Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown improvement in both insurance combined ratio (COR) and investment returns, with its banking business turning profitable [1] - The net profit attributable to shareholders for 2025 is projected to be 1.102 billion yuan, representing a year-on-year increase of 82.5% [7] - The company is expected to maintain a competitive advantage in the internet insurance market, supported by rapid growth in technology output and digital banking [7] Financial Performance Summary - Total revenue for 2025 is forecasted at 33.485 billion yuan, with a year-on-year growth of 5.48% [1] - The net profit attributable to shareholders is expected to grow from 603 million yuan in 2024 to 1.102 billion yuan in 2025, reflecting a significant recovery [1] - The latest diluted book value per share is projected to be 15.11 yuan in 2025, with a price-to-book (P/B) ratio of 0.85 [1] Insurance and Banking Business Summary - The insurance segment's total premium income is expected to reach 35.735 billion yuan in 2025, with a year-on-year increase of 6.9% [11] - The health and automotive ecosystems have shown strong premium growth, with health premiums increasing by 22.7% and automotive premiums by 34.6% [11] - The banking segment, which is Hong Kong's first digital bank, achieved a net income of 890 million HKD in 2025, marking its first annual profit [7] Investment Strategy Summary - The company has significantly increased its allocation to stocks, resulting in a substantial rise in total investment returns, which are expected to reach 2.12 billion yuan in 2025, up 59.1% year-on-year [7] - The total investment return rate is projected to be 5.3% for 2025, an increase of 1.9 percentage points compared to the previous year [16] - The company is expected to maintain a long-term growth trajectory, with projected net profits of 1.303 billion yuan in 2026 and 1.602 billion yuan in 2027 [1]

Investment Rating - The report maintains a "Buy" rating for the company [6][10]. Core Insights - In 2025, the company achieved a net profit attributable to shareholders of HKD 14.52 billion, representing a year-over-year increase of 0.9%. The total proposed dividend for 2025 is HKD 1.1 per share, with a payout ratio of 40.2% [2][10]. - The company's total revenue for 2025 is projected at HKD 102.01 billion, a decrease of 3.1% compared to the previous year. The core profit from thermal power increased significantly to HKD 7.64 billion, while the core profit from renewable energy decreased to HKD 7.6 billion [10]. - The report forecasts earnings per share (EPS) for 2026-2028 to be HKD 2.09, HKD 2.20, and HKD 2.41 respectively. The current market capitalization corresponds to a 2026 PE valuation of 9.3x and a PB valuation of 0.85x [10]. Financial Summary - The financial summary indicates the following key figures (in million HKD): - Total Revenue: 2024A: 105,284; 2025A: 102,010; 2026E: 93,685; 2027E: 94,561; 2028E: 96,886 - Net Profit: 2024A: 14,388; 2025A: 14,519; 2026E: 10,839; 2027E: 11,373; 2028E: 12,452 - PE Ratio: 2024A: 6.55; 2025A: 6.94; 2026E: 9.29; 2027E: 8.85; 2028E: 8.08 [5][10]. - The report highlights that the company’s thermal power business benefited from a decrease in coal prices, leading to a profit increase of 64.7% [10]. Market Data - The current stock price is HKD 19.44, with a 52-week price range of HKD 17.09 to HKD 21.30. The current market capitalization is HKD 100.642 billion [7][10].

Investment Rating - The report maintains an "Outperform" rating for Xiaomi Corp with a target price of HK$48.80, while the current price is HK$36.32 [2]. Core Insights - Xiaomi launched the MiMo-V2 series, enhancing its IoT ecosystem by integrating text, vision, and speech capabilities, establishing a core AI hub for its "Human-Car-Home" ecosystem [3][12]. - The automotive segment is expected to show strong growth, with the new-generation SU7 featuring advanced driving systems and AI integration [4][13]. - The company plans to invest at least RMB 60 billion in AI over the next three years, with significant R&D expenditures anticipated in 2026 [4][14]. - Revenue forecasts for 2025-2027 are adjusted to RMB 457.9 billion, RMB 494.1 billion, and RMB 571.8 billion, reflecting year-on-year growth of 25%, 8%, and 16% respectively [15][16]. - The adjusted net profit for the same period is projected at RMB 38.18 billion, RMB 39.84 billion, and RMB 48.56 billion, indicating growth rates of 33%, 4%, and 22% [16]. Financial Summary - Revenue and profit projections for Xiaomi are as follows: - FY2023: Revenue of RMB 271.4 billion, Net profit of RMB 17.5 billion - FY2024: Revenue of RMB 365.6 billion, Net profit of RMB 23.6 billion - FY2025E: Revenue of RMB 457.9 billion, Net profit of RMB 40.1 billion - FY2026E: Revenue of RMB 494.1 billion, Net profit of RMB 40.1 billion [9][15]. - The gross profit margin is expected to be around 21.2% in FY2023, improving to 22.3% by FY2025E [9]. Valuation Methodology - The report employs a sum-of-the-parts (SOTP) valuation method, assigning: - Hardware business a PE of 21x - Internet business a PE of 24x - Automotive business a PE of 73.5x or a PS of 2.4x [16].

