Investment Rating - The report maintains a "Buy" rating for the company with a target price of 26.50 HKD [4][5] Core Insights - The company reported a revenue of 4.4 billion RMB in Q1 2025, representing a year-over-year increase of 13.2%, which aligns with market expectations. Adjusted net profit reached 790 million RMB, exceeding expectations by 8% due to better-than-expected product gross margins driven by refined operational subsidies [1][2] - The company is focusing on enhancing user value and operational efficiency, with a 9.2% year-over-year increase in average monthly paying users in Q1. Additionally, the acquisition of Wanda Hotel Management Company aims to strengthen the company's position in the hotel management sector as a second growth avenue [1][2] - The resilience of domestic tourism demand is expected to support the company's long-term revenue growth and profit release through user value extraction and industry chain integration [1] Revenue and Profitability - The company's Q1 2025 gross profit was 3 billion RMB, a year-over-year increase of 19.8%, with a gross margin of 68.8%, surpassing expectations by 3 percentage points. Operating profit for the quarter was 820 million RMB, reflecting a year-over-year increase of 79.6% [2] - The core OTA business's operating profit exceeded expectations by 1.5%, while the vacation business outperformed expectations by 39.5% [2] Financial Forecast and Valuation - The company is projected to generate revenues of 19.5 billion RMB, 22.2 billion RMB, and 24.9 billion RMB for the years 2025, 2026, and 2027, respectively. Adjusted net profits are expected to be 3.4 billion RMB, 4.1 billion RMB, and 4.8 billion RMB for the same years [3] - The report assigns a price-to-earnings (PE) ratio of 17 for 2025, leading to a target price of 26.5 HKD based on the adjusted net profit forecast [3][9]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 47.00 [8] Core Insights - The company reported a Q1 revenue increase of 18.9% to RMB 4.43 billion, exceeding previous guidance of 15-18%, driven by domestic channel upgrades and inventory optimization [1] - Adjusted net profit decreased by 4.8% to RMB 590 million due to significant investments in direct stores and increased financial expenses [1] - The company is transitioning from an aggressive expansion strategy to a more refined operational approach, focusing on profitability stabilization and global business expansion [1][4] Revenue Performance - Domestic revenue for Miniso increased by 9.1%, with offline and online sales growing by 7.3% and 32.7% respectively [2] - Overseas revenue surged by 30.3%, with 95 new stores opened during the quarter, particularly in North America [2] - TopToy's revenue grew by 58.9% to RMB 340 million, with self-developed products accounting for over 40% of sales [2] Profitability Metrics - Gross margin improved by 0.8 percentage points to 44.2%, although it decreased by 2.8 percentage points quarter-on-quarter due to seasonal effects [3] - Selling and administrative expense ratios increased by 4.4 percentage points and 0.3 percentage points to 23.1% and 5.5% respectively, primarily due to investments in direct stores [3] - Adjusted net profit margin fell by 3.3 percentage points to 13.3% [3] Strategic Focus - The company is emphasizing "high-quality growth" by enhancing store competitiveness and optimizing inventory turnover [4] - In the domestic market, the focus is on same-store sales improvement, while overseas operations are concentrating on localization and efficiency [4] - The local procurement ratio in the U.S. has reached nearly 40% to mitigate tariff risks [4] Earnings Forecast and Valuation - Adjusted net profit forecasts for 2025-2027 have been revised down by 7.1%, 9.0%, and 9.0% to RMB 2.99 billion, RMB 3.73 billion, and RMB 4.57 billion respectively [5] - The target price is based on a 2025 PE ratio of 18x, reflecting increased uncertainty in overseas expansion [5] - The company is expected to maintain a competitive PE ratio compared to peers, with a projected PE of 29x for comparable companies [5][19]

