Investment Rating - The report maintains a "Recommended" rating for Xiaomi Group [6] Core Views - Xiaomi Group achieved record high revenue in Q2 2025, with a total revenue of 1159.56 billion RMB, representing a year-over-year increase of 30.5% [2] - The company's adjusted net profit for Q2 2025 reached 108.31 billion RMB, a year-over-year increase of 75.4% [2] - The automotive business is entering a phase of rapid growth, with Q2 2025 revenue from smart electric vehicles reaching 206 billion RMB [3] - The company is focusing on high-end smartphone development and has successfully launched its self-developed 3nm flagship SoC chip [4] Summary by Sections Financial Performance - For H1 2025, Xiaomi Group reported revenue of 2272.49 billion RMB, a year-over-year increase of 38.23%, and an adjusted net profit of 215.06 billion RMB, up 69.8% [1] - The gross margin for H1 2025 was 22.7%, an increase of 1.3 percentage points year-over-year [1] Business Segments - The smartphone segment generated revenue of 455.20 billion RMB in Q2 2025, with a year-over-year growth of 8.9% [3] - The IoT segment achieved revenue of 387.12 billion RMB in Q2 2025, marking a year-over-year increase of 44.7% [3] - The automotive and AI innovation segment reported revenue of 212.63 billion RMB in Q2 2025, with a gross margin of 26.4% [3] Market Position - Xiaomi's global smartphone market share reached 14.7% in Q2 2025, maintaining a top-three position for 20 consecutive quarters [3] - The company ranked second in the "2025 Kantar BrandZ Top 50 Globalization Brands" and improved its position in the Fortune Global 500 list to 297th, up 100 places from the previous year [2] Future Projections - Revenue projections for Xiaomi Group are estimated at 5092.95 billion RMB for 2025, 6251.70 billion RMB for 2026, and 7361.50 billion RMB for 2027 [4] - The expected adjusted net profit for the same years is 404.23 billion RMB, 525.07 billion RMB, and 652.09 billion RMB respectively [4]

Investment Rating - The report maintains an "Accumulate" rating for the company [1][11]. Core Insights - The company achieved a significant revenue increase in Q2 2025, with a revenue of 142.3 billion yuan, representing a year-on-year growth of 165.5% and a quarter-on-quarter growth of 42.0%. The gross margin reached 13.6%, with a year-on-year increase of 10.8 percentage points [7]. - The company reported a net profit of 1.6 billion yuan in Q2 2025, marking its first positive net profit in a half-year period [5][10]. - The company has signed a carbon credit transfer agreement with Stellantis, which is expected to enhance its performance further [7]. Summary by Sections Recent Performance - In the first half of 2025, the company reported a revenue of 242.5 billion yuan, a year-on-year increase of 174.1%, and a net profit of 0.3 billion yuan, marking a turnaround from losses [5][7]. Sales and Delivery - The company delivered 134,000 vehicles in Q2 2025, reflecting a year-on-year increase of 151.7% and a quarter-on-quarter increase of 53.2%. The annual sales target has been raised to 580,000 to 650,000 vehicles [7]. Product Development - The company launched new models based on the LEAP 3.5 technology architecture, with significant sales from the B10 SUV and B01 sedan. Upcoming models are expected to drive further growth [7][8]. International Expansion - The company exported 20,000 vehicles in the first half of 2025, leading among new car manufacturers. It has established over 600 sales outlets globally, with plans for local assembly in Malaysia and a production base in Europe by 2026 [8][10]. Financial Projections - The company is projected to achieve revenues of 641.9 billion yuan, 1,002.6 billion yuan, and 1,281.3 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 9.4 billion yuan, 44.1 billion yuan, and 64.1 billion yuan [10][11].

