Investment Rating - The report suggests a broad theme of USD weakness and recommends various trade ideas focused on Asian currencies and rates [2][4][8]. Core Insights - The report emphasizes that the pressure on Asian FX currencies has diminished, allowing for a more favorable environment for receiving Asia rates [2][4]. - It highlights that higher US rates do not necessarily lead to weaker emerging market assets in the context of ongoing de-dollarization [2]. - The report anticipates a further decline in the RMB CFETS index in line with a weaker DXY [8]. Trade Ideas - Short the RMB CFETS index while buying 6-month USDJPY options with a strike of 135, EURUSD options above 1.16, and USDCNH options above 7.0, with a target return of approximately 9% [4]. - Buy 1-month USDKRW 1350-1300-1250 put fly options at around 60 basis points, with a maximum leverage of 6.4x [4]. - Buy 3-month USDTWD 28 binary puts while selling 3-month USDTWD 30.2 binary calls at zero cost [5]. - Short 1-month USDMYR with a preferred entry at 4.25, targeting a move to 4.0 with a stop loss above 4.30 [5][6]. Rates Strategies - Buy KTB 2 ⅝ 03/10/27 Corp bonds with a preferred entry at 2.35%, hedged with a 1-month FX swap for yield enhancement [7]. - Receive 2-year CNY NDIRS at 1.49%, targeting a move to 1.2% with a stop loss above 1.65% [7]. - Receive 1-year HKD IRS at 2.7%, targeting a move to 2.4% with a stop loss above 2.85% [7]. - Long 5-year IndoGB (FR104) at 6.42%, with an extended target of 6.2% and a tightened stop loss at 6.55% [7].

Investment Rating - The report maintains a "Buy" rating for Aurobindo Pharma (ARBN.BO) with a 12-month target price of ₹1275.00, indicating a potential upside of approximately 7.1% from the current price of ₹1190.95 [1][2][9]. Core Insights - Aurobindo's Q4 FY25 performance met expectations, with revenue and EBITDA growing approximately 11% and 6% year-over-year, driven by strong growth in the US and EU markets, despite the impact from gRevlimid [1][19]. - The company anticipates achieving high single-digit revenue growth (excluding Revlimid) in FY26, supported by multiple drivers including sustained momentum in the US market and a full recovery in Eugia, aiming for a stable revenue run-rate of $150 million per quarter [1][23]. - The report notes a decline in EBITDA margin to 21.4%, down 62 basis points year-over-year, influenced by a decrease in gross margin and increased operating expenses [1][3]. Financial Performance Summary - Q4 FY25 revenue was ₹83,821 million, reflecting an 11% year-over-year increase, while EBITDA was ₹17,919 million, with a margin of 21.4% [3][25]. - The net profit for Q4 FY25 was ₹9,035 million, down 8% compared to the previous year, with a net profit margin of 10.8% [3][25]. - The report projects revenue growth for FY26 to be driven by new product launches and operationalization of new plants in various regions [1][22][23]. Earnings Forecast Adjustments - The earnings per share (EPS) forecasts for FY26 to FY28 have been revised down by 7-13% to reflect recent performance data and comments from the earnings call [2][27]. - The target price adjustment from ₹1,300 to ₹1,275 is based on a sum-of-the-parts (SOTP) valuation, implying a target P/E ratio of approximately 18.5 times [2][27]. Market and Product Developments - Aurobindo's revenue from the US reached $470 million, with a year-over-year growth of 9%, attributed to strong performance in core business and new product launches [19][20]. - The company has signed a licensing agreement with a global pharmaceutical giant for developing respiratory products, indicating strategic partnerships to enhance product offerings [20][21]. - Aurobindo has a pipeline of 9 biosimilars, with several products in various stages of approval and clinical trials, indicating a robust future growth potential in the biosimilars market [21].

