Investment Rating - The overall industry investment rating is "In-Line" for Technology - Software & Services in Europe [8] Core Insights - The report highlights several positive developments from the Hexagon LIVE conference, including the introduction of a humanoid robot named Aeon and a clearer strategy for Hexagon, although short-term earnings risks and a lack of clarity on the remaining Hexagon hinder a more constructive outlook [2][4] - RELX's partnership with Harvey is noted as a significant move in the legal AI sector, potentially reshaping the competitive landscape and keeping RELX at the forefront of Legal AI [3] - Informa reported a 7.9% underlying growth in its AGM update, indicating solid performance across the group [3] Company Summaries Hexagon - Key takeaways from Hexagon include the rebranding of ALI to Octave and the announcement of Aeon, a humanoid robot [2] - The report suggests a sum-of-the-parts (SOTP) valuation but expresses caution due to short-term earnings risks and strategic clarity [2] RELX - The partnership with Harvey is seen as a strategic advantage, positioning RELX favorably within the Legal AI market [3] Informa - Informa's AGM update reflects a strong underlying growth performance of 7.9%, indicating positive momentum for the company [3] Autodesk - The Architecture Billings Index (ABI) data for May 2025 shows cautious optimism with month-over-month improvement in billings demand, although overall demand remains in decline [5] monday.com - The company is moving upmarket and expanding its product offerings, which presents both risks and opportunities, leading to an equal-weight rating due to fair pricing at approximately 34x EV/FCF [6] Salesforce - Analysis suggests potential upside to FY27/FY28 due to recent price increases [6] Back-Office Sector - The report indicates that the back-office sector is likely to be one of the first beneficiaries of AI, with ERP upgrades catalyzed by AI technology [4]

Investment Rating - The report upgrades Sanhua to "Overweight" (OW) and Xusheng to "Equal Weight" (EW) based on their potential in the humanoid market and expected revenue recovery [6][27]. Core Insights - Humanoid robots are anticipated to create a third wave of growth for auto parts suppliers, following the previous waves driven by vehicle electrification and smartization [2][36]. - The report emphasizes the importance of companies with order visibility or business synergy in the emerging humanoid market [1][4]. Summary by Sections Humanoid Market Opportunity - The humanoid industry is still in its infancy, presenting significant growth potential for auto parts suppliers, particularly tier-1 suppliers like Sanhua and Tuopu, who are better positioned to capture this growth [5][26]. - The global humanoid market is estimated to reach US$5 trillion by 2050, with a notable US$0.8 trillion market in China [23][24]. Advantages for Auto Companies - Auto OEMs can leverage their expertise in autonomous driving and large-scale manufacturing to develop humanoid robots, which can initially operate in auto factories [4][21]. - Chinese humanoid parts suppliers have a cost advantage over their global counterparts, although their success may depend on geopolitical factors such as US import tariffs [4][24]. Company Ratings and Price Targets - Sanhua's price target is upgraded to RMB 30 from RMB 29, reflecting stronger revenue expectations and the potential for humanoid actuator module supply [30]. - Xusheng's price target is adjusted to RMB 12 from RMB 13, with expectations of modest revenue recovery amid competitive pressures [31]. - Tuopu remains rated OW, but its price target is reduced to RMB 63 from RMB 72 due to weaker shipments to overseas customers [32]. Historical Context and Growth Waves - The report outlines two previous growth waves in the auto industry: electrification (2021-22) and smartization (since 2022), which have significantly impacted the revenue and valuation of auto parts suppliers [36][42]. - The electrification wave saw China's NEV penetration rate increase from 15% in 2020 to 36% in 2022, while the smartization wave has driven up the adoption of advanced driving technologies [37][42].