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company's core business is experiencing rapid growth, with a significant increase in profit margins. The revenue for Q1 2025 reached 4.38 billion RMB, representing a year-on-year growth of 13%. The adjusted net profit was 790 million RMB, up 41% year-on-year, exceeding the guidance range [7] - The Core-OTA segment's revenue grew by 18% year-on-year to 3.79 billion RMB, driven by strong performance in transportation ticketing and accommodation bookings, which saw revenues of 2.00 billion RMB and 1.19 billion RMB, respectively [7] - Gross margin improved to 68.7%, up 3.7 percentage points year-on-year, primarily due to the rapid growth of the Core-OTA segment and a decrease in the proportion of lower-margin vacation business [7] - The company has adjusted its profit forecasts upward due to the acquisition of Wanda Hotel Management, expecting net profits of 2.50 billion RMB, 3.01 billion RMB, and 3.52 billion RMB for 2025, 2026, and 2027, respectively [7] Financial Summary - Total revenue projections are 11.896 billion RMB for 2023, 17.341 billion RMB for 2024, and 19.805 billion RMB for 2025, with year-on-year growth rates of 80.67%, 45.77%, and 14.21% respectively [1] - The net profit attributable to shareholders is forecasted to be 1.554 billion RMB for 2023, 1.974 billion RMB for 2024, and 2.504 billion RMB for 2025, with year-on-year growth rates of 1,164.41%, 27.04%, and 26.80% respectively [1] - The latest diluted EPS is projected to be 0.67 RMB for 2023, 0.85 RMB for 2024, and 1.07 RMB for 2025, with corresponding P/E ratios of 28.28, 22.26, and 17.56 [1]

Investment Rating - The investment rating for Baidu Group is "Buy" (maintained) [1] Core Views - The report highlights that the short-term impact of AI transformation on the ecosystem significantly affects advertising revenue, while the cloud business shows positive trends [1] - The company's core revenue for Q1 2025 reached RMB 25.5 billion, a year-on-year increase of 7%, exceeding Bloomberg consensus expectations [8] - Non-GAAP net profit for Q1 2025 was RMB 6.469 billion, also better than market expectations [8] - The report emphasizes the potential of AI tools to enhance advertising efficiency and the ongoing transformation of Baidu's application ecosystem [8] Summary by Sections Financial Performance - Total revenue for 2023 was RMB 134.598 billion, with a year-on-year growth of 8.83% [1] - The forecast for 2025 estimates total revenue at RMB 134.638 billion, reflecting a slight increase of 1.14% [1] - Non-GAAP net profit for 2023 was RMB 28.747 billion, with a year-on-year growth of 39.01% [1] - The forecast for 2025 estimates Non-GAAP net profit at RMB 23.046 billion, a decrease of 14.65% [1] Business Segments - Advertising business: Online marketing revenue for Q1 2025 was RMB 16 billion, a year-on-year decrease of 6% [8] - Cloud business: Revenue grew by 42% year-on-year in Q1 2025, driven by increased demand for AI cloud services [8] - Autonomous driving business: The number of orders for the "萝卜快跑" service exceeded 1.4 million, a year-on-year increase of 75% [8] Market Position and Strategy - The report notes that Baidu has repurchased shares worth over USD 4.45 billion since Q1 2025, reflecting a commitment to shareholder returns [8] - The company is focusing on enhancing operational efficiency and user experience in its autonomous driving segment to reduce losses [8] - The report adjusts the Non-GAAP net profit forecast for 2025-2027 downwards due to uncertainties in the search business competition [8]

Investment Rating - The report maintains a "Buy-A" rating for MINISO (09896.HK) [4][10] Core Views - MINISO's domestic same-store sales are showing improvement, and direct store revenue is growing rapidly. The company reported Q1 2025 revenue of 4.427 billion yuan, a year-on-year increase of 18.9%, while adjusted net profit was 588 million yuan, a decrease of 4.8% year-on-year [4][6][10] Summary by Sections Market Performance - As of May 23, 2025, the closing price was HKD 42.25, with a year-to-date high of HKD 55.00 and a low of HKD 20.00. The total market capitalization was HKD 52.869 billion [3]. Financial Performance - In Q1 2025, MINISO achieved revenue of 4.427 billion yuan, up 18.9% year-on-year, with an average store count increase of 16.5% [6]. The adjusted net profit was 588 million yuan, down 4.8% year-on-year, primarily due to increased sales and distribution expenses [6][8]. Business Segments - Domestic revenue for MINISO China in Q1 2025 was 2.494 billion yuan, a 9.1% increase year-on-year, while overseas revenue reached 1.592 billion yuan, a 30.3% increase year-on-year. The average store count in overseas markets grew by 24.6% [7][10]. Profitability Metrics - The gross margin for Q1 2025 was 44.2%, an increase of 0.8 percentage points year-on-year. The sales and distribution expense ratio rose to 23.1%, up 4.4 percentage points year-on-year, due to direct investments in overseas stores [8][10]. Future Outlook - The report forecasts revenues of 20.971 billion yuan, 25.331 billion yuan, and 30.011 billion yuan for 2025, 2026, and 2027, respectively, with corresponding net profits of 2.862 billion yuan, 3.482 billion yuan, and 4.119 billion yuan [10][12]. The projected P/E ratios for 2025, 2026, and 2027 are 17.0, 13.9, and 11.8, respectively [10].

