Investment Rating - The report assigns a "Buy" investment rating for the company, indicating a positive outlook for its stock performance [11]. Core Insights - The company is making rapid progress in its clinical trials, particularly with its small molecule GLP-1R agonist ASC30, which has shown promising results in weight loss and safety [6][7]. - ASC30 is positioned to potentially become a "Best in Class" treatment due to its efficacy in weight reduction and low adverse effects [7]. - The company is also developing ASC47, a small molecule THRβ agonist, which is expected to work synergistically with GLP-1 treatments to enhance weight loss while minimizing muscle loss [8]. Clinical Development - The company initiated its first phase IIa clinical trial for ASC30 in early July, successfully enrolling 125 participants within a month [6]. - The expected timeline for top-line data from the ASC30 trial is Q4 2025 [6]. Financial Projections - The report forecasts the company's R&D expenses to increase to 415 million, 487 million, and 540 million RMB for the years 2025 to 2027, respectively [9]. - The projected net profit attributable to the parent company is expected to be -372.9 million, -467.09 million, and -562.67 million RMB for the years 2025 to 2027 [9][13]. - Revenue projections for 2021 to 2023 are not specified, but the report indicates a significant decline in revenue for 2024 [9][13]. Financial Statements Overview - The company's total assets are projected to decrease from 2,491.01 million RMB in 2023 to 571.46 million RMB by 2027 [14][16]. - The report highlights a significant drop in operating income, with a forecast of 1.28 million RMB in 2024 and no revenue expected in 2025 and 2026 [13][16]. - The cash flow statement indicates negative cash flow from operating activities, with projections of -555.17 million RMB in 2025 [15].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [9]. Core Views - The company has demonstrated a significant increase in online music service revenue, with a 15.9% year-on-year growth, contributing to a net profit of 18.85 billion yuan in H1 2025, which is a 132.8% increase compared to the previous year [2][3]. - The company is focusing on enhancing its content ecosystem and user experience, while also exploring innovative product features and expanding music consumption scenarios [3]. Financial Summary - In H1 2025, the company achieved a revenue of 38.27 billion yuan, a decrease of 6.0% year-on-year, primarily due to a decline in social entertainment service revenue [2]. - The operating profit for H1 2025 was 8.45 billion yuan, showing a substantial increase, attributed to reduced promotional and advertising expenses [2]. - The gross margin improved to 36.4%, reflecting a 1.4% increase year-on-year [2]. - The company expects EPS for 2025-2027 to be 12.70, 10.31, and 12.13 yuan respectively, with corresponding P/E ratios of 20X, 24X, and 20X [3][4]. Market Data - The target price for the stock is set at 317.8 HKD, with the current closing price at 270.20 HKD [5]. - The stock has shown a 199% absolute return over the past 12 months [6].

Investment Rating - The investment rating for Lenovo Group (00992.HK) is "Buy" (maintained) [1] Core Views - The report highlights that Lenovo is expected to benefit from the accelerated penetration of AI PCs and strong demand for AI servers, despite short-term pressure on ISG profitability due to increased R&D investments. The non-GAAP net profit estimates for FY2026-2028 have been adjusted to $1.67 billion, $1.96 billion, and $2.30 billion respectively, reflecting year-on-year growth of 15.9%, 17.2%, and 17.5% [4][5] Financial Performance Summary - For FY2026 Q1, Lenovo reported revenue of $18.83 billion, a year-on-year increase of 21.9%, with a non-GAAP net profit of $389 million, also up 21.8%. The net profit margin remained stable at 2.1% [5] - The breakdown of revenue by business segments shows: - IDG: Revenue of $13.46 billion, with a year-on-year growth of 15.2% in PC shipments, significantly outperforming the industry [5] - ISG: Revenue of $4.29 billion, a year-on-year increase of 35.8%, with AI server revenue more than doubling [5] - SSG: Revenue of $2.26 billion, up 19.8%, with deferred revenue of $3.5 billion, indicating strong business predictability [5] Business Outlook - The report anticipates continued momentum in PC shipments and AI PC penetration, supported by the ongoing Windows 10 replacement cycle and reduced tariff impacts. The ISG segment is expected to return to profitability as demand for AI servers increases [6] - The SSG segment has gained attention due to rising enterprise AI demand, with its operating profit contribution exceeding 50% [6]