Investment Rating - The industry investment rating is Attractive [6]. Core Insights - A new study in Italy indicates that Surgical Aortic Valve Replacement (SAVR) may have better mortality outcomes compared to Transcatheter Aortic Valve Replacement (TAVR) in younger patients with intermediate surgical risk, showing all-cause mortality rates of approximately 47.2% for TAVR versus 24.6% for SAVR in Lombardy, and 44.1% versus 18.1% in Puglia [1][4]. - The study involved around 7,000 patients and suggests that recent advancements in SAVR techniques may contribute to these findings, contrasting with previous sponsor studies [1]. - In the kidney transplant sector, data from the European Renal Association suggests that less stringent donor criteria do not necessarily correlate with improved survival outcomes, particularly as recipient age increases [4]. - The demand for kidney transplants is rising, with over 60,000 adults currently on the waitlist, which may lead to broader acceptance criteria by transplant centers [4]. - SS Innovations International performed the first fully-robotic cardiac surgery in the Americas, indicating a growing trend in robotic-assisted surgeries [9]. - GE HealthCare Technologies' Flyrcado software has been shown to enhance throughput for cardiac imaging, presenting a significant market opportunity estimated at around $500 million [10]. Summary by Sections Surgical Aortic Valve Replacement (SAVR) vs. Transcatheter Aortic Valve Replacement (TAVR) - The study highlights a significant difference in mortality rates favoring SAVR over TAVR in younger patients [1][4]. - The findings challenge previous clinical trial results and suggest that advancements in surgical techniques may be influencing outcomes [1]. Kidney Transplantation - The European Renal Association's findings indicate that broader donor criteria may not lead to better survival rates, especially in older recipients [4]. - The increasing number of patients on the kidney waitlist is pushing centers to reconsider donor acceptance criteria [4]. Robotic Surgery and Imaging Technology - The first fully-robotic cardiac surgery in the Americas marks a milestone for robotic surgical technology [9]. - The introduction of Flyrcado software by GE HealthCare Technologies is expected to significantly improve cardiac imaging efficiency, with a notable market potential [10].

Investment Rating - The report assigns an "Overweight" (OW) rating to Huaming Equipment with a price target of Rmb19.00 by December 2025 [3][19]. Core Insights - Huaming Equipment is recognized as an under-appreciated player in the global transformer market, currently trading at a valuation discount of over 10% compared to peers [2][4]. - The company has a strong market position with over 60% market share in tap changers for transformers in China and has made gradual gains globally, achieving over 15% market share [19]. - The report highlights the favorable competitive landscape for Huaming, with only two major overseas competitors and a gross margin exceeding 60% [4][19]. - Continued strength in transformer demand and positive export data from Asia are expected to bolster investor confidence in Huaming's overseas momentum [4][19]. Summary by Sections Recent Performance - Huaming has outperformed its peers and the index by over 10% in the past month, while peers have averaged a decline of 1% [2][4]. - The report notes that the earnings cutting cycle is likely over, supported by strong first-quarter results and the announcement of a share incentive scheme [4]. Market Dynamics - The transformer market is experiencing a supply tightness, benefiting companies like Huaming, which is positioned to capitalize on this trend [4]. - The report anticipates that Huaming's overseas revenue growth will accelerate, particularly with high voltage transformer capacity expansion expected to begin in 2026 [4][19]. Valuation - The price target of Rmb19.00 is based on a 21x 2025E-26E P/E ratio, which aligns with the average valuation of regional transformer companies [20]. - The report emphasizes that Huaming's valuation discount to peers is unjustified given its growth prospects and market position [4][19].