Investment Rating - The report maintains an "Accumulate" rating for Xiaomi Group-W (1810.HK) as of August 21, 2025 [1][11]. Core Insights - The company continues to execute its core operational strategy of "steady progress," achieving record highs in both revenue and profit. In Q2 2025, the company reported revenue of approximately 116 billion yuan, a year-on-year increase of 30.5%, and an adjusted net profit of about 10.8 billion yuan, up 75.4% year-on-year [5][6]. - The smartphone segment experienced a slight revenue decline of 2.1% year-on-year, primarily due to a decrease in average selling price (ASP), although this was partially offset by an increase in shipment volume [6][7]. - Revenue from IoT and lifestyle products reached a historical high of approximately 38.7 billion yuan, growing 44.7% year-on-year, driven by increased sales in mainland China and global markets [7]. - The electric vehicle segment saw a significant revenue increase of over 200% year-on-year, with Q2 2025 revenue reaching approximately 20.6 billion yuan, supported by higher delivery volumes and ASP [8][9]. - Internet service revenue grew by 10% year-on-year, reaching 9.1 billion yuan, largely due to increased advertising revenue [9]. Summary by Sections Recent Performance - In Q2 2025, Xiaomi's revenue was approximately 116 billion yuan, with a year-on-year growth of 30.5% and a quarter-on-quarter growth of 4.2%. The adjusted net profit was about 10.8 billion yuan, reflecting a year-on-year increase of 75.4% and a quarter-on-quarter increase of 1.5% [5][6]. Smartphone Business - The smartphone revenue for Q2 2025 was approximately 45.5 billion yuan, down 2.1% year-on-year, primarily due to a decline in ASP, which was around 1,073.2 yuan. However, shipment volume increased to approximately 42.4 million units, mainly due to higher sales in mainland China [6][7]. IoT and Lifestyle Products - Revenue from IoT and lifestyle products reached approximately 38.7 billion yuan in Q2 2025, a 44.7% increase year-on-year. The smart home appliance segment also saw significant growth, with air conditioning units shipped exceeding 5.4 million, marking a year-on-year growth of over 60% [7]. Electric Vehicle Segment - The electric vehicle revenue in Q2 2025 was approximately 20.6 billion yuan, with a year-on-year growth of 230.3%. The number of vehicles delivered reached 81,302, supported by improved production capacity [8]. Internet Services - Internet service revenue reached 9.1 billion yuan in Q2 2025, a 10% increase year-on-year, driven by a 14.6% increase in advertising revenue, which amounted to approximately 6.8 billion yuan [9].

Investment Rating - The report maintains a Neutral rating for WuXi Biologics (2269 HK) with a target price of HKD 34.00, indicating a potential upside of 11.0% from the current closing price of HKD 30.62 [1][12]. Core Insights - The company's performance in the first half of 2025 (1H25) shows a continued recovery trend, with a strong order intake of 86 new contracts, marking a historical high for the first half of the year. However, there are concerns regarding the impact of changes in overseas financing and market dynamics on early-stage clinical projects, leading to a decrease in revenue from this segment [2][6]. - The management has raised the full-year revenue growth guidance to a range of 14-16%, up from the previous 12-15%, while maintaining a positive free cash flow outlook [6][7]. - The report highlights that the long-term growth drivers for the company remain strong, particularly through its proprietary technologies and the increasing number of projects in hand, which have grown by 10% compared to the end of 2024 [6][7]. Financial Summary - Revenue for 2025 is projected at RMB 21,312 million, with a growth forecast of 16% for 1H25 compared to the previous period. The gross profit is expected to reach RMB 9,157 million, reflecting a gross margin of 43.0% [5][13]. - The adjusted net profit for 2025 is estimated at RMB 5,005 million, with a net profit margin of 23.5% [5][13]. - The company’s market capitalization is approximately HKD 124.64 billion, with a year-to-date stock price increase of 74.37% [4][12]. Order and Project Insights - In 1H25, the company secured 86 new comprehensive projects, with over 70% being dual/multi-antibody and ADC projects. The report notes that the number of M-end projects has increased to 24, with expectations to complete 25 PPQ projects in 2025 [6][7]. - The report emphasizes the importance of proprietary technology in generating future revenue streams, including collaboration income and sales commissions [6][7]. Market and Regional Performance - Revenue growth in North America was 20%, while the Chinese mainland saw an 8.5% decline due to financing environment impacts. Japan and South Korea showed strong performance, indicating potential for further growth in these regions [6][7].

Investment Rating - The report assigns a "Buy" rating for the company, Kingsoft (3888 HK), with a target price adjusted from HKD 46.00 to HKD 42.00, indicating a potential upside of 24.3% from the current price of HKD 33.80 [2][9][11]. Core Insights - The company's revenue faced pressure in Q2 due to a high base effect from key games, resulting in a 7% year-on-year decline. Game revenue specifically dropped by 26%, while the office software and services segment grew by 14% [6][12]. - The adjusted operating profit decreased by 48% year-on-year, primarily due to the decline in game revenue, increased marketing expenses for new games, and higher investments in AI [6][12]. - The AI monthly active users reached nearly 30 million, a 50% year-on-year increase, and is expected to continue growing rapidly in the second half of the year [6][12]. Financial Performance Summary - For 2025, the new revenue forecast is RMB 10,512 million, a 6% decrease from the previous estimate of RMB 11,184 million. The gaming segment's revenue is expected to be RMB 4,692 million, down 12% from the prior forecast [5][12]. - The gross profit is projected at RMB 8,652 million, reflecting a 7% decrease from the previous estimate, with a gross margin of 82% [5][12]. - The adjusted net profit for 2025 is forecasted at RMB 2,371 million, a 13% decrease from the previous estimate of RMB 2,724 million [5][12]. Q2 Performance Overview - In Q2 2025, the company's revenue was RMB 2,307 million, down 7% year-on-year, with game revenue at RMB 952 million, down 26% [7][12]. - The office software and services revenue was RMB 1,356 million, up 14% year-on-year, driven by strong performance in WPS 365 and personal business segments [6][7]. - The operating profit for Q2 was RMB 383 million, a 52% decline year-on-year, with an operating margin of 17% [7][12].