Investment Rating - The report initiates coverage with an OUTPERFORM rating for Mao Geping Cosmetics, with a target price of HK$124.50, indicating a potential upside of 26.4% from the current price of HK$95.70 [2][7]. Core Insights - Mao Geping is positioned as a high-end beauty brand in China, ranking 4th in the color cosmetics market with a market share of 3.7% as of 2024. The brand's primary revenue source is color cosmetics, accounting for approximately 60% of total product revenue [3][20]. - The company has shown strong revenue growth, with a projected revenue of RMB 5.19 billion for 2025, reflecting a year-on-year growth of 34% [7]. - Mao Geping's product sales are primarily driven by offline channels, with online sales growing rapidly, accounting for 48% of total revenue in 2024 [24][34]. Summary by Sections Company Overview - Mao Geping Cosmetics was founded by renowned makeup artist Mao Geping, who has over 30 years of experience in the industry. The brand is known for its high-quality products and strong cultural heritage [9][10]. Financial Performance - The company reported a revenue of RMB 3.885 billion in 2024, with a year-on-year growth of 34.6%. The net profit for the same year was RMB 881 million, also reflecting a growth of 33% [7][20]. - The gross profit margin has remained stable at around 84%, with a slight decrease to 84.4% in 2024 [7][27]. Product and Market Positioning - Mao Geping's product range includes approximately 400 SKUs, with color cosmetics making up about 350 SKUs. The brand faces limited pricing power in the high-end market but has significant room for growth in SKU offerings [4][6]. - The average selling price for color cosmetics is below RMB 180, while skincare products have a higher average price of RMB 312 [20]. Sales Channels - The company primarily utilizes high-end department stores for offline sales, with a focus on providing a premium customer experience through well-trained beauty advisors. As of 2024, Mao Geping has over 409 counters across more than 120 cities in China [3][29]. - Online sales have been increasing rapidly, with a year-on-year growth of 51.2% in 2024, driven by enhanced marketing efforts on e-commerce platforms [24][34]. Customer Engagement - The company has seen a significant increase in membership, with a total of 1.51 million members as of 2024, representing a 46.6% year-on-year growth. The overall repurchase rate improved from 26.8% to 30.9% [39][40].

Investment Rating - The report assigns a "Buy" rating to Geely Automobile (175 HK) with a target price of HKD 24.21, indicating a potential upside of 27.8% from the current closing price of HKD 18.95 [1][9]. Core Insights - The report highlights a significant increase in non-GAAP net profit, exceeding market expectations, and expresses optimism regarding sales performance in the second half of the year, benefiting from industry trends against excessive competition [2][7]. - Geely's revenue for the first half of 2025 reached RMB 150.3 billion, a year-on-year increase of 27%, while the net profit attributable to shareholders was RMB 9.29 billion, a year-on-year decrease of 14%. However, the non-GAAP net profit grew by 102% year-on-year to RMB 6.66 billion, surpassing market forecasts [7][11]. - The report anticipates Geely's sales target for the year to be raised from 2.7 million to 3 million units, supported by the launch of approximately five new key electric and hybrid models in the second half of the year [7][11]. Financial Overview - Revenue projections for Geely are as follows: RMB 179.2 billion in 2023, RMB 240.2 billion in 2024, RMB 335.1 billion in 2025, RMB 395.8 billion in 2026, and RMB 439.1 billion in 2027, with year-on-year growth rates of 21.1%, 34.0%, 39.5%, 18.1%, and 10.9% respectively [3][11]. - The net profit forecast shows an increase from RMB 5.3 billion in 2023 to RMB 21.1 billion in 2027, with a notable jump to RMB 16.6 billion in 2024, followed by a slight decrease in 2025 [3][11]. - The report indicates a projected earnings per share (EPS) of RMB 0.53 in 2023, rising to RMB 2.10 by 2027, with a peak EPS of RMB 1.65 in 2024 [3][11]. Market Performance - Geely's stock has shown a year-to-date increase of 27.87%, with a 52-week high of HKD 20.35 and a low of HKD 7.70 [6][11]. - The average daily trading volume is reported at 102.16 million shares, reflecting strong market interest [6][11].