Investment Ratings - CICC-H: Buy [1] - FUTU: Neutral [1] - Hundsun: Buy [1] - East Money: Sell [2] Core Insights - Broker and fintech stocks have shown strong performance since May, with average returns of +27% for brokers and +9% for fintech, compared to +8% and +3% for the H/A share index [1] - Positive changes in Average Daily Trading Volume (ADTV) and turnover rates, along with growth in the Hong Kong market, are expected to drive earnings improvement [1][4] - Earnings forecasts for CICC, Hundsun, FUTU, GFS, and CITICS have been revised upwards by an average of 7% for 2025 [1][31] Summary by Sections Stock Selection Preferences - Preference for brokers with greater exposure to the Hong Kong market, such as CICC-H, while maintaining a Neutral rating on FUTU due to limited excess earnings growth [2] - For fintech, Hundsun is preferred over East Money due to fundamental factors, including recovery in non-core revenue supported by investments [2][26] Market Trends and Revisions - ADTV and turnover rates have recovered since June, primarily due to the easing of tariff shocks [4][12] - Continued increase in ETF market share is expected to impact East Money's profitability negatively [26] Earnings Forecasts - CICC's net profit forecast for 2025 has been raised by 13%, reflecting anticipated growth in Hong Kong investment banking revenue [17][22] - FUTU's earnings forecast has been slightly raised by 1% for 2025, driven by reduced customer acquisition costs [21][22] - Hundsun's net profit forecast for 2025 has been increased by 13% due to higher investment income [31] Valuation and Price Targets - CICC-H has a target price of HK$ 17.58 based on a 10x 2026E P/E [36] - FUTU's target price is set at US$ 111.79 based on an 18x 2026E P/E [36] - Hundsun's target price is Rmb 32.04, reflecting its market presence and sustainable customer relationships [46]

Investment Rating - The report maintains a "Hold" rating for both H and A shares of Dongfang Electric, with target prices raised to HKD12.30 and RMB19.30 respectively [5][9]. Core Insights - Dongfang Electric-H has significantly outperformed Dongfang Electric-A, with a year-to-date increase of 50% compared to 6% for A shares, attributed to improved sentiment towards global power equipment, particularly nuclear [2][9]. - The report indicates that the current share price has largely priced in the positive outlook for global nuclear investment, suggesting limited upside potential without meaningful earnings growth [2][5]. - The company anticipates a steady increase in revenue from nuclear equipment, projecting RMB5 billion in 2025, RMB6 billion in 2026, and RMB7 billion in 2027, which will account for 11% of total revenue by 2027 [3][22]. Summary by Sections Nuclear Power - Global nuclear investment is gaining momentum, with China expected to approve the construction of 10 nuclear plants annually from 2026 to 2030, leading to a projected revenue increase from nuclear equipment [3][22]. - The gross profit margin for nuclear equipment is expected to be between 18-20% from 2025 to 2027, down from previous estimates of 20-30% [3][22]. Coal Power - Orders for coal power equipment are expected to peak in 2026, with a decline in tender sizes from 100GW in 2023 to an anticipated average of 50GW from 2026 to 2030 [4][22]. - The company expects thermal equipment margins to gradually recover, reaching approximately 20% in 2025 [22]. Financial Estimates - Earnings estimates for 2025 have been cut by 9%, while estimates for 2026 and 2027 have been raised by 6% and 14% respectively, reflecting the latest order cycle for thermal and nuclear power equipment [5][25]. - The report highlights that the earnings estimates for 2025 are 12% below consensus, indicating a potentially overly optimistic market outlook [5][9]. Market Performance - The H/A discount for Dongfang Electric has reached a 10-year low of 26%, reflecting the strong performance of H shares compared to A shares [2][5]. - The report notes that the buoyant expectations for global nuclear investment have likely been factored into the recent rally in share prices, suggesting a cautious outlook moving forward [5][9].

Flash | 19 Jun 2025 10:02:24 ET │ 12 pages Beijing Roborock (688169.SS) Model Update CITI'S TAKE We update our model to reflect its better-than-expected sales and weaker-than-expected NP in 1Q25. We have lifted our sales forecasts by 33%/44% and trimmed NP forecasts by 20%/10% in 25E/26E, to reflect Roborock's plans to accelerate investment into its branding and new categories in 25E. After our earnings revision, we expect its 25E topline to surge 53% YoY and 25E NP to edge up 2% YoY. While we expect NP to ...

