Investment Rating - The investment rating for the company is "Add" and it is maintained [2] Core Views - The company has released a positive profit forecast for the first half of 2025, with sales performance (including tax revenue) expected to be approximately RMB 138-143 billion, representing a year-on-year growth of 240%-252%. The net profit is projected to be between RMB 22.3-22.8 billion, reflecting a year-on-year increase of 279%-288% [4][5] - The company's revenue growth is attributed to the resonance of brand and product, with an expanding brand influence leading to overall revenue growth in both online and offline stores. Continuous product optimization and new iterations have also supported sustained revenue growth [5] - The company has successfully expanded its store network, with a new store opening in Shanghai on August 2, 2025, marking the fourth store in the city [4][5] Company Overview - The latest closing price is HKD 802.50, with a total market capitalization of HKD 1,385.73 billion. The company has a total share capital of 1.73 billion shares and an asset-liability ratio of 38.13% [3] - The company is positioned as a high-end brand focusing on "ancient method gold," aiming to establish itself as a global luxury jewelry brand [11] Financial Performance - The company is expected to achieve a revenue growth rate of 138% in 2025, with net profit growth projected at 179.54%. The earnings per share (EPS) are forecasted to be RMB 23.85 for 2025 [13][11] - The company has a projected net profit margin of 18.41% for the first half of 2025, an increase from 16.7% in the first half of 2024 [5] Industry Analysis - The report anticipates that gold prices will continue to rise, with expectations for London gold prices to exceed USD 3,500 in the medium term [6] - The company is leveraging Chinese cultural elements in its product design, with nearly 2,000 original designs and a significant number of patents and copyrights [10]

Investment Rating - The report assigns an IPO-specific rating of 5.9 out of 10 for the company, based on operational performance, industry outlook, valuation, and market sentiment [7]. Core Insights - The company specializes in the research and production of silicon carbide substrates, being one of the first in China to industrialize semi-insulating silicon carbide substrates and further achieve the industrialization of conductive silicon carbide substrates [9]. - The company has established partnerships with over half of the top ten global power semiconductor manufacturers, with applications in electric vehicles, AI data centers, and other fields [9]. - The global silicon carbide substrate market is highly competitive, with the company holding a market share of 16.7%, ranking among the top three manufacturers globally [9]. - The report highlights the significant growth potential in the power semiconductor market, projected to reach USD 19.7 billion by 2030, with a compound annual growth rate of 35.8% from 2024 to 2030 [9]. Financial Overview - The company’s revenue is expected to grow from approximately CNY 417 million in 2022 to CNY 1.768 billion in 2024, with a net profit of CNY 179 million anticipated in the fiscal year 2024 [9]. - The IPO price is set at a maximum of HKD 42.80, with a projected market capitalization of approximately HKD 20.435 billion post-IPO [12][13]. - The report indicates a significant discount of approximately 35.7% compared to the A-share closing price, suggesting a reasonable valuation in the context of the semiconductor sector [13]. Use of Proceeds - The company plans to allocate approximately 70% of the net proceeds from the IPO to expand its production capacity for 8-inch and larger silicon carbide substrates, 20% for enhancing R&D capabilities, and 10% for working capital and general corporate purposes [12].