Investment Rating - The report maintains a "Buy-A" rating for MINISO (09896.HK) [2] Core Insights - MINISO's domestic same-store sales are showing improvement, and direct store revenue is growing rapidly. The company achieved a revenue of 4.427 billion yuan in Q1 2025, a year-on-year increase of 18.9%, although adjusted net profit decreased by 4.8% [5][7][11] - The company is focusing on optimizing low-efficiency stores while emphasizing the establishment of flagship stores and IP Land stores to enhance brand strength [8] - The overseas market continues to expand rapidly, with a revenue of 1.592 billion yuan in Q1 2025, reflecting a year-on-year growth of 30.3% [8] Financial Performance Summary - In Q1 2025, MINISO's revenue growth exceeded market expectations, driven by a 16.5% year-on-year increase in average store count. The adjusted net profit was 588 million yuan, down 4.8% year-on-year due to rising sales and distribution expenses [7][9] - The gross margin for Q1 2025 was 44.2%, up 0.8 percentage points year-on-year, attributed to a higher proportion of high-margin overseas direct sales and an optimized product mix [9] - The sales and distribution expense ratio increased to 23.1%, up 4.4 percentage points year-on-year, primarily due to direct investments in overseas stores [9] Future Outlook - For the years 2025 to 2027, the projected revenues are 20.971 billion yuan, 25.331 billion yuan, and 30.011 billion yuan, respectively, with corresponding net profits of 2.862 billion yuan, 3.482 billion yuan, and 4.119 billion yuan [11][13] - The report anticipates a continued recovery in domestic same-store sales and improvement in sales performance, particularly in overseas markets like Mexico and the United States [11]

Investment Rating - The investment rating for Baidu Group is "Buy" (maintained) [1] Core Views - The report highlights that the short-term impact of AI transformation on the ecosystem significantly affects advertising revenue, while the cloud business shows a positive trend [1] - The company's core revenue for Q1 2025 reached RMB 25.5 billion, a year-on-year increase of 7%, exceeding Bloomberg consensus expectations [1] - Non-GAAP net profit for Q1 2025 was RMB 6.469 billion, also better than market expectations [1] - The report emphasizes the potential of AI tools to enhance advertising efficiency and the ongoing transformation of Baidu's application ecosystem [1] - The cloud business experienced strong growth, with revenue increasing by 42% year-on-year, driven by the accelerated adoption of AI across various industries [1] Summary by Sections Financial Performance - Total revenue for 2023 was RMB 134.598 billion, with a year-on-year growth of 8.83% [1] - The forecast for 2025 estimates total revenue at RMB 134.638 billion, reflecting a slight increase of 1.14% [1] - Non-GAAP net profit for 2023 was RMB 28.747 billion, with a year-on-year growth of 39.01% [1] - The forecast for 2025 estimates Non-GAAP net profit at RMB 23.046 billion, a decrease of 14.65% [1] Business Segments - Advertising business: Online marketing revenue for Q1 2025 was RMB 16 billion, a year-on-year decrease of 6% [1] - Cloud business: Revenue growth accelerated to 42% year-on-year, with significant demand for AI cloud services [1] - Smart driving business: The number of autonomous driving orders exceeded 1.4 million, a year-on-year increase of 75% [1] Valuation Metrics - The latest diluted EPS for 2023 was RMB 7.39, with a forecast of RMB 8.04 for 2025 [1] - The P/E ratio for 2025 is projected to be 9.51 [1] - The report adjusts the Non-GAAP net profit forecasts for 2025-2027 to RMB 230 billion, RMB 244 billion, and RMB 264 billion respectively [1]

