Investment Rating - The investment rating for the company is "Accumulate" [6] Core Views - The company's performance in the first half of 2025 was negatively impacted by low industry prices, but a better price trend is expected in the second half, leading to a significant recovery in performance [2] - The company is projected to have a net profit of -2.057 billion RMB in 2025, with an EPS of -0.07 RMB per share, and a target price of 1.61 HKD based on a 1.2x PB for 2025 [10][11] - The company has a competitive advantage in granular silicon technology, which is expected to improve its market position as industry prices recover [10] Financial Summary - Total revenue for 2023 is projected at 33.7 billion RMB, with a decline of 6.2% year-on-year. The revenue for 2024 is expected to drop significantly by 55% to 15.098 billion RMB, followed by a recovery in 2025 with a projected revenue of 12.106 billion RMB [4] - Gross profit is expected to be 11.692 billion RMB in 2023, but will turn negative in 2024 at -2.510 billion RMB, with a gradual recovery to 3.14 million RMB in 2025 [4] - The net profit is forecasted to be 2.510 billion RMB in 2023, declining to -4.750 billion RMB in 2024, and then improving to -2.057 billion RMB in 2025 [4] Price Trends and Market Dynamics - The average selling price of granular silicon has shown a significant increase, with prices rising from 35.71 RMB/kg in Q1 2025 to 32.93 RMB/kg in Q2 2025, and further to 4.8 million RMB/ton by September 2025, marking a 43% increase [10] - The company’s cash costs for granular silicon have decreased, indicating improved efficiency and competitiveness in the market [10] - The report highlights the importance of government policies aimed at stabilizing the solar industry and preventing price undercutting, which is expected to support price recovery [10]

Investment Rating - The report maintains a "Buy" rating for Alibaba Group Holding Limited (09988.HK) [4] Core Views - Alibaba has launched the next-generation AI model architecture Qwen3-Next, which significantly improves training efficiency and cost-effectiveness compared to previous models [2][3] - The new model architecture is designed to handle large amounts of information while reducing computational costs during and after training, enhancing inference efficiency [2] - The company is actively developing its own AI chips to fill the gap left by NVIDIA in the Chinese market, indicating a comprehensive strategy in AI technology and ecosystem [3] Financial Summary - Projected revenue for FY2024A is 941.17 billion CNY, with a growth rate of 8.34% year-over-year [8] - Expected revenue growth rates for FY2025A, FY2026E, FY2027E, and FY2028E are 5.86%, 6.21%, 11.82%, and 10.23% respectively [8] - Projected net profit for FY2024A is 79.74 billion CNY, with a year-over-year growth rate of 9.97% [8] - Adjusted net profit estimates for FY2026E, FY2027E, and FY2028E are 125.63 billion CNY, 159.87 billion CNY, and 190.27 billion CNY respectively [3][8] - The report anticipates a significant increase in earnings per share (EPS) from 4.19 CNY in FY2024A to 8.76 CNY in FY2028E [8] Market Position - According to a Sullivan report, Alibaba's market share in the enterprise-level large model invocation market in China is projected to be 17.7% in the first half of 2025, ranking first [2] - The company is expected to benefit from the commercialization of AI applications and AI agents, enhancing its cloud business revenue growth [3]

Investment Rating - The report maintains a "Buy" rating for the company [2][11]. Core Insights - The company achieved a core net profit that doubled in the first half of 2025, continuing to deliver a competitive dividend policy within the industry [3][11]. - The company reported a revenue of RMB 199.66 billion in 1H25, representing a year-on-year increase of 41.3%, and a core net profit of RMB 31.21 billion, up 119.4% year-on-year [11]. - The company is focusing on four main business segments: "Development Services, Property Management Services, Asset Operations, and Real Estate Technology" to drive synergy among its operations [11]. Financial Summary - Total revenue projections for the company are as follows: - 2023A: 74,155 million HKD - 2024A: 3,726 million HKD - 2025E: 4,043 million HKD - 2026E: 4,392 million HKD - 2027E: 4,763 million HKD - The net profit figures are projected as follows: - 2023A: 914 million HKD - 2024A: -2,058 million HKD - 2025E: 600 million HKD - 2026E: 818 million HKD - 2027E: 1,065 million HKD - The company’s PE ratio is projected to be 10.60 for 2025E, with a PB ratio of 1.16 [6][12]. Business Development - The company has optimized its business structure, achieving significant breakthroughs in property management services, with revenues of RMB 92.99 billion in 1H25, a year-on-year increase of 8.7% [11]. - The company has signed seven new projects exceeding RMB 10 million in non-residential sectors, focusing on park and healthcare core sectors [11]. - Following a restructuring in October 2024, the company is managing the full chain of development resources from its controlling shareholder, emphasizing technology, health, and energy efficiency [11].

