Investment Rating - The report assigns a "Buy" rating for the company [4][12]. Core Insights - The company's sales performance in 1H25 met expectations, with rapid market penetration of its core product, Lukanasatuzumab. The peak sales forecast for this product in mainland China has been raised to RMB 5.7 billion (approximately USD 800 million) [3][7]. - The report highlights the ongoing development of new indications and the steady progress of early-stage pipelines, which are expected to enhance the company's competitive edge in clinical research [3][7]. - The target price has been adjusted upwards to HKD 507, reflecting a potential upside of 17.6% based on a DCF model [2][8]. Financial Performance Summary - For 1H25, the company reported revenues of RMB 950 million, with commercial product sales contributing RMB 310 million, primarily from Lukanasatuzumab [7]. - The adjusted net loss for 1H25 was RMB 69.9 million, with expectations of narrowing operational losses excluding collaboration income [7]. - Revenue forecasts for 2025-2027 have been slightly increased, with 2025 revenue projected at RMB 2.05 billion, 2026 at RMB 3.01 billion, and 2027 at RMB 4.43 billion [6][13]. Clinical Development and Pipeline - Key clinical data readouts are anticipated, with two phase III clinical data expected to be presented at the 2025 ESMO conference [7]. - The report notes the expansion of Lukanasatuzumab's indication coverage, with approvals for new indications expected in 2025 [7]. - Several early-stage pipeline products are progressing, including SKB571, which is set to enter phase II clinical trials [7]. Market Performance - The stock has shown a year-to-date increase of 163.93%, with a 52-week high of HKD 456.00 and a low of HKD 154.00 [6][5]. - The average daily trading volume is reported at 0.98 million shares [6].

Investment Rating - The investment rating for the company is "Outperform the Market" [6] Core Views - The company's performance in H1 2025 showed significant growth, with revenue reaching HKD 14.076 billion, a year-on-year increase of 32.5%, and net profit attributable to shareholders at HKD 8.519 billion, up 39.1% [1][9] - The increase in trading volume, particularly from southbound funds, has been a key driver of the company's performance, with the average daily trading (ADT) for H1 2025 reaching HKD 222.8 billion, a 122.1% increase year-on-year [2][13] - The company has maintained a high EBITDA margin of 77.7% in H1 2025, reflecting its efficient business model and strong profitability [1][3] Summary by Sections Financial Performance - In H1 2025, the company achieved an EBITDA margin of 77.7%, with operating expenses of HKD 2.973 billion, of which staff costs accounted for 65.6% [3][24] - The annualized return on equity (ROE) increased to 30.76%, nearing the peak levels seen in 2015 [1][9] Market Dynamics - The southbound trading activity has significantly contributed to the trading volume, with southbound funds showing strong buying power, while international intermediaries have reduced net selling since early July [2][18] - The IPO market in Hong Kong has rebounded, with H1 2025 IPO amounts reaching HKD 109 billion, reclaiming the top position globally [2][13] Investment Recommendations - The company has adjusted its profit forecasts for 2025-2027 upwards by 3.99%, 5.37%, and 5.53% respectively, based on the strong performance in H1 2025 [4][26] - The ongoing dual opening of capital markets and the company's strategic initiatives are expected to enhance its revenue and profit growth potential [4][24]

Investment Rating - The report maintains a "Strong Buy" rating for the company [2][7]. Core Views - The company achieved a revenue of 12.35 billion RMB in H1 2025, representing a year-on-year increase of 251.0%, and a net profit of 2.27 billion RMB, up 285.8% year-on-year [7]. - The company plans to distribute an interim dividend of 9.59 RMB per share and aims to maintain a high dividend payout ratio of 50% of the accumulated undistributed profits each year [7]. - The company is experiencing significant growth across all channels, with offline store revenue increasing by 243.2% year-on-year and online platform revenue rising by 313.3% [7]. - The company has rapidly expanded its membership base, reaching 480,000 loyal members, which enhances its high-end brand positioning [7]. - The company is expected to achieve net profits of 4.545 billion, 6.348 billion, and 8.422 billion RMB for the years 2025 to 2027, reflecting year-on-year growth rates of 209%, 40%, and 33% respectively [7]. Financial Data and Valuation - The total revenue for the company is projected to reach 25.214 billion RMB in 2025, with a gross profit margin of 40.5% [10][11]. - The company’s return on equity (ROE) is forecasted to be 78.6% in 2025, indicating strong profitability [11]. - The company’s price-to-earnings (PE) ratio is expected to be 26.5 in 2025, suggesting a favorable valuation compared to its growth prospects [11].