Investment Rating - The report maintains a "Buy" rating for Geely Automobile, with a target price of HK$23.47, corresponding to a 13.5x PE for 2025E [3][6]. Core Insights - Geely's performance in 1H25 was strong, with total revenue increasing by 26.5% year-on-year to CNY 150.28 billion, while core net profit rose by 102% to CNY 66.6 billion [1][2]. - The company achieved a total sales volume of 1.409 million vehicles in 1H25, a 47.4% increase year-on-year, with new energy vehicle sales surging by 126.5% [2]. - The integration of the Lynk & Co and Zeekr brands is expected to enhance operational efficiency and reduce costs, as indicated by a decrease in SG&A expense ratio by 1.7 percentage points to 7.5% [2][3]. Summary by Sections Financial Performance - In 1H25, Geely's gross margin decreased by 0.3 percentage points to 16.4%, while the net profit attributable to shareholders fell by 13.9% to CNY 9.29 billion [1]. - The company forecasts a total revenue of CNY 351.72 billion for 2025E, with a growth rate of 46.4% [5]. Sales and Market Strategy - Geely's sales target for the year has been raised by 11% to 3 million vehicles, with 47% of this target achieved in the first half of the year [2]. - The report highlights the expected launch of new models, including the Galaxy A7 and Galaxy M9, which are anticipated to drive sales growth in the second half of 2025 [2]. Strategic Initiatives - The management aims to complete the acquisition of Zeekr by the end of 2025, with an all-cash deal estimated at USD 2.4 billion [3]. - Geely's global and smart strategy is gradually being implemented, with plans to enhance competitiveness through the integration of autonomous driving technologies [3].

Investment Rating - The report maintains an "Outperform" rating for Tingyi Holdings Corp. (康师傅控股) [2] Core Views - The company demonstrates a prominent value in dividends, with a projected dividend yield of 7.2% based on a historical 100% payout ratio [6][14] - Profitability continues to improve despite slight revenue pressure, reflecting effective implementation of a high-quality development strategy [3][11] Financial Summary - Revenue for 2025 is expected to be 79.886 billion yuan, with a slight year-on-year decrease of 0.9% [15] - Net profit attributable to shareholders is projected to be 4.235 billion yuan for 2025, representing a year-on-year growth of 13.4% [15] - The gross profit margin is expected to increase from 33.1% in 2024 to 34.0% in 2025 [10] Segment Performance - The beverage segment experienced a revenue decline of 2.6% in the first half of 2025, with a notable increase in gross profit margin to 37.7% [4][12] - The instant noodle segment saw a slight revenue decrease of 2.5% in the first half of 2025, but the gross profit margin improved to 27.8% [5][13] Cash Flow and Dividends - As of June 30, 2025, the company had cash and bank deposits totaling 19.49 billion yuan, indicating strong cash flow [14] - The company has consistently maintained a high dividend payout ratio, with historical ratios of 100% or more from 2020 to 2024 [6][14]

Investment Rating - The investment rating for NetEase Cloud Music (09899.HK) is "Buy" (maintained) [4][11]. Core Insights - The report highlights that NetEase Cloud Music continues to experience high growth, driven by an expansion of its music library and optimization of its ecosystem [4]. - In H1 2025, the company achieved operating revenue of 3.83 billion yuan (down 6% year-on-year), with a net profit attributable to shareholders of 1.89 billion yuan (up 132.8% year-on-year) [4]. - The adjusted operating profit was 910 million yuan (up 35% year-on-year), and the adjusted net profit was 1.95 billion yuan (up 121% year-on-year) [4]. - The gross margin improved to 36.4% compared to 35% in H1 2024, primarily due to the recognition of deferred tax credits and reduced advertising expenses [4]. Revenue and Profitability - Online music revenue for H1 2025 was 2.97 billion yuan (up 15.9% year-on-year), with subscription service revenue at 2.47 billion yuan (up 15.2% year-on-year) [5]. - The company is focusing on enhancing its core music monetization capabilities, leading to stable growth in monthly active users and paying users [5]. - The report projects net profits for 2025-2027 to be 2.95 billion, 2.45 billion, and 2.95 billion yuan respectively, with corresponding P/E ratios of 18.2, 21.9, and 18.3 times [4]. Music Library and User Experience - The company is continuously expanding its music copyright, having established agreements with popular K-Pop labels and focusing on various music genres [6]. - As of June 2025, the platform had 819,000 registered independent musicians (up 11.9% year-on-year) and approximately 4.8 million uploaded tracks (up 33.3% year-on-year) [6]. - The introduction of innovative features and a streamlined app interface has received positive feedback from users, potentially enhancing user engagement and monetization opportunities [6].

