Investment Rating - The report indicates a stable investment outlook for the wealth management market, with an expected growth rate of approximately 8% for 2025, consistent with 2024 [1][9]. Core Insights - The wealth management market has shown signs of recovery in Q2, with a year-to-date growth rate nearing 5%, although this is weaker compared to previous years. Short-term indicators are trending towards normalization [1][2]. - Fixed-income products dominate the market, accounting for 75% of the total, with a total value of approximately 21.7 trillion. Short-term fixed-income products have seen significant growth, now representing 40.2% of the total [1][5]. - Regulatory scrutiny on valuation smoothing mechanisms is increasing, with expectations for compliance and market-based valuation systems to be established by the end of 2025 [1][7]. - The concentration of the wealth management market is rising, with the top 15 institutions holding 88% of the market share, reflecting a trend towards dominance by a few key players [3][15]. Summary by Sections Market Performance - The overall performance of the wealth management market in 2024 is expected to show a trend of lower growth initially, followed by recovery in Q2 due to improved liquidity and a recovering bond market [2]. - The growth rate for state-owned banks' wealth management is projected at 16.6%, outpacing joint-stock banks, while regional banks are expected to achieve the highest growth rate of 19.6% [1][12]. Product Structure and Risk Management - The reliance on valuation smoothing mechanisms has helped stabilize product performance, with a recent improvement in net asset values following a peak in March [4][6]. - The market is witnessing a shift towards short-term fixed-income products, which are becoming more prevalent, while the sales of structured products are declining [5][10]. Regulatory Environment - Regulatory bodies are emphasizing the need for fair and market-based valuation practices, with a focus on reducing risks associated with shadow banking [7][8]. - The anticipated regulatory changes are expected to enhance transparency and accountability in the wealth management sector [6][8]. Client Preferences and Trends - There is a notable preference among investors for low-volatility, stable products, with a significant increase in the popularity of wealth management products compared to traditional savings [27][29]. - High-value clients are growing at a faster rate than retail clients, indicating a shift in focus towards wealthier segments [29][30]. Future Outlook - The wealth management sector is expected to continue evolving, with a focus on enhancing digital capabilities and personalized advisory services to meet client needs [35][36]. - The overall trend indicates a gradual recovery in the wealth management market, driven by regulatory improvements and a more favorable economic environment [9][26].

Investment Rating - The report maintains a "Buy" rating for Sanhua, Shuanghuan, and a "Neutral" rating for LeaderDrive, Best Precision, and Moons' Electric [1][42][45][46][49]. Core Insights - The humanoid robot industry is experiencing rapid product iterations and increased R&D focus across various players, indicating a strong long-term total addressable market (TAM) potential despite uncertainties in near-term technological breakthroughs [1]. - The report forecasts 20,000 units of humanoid robots to be shipped in 2025 and 1.4 million units globally by 2035 [1]. - Domestic players are accelerating commercialization efforts, with several auto OEMs like Tesla, XPENG, and Xiaomi testing humanoid robots in their factories, aiming for mass production by 2025-2026 [2]. - The shift in R&D focus from hardware to robotic AI development is evident, with startups introducing various AI models trained on real data to enhance performance [2]. Product Progress - A small scale of commercialization is expected in 2025, with domestic players speeding up public sales of humanoid robots [2]. - Companies like ENGINEAI have started selling humanoid robots at competitive prices, with some models priced below RMB 200,000 [2]. - Major players are establishing production lines with capacities ranging from 10,000 to 50,000 units annually, adjusting expansion based on actual customer orders [6]. Software Development - High-quality real data is crucial for training robotic AI models, with startups focusing on developing their own AI systems [2]. - UBTech is optimizing its training strategy by combining real and simulated data to improve efficiency and reduce costs [2]. Hardware Innovations - The report highlights the emergence of new players in the humanoid robot component market, focusing on product differentiation [7]. - Companies like LeaderDrive and Shuanghuan are developing new reducer products and enhancing their manufacturing capabilities [7][29][31]. Supply Chain Dynamics - The supply chain for humanoid robots is expanding, with various component manufacturers reporting progress in R&D and sample testing [10]. - Companies like Sanhua and Tuopu are preparing for mass production of actuators and other components, targeting significant market shares [26][27]. Market Outlook - The humanoid robot market is projected to grow significantly, with various companies aiming to capture substantial market shares in their respective segments [42][45][46]. - The report emphasizes the importance of continuous innovation and adaptation in the rapidly evolving humanoid robot industry [2][6].