Investment Rating - The report maintains a neutral rating for Fuji Electric [1][15][16] Core Insights - Fuji Electric has growth potential in its data center UPS business and smart meters in the Indian market, but these segments are not large enough to significantly impact overall earnings [1] - The company is adjusting its capital expenditure budget to ensure profitability, but faces challenges in achieving long-term sales growth due to market conditions and competition [1][15] - The operating profit margin guidance for FY3/26 is set at 12.4%, an increase from 10.2% in FY3/25, with a target of 140% growth in energy management orders [3][15] Summary by Relevant Sections Energy Sector - Orders and sales for IDC power and facility systems are expected to grow by 480% and 350% respectively by FY2026 compared to FY2020 [2] - Fuji Electric plans to increase capital expenditure in the energy sector by 46 billion yen in FY2026 to expand production facilities for power transformers and switchgear [2] Semiconductor Sector - The company plans to increase the production capacity of its 6-inch silicon carbide wafers by 2.5 times at its Sapporo plant and by 30% for industrial IGBT modules at its Shenzhen plant [9] - Due to intensified price competition, Fuji Electric aims for an operating profit margin of approximately 15% in the future [10] Automotive Applications - Fuji Electric is launching micro RC-IGBT modules for micro and compact vehicles, with mass production of a 600A product starting in April 2025 [11] - The company expects to see growth in its automotive applications starting from FY3/28, although it remains pessimistic about recovery in FY3/27 [12] Industrial Applications - New IGBT and SiC products for renewable energy applications are in development, with the eighth generation IGBT expected to reduce generation losses by over 15% [13] Food and Beverage Distribution - Growth areas identified include automation in fresh food sales in Japan and increased demand for vending machines due to regulatory changes [14]

Investment Rating - The report maintains a Neutral rating on Starpower, indicating a cautious outlook on its near-term operations due to pricing pressure and competition [2][16]. Core Insights - The demand for power semiconductors is recovering, with NCE Power's management expressing optimism about sales growth in 2025, driven by improving inventory and foundry utilization rates [4][7]. - NCE Power is expanding into higher-end applications, particularly in the automotive sector, focusing on 800V and 48V EV platforms, as well as emerging markets like drones, eVTOL, and AI computing [8] Summary by Sections Demand Outlook - NCE Power sees a positive demand recovery outlook for power semiconductors this year, with increasing demand from most end markets [1][4]. - Management reports that inventory levels are improving and foundries are nearing full capacity utilization [4][7]. Competitive Landscape - Despite the recovery in demand, NCE Power faces significant competition from both domestic and international peers, along with tariff uncertainties that could impact future demand [1][7]. Strategic Expansion - To mitigate competitive risks, NCE Power is focusing on expanding into broader and higher-end applications, particularly in automotive electronics and AI computing [1][8]. - The company aims to accelerate product adoption in the automotive sector and explore growth potential in industrial control applications [8].

Investment Rating - The report maintains a "Buy" rating for AMEC, with a 12-month price target of Rmb275, indicating an upside potential of 58.8% from the current price of Rmb173.13 [12]. Core Insights - AMEC is positioned as a key supplier in the semiconductor equipment industry, focusing on etching and metal-organic chemical vapor deposition (MOCVD) equipment. The company is expanding its product lineup to include advanced etchers and deposition tools, which are expected to drive growth [9][10]. - The management is optimistic about the growth in China's semiconductor equipment demand and plans to continue investing in R&D and capacity expansions to leverage market opportunities [1][9]. Summary by Sections R&D and Product Expansion - AMEC is committed to continuous R&D spending, focusing on product expansions in etching, deposition, EPI, and advanced packaging tools. The CCP etcher's aspect ratio has improved from 60:1 to 90:1, and the company has over 40 deposition tools in the R&D pipeline [2][8]. Employee Efficiency - The total number of employees has increased by an average of 22% year-over-year since 2016, reaching 2,480 by 2024. The average sales per employee have exceeded Rmb4 million, up from Rmb3.5 million in 2022, indicating improved operational efficiency [3][4]. Capacity Expansion - AMEC's factory size was 348,000 square meters in 2024, expected to grow to 453,000 square meters in 2025 with the new headquarters. By 2028, the company anticipates reaching over 750,000 square meters of total factory space, significantly expanding its production capabilities [4][8]. Market Position and Valuation - AMEC is trading below its historical average 12-month forward P/E ratio, suggesting an attractive valuation. The company is expected to benefit from ongoing capacity expansions and the growing adoption of domestic semiconductor equipment [9][10].