Investment Rating - The investment rating for BYD Electronics (0285.HK) is "Buy" and is maintained [2] Core Views - The company reported a revenue of 80.606 billion RMB for the first half of 2025, representing a year-on-year growth of 2.58%, with a net profit attributable to shareholders of 1.730 billion RMB, up 13.97% year-on-year [5] - The company is solidifying its leadership position in the high-end product supply chain while expanding cooperation with overseas major clients, driving steady growth in the consumer electronics segment [6] - The AI server shipments are rapidly increasing, opening new growth opportunities in the new intelligent products sector [6] - The new energy vehicle (NEV) segment continues to show strong growth momentum, contributing to record overall business scale [6] Summary by Sections Company Overview - Latest closing price: 42.40 HKD - Total shares: 2.253 billion - Total market capitalization: 871.22 billion HKD - 52-week high/low: 61.55 / 24.85 HKD - Debt-to-asset ratio: 65.48% - Price-to-earnings ratio: 29.41 [4] Performance Highlights - The consumer electronics assembly business accounted for 58.55% of total revenue, while components contributed 17.06%, new intelligent products 8.94%, and NEVs 15.45%, with the latter showing a year-on-year increase of 5.58 percentage points [6] - The AI data center business experienced significant growth, with liquid cooling and power products certified by leading clients, injecting new momentum into business growth [7] - The NEV segment achieved revenue of 12.450 billion RMB, a year-on-year increase of approximately 60.50% [8] - The consumer electronics segment generated revenue of 60.947 billion RMB, with component sales at 13.752 billion RMB and assembly at 47.195 billion RMB [9] Financial Forecast - Projected revenues for 2025, 2026, and 2027 are 187.49 billion RMB, 206.12 billion RMB, and 234.81 billion RMB, respectively, with net profits of 4.948 billion RMB, 6.240 billion RMB, and 7.838 billion RMB [9][11]

Investment Rating - The report suggests maintaining attention on the company as it is expected to return to growth in 2025 [4] Core Viewpoints - The company is expanding its production capacity and continuing to grow its business in China by acquiring land for new facilities, with a total cost of RMB 30.68 million [1] - A new automated facility is planned to enhance production efficiency and meet the increasing demand from Chinese consumers, with an investment of no less than RMB 240 million [2] - The new factory is expected to be operational by 2029, contributing positively to the company's operational development and growth prospects [2] - The acquisition of land is strategically located near existing facilities, which will help create synergies and improve operational efficiency in the Greater Bay Area [3] Summary by Sections - **Investment Expansion**: The company has successfully bid for two plots of land in Zhuhai, Guangdong, for a total of RMB 30.68 million, aimed at constructing new production facilities [1] - **Production Capacity**: The new facility will utilize automation and efficient production processes to increase capacity and reduce unit production costs, addressing the evolving needs of consumers [2][3] - **Operational Efficiency**: The new automated facility is expected to enhance operational efficiency, reduce downtime, and optimize resource utilization, thereby lowering production costs [3] - **Market Positioning**: The company has a strong brand presence and is adapting to new consumer trends while expanding into emerging domestic channels and overseas markets [4]