Investment Rating - The report maintains a "Strong Buy" rating for JD Group [4][6] Core Views - JD Group's Q2 2025 performance exceeded expectations with revenue of 356.66 billion yuan, a year-on-year increase of 22.4%, driven by government subsidies and user growth [1][6] - The retail segment generated revenue of 310.075 billion yuan, up 20.6% year-on-year, with retail operating profit reaching 13.94 billion yuan, a 37.9% increase [1][6] - Non-GAAP net profit for the quarter was 7.394 billion yuan, down 48.9% year-on-year, but better than consensus expectations [1][6] - The report highlights the robust growth of the takeaway business and its potential synergy with the retail segment, emphasizing the need to monitor future investments in this area [1][6] Financial Data and Valuation - Projected revenue for JD Group is expected to grow from 1,084.662 million yuan in 2023 to 1,383.240 million yuan in 2027, with a compound annual growth rate (CAGR) of approximately 3% [3][7] - Non-GAAP net profit is projected to fluctuate, with estimates of 27.603 billion yuan in 2025, 49.083 billion yuan in 2026, and 63.430 billion yuan in 2027 [3][7] - The report provides a target valuation range of 146-182 HKD per share based on a 2026 Non-GAAP net profit multiple of 8-10 times [4][6] Stock Performance - JD Group's stock has shown a 1-month absolute performance of 9.1%, a 6-month performance of 17.6%, and a 12-month performance of 20.0% [5]

Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside of 15% to 35% [6][11]. Core Insights - The company achieved a revenue of RMB 150.29 billion in the first half of 2025, representing a year-over-year (YOY) increase of 26.5%. The net profit reached RMB 9.29 billion, with core profit (excluding foreign exchange gains and asset disposal gains) increasing by 102% YOY [7]. - The company is accelerating its electrification transformation, with a high cost-performance product strategy yielding positive results across various price segments. The integration of automotive operations is expected to lower procurement costs and enhance product competitiveness [7]. - The company plans to strengthen its export efforts, with an anticipated improvement in export growth rates [7]. Financial Performance - The company’s Q2 2025 revenue was RMB 77.79 billion, a 28.4% increase YOY, with a net profit of RMB 3.62 billion, indicating a near doubling of core profit YOY [7]. - Q2 2025 saw vehicle sales of 705,000 units, a 47% increase YOY, with new energy vehicles (NEVs) accounting for 54.7% of total sales, up 6.5 percentage points from Q1 [7]. - The company’s gross margin for Q2 was 17.1%, showing a slight decrease of 0.71 percentage points YOY but an increase of 1.29 percentage points from Q1 [7]. Sales and Market Position - In July 2025, the company sold 238,000 vehicles, a 57.7% increase YOY, with NEV sales reaching 130,000 units, representing 55% of total sales [7]. - The company’s cumulative vehicle sales from January to July 2025 reached 1.647 million units, a 48.8% increase YOY, with a target of 3 million units for the year, reflecting a 38% increase from the previous year [7]. - The company has a rich pipeline of new products set to launch in the second half of 2025, which is expected to enhance both sales and average selling prices [7]. Earnings Forecast - The report revises the company's net profit forecasts for 2025, 2026, and 2027 to RMB 16.11 billion, RMB 18.09 billion, and RMB 22.57 billion, respectively, with YOY growth rates of 70%, 12%, and 25% [7][9]. - The earnings per share (EPS) estimates for the same years are adjusted to RMB 1.60, RMB 1.80, and RMB 2.24, respectively [9]. - The current stock price corresponds to price-to-earnings (P/E) ratios of 10.7, 9.6, and 7.7 for 2025, 2026, and 2027, respectively, supporting the "Buy" recommendation [7].