Investment Rating - The report does not provide a specific investment rating for Minieye (2431.HK) as it is categorized as Not Covered [1]. Core Insights - Minieye is focused on upgrading its smart driving solutions, particularly enhancing the driver experience through the transition from cruise control to highway and urban NOA (Navigate on Autopilot) features [1][8]. - The company offers a full-stack solution that includes algorithms, software, domain controllers, and validation services, which enhances operational efficiency and meets diverse client demands [7][8]. - Minieye's key OEM clients include notable names such as Chery, NIO, Geely, SAIC, and ChangAn, indicating a strong market presence [3]. Summary by Sections Competitive Edges - Minieye's management emphasizes its capability to provide a comprehensive solution across core algorithms, software, and services, which allows for more efficient enhancements to their offerings [7]. - The company operates production sites in Guangzhou and Shenzhen, leveraging an end-to-end AI model to optimize algorithms for better behavior prediction and customized in-cabin services [7]. Product Offerings - The company has successfully delivered integrated highway NOA solutions and is targeting the expansion into urban NOA solutions [8]. - In addition to NOA, Minieye provides features such as Home Automated Valet Parking (HAVP), Driver Monitoring System (DMS), and Auto Parking Assist (APA), tailored to the needs of various vehicle models [8]. Market Trends - The report highlights a positive outlook on the increasing technology dollar content in vehicles, driven by trends in Advanced Driver Assistance Systems (ADAS) and autonomous driving (AD) in China [2]. - Horizon Robotics, a related company, is expected to see significant revenue growth due to the demand for high computing power chips, which aligns with the broader market trends in smart driving technology [2].

Investment Rating - The report assigns a "Buy" rating for PDD Holdings (PDD) [1] Core Insights - The report highlights a profit miss in 1Q25 due to increased user and merchant investments, despite a healthy online marketing revenue growth of 15%, which outperformed domestic peers [1][20] - The domestic platform's GMV profit margin decreased to 1.9% in 1Q25 from 2.6% in 4Q24, influenced by a Rmb100 billion three-year support plan for users and merchants [2][20] - The revised net profit forecasts for 2025E, 2026E, and 2027E are adjusted downwards by -24%, -13%, and -8% respectively, reflecting the company's commitment to reinvest in its ecosystem [2][22] - The target price is revised to US$131 from US$152, indicating a favorable risk-reward scenario at 11X 2025E and 8X 2026E P/Es compared to the median of 17X/15X for China Internet coverage [2][22] Summary by Sections Financial Performance - Online marketing revenue growth of 15% indicates continued market share gains, outperforming competitors like Kuaishou and Alibaba [20] - The report anticipates online marketing services revenue growth of 14% for 2Q25 and FY25E, driven by domestic GMV growth of 16% [20] - The company's significant ecosystem investments are attributed to one-time costs related to a trade-in program and a commitment to support SMEs [20] Profitability Outlook - The report expects domestic main platform EBIT to decline by 20% this year due to reinvestments in the ecosystem [20] - The overall adjusted net profit estimates for FY25E and FY26E are Rmb96 billion and Rmb140 billion, reflecting -22% and +46% year-over-year growth respectively [22] Valuation Metrics - The revised 12-month target price is US$131, with a focus on valuation re-rating potential as earnings growth is expected to improve in 2H25 [2][22] - The report notes that the current market cap implies no valuation ascribed to Temu, indicating potential upside as concerns around geopolitical impacts lessen [2][22]

Investment Rating - The report does not provide a specific investment rating for Transwarp (688031.SS) as it is categorized as Not Covered [3]. Core Insights - Transwarp is expanding from big data software to AI infrastructure, focusing on enterprise clients with its foundation model solutions [1][3]. - The company has developed an in-house AI model named "Transwarp Infinity Intelligence," which boasts high accuracy and precise question-answering capabilities [4][7]. - There is a growing trend among enterprises to allocate more spending towards AI models and applications that promise accurate results and higher ROI [2]. Company Profile - In 2024, 55% of Transwarp's total revenues came from basic data software, followed by technology services at 22% and data applications at 20% [3]. - The revenue breakdown by client sector in 2024 shows that 40% came from finance enterprises, 29% from government, 9% from telecom, 7% from energy, and 3% from manufacturing [3]. Key Takeaways - Transwarp launched the integrated DeepSeek foundation model solution (TxData-LM) in 1Q25, which integrates a 671 billion parameter AI model for various applications [8]. - The company aims to assist clients in model training, knowledge base integration, and AI application development across multiple industries, including finance, manufacturing, energy, and government [8].

