Investment Rating - The report indicates that mutual funds ended 1Q25 approximately 175 basis points overweight in the Financials sector, although this is a decrease of about 45 basis points quarter-over-quarter [2]. Core Insights - The reduction in overweight positioning may reflect the impact of tariffs on the broader economic outlook affecting financials and a pushback in capital markets activity [2]. - The Insurance subsector remains an overweight that grew over 1Q25, while Capital Markets exposure was reduced during the same period [2]. - Exposure to Insurance increased quarter-over-quarter by 7 basis points, while exposure to Capital Markets decreased by 14 basis points [2]. - The report suggests that while this positioning may not directly reflect the Australian market, it serves as a useful proxy for investor sentiment towards the insurance and diversified financials sector, particularly in the US market [2]. Summary by Sections - **Mutual Fund Positioning**: Mutual funds had the most overweight exposure to Insurance, which grew over 1Q25, while Capital Markets exposure was reduced [4][8]. - **Sector Analysis**: The report notes that investors remain favorably positioned towards insurers, which appears to be more General Insurance (GI) weighted, relevant to companies like SUN, IAG, QBE, SDF, and AUB within the coverage [2]. - **Market Trends**: The data reflects positioning as of the end of March 2025, with the possibility of changes since then [2].

Investment Rating - The report does not explicitly state an overall investment rating for the luxury goods industry, but it indicates a preference for companies with high-end exposure and diversified large/mid caps with margin defensiveness, while remaining cautious on turnaround stories in a tough industry backdrop [7]. Core Insights - The luxury goods market is experiencing price increases across various brands, particularly in the US, as companies aim to offset inflation and tariffs. Brands such as Louis Vuitton, Moncler, Burberry, and Hermès have implemented notable price hikes [2][7]. - The pricing tracker indicates that overall price gaps across regions have decreased, with the US experiencing a tightening price gap with Europe despite recent price increases [3][5]. - China remains the most expensive market for luxury goods, with a premium of approximately 20-25% compared to Europe. However, there is ongoing softness in the luxury market in China, raising questions about consumer appetite [6][7]. Summary by Sections Pricing Trends - Several luxury brands have increased prices in the US, with notable increases from Louis Vuitton (+L-MSD), Moncler (+LSD), and Burberry (+HSD) [2]. - The current price increases are designed to offset a 10% level of additional tariffs, with potential for more global price increases if tariffs rise further [7]. Regional Analysis - The US has seen a recent weakening of the dollar, which has tightened the price gap with Europe, making luxury goods less attractive for American consumers traveling to Europe [3][5]. - Chinese consumers are showing strong demand for luxury goods, particularly in Japan, where spending nearly doubled year-on-year in FY24 [6]. Brand-Specific Observations - Moncler has the largest price gap between Europe and China at approximately 30%, but this gap has compressed significantly over the past decade [7]. - The report highlights that brands are likely to focus on narrowing the price gap between China and Europe, with Moncler seeing further opportunities to reduce this gap [7].