Investment Rating - The report assigns a rating of "Buy" for the company, with a target price of 14.1 HKD [4][9]. Core Insights - The company, Q Technology, reported a revenue of approximately 8.83 billion RMB for H1 2025, representing a year-on-year growth of 15.1%, driven primarily by increased sales and prices of automotive and IoT camera modules, as well as improvements in fingerprint recognition module sales [1][2]. - The gross margin improved to 7.4%, up 2.2 percentage points year-on-year, attributed to a higher proportion of mid-to-high-end products and enhancements in the fingerprint recognition module business [1]. - The net profit attributable to shareholders reached approximately 308 million RMB, a significant increase of 167.6% year-on-year, aligning with the previously announced profit forecast [1][3]. Revenue Breakdown - The core business exceeded expectations, with camera module revenue growing by 10.3% to 7.96 billion RMB, and fingerprint recognition module revenue soaring by 109.3% to 830 million RMB [2]. - Non-mobile sectors, particularly automotive and IoT, saw a 47.9% increase in camera module shipments, surpassing the annual target of over 40% [2]. - The sales revenue from non-mobile sectors accounted for 23.9% of total revenue, a year-on-year increase of 14.3 percentage points [2]. Business Development and Strategic Moves - The company increased its stake in New Giant Technology to 41.8%, which reported a revenue growth of 19.8% and a net profit increase of 385.8% year-on-year [3]. - Q Technology invested in poLight, acquiring a 32.97% stake, becoming its largest single shareholder, which aims to enhance the optical module product line into VR/AR/MR applications [3]. - The company has set ambitious targets for 2025, expecting a minimum of 60% growth in automotive and IoT camera module shipments and a 30% increase in fingerprint recognition module shipments [3]. Financial Projections - The projected net profits for 2025 and 2026 are estimated at 700 million RMB and 830 million RMB, respectively, reflecting year-on-year growth rates of 150.1% and 18.9% [4]. - Revenue forecasts for the upcoming years show a recovery trajectory, with expected revenues of 18.74 billion RMB in 2025 and 21.40 billion RMB in 2026, indicating growth rates of 16.1% and 14.2% [5].

Investment Rating - The report maintains a "Buy" rating for the company with a target price raised to HKD 9.0, indicating a potential upside of 32% from the current price [4][7]. Core Insights - The company's performance exceeded expectations in the first half of the year, with a revenue of RMB 12.67 billion, a year-on-year increase of 5%, and a net profit of RMB 600 million, a year-on-year decrease of 13% [2][4]. - The decline in net profit is attributed to the weakening support for urea prices due to falling coal prices, leading to a 19% drop in urea prices and a 15.9% decrease in urea revenue [2][3]. - Significant new production capacity is set to come online, which is expected to drive rapid growth in revenue and profits in 2026 and 2027 [3][4]. Summary by Sections Financial Performance - In Q2, the company reported revenue of RMB 6.82 billion, a quarter-on-quarter increase of 16.7%, and a net profit of RMB 400 million, a quarter-on-quarter increase of 102.5% [1][2]. - The company anticipates explosive growth in net profit for 2026 and 2027, with projections of RMB 1.15 billion and RMB 2.49 billion respectively, reflecting year-on-year changes of +43.8% and +51.1% [4][10]. Capacity Expansion - The company is steadily advancing its capacity expansion projects, with significant projects expected to come online between 2025 and 2027, including urea projects in Henan and Xinjiang [3][4]. - Once all projects are completed, the company’s urea production capacity is expected to exceed 8 million tons, and total fertilizer capacity is projected to reach 14 million tons [3]. Marketing Strategy - The company is upgrading its branding strategy to better meet market demands, transitioning from a product-focused approach to providing comprehensive planting solutions [3].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 60.00, representing a potential upside of 23.20% from the current price of HKD 48.70 [3][5]. Core Insights - The semiconductor industry is experiencing a gradual recovery in downstream demand, which is driving a steady improvement in the company's fundamentals [3]. - The company is expected to achieve a revenue CAGR of 25.0% and a net profit CAGR of 90.0% over the next three years, supported by increasing demand from downstream clients and the urgency for domestic semiconductor alternatives [5][7]. Financial Performance Summary - For the fiscal year ending December 31, 2023, the company reported total revenue of USD 6,321.56 million, a decrease of 13.09% from the previous year, but projected to grow to USD 8,029.92 million in 2024, reflecting a 27.02% increase [4][7]. - The net profit attributable to shareholders for 2023 was USD 902.53 million, down 50.35% from 2022, with forecasts indicating a recovery to USD 851.73 million in 2025 and USD 1,277.34 million in 2026 [4][5]. - The company's earnings per share (EPS) for 2023 was USD 0.11, with projections of USD 0.16 in 2025 and USD 0.22 in 2026, indicating a significant recovery trajectory [5][7]. Market Position and Outlook - The company ranks as the third-largest wafer foundry globally, with a market share of 6% as of Q1 2025, and is expected to benefit from advancements in process technology and increased production capacity [5][7]. - The company anticipates a 5%-7% revenue growth in Q3 2025, with a projected revenue range of USD 23.2 billion to USD 23.6 billion, aligning with market expectations [5][7]. - The demand for AI-related products is expected to grow by over 10% in 2025, contributing to an increase in wafer shipments despite a slight decline in prices [5][7].

Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 23.2, indicating a potential upside of 19.5% from the current price of HKD 19.34 [4][5]. Core Insights - The company has entered into a licensing agreement with Expedition for the development, production, and commercialization of the investigational product XH-S004 outside of China and Hong Kong, with potential revenues of up to USD 650 million [5][6]. - The DPP-1 small molecule drug XH-S004 has significant market potential, targeting conditions such as non-cystic fibrosis bronchiectasis and chronic obstructive pulmonary disease, with a growing global interest in DPP-1 inhibitors [6][10]. - The company has adjusted its profit forecasts upwards due to the recent business development transaction, projecting net profits of RMB 34.3 billion, RMB 39.2 billion, and RMB 46.1 billion for 2025-2027, representing year-over-year growth rates of 24%, 14%, and 17% respectively [6][8]. Financial Summary - The company’s projected net profit for 2025 is RMB 34.35 billion, with an EPS of RMB 1.29, and a corresponding H-share PE ratio of 14X [8][11]. - Revenue forecasts for the company are set at RMB 44.87 billion for 2025, with a steady increase expected in subsequent years [11]. - The company’s dividend per share (DPS) is projected to grow from RMB 0.39 in 2025 to RMB 0.52 by 2027, reflecting a dividend yield increase from 1.44% to 1.93% [8][11].

Investment Rating - The investment rating for Geely Automobile is "Buy" and is maintained [6]. Core Views - Geely Galaxy A7 was officially launched on August 8, 2025, with 7 models priced between 81,800 to 117,800 yuan, including an 8,000 yuan limited-time trade-in benefit. The new platform is expected to usher in a new era of products for Geely Automobile [2][4]. - The GEA architecture supports a new vehicle cycle, with brands such as Zeekr, Lynk & Co, and Galaxy showing positive trends. The transition to new energy vehicles is progressing smoothly, and the scale effect is gradually becoming apparent, which will bring upward profit elasticity. The company’s solid foundation in fuel vehicles and innovative overseas expansion modes through joint ventures continue to open new markets [6]. - The intelligent strategy is set to accelerate the enhancement of intelligent driving capabilities. The strong new vehicle cycle is expected to provide significant profit elasticity, with a projected net profit attributable to shareholders of 16.1 billion yuan in 2025, corresponding to a PE ratio of 10.5X [6]. Summary by Sections Event Description - The Geely Galaxy A7 features the Raytheon AI Hybrid 2.0 system, achieving a fuel consumption of 2.67L per 100 km and a range of over 2100 km. It boasts a spacious interior with a wheelbase of 2845mm, leading in energy consumption, space, intelligence, and safety among its peers [4][7]. Product Strategy - Geely is focusing on electric and intelligent advancements, with a strong new vehicle cycle expected to continue. In 2025, 10 new energy models are anticipated, including 5 new models and several facelifts under the Geely brand, alongside new releases from Zeekr and Lynk & Co [6][7].

Investment Rating - The report maintains a "Buy" rating for Huahong Semiconductor [1][10] Core Views - Despite depreciation pressure from new factory investments, the company's gross margin exceeded market expectations in Q2 2025 [2][7] - The company reported Q2 2025 revenue of $566 million, a quarter-over-quarter increase of 4.6% and a year-over-year increase of 18.3% [7][8] - The net profit attributable to shareholders for Q2 2025 was $8 million, reflecting a significant quarter-over-quarter increase of 112.1% and a year-over-year increase of 19.2% [7][8] - The wafer shipment volume reached 1.305 million equivalent eight-inch wafers, with a capacity utilization rate of 108.3% [7][8] Financial Performance Summary - Q2 2025 revenue guidance was set between $550 million and $570 million, with Bloomberg consensus at $563 million [7] - Gross margin for Q2 2025 was reported at 10.9%, with a quarter-over-quarter increase of 1.7 percentage points and a year-over-year increase of 0.4 percentage points [7] - The company expects Q3 2025 revenue to be between $620 million and $640 million, indicating a quarter-over-quarter growth of 11.3% and a year-over-year growth of 19.7% [7][8] - The gross margin guidance for Q3 2025 is projected to be between 10% and 12%, surpassing market expectations [7][8] Future Projections - Revenue projections for Huahong Semiconductor are $2.417 billion in 2025, $3.004 billion in 2026, and $3.249 billion in 2027 [8][9] - Net profit attributable to shareholders is expected to be $87 million in 2025, $182 million in 2026, and $247 million in 2027 [8][9] - The report assigns a target price of HKD 44.43 based on a price-to-book ratio of 1.5x for the estimated book value per share in 2026 [8][9]