Company Ratings - Haitan International (1882) - Buy rating with a target price of HKD 30.00 [2] - Kangzhi Pharmaceutical (867) - Buy rating with a target price of HKD 19.30 [2] Core Insights - Haitan International is expected to maintain steady growth despite industry fluctuations, with a projected revenue of HKD 177.33 billion in 2025, a 10.0% year-on-year increase, and a net profit of HKD 33.01 billion, up 7.2% [7] - Kangzhi Pharmaceutical is returning to a rapid growth trajectory with a revenue increase of 9.9% to HKD 82.1 billion in 2025, driven by exclusive products and innovative drugs [12] Summary by Relevant Sections Haitan International - The company achieved record high performance in 2025, with revenue reaching HKD 177.33 billion and net profit at HKD 33.01 billion, reflecting a 10.0% and 7.2% year-on-year growth respectively [7] - All product lines showed positive growth, with Mars, Jupiter, and Changfei series revenues of HKD 113.17 billion, HKD 24.21 billion, and HKD 21.53 billion, representing year-on-year growth of 8.1%, 16.4%, and 8.9% respectively [8] - The overseas market is expected to be a major growth driver, with international sales increasing by 26.4% to HKD 76.02 billion, accounting for 42.9% of total revenue [9] - The target price is set at HKD 30, maintaining a buy rating, with projected revenues of HKD 195 billion, HKD 208 billion, and HKD 227 billion for 2026-2028 [10] Kangzhi Pharmaceutical - The company reported a revenue increase of 9.9% to HKD 82.1 billion in 2025, with exclusive and innovative drug revenues rising by 23.3% to HKD 56.1 billion [12] - Key product lines showed varied performance, with cardiovascular products up 2.4%, digestive and autoimmune products up 3.3%, and skin health products soaring by 73.2% [13] - The target price is set at HKD 19.3, with a buy rating, reflecting a 40.2% upside potential [14]

Investment Rating - The report maintains an "Outperform" rating for Xiaomi Corp with a target price of HK$48.80, while the current price is HK$36.32 [2]. Core Insights - Xiaomi launched the MiMo-V2 series, enhancing its IoT ecosystem by integrating text, vision, and speech capabilities, establishing a core AI hub for its "Human-Car-Home" ecosystem [3][12]. - The automotive segment is expected to show strong growth, with the new-generation SU7 featuring advanced driving systems and AI integration [4][13]. - The company plans to invest at least RMB 60 billion in AI over the next three years, with significant R&D expenditures planned for 2026 [4][14]. Financial Projections - Revenue forecasts for 2025-2027 are adjusted to RMB 457.9 billion, RMB 494.1 billion, and RMB 571.8 billion, reflecting year-on-year growth of 25%, 8%, and 16% respectively [5][15]. - Adjusted net profit projections for the same period are RMB 38.18 billion, RMB 39.84 billion, and RMB 48.56 billion, indicating growth rates of 33%, 4%, and 22% [5][16]. - The SOTP valuation assigns a PE of 21x for hardware, 24x for internet services, and 73.5x for automotive, leading to a target price of HK$48.80 [5][16]. Market Performance - The company's market capitalization is HK$785.77 billion (US$100.27 billion), with an average daily trading volume of US$717.46 million [2]. - Over the past year, the stock has seen a decline of 37% [2].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported a 15% year-on-year increase in New Business Value (NBV) and announced a new share buyback plan of $1.7 billion [1] - The company's insurance revenue is projected to grow from $21.6 billion in 2025 to $24.7 billion by 2028, reflecting a compound annual growth rate (CAGR) of approximately 4.66% [1] - The tax-adjusted operating profit is expected to increase from $7.1 billion in 2025 to $9.0 billion in 2028, with a CAGR of about 8.01% [1] - The embedded value (EV) per share is forecasted to rise from $7.31 in 2025 to $10.07 in 2028, indicating a strong growth trajectory [1] - The price-to-embedded value (P/EV) ratio is projected to decrease from 1.45 in 2025 to 1.05 in 2028, suggesting potential undervaluation [1] Financial Projections - Insurance revenue is expected to be $21.6 billion in 2025, with a year-on-year growth of 11.93% [1] - Tax-adjusted operating profit is forecasted at $7.1 billion for 2025, with a year-on-year increase of 8.04% [1] - The embedded value is projected to reach $76.8 billion by the end of 2025, reflecting an 8% year-on-year growth [1] - The company anticipates a year-end dividend of 1.44 HKD per share for 2025, representing a 10% increase compared to the previous year [8]