Investment Rating - The investment rating for the humanoid robotics industry is generally positive, with a focus on component stocks such as Sanhua (Buy), LeaderDrive (Neutral), and Best (Neutral) [30]. Core Insights - The humanoid robotics industry is progressing towards commercialization by integrating generalizable intelligence with practical applications, relying on four core technologies: algorithms, data, computing power, and hardware [5][19]. - The industry forecast anticipates shipments of 20,000 units in 2025 and 1.4 million global humanoid robot shipments by 2035 [30]. Summary by Sections Industry Overview - A recent field trip to humanoid robot companies in Beijing and Shenzhen highlighted a consensus on the need for robots to combine intelligence with practical applications [1]. - The focus is shifting towards developing the "brain" of humanoid robots, with significant investments in data factories to collect real-world interaction data [1][12]. Technology Development - The Vision-Language-Action (VLA) model is recognized as a feasible solution for humanoid robots, integrating vision and action to enhance task execution [6][7]. - High-quality real-world data is deemed critical for training models, with a requirement of approximately 10 million hours of data to achieve general-purpose autonomy [12][11]. Data Collection and Infrastructure - Companies are investing between US$100 million to US$200 million in data factories to support the extensive data collection needed for training [12]. - There is an ongoing debate regarding the effectiveness of different types of data (2-D video, teleoperational data, and simulation data) for training embodied AI systems [11]. Computing Power - Nvidia's Jetson Orin is currently the dominant computing platform, although local startups are exploring partnerships with Huawei to build domestic computing infrastructure [18]. Hardware Innovations - Dexterous hands are identified as a key focus for hardware improvement, essential for fine motion control and data collection [19]. - The humanoid robot pricing ranges from US$15,000 to US$100,000, with expectations of cost reductions through scale production and component optimization [23]. Practical Applications - Initial commercial opportunities are seen in industrial applications such as materials handling and sorting, while consumer applications are still considered distant due to regulatory hurdles [20][22]. - Companies report achieving up to 95% accuracy in materials handling tasks, with small-scale adoption expected to begin in 2025-2026 [20].

22 May 2025 | 9:10PM SGT Global Refining Fundamentals improving on supply delays, closures and crude outlook The refining setup is increasingly echoing the 2015-17 upcycle, with favorable feedstock dynamics (OPEC+ returning barrels, strong non-OPEC supply) combined with tightening global refining supply-demand. This time, the tightness is more supply driven. Our tracking shows several new refineries slated for 2025-27 are delayed, while fresh capacity closure announcements continue in developed markets. We ...

We hosted Meitu (1357.HK, Not Covered) CFO on May 21 at our TechNet Conference China 2025. Key discussions were around productivity tools growth, AI foundation model, and product line-up. Overall, management is positive on the expansion of AI productivity tools to improve efficiency and generate high-quality content (images, talking head videos etc.) within seconds. The number of subscribers continues to grow, and management see significant upside in the paying ratio vs. overseas AI productivity software. D ...

23 May 2025 | 2:03AM HKT Xiaomi Corp. (1810.HK): Released XRING flagship SoC and 4G baseband chip; Positive read from YU7 technology highlights; Buy On the 15th anniversary strategic product launch event on May 22, Xiaomi officially released XRING O1, Xiaomi's first self-designed 3nm flagship SoC (System-on-Chip) carried on its flagship Xiaomi 15S Pro smartphone model and premium Xiaomi Pad 7 Ultra tablet model, and XRING T1, Xiaomi's first self-designed 4G baseband processor carried on Xiaomi Watch S4 eSIM ...

Investment Rating - The report provides a mixed investment rating for various companies in the basic materials sector, with specific recommendations such as "Buy" for companies like Angang-H and Conch-H, while others like Maanshan-A and Chinacoal-H are rated as "Sell" [10]. Core Insights - The overall sentiment in the basic materials sector is that current demand is less concerning than previously anticipated, with a notable deceleration in local government special refinancing bond issuance impacting infrastructure recovery [1]. - Current Chinese demand for cement and construction steel is reported to be 12-14% lower year-on-year, while copper demand has increased by 9% [1]. - The downstream order book trend has remained mostly stable month-on-month, with 31% of respondents indicating a lower trend in May for basic materials [2][3]. Summary by Sections Downstream Demand Snapshots - Infrastructure recovery has paused due to a lack of funding for new projects, leading to weak cement shipments [1]. - The demand for construction materials is showing signs of weakness, particularly in cement and construction steel, while copper demand remains resilient [1]. Steel Production - Steel production cuts are in preparation, with a potential reduction in prices if these cuts are implemented [1]. - The report notes that rush orders following the reduction of US-China tariffs were limited, primarily driven by Southeast Asia [1]. Commodity Prices - The pricing for steel and cement has remained stable, while prices for aluminum and copper have improved, contrasting with the softening of coal and lithium prices [1]. Specific Company Insights - Angang-H is rated as "Buy" with a target price of CNY 2.40, indicating a potential upside of 45% [10]. - Conch-H is also rated as "Buy" with a target price of CNY 29.00, reflecting a 37% upside potential [10]. - Companies like Maanshan-A and Chinacoal-H are facing downward pressure, rated as "Sell" with target prices significantly lower than current prices [10].