6 May 2025 | 1:27AM HKT Cambricon (688256.SS): 2025 private placement on AI chips and Software platform; R&D commitment to support long term growth; Buy Cambricon announced a 2025 private placement on May 1 (link), aiming to issue within 21m shares, or no more than 5% of current shares in exchange of no more than Rmb4,980m (US$685m) cash, to develop: (1) AI chips for generative AI, 58% of the funding, (2) Software for generative AI, 32% of the funding, and (3) supplement working capital, 10% of the funding. ...

Investment Rating - The report maintains an "Overweight" rating for BYD, with a target price of 600.00 HKD for BYD-H and 560.00 CNY for BYD-A [3][7][13]. Core Insights - BYD's Q1 2025 performance exceeded expectations, with a projected average profit per vehicle of 10,500 CNY, higher than the management's guidance of 10,000 CNY and market consensus of 9,800 CNY [1][4]. - The report highlights a 36% year-on-year revenue growth driven by a 60% increase in sales volume in Q1 2025, with a resilient gross margin rising from 19.4% in 2024 to 20.1% in Q1 2025 [5][6]. - BYD's global delivery volume is expected to reach 6.5 million units by 2026, with overseas deliveries accounting for approximately 1.5 million units [7][13]. - The company aims to increase its market share in the global light vehicle market from 3% in 2023 to 7% by 2026, while maintaining a 22% share in the new energy vehicle market [7][13]. Summary by Sections Financial Performance - Q1 2025 revenue increased by 36% year-on-year, with net profit doubling compared to the previous year, reaching 9,155 million CNY [5][6]. - The average profit per vehicle, including BYD Electronics, was 9,148 CNY in Q1 2025 [5][6]. Market Strategy - BYD's strategy includes a focus on high-end models, with an expected 20% of domestic sales coming from vehicles priced above 200,000 CNY, up from 14% last year [4]. - The company plans to expand its production capacity with new factories in Thailand, Indonesia, Brazil, Hungary, and Turkey, which will collectively add over 500,000 units of capacity [4][7]. Future Projections - BYD's sales volume is projected to grow from 4.2 million units in 2024 to approximately 5.5 million units in 2025, representing a growth rate of about 30% [4][7]. - Long-term projections suggest that BYD could achieve global shipments of around 10 million vehicles by 2030, positioning itself as a leader in the global electric vehicle market [4][9].

Investment Rating - The investment rating for China TransInfo Technology is "Sell" with a target price of Rmb5.1, indicating an expected share price return of -39.5% and a total return of -39.2% [3][7]. Core Insights - The company reported a mixed performance in 1Q25, with revenue increasing by 2% year-over-year to Rmb1.6 billion, which was 18% above Bloomberg consensus estimates. However, the operating profit missed expectations, resulting in an operating loss of Rmb77 million [1][2]. - The gross margin expanded by 0.6 percentage points year-over-year to 29.7%, but this was still 4.6 percentage points below consensus estimates. Operating expenses were flat year-over-year at Rmb555 million, which was 34% higher than expected [1][2]. - Net profit for 1Q25 was Rmb221 million, significantly exceeding consensus estimates by 101%, primarily due to a gain from a fair value change in investments amounting to Rmb302 million [1][2]. Summary by Sections Financial Performance - 1Q25 revenue was Rmb1.609 billion, 17.9% higher than consensus estimates and 1.8% higher year-over-year. Gross profit was Rmb478 million, reflecting a 4% increase year-over-year [2][5]. - The operating loss of Rmb77 million resulted in an operating margin of -4.8%, which was 8.7 percentage points below consensus expectations [2][5]. - The net income of Rmb221 million marked a significant recovery from a net loss of Rmb58 million in the same quarter last year [2][5]. Valuation - The target price of Rmb5.1 is based on a price-to-earnings ratio of 19.0x for the second half of 2024 to the first half of 2025, aligning with the five-year sector average [7].