Investment Rating - The investment rating for Geely Automobile is "Accumulate" [6]. Core Views - The report expresses optimism regarding Geely's performance in 2026, predicting that the company will exceed its sales target of 3.45 million vehicles, with significant improvements in profitability from high-end vehicles and exports [2]. - The "Smart Geely 2025" strategy is deemed successful, enhancing the company's global competitiveness and setting ambitious targets for future achievements [10]. Financial Summary - Total revenue for 2025 is projected at 345.2 billion RMB, representing a year-on-year growth of 25% [10]. - The core net profit for 2025 is expected to reach 14.41 billion RMB, a 36% increase compared to the previous year [10]. - The company aims for a total sales volume of 3.45 million vehicles in 2026, a 14% increase from 2025, with a target of 2.22 million in new energy vehicle sales, up 32% from 2025 [10]. - The projected earnings per share (EPS) for 2026 is 1.98 RMB, with a target price of 33.87 HKD based on a 15x PE ratio [10]. Sales Performance - Geely's total vehicle sales for 2025 are expected to be 3.025 million units, a 39% increase year-on-year, with new energy vehicle sales reaching 1.687 million units, marking an 86% increase [10]. - The sales breakdown includes 2.45 million units from the Geely brand, 350,000 units from Lynk & Co, and 224,000 units from Zeekr, with a slight increase in overseas exports [10].

Investment Rating - The report assigns a "Hold" rating for the company, Different Group, based on its current market position and growth potential [5][6]. Core Insights - The domestic baby products industry is experiencing a tiered differentiation, with mid-to-high-end brands like BeBeBus gaining traction and creating unique value [3][4]. - The market for baby products in China is projected to grow from CNY 121.8 billion in 2020 to CNY 144.1 billion by 2024, with a CAGR of 4.3%. The mid-to-high-end segment is expected to grow at a CAGR of 7.4%, outperforming the mass market [3][47]. - BeBeBus has established a strong market position, ranking first in the mid-to-high-end durable baby products market with a market share of 4.9% and second in the overall mid-to-high-end baby products market with a share of 4.2% [3][4][77]. Summary by Sections Company Overview - Different Group focuses on designing and selling baby products, with its brand BeBeBus launched in 2019, targeting high-end consumers and emphasizing quality, aesthetics, and technology [17][31]. Financial Overview - The company's revenue grew from CNY 5.07 billion in 2022 to CNY 12.5 billion in 2024, with a CAGR of 57%. In the first half of 2025, revenue reached CNY 7.26 billion, a year-on-year increase of 25% [31][41]. - The adjusted net profit increased from CNY 0.1 billion in 2022 to CNY 1.1 billion in 2024, with a CAGR of 237% [41]. Industry Analysis - The baby products market in China is steadily growing, with mid-to-high-end products expected to capture an increasing share due to rising disposable incomes and family spending [47][51]. - The mid-to-high-end baby products market is projected to grow from CNY 25.6 billion in 2020 to CNY 34 billion by 2024, with a CAGR of 7.4% [47]. Company Highlights - BeBeBus has successfully expanded its product range, including core durable products like strollers and safety seats, and has seen significant growth in its baby care product line, particularly diapers [4][93]. - The company has a strong online presence, with approximately 73% of its sales coming from online channels, and has built a membership base of 3 million with a 40% repurchase rate [4][37]. Profitability Forecast and Investment Recommendations - The company is expected to achieve net profits of CNY 1.45 billion, CNY 2.10 billion, and CNY 2.73 billion for the years 2025 to 2027, with growth rates of 148%, 45%, and 30% respectively [5][10].