Investment Rating - The report maintains a "Buy" rating for Alibaba Group (09988.HK) [4] Core Views - Alibaba is enhancing its "big consumption platform" strategy with the launch of Gaode's "Street Ranking," which supports offline dining and service consumption [1][2] - The integration of Gaode's services with Alibaba's existing platforms, such as Taobao, is expected to create synergies between in-store and delivery services, potentially increasing profit margins [2][3] - The report anticipates significant revenue growth for Alibaba, projecting revenues of CNY 1.06 trillion, CNY 1.18 trillion, and CNY 1.30 trillion for FY2026, FY2027, and FY2028 respectively [3] Financial Summary - Revenue (CNY million): - FY2024A: 941,168 - FY2025A: 996,347 - FY2026E: 1,058,220 - FY2027E: 1,183,302 - FY2028E: 1,304,354 - Year-over-year growth rates for revenue are projected at 8.34%, 5.86%, 6.21%, 11.82%, and 10.23% for FY2024A to FY2028E [1][3] - Net profit attributable to shareholders (CNY million): - FY2024A: 79,741 - FY2025A: 129,470 - FY2026E: 107,108 - FY2027E: 137,785 - FY2028E: 167,027 - Year-over-year growth rates for net profit are projected at 9.97%, 62.36%, -17.68%, 28.64%, and 21.22% for FY2024A to FY2028E [1][3] - The report highlights a significant increase in the return on equity (ROE), expected to rise from 8.11% in FY2024A to 12.47% in FY2028E [1][3] Market Position - Gaode's average daily active users (DAU) reached 186 million by July 2025, significantly outperforming competitors [2] - The report suggests that Gaode is on track to become a "super app" in the domestic market, integrating various services such as maps, ride-hailing, reviews, and group buying [2]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [6]. Core Views - The company is a quality private coal enterprise rooted in coal trading and has expanded into Indonesia, with significant growth potential [1][12]. - The termination of its Shanxi operations has alleviated past burdens, leading to an improved financial outlook [1][28]. - The Indonesian business has shown profitability improvements, with a notable increase in earnings driven by volume growth [2][17]. Summary by Sections Company Overview - Founded in 1996, the company began with coal trading and has since expanded into coal mining, acquiring various coal mines and establishing a stable ownership structure [1][11]. - The company has shifted focus to Indonesia, where it has acquired mining rights for five major coal mining areas, indicating a clear growth strategy [12][30]. Financial Performance - In the first half of 2025, the company reported a net loss of 126 million RMB, primarily due to losses from the terminated Shanxi coal business [1][17]. - The Indonesian operations generated a profit of 24 million RMB in the same period, reflecting a year-on-year increase of 67 million RMB [2][17]. - The company's balance sheet is gradually improving, with a projected reduction in the debt-to-asset ratio from 95.9% in 2024 to 59.6% [1][20]. Indonesian Operations - The company has five mining areas in Indonesia, with the SDE mine expected to reach a production capacity of 30 million tons [2][30]. - The SDE mine has a rich resource base, with an estimated recoverable reserve of approximately 900 million tons [3][32]. - The production cost at the SDE mine is significantly lower due to its coastal location and self-built transportation infrastructure [3][41]. Growth Potential - The company anticipates substantial growth in net profit from 131 million RMB in 2025 to 1.196 billion RMB in 2027, with corresponding EPS increasing from 0.05 to 0.47 RMB per share [4][50]. - The report forecasts a significant increase in revenue from 1.974 billion RMB in 2025 to 6.333 billion RMB in 2027, reflecting a compound annual growth rate of 47% [5][50]. Strategic Initiatives - The company is implementing a "light asset + strategic equity operation" model, which involves selling stakes in its projects to strategic partners to optimize capital efficiency [4][46]. - The partnership with Zhejiang Energy Group for the SDE project exemplifies this strategy, allowing for capital recovery and further investment in new resources [4][46].

Investment Rating - The report gives a "Buy" rating for the company, with a target price range of HKD 3.28 to HKD 4.11, corresponding to a market capitalization range of HKD 49.93 billion to HKD 62.57 billion [6]. Core Views - The company is a leading luxury and ultra-luxury car dealer in China, with a strategic shift towards new energy vehicles (NEVs) in partnership with BYD, aiming to expand its market presence in Hong Kong and overseas [6][12]. - The company has successfully established 100 BYD stores in Hong Kong and overseas within two years, leveraging its strong dealership capabilities and operational experience [6][48]. - The company's revenue from Hong Kong and overseas markets has increased significantly, with a fivefold growth in the first half of 2025, driven by the sales of BYD vehicles [19][22]. Summary by Sections Investment Highlights - The company focuses on luxury and ultra-luxury car sales, providing a full lifecycle service including new car sales, financing, insurance, and after-sales services [8][12]. - In 2024, the company ranked 26th among the top 100 automotive dealers in China, with a total revenue of CNY 17.067 billion and total vehicle sales of 48,000 units [12][17]. Partnership with BYD - The collaboration with BYD began in 2023, aiming to accelerate the expansion of sales channels in Asia and Europe, transitioning towards NEVs and export markets [6][12]. - The partnership has evolved from a business collaboration to a capital cooperation, with BYD acquiring a 10% stake in the company's overseas operations [6][9]. Financial Projections - The company is projected to achieve revenues of CNY 28.103 billion, CNY 38.488 billion, and CNY 44.961 billion from 2025 to 2027, with corresponding net profits of CNY 0.61 billion, CNY 2.43 billion, and CNY 4.16 billion [2][6]. - The earnings per share (EPS) are expected to be CNY 0.04, CNY 0.16, and CNY 0.27 for the same period [2][6]. Market Performance - In the first half of 2025, the company reported a revenue of CNY 9.64 billion, a year-on-year increase of 25.7%, with significant contributions from Hong Kong and overseas markets [19][22]. - The gross margin improved to 5.8%, with new car sales margins turning positive for the first time [24][32]. Operational Efficiency - The company has maintained a stable inventory turnover rate of 4.64 times, while the accounts receivable turnover rate decreased due to longer payment cycles in overseas markets [38][41]. - As of the first half of 2025, the company's debt ratio was 55.8%, indicating a healthy financial position with sufficient cash reserves [41][42].