Investment Rating - The report maintains a "Buy" rating for Gigadevice Semiconductor and raises the target price to RMB149.50 from RMB140.20, implying approximately 24% upside from the current share price of RMB121.01 [5][12][36]. Core Insights - The report highlights favorable supply-demand dynamics for DDR4, which are expected to continue, benefiting Gigadevice's specialty DRAM business [3][12]. - The 3D DRAM business is progressing well and is anticipated to start generating revenue in the second half of 2025, particularly in mid-end smartphones [4][12]. - The report introduces 2027 estimates, projecting a revenue of RMB14,611 million and a net profit of RMB2,659 million [31]. Summary by Sections Investment Rating - Maintain "Buy" rating and raise target price to RMB149.50 from RMB140.20 [5][12][36]. Financial Performance - The report lowers 2025-26 EPS estimates by 2% and 1% respectively, while still being above consensus by 6% for 2025 [31][32]. - Revenue estimates for 2025-26 are raised by 22% and 28% respectively, driven by expected ASP increases due to supply constraints [33][34]. Market Dynamics - Anticipated 35% increase in specialty DRAM ASP in 2025 due to supply-demand disparity as major suppliers phase out DDR4 products [3][12]. - The total addressable market (TAM) for other DDR4 suppliers is projected to be RMB12 billion, RMB45 billion, and RMB46 billion for 2025-27 [3][12]. Growth Drivers - The 3D DRAM business is expected to be a significant growth engine, with initial revenue generation anticipated in 2H25 [4][12]. - The report emphasizes the stable relationship with CXMT, which will support Gigadevice's capacity expansion in DDR4 [3][12]. Valuation Metrics - The report estimates a net profit CAGR of 34% from 2024-27, adopting a target PE multiple of 52.3x, which is 16% below the historical average [5][36].

Investment Rating - The industry investment rating is Attractive [4]. Core Insights - Solar glass prices have dropped below cash cost levels, with reported prices in June for 2.0mm products at Rmb12-12.5/sqm and actual executed prices ranging from Rmb10.8-11/sqm, indicating industry-wide losses at cash levels [2][7]. - The rebound in solar glass prices in March and April led to the initiation of 11.3kt/d new capacities and the resumption of one 850/t line in the past three months, with the industry operating capacity at approximately 100kt/d, supporting around 54GW monthly production [7]. Summary by Sections Price Trends - Solar glass prices rebounded in March and April to Rmb14-14.5/sqm due to better-than-expected demand, but have since fallen to Rmb12-12.5/sqm in June, with actual prices for smaller players even lower [2][7]. Production Capacity - Approximately 97% of the operating capacity commenced production in 2021 and later, making it difficult to suspend production quickly. There are still around 10kt/d of smaller lines that may exit the market first due to higher costs [3]. Market Dynamics - The lower profit margins are expected to trigger production line blockages or suspensions, with companies like CNBM, Flat Glass, IRICO, and Almaden planning maintenance in the near term [3].

Investment Rating - The industry investment rating is "In-Line" [4]. Core Insights - The report indicates solid growth in the industrial robot sector, with China's industrial robot production growing by 36% year-on-year in May, up from 34% in the previous four months [7]. - Global players such as ABB, Fanuc, Kuka, and Yamaha saw a combined shipment increase of 3% year-on-year in May, compared to a 2% increase in the first four months of 2025 [7]. - The growth is primarily driven by demand from the automotive sector, consumer electronics (3C), and exports, with expectations of intense competition and sustained market share gains for domestic brands like Estun and Inovance [7]. Summary by Sections Industry Overview - The industrial robot operations in China are experiencing robust growth, with significant contributions from various sectors [7]. Production and Shipment Data - China's industrial robot production increased by 36% year-on-year in May, supported by strong demand from the automotive and consumer electronics sectors [7]. - The report highlights that Fanuc's inventory levels have normalized, allowing for continuous shipments to key customers such as Li Auto and Xiaomi [7]. Market Dynamics - The competition in the industrial robot market remains intense, with domestic brands expected to maintain their market share gains [7].