Investment Rating - The report maintains a "Buy" rating for Sunny Optical Technology (02382.HK) with a target price of HKD 105, corresponding to a 25x P/E for 2026 [3][5]. Core Views - Sunny Optical's revenue for H1 2025 reached HKD 196.5 billion, a year-on-year increase of 4.2%. The mobile segment generated HKD 132.5 billion, up 1.7%, while the automotive segment saw a significant growth of 18.2% to HKD 34 billion, and the XR segment grew by 21.1% to HKD 12 billion [1][2]. - The company's gross profit for H1 2025 was HKD 38.9 billion, reflecting a 20% increase, with the gross margin improving from 17.2% to 19.8% due to faster growth in high-margin automotive business and improved margins in mobile lenses and modules [1][2]. - The net profit attributable to shareholders for H1 2025 was approximately HKD 16.5 billion, marking a substantial year-on-year increase of 52.6% [1]. Summary by Sections Mobile Optical - The demand for mobile optical products is driven by the need for extreme miniaturization due to foldable and ultra-thin devices, as well as innovations in video stabilization and all-focus experiences. The revenue from mobile lenses with six or more elements grew by over 9%, and the revenue from glass-plastic hybrid lenses more than doubled [2]. Automotive Optical - Sunny Optical holds the leading global market share in automotive lenses, with a focus on pixel upgrades and advanced cleaning technologies. The company also maintains the top market share for 8MP automotive modules and has secured over HKD 1.5 billion in designated projects for L3 and above intelligent driving [2]. XR and IoT - The company has achieved full-link optical product coverage in the XR sector, including interaction modules, display modules, and complete machine ODM. In the broader IoT space, there is a growing demand for handheld imaging devices, and the company is expanding its scale in robotics, particularly in navigation and AI recognition [3]. Financial Projections - Revenue projections for Sunny Optical are estimated at HKD 409 billion, HKD 476 billion, and HKD 559 billion for 2025, 2026, and 2027 respectively. The net profit attributable to shareholders is expected to be HKD 35.3 billion, HKD 42.0 billion, and HKD 52.4 billion for the same years [3][4].

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company reported a revenue of approximately 9.843 billion yuan for the first half of 2025, representing a year-on-year increase of 11.7%. The adjusted net profit was approximately 122 million yuan, up 33.2% year-on-year, while the net profit attributable to the parent company surged by 258% to approximately 78 million yuan [1][4] Revenue Structure - The self-operated business revenue reached 9.389 billion yuan in 25H1, growing by 12.53% year-on-year, with the flagship business transaction scale at 1.08 billion yuan, a significant increase of 115.6% year-on-year. The proprietary brand transaction scale within the flagship business soared by 473.4% to 852 million yuan [4] - Platform business revenue was 436 million yuan, down 0.95% year-on-year, primarily due to the sluggish retail drug market affecting third-party sellers [4] - Other income decreased by 40.56% year-on-year to 17 million yuan, mainly due to adjustments in the operational/service model of Guangpu Cloud Inspection [4] Profitability - The adjusted net profit margin improved by approximately 0.2 percentage points to 1.2% in 25H1, while the overall net profit margin increased by about 0.6 percentage points to 0.75% [4] - The gross profit margin rose by approximately 1.22 percentage points to 11.22%, driven by the rapid growth of high-margin businesses [4] User Engagement - The average monthly active buyers on the platform reached 453,000, a year-on-year increase of 6.5%, with the average monthly paying buyers at 426,000, up 7.6%. The payment rate stood at 94%, with each paying buyer placing an average of 29.2 orders per month [4] Future Outlook - The company expects revenues for 2025, 2026, and 2027 to be approximately 20.8 billion yuan, 23.5 billion yuan, and 26.7 billion yuan, respectively, with year-on-year growth rates of 16%, 13%, and 14% [5] - The net profit attributable to the parent company is projected to be 148 million yuan, 320 million yuan, and 549 million yuan for the same years, reflecting year-on-year growth rates of 394%, 116%, and 72% [5] Financial Metrics - The company’s gross margin is expected to improve from 10.89% in 2025E to 11.82% in 2027E, while