Investment Rating - The investment rating for the company is "Buy" [5] Core Insights - The company has achieved record-high annual revenue, with multiple business segments showing positive progress, including heated non-combustion products, vaporized e-cigarettes, and medical aerosol business [2][9] - The company is expected to maintain a strong growth trajectory, with projected revenues increasing from 11.8 billion RMB in 2024 to 21.3 billion RMB by 2028, reflecting a compound annual growth rate (CAGR) of approximately 14% [3][10] - The net profit forecast for 2026-2028 is adjusted to 1.05 billion RMB, 1.82 billion RMB, and 2.18 billion RMB respectively, indicating a significant recovery in profitability [9] Financial Summary - Total revenue is projected to grow from 11,799 million RMB in 2024 to 21,276 million RMB in 2028, with year-on-year growth rates of 6%, 21%, 15%, 14%, and 14% respectively [3][10] - Gross profit is expected to increase from 4,412 million RMB in 2024 to 7,245 million RMB in 2028, with a gross margin of 34.1% in 2025 [3][10] - The company's net profit is forecasted to decline to 1,052 million RMB in 2026 before rebounding to 1,820 million RMB in 2027 and 2,180 million RMB in 2028, with a notable increase in profit margins in the later years [3][10] Business Performance - In the second half of 2025, revenue from enterprise customers reached 6.605 billion RMB, a year-on-year increase of 22%, while retail customer revenue was 1.637 billion RMB, up 23% year-on-year [9] - The company’s HNB (Heated Non-Combustion) revenue exceeded 1.2 billion RMB in 2025, supported by the successful launch of high-end products in key markets [9] - The traditional vaporization business is expected to benefit from global regulatory changes, enhancing brand market share [9] Market Position - The company is positioned as a core supplier in the heated non-combustion industry, benefiting from long-term R&D investments that create a strong technological moat [9] - The company is expected to achieve a target price of 12.00 HKD based on a PE ratio of 65.0X for 2026, reflecting a premium valuation due to its leading market position and growth potential [9]

Investment Rating - The report maintains an "Accumulate" rating for Tencent Music [6] Core Insights - Tencent Music's SVIP user base has surpassed 20 million, with steady growth in average revenue per paid user, and accelerated release of IP value [3] - The company is transitioning from a music platform to a comprehensive sound entertainment empire, leveraging content IP, traffic advantages, and capital capabilities [34] Financial Summary - Total revenue projections for Tencent Music are as follows: - 2024A: 28,401 million RMB - 2025A: 32,902 million RMB - 2026E: 36,042 million RMB - 2027E: 39,023 million RMB - 2028E: 42,496 million RMB - Net profit projections are: - 2024A: 6,644 million RMB - 2025A: 11,056 million RMB - 2026E: 9,890 million RMB - 2027E: 10,780 million RMB - 2028E: 11,813 million RMB - Adjusted net profit projections are: - 2024A: 7,671 million RMB - 2025A: 9,588 million RMB - 2026E: 10,454 million RMB - 2027E: 11,322 million RMB - 2028E: 12,329 million RMB [5][34] Revenue Growth - In Q4 2025, Tencent Music achieved revenue of 86.4 billion RMB, representing a year-on-year increase of 15.9% - The gross margin was 44.7%, up by 1.1 percentage points year-on-year - Operating profit reached 28.4 billion RMB, a year-on-year increase of 17.9%, with an operating margin of 32.9% [34] User Metrics - The number of paid users reached 127 million, with a penetration rate of 24.1%, up by 1.3 percentage points quarter-on-quarter - The average revenue per paying user (ARPPU) was 11.9 RMB, showing a year-on-year increase of 7.2% [34][26] AI Empowerment - The company is enhancing music creation and user experience through AI, empowering over 150,000 musicians and more than 10 million users to improve their creative efficiency [34]