Investment Rating - The report maintains a "Buy" rating for China Software International (0354.HK) [3][5] Core Viewpoints - The recent product launch event highlights the technological advancements of China Software International and Shen Kaihong in the open-source HarmonyOS and robotics sectors, which is expected to attract more developers and accelerate the construction of the open-source Harmony ecosystem [3] - The company forecasts net profits of 644 million RMB, 754 million RMB, and 871 million RMB for the years 2025, 2026, and 2027 respectively, indicating a positive growth trajectory [3] Summary by Sections Product Launch - Shen Kaihong launched the Kaihong Bot series products, including the Kaihong "1+1" security digital base 5.0 and various products based on M-Robots OS, aimed at enhancing the open-source Harmony ecosystem [1][3] Kaihong Bot Series - The Kaihong Bot series is designed as an open-source Harmony learning platform for developers, featuring tools for application development, device development, and system secondary development [2] - The series includes two main products, Kaihong BotBook and Kaihong BotMini, with a starting price of 6,999 RMB, and plans for future expansions [2] Financial Forecast - The report provides a financial forecast with expected revenues of 18,263 million RMB in 2025, 19,770 million RMB in 2026, and 20,942 million RMB in 2027, showing a recovery from a decline in 2023 and 2024 [5][10] - Net profit is projected to increase from 644 million RMB in 2025 to 871 million RMB in 2027, reflecting a compound annual growth rate [5][10]

Investment Rating - The report maintains a "Buy" rating for Tongcheng Travel (00780.HK) [1] Core Insights - The company's core business is experiencing rapid growth, with significant improvements in profit margins. The revenue for Q1 2025 reached 4.38 billion RMB, a year-on-year increase of 13%, while the adjusted net profit was 790 million RMB, up 41% year-on-year, exceeding guidance [7] - The Core-OTA segment's revenue grew by 18% to 3.79 billion RMB, driven by strong performance in transportation ticketing and accommodation bookings, which saw revenues of 2.00 billion RMB and 1.19 billion RMB respectively, reflecting year-on-year increases of 15% and 23% [7] - Gross margin improved to 68.7%, up 3.7 percentage points year-on-year, attributed to the rapid growth of the Core-OTA segment and a decrease in the proportion of lower-margin vacation business [7] - The report projects net profits for 2025-2027 to be 2.50 billion RMB, 3.01 billion RMB, and 3.52 billion RMB respectively, with corresponding P/E ratios of 18, 15, and 13 times [7] Financial Projections - Total revenue is forecasted to grow from 11.896 billion RMB in 2023 to 25.418 billion RMB by 2027, with a compound annual growth rate (CAGR) of approximately 13% [1] - The adjusted net profit is expected to increase from 1.554 billion RMB in 2023 to 3.516 billion RMB in 2027, reflecting a CAGR of around 16.99% [1] - The earnings per share (EPS) is projected to rise from 0.67 RMB in 2023 to 1.51 RMB in 2027 [1]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 47.00 [8] Core Views - The company reported a Q1 revenue increase of 18.9% to RMB 4.43 billion, exceeding previous guidance of 15-18%, driven by domestic channel upgrades and inventory optimization [1] - Adjusted net profit decreased by 4.8% to RMB 590 million due to rapid expansion of direct stores and increased financial expenses [1] - The company's strategy has shifted from aggressive expansion to refined operations, focusing on enhancing profitability and supporting global business expansion [1][4] Revenue Performance - Domestic revenue for Miniso increased by 9.1%, with offline and online sales growing by 7.3% and 32.7% respectively [2] - Overseas revenue grew by 30.3%, with 95 new stores opened during the quarter, particularly in North America [2] - TopToy's revenue surged by 58.9% to RMB 340 million, with self-developed products accounting for over 40% of sales [2] Profitability Metrics - Gross margin improved by 0.8 percentage points to 44.2%, although it decreased by 2.8 percentage points quarter-on-quarter due to seasonal effects [3] - Selling and administrative expense ratios increased by 4.4 percentage points and 0.3 percentage points to 23.1% and 5.5% respectively, primarily due to significant investments in direct stores [3] - Adjusted net profit margin fell by 3.3 percentage points to 13.3% [3] Strategic Focus - The company is pursuing a "high-quality growth" strategy, emphasizing same-store sales improvement and store competitiveness through upgrades and new openings [4] - In the overseas market, the focus is on localization and efficiency, with nearly 40% of U.S. procurement sourced locally to mitigate tariff risks [4] Earnings Forecast and Valuation - Adjusted net profit forecasts for 2025-2027 have been reduced by 7.1%, 9.0%, and 9.0% to RMB 2.99 billion, RMB 3.73 billion, and RMB 4.57 billion respectively [5] - The target price is based on a 2025 PE ratio of 18x, reflecting increased uncertainty in overseas expansion [5]