the return on equity (ROE) is projected to rise from 6.14% to 16.73% over the same period [6][8] - The price-to-earnings (P/E) ratio is forecasted to decrease from 44 times in 2025 to 12 times in 2027 [5][6]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6] Core Views - The company achieved a revenue of 6.84 billion HKD in H1 2025, representing a year-on-year increase of 7.1%. The net profit attributable to shareholders was 0.91 billion HKD, up 21.5% year-on-year. Excluding the loss of 0.11 billion HKD from the divested KP, the comparable net profit increased by 6% year-on-year. The interim dividend payout ratio remained stable at 50% compared to the previous year [2][4] - The main brand showed steady growth, with a year-on-year increase of 4.5% to 6.05 billion HKD, while the professional sports segment grew by 32.5% to 0.79 billion HKD. The strong growth in the e-commerce channel, which accounted for over 30% of the main brand's revenue, contributed to this performance [6] - The gross margin slightly decreased, with the main brand's gross margin down by 0.3 percentage points to 43.6%. The operating profit margin (OPM) for the main brand decreased by 0.6 percentage points to 20%. However, the professional sports segment saw a significant improvement in OPM, which increased by 6.1 percentage points to 10% despite a 1.6 percentage point drop in gross margin to 55.2% [6] - Looking ahead, the main brand is expected to maintain steady performance in a competitive environment, while the professional sports brand, Saucony, is anticipated to become a significant growth driver for the group. The projected net profits for 2025-2027 are 1.41 billion HKD, 1.58 billion HKD, and 1.75 billion HKD, respectively, with corresponding price-to-earnings ratios of 12, 10, and 9 times [6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company's performance exceeded expectations, with a strong growth trajectory driven by high-quality IP and robust domestic and international sales [2][3] - The company reported a significant increase in revenue and net profit, with a projected revenue of 30,480 million RMB in 2025, representing a year-on-year growth of 133.78% [1][9] - The core IP matrix has shown explosive growth, with five IPs generating over 1 billion RMB in revenue, particularly "The Monsters" which achieved 48.14 billion RMB, a year-on-year increase of 668% [9][10] Summary by Sections Domestic Performance - In the first half of 2025, domestic revenue reached 82.83 billion RMB, a year-on-year increase of 135%, with both offline and online channels achieving triple-digit growth [3] - Offline retail store revenue was 44.06 billion RMB, up 120% year-on-year, driven by store optimization and upgrades [3] - Online sales also surged, with revenue from box machines reaching 11.25 billion RMB, a year-on-year increase of 182% [3] International Expansion - The company has expanded its overseas stores to 128, with a net increase of 28 stores since the beginning of the year, leading to a 440% year-on-year increase in overseas revenue to 55.93 billion RMB [4][10] - The Americas saw particularly strong growth, with revenue of 22.65 billion RMB, a year-on-year increase of 1142% [4] Financial Projections - The company has adjusted its net profit forecasts for 2025-2027, increasing the estimates to 10,688 million RMB for 2025, 15,146 million RMB for 2026, and 18,888 million RMB for 2027 [10][11] - The projected P/E ratios for the upcoming years are approximately 37 for 2025, 26 for 2026, and 21 for 2027 [10][11] Product and IP Development - The plush product category has become the largest revenue contributor, with sales of 61.39 billion RMB in the first half of 2025, a year-on-year increase of 1276% [9][10] - The company is focusing on expanding its IP portfolio, with new IPs like "Crybaby" and "Star People" gaining significant traction [9][10]

