28 June 2025 | 2:27PM HKT The PBOC held its Q2 MPC meeting on June 23rd and the statement was released on June 27th. Consistent with the Q1 monetary policy report, the PBOC maintained an easing bias but adopted a less dovish tone than in the Q1 MPC meeting minutes. The central bank assessed that the Chinese economy shows positive momentum with sustained sentiment improvement. Emphasizing the execution of existing policies, particularly targeted easing, signals limited appetite for significant easing in the ...

27 June 2025 | 4:44PM EDT US Weekly Kickstart Look for early impact of tariffs during 2Q 2025 earnings season David J. Kostin +1(212)902-6781 | david.kostin@gs.com Goldman Sachs & Co. LLC Ben Snider +1(212)357-1744 | ben.snider@gs.com Goldman Sachs & Co. LLC Ryan Hammond +1(212)902-5625 | ryan.hammond@gs.com Goldman Sachs & Co. LLC Jenny Ma +1(212)357-5775 | jenny.ma@gs.com Goldman Sachs & Co. LLC Daniel Chavez +1(212)357-7657 | daniel.chavez@gs.com Goldman Sachs & Co. LLC Kartik Jayachandran +1(212)855-774 ...

Investment Rating - The report assigns a "Buy" rating for Xiaomi Corp. (1810.HK) with a 12-month target price of HK$69.00, representing an upside of 21.3% from the current price of HK$56.90 [1]. Core Insights - The launch of the YU7, a premium electric SUV, exceeded market expectations with 289,000 orders within the first hour, indicating strong consumer demand and solidifying Xiaomi's leadership in the premium auto market in China [1][2]. - The YU7 series is positioned to compete effectively against top premium SUVs like the Tesla Model Y, offering superior size, performance, and range [2]. - Xiaomi is expanding its ecosystem with the introduction of AI Glasses, aiming to capture a significant share of the smart glasses market in China [16]. Financial Projections - Revenue forecasts for Xiaomi are projected to grow significantly, with expected revenues of Rmb365.9 billion in 2024, Rmb481.1 billion in 2025, Rmb624.6 billion in 2026, and Rmb746.4 billion in 2027 [4][14]. - Adjusted net profit estimates for 2025-2027 have been raised by 1-4% due to stronger operating leverage from the EV segment [18]. - The report anticipates a compound annual growth rate (CAGR) of 27% for revenue and 40% for net profit from 2024 to 2027 [18]. Product and Market Positioning - The YU7 is priced competitively at Rmb253.5k for the standard version, Rmb279.9k for the Pro, and Rmb329.9k for the Max, aligning with market expectations and enhancing its competitive edge [2]. - The YU7 series features advanced technology, including an 800V platform and a long-range battery, with the standard version offering an exceptional 835 km range [29][31]. - Xiaomi's strategy includes partnerships with major automotive players to enhance its Human x Car x Home ecosystem, further strengthening brand appeal [32]. Valuation Metrics - The report provides a valuation based on a sum-of-the-parts (SOTP) approach, with a target price of HK$69, reflecting higher valuations attributed to the EV and new initiatives segment [19][26]. - Key financial ratios include a projected P/E of 16.6 for 2024, increasing to 32.5 in 2025, and a P/B of 2.4 in 2024, indicating a strong growth outlook [10]. Market Performance - Xiaomi's stock has shown significant price performance, with an absolute increase of 219.3% over the past 12 months, outperforming the Hang Seng Index [12]. - The YU7's successful launch and the ongoing demand for the SU7 have positioned Xiaomi as a leading player in the premium automotive segment in China [38].

23 June 2025 | 4:55PM IST India CRO/CDMO tour takeaways: Signs of China+1 progressing well, focus on investments in new modalities We hosted our 2nd annual India CRO/CDMO trip between 16th and 18th June, 2025 across Bangalore (1 day) and Hyderabad (2 days). The event featured 10 CRO/CDMO companies in the country across the listed and unlisted space. We saw high client interest with 20+ clients across the globe (US, mainland China, HK, Taiwan, India) flying down to attend the meetings. Exhibit 1: We hosted m ...

