Haitong Securities International·2025-09-01 00:03Investment Focus - Amazon is the top pick due to its leading position in the cloud industry with a global market share of 30%, benefiting from scale effects and stable margin improvements [1] - Google is expected to improve its margins to over 20% by the end of the year, driven by AI and advertising, despite current stock price limitations [1] - Alibaba's cloud revenue reached 334 billion RMB in a single quarter, showcasing strong growth potential in the Chinese market [1] - Arista Networks is positioned to benefit from AI capital expenditures, with expected revenue contribution of at least $750 million from its AI backend switch business in 2025 [1] - Meta is increasing its revenue guidance for Q3 to $47.5-50.5 billion, driven by AI marketing and user growth [1] Semiconductor and Memory - SK Hynix is favored due to recovering downstream inventory and a projected doubling of HBM sales this year, with a target price of KRW 280,555 [2] - Cadence has seen strong growth across its core business lines, with over 50% of advanced node designs adopting its technology [2] - Celestica is expanding its market share in the 400G/800G segment, with a revenue forecast of $11.55 billion for the year [2] - Broadcom is expected to exceed $20.5 billion in ASIC revenue in 2026, driven by new customer acquisitions [2] - AMD is projected to see a higher gross margin from its high-end products, with a target price of $188.77 based on a 28x FY26 EPS [2] Internet and Services - Tencent is recommended for its strong revenue growth and new business opportunities, with a target price increase to $700 [3] - Tencent Music is experiencing growth in non-subscription revenue, which is becoming a new growth driver [3] - New Oriental is positioned well with a diversified income source and high brand recognition, leading to a target price of $74 [4] - JD Health is benefiting from the rapid growth of online drug purchasing and prescription outflow trends, with a recommendation for continued investment [7] Healthcare and Pharmaceuticals - Keren Biotechnology is expected to achieve peak overseas sales of $15-20 billion, with a strong pipeline and cash reserves of over $2 billion [6] - Innovent Biologics is projected to reach a domestic revenue target of 20 billion RMB by 2027, supported by its ADC platforms [6] - WuXi AppTec has raised its revenue growth guidance for 2025 to 13-17%, with a projected adjusted profit of 13.2 billion RMB [7] - Hansoh Pharmaceutical is expected to see significant revenue growth from its innovative drugs, with a focus on international expansion [5]