Investment Rating - The report maintains a "Buy" rating for the company [3] Core Views - The company is expected to achieve revenue of 71.1 billion, 82.7 billion, and 96.4 billion RMB for the years 2025, 2026, and 2027 respectively, with year-on-year growth rates of 13.6%, 16.3%, and 16.6% [3] - The net profit attributable to the parent company is projected to be 1.2 billion, 5.4 billion, and 9.9 billion RMB for the years 2025, 2026, and 2027, with significant year-on-year growth rates of turning profitable, 342.1%, and 82.7% respectively [3] - The price-to-sales ratios are expected to be 7.9X, 6.8X, and 5.9X for the years 2025, 2026, and 2027 [3] Financial Summary - The company's revenue for 2023 is reported at 5,679 million RMB, with a growth rate of 16.71% [8] - The net profit for 2023 is reported at -210 million RMB, with a projected recovery to 122 million RMB in 2025 [8] - The diluted earnings per share are expected to improve from -0.06 RMB in 2023 to 0.28 RMB in 2027 [8] - The return on equity (ROE) is projected to rise from -2.44% in 2023 to 10.19% in 2027 [8] Market Performance - The company achieved a revenue of 31.9 billion RMB in the first half of 2025, reflecting a year-on-year increase of 11.2% [9] - The annual recurring revenue (ARR) for cloud subscriptions reached 37.3 billion RMB, with a year-on-year growth of 18.5% [9] - The gross margin for cloud subscriptions is reported at 96.2%, indicating a year-on-year increase of 1 percentage point [9]

Investment Rating - The report assigns a "Buy" rating to the company for the first time, with a target price of HKD 50.76, compared to the current price of HKD 42.64 [3][9]. Core Viewpoints - The company is positioned as a leader in perception experience solutions, with deep expertise across various business sectors including acoustic devices, touch motors, optics, precision components, and XR, which is expected to drive long-term growth [6][8]. - The report highlights significant growth in the optical and automotive acoustic sectors, with a projected revenue increase of 33.4% year-on-year for 2024, driven by strong demand in consumer electronics and innovative product launches [26][27]. Summary by Sections Company Overview - The company has a strong foundation in the acoustic market since its establishment in 1993, and has diversified into optics, motors, MEMS chip design, precision components, and XR technologies, positioning itself for long-term growth [15][17]. - The ownership structure is concentrated, with the founder and family holding over 36% of shares, ensuring stability and continuity in management [20][21]. Optical Business - The optical sector is experiencing a revival in smartphone demand, with a focus on differentiated performance upgrades rather than merely increasing the number of camera modules [41][54]. - The company leads in WLG (wafer-level glass) technology, which is expected to set new trends in smartphone lens design, and has successfully launched products in the XR field [6][8][41]. Electromagnetic Transmission and Precision Components - The company is a leading supplier of linear motors, particularly in the X-axis domain, which is gaining traction in various applications beyond smartphones [8][30]. - The acquisition of Dongyang Precision is anticipated to enhance synergies in the precision components business, contributing to revenue growth [6][8]. Acoustic Business - The company maintains a strong market share in the high-end acoustic sector, with its products increasingly penetrating mid-range devices, which is expected to enhance unit value [8][30]. - The acquisition of PSS is aimed at expanding into the automotive acoustic market, leveraging synergies to capture growth opportunities [8][30]. Financial Projections - The company is projected to achieve net profits of CNY 2.36 billion, CNY 2.77 billion, and CNY 3.16 billion for the years 2025 to 2027, respectively, reflecting a robust growth trajectory [2][9]. - The report anticipates a recovery in profit margins due to improved product mix and operational efficiencies, with a gross margin expected to rise to 22.11% in 2024 [31].