25 June 2025 | 5:01PM EDT What's Top of Mind in Macro Research: Middle East risks, US soft data signals, CNY appreciation This week: Transcript Middle East reprieve, but risks remain Beyond the energy impacts, renewed escalation could also activate Dollar safe-haven flows, as initially occurred in response to the recent developments, though we ultimately expect the Dollar to continue weakening against a broad range of currencies as investors reassess US assets' relative return prospects. As such, the Dollar ...

26 June 2025 | 12:32AM HKT 3SBio Inc. (1530.HK): China Healthcare Corporate Day 2025 — Key Takeaways: Prioritize licensing-out after landmark deal with Pfizer Presenters: Tony He - CFO Bottom line: management noted smooth execution on the SSGJ-707 deal while the initiation of global clinical trials needs to wait after deal closing. Assets with potential out-licensing opportunities include TL1A, BDCA2, multiple early-stage antibodies (dual-target or triple-target), and a pre-clinical candidate for weigh loss ...

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - China's property sector is experiencing renewed weakness in prices and activity, with property new starts down approximately 75% from their peak and property sales down 50% as of May 2025 [5] - Historical benchmarks indicate that housing busts typically involve a median price correction of around 30% over six years, with significant GDP growth deceleration and deflationary pressures following such downturns [4][10] - China's unique trajectory during this downturn includes substantial government-led investment in infrastructure and manufacturing, which has offset declines in residential investment [4][20] Summary by Sections Housing Bust Definition and Historical Context - Housing busts are defined as real price declines exceeding 20% from cyclical peaks, with 21 episodes identified across 15 economies since the 1960s [4][8] - The median duration of these busts is around six years, with a typical price decline of approximately 30% [10][12] China's Current Situation - China's real house prices have declined by 20% from the peak in Q4 2021 through Q4 2024, with projections indicating a potential further decline of 10% before stabilizing around 2027 [11][49] - The downturn coincided with Covid lockdowns and a subsequent reopening, complicating the growth patterns [4][5] Economic Implications - Real GDP growth typically declines by about 5 percentage points within the first two years of a housing bust, with non-residential investment being the largest growth drag [20][24] - In China, the share of residential investment in GDP has collapsed, while non-residential investment has rebounded due to government efforts [25][26] Trade and Policy Responses - Net exports as a share of GDP generally rise by 2-3 percentage points post-peak, driven by weaker imports and stronger exports, a trend currently observed in China [32][50] - China's policy response has been more measured compared to global norms, with a cautious approach to monetary and fiscal easing [36][41] Lessons from Historical Episodes - Historical evidence suggests that it may take years for housing busts to find a bottom, with the potential for further price corrections in China [49] - The report emphasizes the need for additional policy easing to prevent entrenched demand weakness, highlighting the constraints faced by Chinese policymakers [52]

25 June 2025 | 10:06PM HKT InnoCare Pharma (9969.HK): China Healthcare Corporate Day 2025 — Key Takeaways: Target one major BD deal in 2H25 Presenters: Bonnie Yuan - Investor Relations Director Honglin Yan +852-2978-6666 | honglin.yan@gs.com Goldman Sachs (Asia) L.L.C. c45a43530f604d12bcb9a82b5aa6b9f6 Goldman Sachs InnoCare Pharma (9969.HK) Bottom line: management noted on-track commercial progress in 2Q and guided one major BD deal in 2H25. We expect potential licensing-out opportunities to come from two T ...

25 June 2025 | 5:00AM BST Global Strategy Views Diversify to Amplify; Part 2 1. For much of the post financial crisis era, diversification has not been an effective strategy. As an asset allocator, a simple US based 60/40 approach would have generated unusually high risk adjusted returns without the need to add additional assets. Within equities, the sustained outperformance of the US, mega-cap growth and technology meant that global investors would have reduced risk adjusted returns as a result of broad se ...

26 June 2025 | 12:29AM SGT Base Metals Analyst Copper: Raising Our 2H 2025 Price Forecast As Tariff-Driven Fears Of Ex-US Shortage Mount Copper: Raising Our 2H 2025 Price Forecast As Tariff-Driven Fears Of Ex-US Shortage Mount The ongoing US Section 232 copper investigation has continued to cause significant dislocation between LME (UK) and COMEX (US) copper prices. Significant over-imports of copper into the US have caused fears of a shortage in the rest of world, despite the global market being in surplus ...