Investment Rating - The report maintains a "Strong Buy" rating for ZTO Express [5][9]. Core Views - The company reported a Q2 net profit of 2.053 billion yuan, a year-on-year decline of 26.8%, with a business volume of 9.847 billion pieces, representing a 16.5% increase year-on-year [1]. - The company has adjusted its full-year business volume guidance to 38.8-40.1 billion pieces, reflecting a year-on-year growth of 14%-18%, down from the previous guidance of 40.8-42.2 billion pieces [1]. - The report highlights that the company is focusing on quality over quantity in a competitive pricing environment, which has led to a decrease in market share by 0.1 percentage points to 19.5% [1]. Summary by Sections Business Performance - In Q2, the company's single-ticket revenue decreased from 1.24 yuan to 1.18 yuan, primarily due to increased incentives and a decline in average weight [2]. - The single-ticket core cost increased by 8.6% year-on-year to 0.89 yuan, while the core cost (transportation + sorting) decreased by 0.07 yuan [2][3]. - The single-ticket gross profit fell from 0.42 yuan to 0.29 yuan, indicating significant pressure from pricing competition [3]. Financial Forecast and Valuation - The projected net profits for 2025-2027 are 8.85 billion, 10.22 billion, and 11.53 billion yuan, with corresponding P/E ratios of 13.0X, 11.2X, and 10.0X [4]. - The company is expected to maintain a relatively stable profit level despite the ongoing price wars, indicating strong safety margins [4]. Company Overview - ZTO Express is a large group company that integrates express delivery, logistics, e-commerce, and printing services, operating a highly scalable network partner model [6]. - The total market capitalization is approximately 120.778 billion HKD, with a circulating market value of 89.595 billion HKD [6].

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Insights - The company reported a revenue of 3.11 billion HKD for H1 2025, representing a year-on-year growth of 22.5%. The net profit attributable to shareholders was 1.18 billion HKD, up 20.2% year-on-year, while the adjusted net profit reached 1.21 billion HKD, reflecting a 17.4% increase [2][4]. Summary by Sections Revenue Performance - In H1 2025, the revenue breakdown by product categories showed medical dressings, functional skincare, and health food generating revenues of 690 million HKD, 2.41 billion HKD, and 10 million HKD respectively, with year-on-year growth rates of 17%, 24%, and 16% [6]. - By brand, the revenues for 可复美, 可丽金, and other brands were 2.54 billion HKD, 500 million HKD, and 60 million HKD respectively, with growth rates of 23%, 27%, and -10% [6]. - Channel-wise, revenues from DTC, e-commerce direct sales, offline direct sales, and distribution were 1.82 billion HKD, 390 million HKD, 120 million HKD, and 790 million HKD respectively, with year-on-year growth rates of 13%, 134%, 74%, and 12% [6]. Profitability - The net profit margin slightly decreased by 0.7 percentage points in H1 2025, attributed to a 0.7 percentage point decline in gross margin and changes in sales, management, and R&D expense ratios [6]. - The overall expense ratio narrowed by 1.6 percentage points, while the income tax expense increased by approximately 87.06 million HKD year-on-year [6]. Investment Outlook - The company is expected to maintain healthy growth throughout the year, with projected adjusted net profits of 2.55 billion HKD, 3.00 billion HKD, and 3.65 billion HKD for 2025, 2026, and 2027 respectively, corresponding to PE valuations of 23, 19, and 16 times [6].