Investment Rating - The report assigns an "Accumulate" rating for Lenovo Group (00992) for the first time [2]. Core Views - Lenovo is the largest PC manufacturer globally, with a market share of 24.8% as of Q2 2025, and operates in 180 countries with around 80,000 employees [7][11]. - The company's revenue for Q2 2025 reached $18.83 billion, a year-on-year increase of 21.9%, exceeding Bloomberg's expectations [7]. - The adjusted net profit for Q2 2025 was $390 million, a 22% increase year-on-year, also surpassing Bloomberg's forecast [7]. - The report anticipates revenue growth driven by AI PC penetration and AI server expansion, projecting revenues of $77.38 billion, $83.68 billion, and $91.22 billion for 2025, 2026, and 2027 respectively [7][42]. Summary by Sections Company Overview - Lenovo is recognized as the largest PC manufacturer globally, with a significant global presence and a strategic focus on digital transformation [11]. - The company has a robust shareholder structure, with Lenovo Holdings being the largest shareholder [14]. IDG: AI PC Penetration - The Intelligent Devices Group (IDG) reported revenue of $13.46 billion in Q2 2025, marking a 17.8% year-on-year increase, driven by the growth of AI PCs and mobile business [21][26]. - The AI PC market is expected to grow significantly, with projections indicating a market penetration rate of 85% by 2027 [25]. SSG: Diversification Strategy - The Solutions and Services Group (SSG) achieved a revenue growth of 19.8% in Q1 FY25/26, driven by AI infrastructure and industry solutions [30]. - SSG is positioned as a leading player in the IT services market, maintaining the fastest revenue growth for eight consecutive years [27]. ISG: AI Server Growth - The Infrastructure Solutions Group (ISG) experienced a 36% year-on-year revenue increase in Q1 FY25/26, attributed to rising cloud investments and strong server demand [35]. - The company aims to become a leading provider of end-to-end infrastructure solutions, leveraging advanced technologies like liquid cooling [36]. Profit Forecast and Valuation Analysis - The report forecasts a compound annual growth rate (CAGR) of approximately 15.2% for adjusted net profit from FY24/25 to FY27/28, with projected adjusted net profits of $1.63 billion for FY25/26 [43][44]. - The report highlights a favorable valuation with a projected PE ratio of 10.7 for FY25/26, compared to an average of 19.4 for comparable companies [44].

Investment Rating - The report maintains a "Buy" rating for Yancoal Australia (3668 HK) with a target price adjusted to HKD 34.70, reflecting a potential upside of 22.9% and a target P/E ratio of 8.5 times for FY25 [4][6][20]. Core Views - The mid-year performance for FY25 was slightly disappointing, with a year-on-year decline in revenue and net profit of 14.8% and 61.2%, respectively, due to lower average coal prices and temporary weather-related logistics issues [1][2]. - However, the outlook for the second half of FY25 is expected to improve, driven by seasonal energy demand and policy changes in China, leading to a forecasted rebound in coal prices [2][3]. Summary by Sections Financial Performance - For the first half of FY25, Yancoal reported revenue of AUD 268 million and a net profit of AUD 16 million, down from the previous year [1]. - The average coal price fell by 15.3% to AUD 149 per ton, with thermal and metallurgical coal prices decreasing by 11.5% and 35.1%, respectively [1]. - Despite an 11.1% increase in coal production to 18.9 million tons, sales volume dropped by 1.8% to 16.6 million tons due to logistical challenges [1]. Future Outlook - The report anticipates a narrowing of the year-on-year decline in coal prices for FY25, with expected average prices of AUD 149 for thermal coal and AUD 219 for metallurgical coal [2]. - The forecast for total coal sales volume for FY25 is projected to increase by 1.3% to 38.2 million tons, with a sales-to-production ratio of 97.2% [2]. Operational Guidance - Yancoal maintains its operational guidance for FY25, targeting coal production between 35 million to 39 million tons, cash operating costs of AUD 89-97 per ton, and capital expenditures of AUD 750-900 million [3]. Adjusted Profit Forecasts - The report adjusts the net profit forecasts for FY25-27 downwards by 9.3%, 8.0%, and 11.0%, respectively, reflecting the updated expectations based on mid-year performance [4][5].