Investment Rating - The report maintains a "Buy" rating for Hong Kong Exchanges and Clearing Limited (00388.HK) [1] Core Views - The report highlights that Hong Kong Exchanges achieved record high quarterly profits supported by trading volume, with a 33% year-on-year increase in revenue to HKD 14.076 billion and a 39% increase in net profit to HKD 8.519 billion for the first half of 2025 [1][2] - The trading fee income from the stock market saw a significant increase of 112% to HKD 2.556 billion, driven by a 122% year-on-year growth in average daily trading volume [2] - The report anticipates continued growth in net profit for 2025-2027, projecting HKD 17 billion, HKD 18 billion, and HKD 19.6 billion respectively, with corresponding EPS of HKD 13.48, HKD 14.22, and HKD 15.43 [3] Summary by Sections Performance Overview - In 1H25, the revenue breakdown by business lines showed significant growth rates: cash market at 62%, derivatives at 15%, commodities at 8%, data and connectivity at 5%, and company projects at 28% [1] - The trading and transaction system usage fees increased by 49%, while listing fees rose by 30% due to a recovery in the IPO market [2] Revenue and Profit Forecast - The report forecasts revenue growth rates of 26% for 2025, followed by 6% and 7% in subsequent years, with net profit growth rates of 31%, 6%, and 9% respectively [3][7] - The projected P/E ratios for the next three years are 33, 31, and 29 times [3]

Investment Rating - The investment rating for ZTO Express (2057.HK) is "Buy" [1] Core Views - The report highlights a significant decrease in unit costs and a downward adjustment in volume growth guidance due to changes in the economic and competitive landscape [5][6] - The company achieved a revenue of 22.723 billion yuan in H1 2025, representing a year-on-year increase of 9.8%, while the adjusted net profit was 4.312 billion yuan, down 14.3% year-on-year [2][3] Summary by Sections Operating Performance - In Q2 2025, the company handled 9.850 billion parcels, a year-on-year increase of 16.5%, maintaining a market share of approximately 19.5%, which is the highest in the industry [3] - The average revenue per parcel in Q2 2025 was 1.12 yuan, down 4.6% year-on-year, influenced by intensified industry competition and changes in cargo structure [3] - The unit cost for express delivery in Q2 2025 was approximately 0.58 yuan, a decrease of 11.0% year-on-year, with line haul costs down 15.0% and sorting costs down 5.1% [4] Volume Growth Guidance - The company has adjusted its full-year volume growth target for 2025 to 14%-18%, down from the previous 20%-24% due to the current economic and competitive environment [5] Industry Outlook - The report suggests that the express delivery industry still has growth potential, particularly with the rise of e-commerce and live-streaming sales, despite the downward trend in individual parcel values [6] - The report emphasizes the importance of monitoring the "anti-involution" policies and changes in the competitive landscape within the express delivery sector [6] Profit Forecast and Valuation - The adjusted net profit forecast for ZTO Express from 2025 to 2027 is 9.297 billion yuan, 10.881 billion yuan, and 12.782 billion yuan, with a projected year-on-year growth of -7.77%, +17.04%, and +17.48% respectively [7] - The report maintains a "Buy" rating based on the company's leading unit profitability and cash flow, alongside its scale and management advantages [8]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company's revenue and adjusted net profit for H1 2025 were 439 million and 63 million respectively, showing a year-on-year growth of 9.63% but a decline in net profit by 23.86% due to the impact of new campus ramp-up in Guangzhou and personnel adjustments in Shenzhen [2] - The company has a total of 184 learning centers, a 26.9% increase year-on-year, with 15 new centers opened in H1 2025 [3] - The company is actively seeking new business opportunities, including educational tourism and international courses, which are expected to contribute to long-term growth [3] Financial Summary - The company's gross margin, operating profit margin (OPM), and adjusted net profit margin for H1 2025 were 34.3%, 17.6%, and 18.5% respectively, reflecting declines of 10.1, 10.9, and 4.9 percentage points year-on-year [4] - The company’s contract liabilities decreased by 24.5% year-on-year to 182 million [4] - Revenue forecasts for 2025 and 2026 have been adjusted down to 1,053.78 million and 1,317.77 million respectively, with net profit forecasts adjusted to 186.77 million and 261.18 million [5] - The projected earnings per share (EPS) for 2025 and 2026 are 0.33 and 0.46 respectively, with a new EPS forecast of 0.64 for 2027 [5] Profitability and Valuation - The company’s revenue is expected to grow at a compound annual growth rate (CAGR) of 31.85% from 2023 to 2027, with net profit growth rates of 58.03% and 69.38% for 2023 and 2024 respectively [8] - The price-to-earnings (PE) ratios for 2025, 2026, and 2027 are projected to be 7.87, 5.63, and 4.07 respectively [8]