22 May 2025 | 9:39PM JST Japan Economics Analyst Is China Exporting Deflation? (Ota) Tomohiro Ota +81(3)4587-9984 | tomohiro.ota@gs.com Goldman Sachs Japan Co., Ltd. +852-2978-1802 | andrew.tilton@gs.com Goldman Sachs (Asia) L.L.C. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to www.gs.com/research/hedge.html. c45a43530f604d12bcb9a82b5aa6b9f6 Akira Otani +81(3)45 ...

Investment Rating - The report maintains a "Buy" rating for Kingsoft Office with a 12-month target price of Rmb446, indicating an upside potential of 58.2% from the current price of Rmb282 [11]. Core Insights - Kingsoft Office is recognized as the largest domestic office productivity software provider in China, with its WPS software offering similar functionalities to Microsoft Office while providing additional services such as cloud storage and collaboration [8]. - The company is focusing on expanding its WPS AI user base, with Monthly Active Users (MAU) growing 8% year-over-year to 647 million by the end of Q1 2025, driven by the introduction of AI features [2][3]. - The WPS 365 platform for enterprise users has shown strong growth, achieving Rmb151 million in revenue for Q1 2025, a 63% year-over-year increase, supported by the adoption of State-Owned Enterprises (SOE) and other enterprises [3]. - Customized AI models have been launched for industry clients, significantly reducing hardware costs by 90% and improving paper writing quality by 72% [4][7]. Summary by Sections User Base Expansion - The MAU of WPS AI reached 19.7 million by the end of 2024, representing 3% of the total MAU, with management emphasizing efforts to enhance user engagement through features like a 7-day AI trial for new users [2]. WPS 365 Growth - The WPS 365 platform is highlighted for its comprehensive capabilities in office software, collaboration, and AI, providing a one-stop solution for enterprise users [3]. Customized AI Solutions - Kingsoft Office has developed customized AI models, including a government model with deep reasoning capabilities, which have led to significant cost reductions and quality improvements for clients [4][7]. Investment Thesis - The investment thesis is supported by expectations of increased Average Revenue Per User (ARPU) from the transition to a new membership system, subscription growth from enterprise clients, and long-term opportunities in AI [8].

Investment Rating - The report maintains a Buy rating for JD.com Inc. with a 12-month target price of US$50 and HK$194 for the Hong Kong listing, indicating an upside potential of 48.6% and 46.4% respectively [2][16]. Core Insights - JD.com is viewed as an underappreciated differentiated business within the Chinese internet sector, benefiting from domestic consumption policies and category expansion, which are expected to drive further valuation multiple expansion [2]. - The company anticipates sustained healthy growth momentum in JD Retail, expecting double-digit growth in both top line and profit, supported by enhanced procurement capabilities [1]. - The food delivery segment is seen as a synergistic extension of JD Retail, enhancing user engagement and attracting new customers while improving fulfillment efficiency [1][11]. Summary by Sections JD Retail Outlook - JD.com expects continued double-digit growth in JD Retail, driven by improved procurement capabilities and economies of scale [1]. - The company has observed healthy user retention and positive repeat purchase rates among early food delivery users [1]. Food Delivery Business - Food delivery is integrated into JD's broader retail strategy, enhancing user experience and increasing consumption frequency [1]. - The company aims to differentiate its food delivery service through quality offerings and lower merchant charges, while also focusing on user engagement and operational improvements [11]. Financial Projections - JD.com projects total revenue growth from Rmb1,158.8 billion in 2022 to Rmb1,484.2 billion by 2027, with a compound annual growth rate (CAGR) of approximately 6% [12]. - The gross profit margin is expected to stabilize around 16% over the forecast period, with net income projected to grow from Rmb44.7 billion in 2022 to Rmb58.7 billion by 2027 [12].