Investment Rating - The report maintains a "Buy" rating for the company [2][27] Core Insights - The company reported its 2025 mid-year results, which met expectations, with a revenue of $165 million, a year-on-year decline of 2.5%, and a net profit of $6 million, down 41.3% year-on-year [9] - The financial forecast for the company shows expected revenue growth from $359 million in 2023 to $543 million in 2027, with a projected net profit increase from $31 million to $54 million over the same period [8][19] - The company is focusing on optimizing its product matrix and has several new products in the pipeline, including the long-acting peptide formulation Daxxify, which has received approval for the Chinese market [9] Financial Data and Profit Forecast - Revenue projections: $359 million in 2023, $349 million in 2024, $416 million in 2025E, $490 million in 2026E, and $543 million in 2027E, with growth rates of 1%, -3%, 19%, 18%, and 11% respectively [8][19] - Net profit projections: $31 million in 2023, $25 million in 2024, $38 million in 2025E, $46 million in 2026E, and $54 million in 2027E, with growth rates of -22%, -20%, 52%, 21%, and 16% respectively [8][19] - The company’s gross margin for the first half of 2025 was 60.0%, with a net margin of 5.4% [9][16]

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group-W (01810.HK) [1] Core Views - The company reported a revenue of 115.96 billion yuan in Q2 2025, representing a year-on-year increase of 30.5% and a quarter-on-quarter increase of 4.2%. The adjusted net profit was 10.83 billion yuan, up 75.4% year-on-year and 1.5% quarter-on-quarter, with a gross margin of 22.5% [8] - The automotive segment achieved a record high gross margin of 26.4% in Q2 2025, with revenue of 21.26 billion yuan, a quarter-on-quarter increase of 14.4%. The company aims to achieve profitability in its automotive business by the second half of 2025 [8] - The smartphone market share continues to rise, with Q2 2025 smartphone revenue at 45.52 billion yuan, a year-on-year decrease of 2.1%. The global market share increased by 0.6 percentage points to 14.7% [8] - The IoT segment generated revenue of 38.71 billion yuan in Q2 2025, with a gross margin of 22.5%. The company has expanded its new retail stores to 17,000, with approximately 200 stores overseas [8] Financial Summary - The total revenue forecast for Xiaomi Group is projected to reach 491.83 billion yuan in 2025, with a year-on-year growth of 34.41% [1] - The net profit attributable to the parent company is expected to be 39.60 billion yuan in 2025, reflecting a year-on-year increase of 67.40% [1] - The earnings per share (EPS) is forecasted to be 1.52 yuan in 2025, with a price-to-earnings (P/E) ratio of 32.11 based on the closing price on August 20, 2025 [1]

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company is expected to see continued growth in Q3, driven by the successful performance of its evergreen game "Party of Egg" and the upcoming releases of new titles such as "Destiny Stars" and "Diablo II" [3][9] - The company's net profit forecasts for 2025, 2026, and 2027 are adjusted to 36.3 billion, 39 billion, and 43.3 billion CNY respectively, reflecting an increase in gross margin and a decrease in sales expense ratio [3] Financial Summary - The company's revenue for 2023 is projected at 103.468 billion CNY, with a year-on-year growth of 7.23%. This is expected to increase to 105.295 billion CNY in 2024, with a growth rate of 1.77% [4] - Operating profit is forecasted to rise from 27.709 billion CNY in 2023 to 29.584 billion CNY in 2024, reflecting a significant year-on-year growth of 41.17% in 2023 [4] - The net profit attributable to the parent company is expected to grow from 29.417 billion CNY in 2023 to 29.698 billion CNY in 2024, with a growth rate of 44.64% in 2023 [4] - The earnings per share (EPS) is projected to increase from 9.29 CNY in 2023 to 9.37 CNY in 2024 [4] - The gross margin is expected to improve from 60.95% in 2023 to 62.50% in 2024, while the net margin is projected to be 28.43% in 2023 and 28.20% in 2024 [4] - The price-to-earnings (P/E) ratio is forecasted to decrease from 20 in 2023 to 20 in 2024, and the price-to-book (P/B) ratio is expected to decline from 5 to 4 during the same period [4]