Investment Ratings - AMEC: Buy, Rmb173.13 [40] - ASMPT: Neutral, HK$52.35 [40] - EHang: Buy, $16.96 [40] - Horizon Robotics: Buy, HK$7.92 [40] - Huaqin Technology: Buy, Rmb66.75 [40] - Kingsoft Office: Buy, Rmb278.50 [40] - Lingyi: Buy, Rmb7.98 [40] - Maxscend: Neutral, Rmb70.46 [40] - SICC: Buy, Rmb61.45 [40] - StarPower: Neutral, Rmb80.89 [40] - Sunny Optical: Neutral, HK$60.95 [40] - VeriSilicon: Buy, Rmb83.27 [40] Core Insights - The report highlights the rising demand for AI inferencing driven by enhanced foundation models and the localization of semiconductor technologies in China [1][2] - There is a focus on the commercialization of Robotaxi and smart driving features, alongside the expansion of AI applications for both consumer and business markets [1][2] - The semiconductor industry is expected to see continuous R&D investment and capacity expansion despite geopolitical uncertainties [2][9] Summary by Sections Semiconductors - VeriSilicon is expanding into GPU IP and AI IP to meet the growing demand for AI devices, supported by private placement funding [3] - AMEC anticipates stable growth opportunities due to local production needs and plans to expand its addressable market through product migrations [9] - SICC expects increased demand for SiC substrates driven by the launch of more 800V EVs and fast charging requirements [11] AI Server, Smartphones, PC Supply Chain - Huaqin anticipates double-digit revenue growth in 2025, driven by its data center and consumer electronics businesses [19] - Lingyi is optimistic about growth in foldable phone components and cooling components for AI servers [18] - Sunny Optical is focusing on high-end projects and expects growth in vehicle lens shipments due to smart driving features [17] Robotaxi, Smart Driving, and eVTOL - Horizon Robotics plans to mass-produce its HSD system in 2025, supporting city NOA features and demonstrating strong partnerships with car OEMs [22] - EHang is accelerating deliveries of its EH216-S model, with plans to expand into urban sightseeing and Air Taxi services [24] - ECARX reported a 30% YoY revenue increase in 1Q25, driven by strong demand for its computing platforms [25] AI Software - Kingsoft Office is enhancing its AI capabilities to support enterprise clients and expand its user base [28] - Meitu is focusing on AI productivity tools to improve content generation efficiency [29] - Sensetime is optimistic about the generative AI trend and has launched a new foundation model with competitive features [30]

Investment Rating - The report maintains a "Buy" rating for Kuaishou Technology with a revised 12-month price target of HK$63.00, indicating an upside potential of 29.2% from the current price of HK$48.75 [1]. Core Insights - Kuaishou reported in-line results for 1Q25 and maintained its FY25 guidance on advertising, eCommerce, and profitability, with a positive outlook on growth momentum for the remainder of the year [1][19]. - The advertising momentum is expected to improve, with management targeting a 12% year-on-year growth in 2Q25 and further acceleration anticipated in the second half of the year [2][34]. - The eCommerce segment is projected to achieve 13-15% year-on-year GMV growth, supported by stable livestreaming and a focus on enhancing merchant ROI through AI tools [3][37]. - The Kling monetization outlook has been raised significantly, with FY25 revenue expectations increased to US$100 million, reflecting a rapid expansion of paying users [4][22]. Summary by Sections Advertising - Management anticipates a 12% year-on-year growth in advertising for 2Q25, with expectations for high-teens growth in the second half of the year driven by contributions from mini-games and local services [34]. - The advertising target for FY25 remains unchanged at approximately 14% year-on-year growth [34]. eCommerce - Kuaishou aims for 13-14% year-on-year GMV growth in 2Q25, with a stable overall take rate of around 4% for 2025 [37]. - The company plans to start monetizing pan-shelf based eCommerce traffic to improve the take rate from nearly 0% to approximately 1-2% in the second half of 2025 [38]. Kling AI - The revenue outlook for Kling AI has been raised to US$100 million for FY25, driven by a growing base of paying users and enhanced marketing efforts [4][22]. - The revenue mix indicates that 70% of Kling AI revenue comes from subscriptions, primarily from professional content creators, while 30% is derived from API calling revenue [23]. Financial Projections - Revenue estimates for 2025-2027 have been fine-tuned upwards by 0.7% to 1.1%, reflecting better-than-expected performance in livestreaming and other services [19][21]. - The projected total revenue for 2025 is Rmb 140,739 million, with net income expected to be Rmb 19,104 million [17][21].