [4]. Financial Forecasts and Valuation - Revenue forecasts for 2025-2027 have been adjusted downwards by 1% each year, reflecting a decrease in advertising spending in the gaming and mobile sectors [5][13]. - The adjusted net profit estimates for 2025-2027 have been revised to $480 million, $470 million, and $480 million respectively [5][13]. - The target price has been set at $14.74, corresponding to a 7.5x PE ratio for 2025 adjusted net profit, which is a discount compared to the global peer average of 28.0x due to liquidity factors and slower revenue growth [5][17].

Group 1: Macroeconomic Insights - The U.S. Supreme Court's hearing on the "Trump tariffs" has raised questions about the future of U.S. tariff policies, with market expectations shifting towards a potential rejection of these tariffs [2] - The implications of different verdicts on tariffs could significantly affect macroeconomic conditions, fiscal policies, and the bond market [2] Group 2: E-commerce Industry - The e-commerce sector is expected to see moderate growth during the 2025 Double Eleven shopping festival, with GMV projected to increase by mid-to-high single digits, benefiting from platform subsidies and extended promotional timelines [3] - Major platforms are expected to show differentiated performance, with Douyin's GMV growth estimated at 20-25%, Pinduoduo at 10-15%, while JD.com may see low single-digit growth and Alibaba is expected to remain flat [3] - The competitive landscape among e-commerce platforms is anticipated to remain intense in 2026, with a focus on traffic acquisition and core user benefits [3] Group 3: Fixed Income and Asset Allocation - The asset allocation outlook for 2026 suggests a shift from "sharpness" to a more balanced approach, with a focus on identifying more certain opportunities while mitigating tail risks [4] - Key drivers for the global manufacturing cycle include the AI technology revolution and the transition of China's economic drivers, with a continued emphasis on risk assets [4] Group 4: Home Appliances Sector - The home appliance sector has seen a cumulative increase of 7.7% from January to October 2025, with retail sales driven by subsidies but showing signs of weakening marginal growth [5] - Three major trends are identified: the resilience of leading white goods manufacturers, the strengthening of smart technology in appliances, and significant growth potential in emerging technologies like AI and robotics [5] Group 5: Energy Sector - The fourth-generation nuclear power technologies are expected to gain traction due to site restrictions and resource constraints, presenting investment opportunities in related industries [6] - The company is well-positioned to benefit from the ongoing demand for traditional power generation equipment and the anticipated growth in nuclear power projects [14] Group 6: Selected Companies - Gaode Infrared has been initiated with a "Buy" rating and a target price of 18.90 CNY, driven by expected growth in complete equipment orders [10] - Ying Tong Holdings, a leading high-end perfume brand manager, has been initiated with a "Buy" rating and a target price of 2.86 HKD, benefiting from the recovery in high-end consumption [10] - Harsco Electric is positioned to benefit from the normalization of third-generation nuclear approvals and the anticipated acceleration of fourth-generation nuclear development [14]