Investment Rating - The report maintains an Overweight (OW) rating for Zhejiang Supor with a price target (PT) of Rmb61, revised down from Rmb63 [2][20][21]. Core Insights - Supor's 1Q25 sales and earnings increased by 7.6% and 5.8% year-over-year, respectively, aligning with market expectations. The company is expected to outperform peers due to lower US sales exposure, a diversified production base, and fixed profit margins for OEM orders from Groupe SEB [2][10][20]. - The small appliance industry in China is anticipated to face uncertainties in both domestic and overseas demand in 2025. However, Supor's sales and earnings growth is forecasted to be 3.9% and 5.8% year-over-year, respectively, for 2025 [2][10][20][16]. Summary by Sections Financial Performance - Supor's 1Q25 results showed domestic sales growth of approximately 3% year-over-year, driven by an extended trade-in policy for small appliances. Export sales increased by 16% year-over-year due to front-loaded orders ahead of US tariff increases [7]. - The gross profit margin improved by 0.1 percentage points year-over-year to 23.9%, while the operating profit margin increased by 0.4 percentage points to 9.9% [7][9]. 2025 Outlook - Supor aims for positive growth in both revenue and earnings in 2025, targeting a stable net margin despite weak domestic consumption demand. The company anticipates a slowdown in export sales growth starting from 2Q25, maintaining a full-year growth target of around 5% [7][10]. - The impact of US tariffs is expected to be limited, as most products exported to the US are now produced in Vietnam, which benefits from a 90-day waiver period for tariff hikes [7][10]. Valuation - The report employs a DCF model to derive a price target of Rmb61, implying an 18x forward P/E ratio, with an assumed WACC of 8.0% and a terminal growth rate of 1.0% [11][21][22]. - Supor's strong cash-generating capability and low capital expenditure requirements (<1% of sales) support a high dividend payout ratio, estimated to be over 90% for 2025-26, translating to a 5% dividend yield [10][20].

Investment Rating - The investment rating for Ming Yang Smart Energy is Overweight, with an industry view classified as Attractive [6]. Core Insights - The financial results for 2024 showed a net profit of Rmb346 million, representing an 8.1% year-over-year decline, primarily due to gross profit margin pressure, lower-than-expected wind turbine generator (WTG) shipments, and reduced wind farm sales [2][4]. - The guidance for 2025 includes total shipments expected to reach 20GW, with 16GW onshore and 4GW offshore, alongside a projected recovery in WTG gross profit margin by 5-10 percentage points due to improved average selling prices (ASP) and cost reductions [4][8]. Financial Performance Summary - In 2024, the gross profit margin (GPM) was 7.5%, down 0.5 percentage points year-over-year, with recurring net profit decreasing by 14.3% to Rmb175 million [2]. - Revenue for 2024 was Rmb27.2 billion, down 3.4% year-over-year, while total WTG shipments were 10.8GW, which was below guidance [2][8]. - The net loss for the fourth quarter of 2024 was Rmb462 million, compared to a net profit of Rmb148 million in the third quarter of 2024 [3]. Future Outlook - The company anticipates new orders to exceed the 2024 level of 27GW, with offshore projects accounting for 20% and overseas projects for 40% [4][8]. - The expected earnings per share (EPS) for 2025 is projected at Rmb2.36, with revenue forecasted to increase to Rmb76.244 billion [6].

Investment Rating - The investment rating for Luzhou Lao Jiao Co. Ltd is Equal-weight [5] Core Insights - The company reported 1.8% sales growth and 0.4% net profit growth year-over-year in 1Q25, which aligns with estimates [8] - The dividend payout ratio increased to 65% in 2024 from 60% in 2023, with targets of 70% and 75% for 2025 and 2026 respectively [8] - The company aims for steady revenue growth in 2025, despite a challenging market environment [8] Revenue and Profitability - Mid-high end liquor sales rose 3% year-over-year, accounting for 88.4% of total liquor sales, while low-end liquor sales increased by 6% in 2024 [2] - Operating profit margin (OPM) declined by 1.0 percentage points year-over-year in 1Q25, with a narrowed gross profit margin (GPM) due to a lower product mix [2] - In 2024, OPM contracted by 0.7 percentage points, driven by a 2.8 percentage point decrease in GPM, partially offset by savings in operating expenses [2] Financial Position - Customer advances were Rmb3.1 billion in 1Q25, down from Rmb4.0 billion in 4Q24 and Rmb2.5 billion in 1Q24 [3] - The net cash position improved to Rmb31.4 billion in 1Q25 from Rmb29.0 billion in 4Q24 and Rmb21.4 billion in 1Q24 [3] - Cash from selling products decreased by 7% year-over-year in 1Q25 to Rmb9.9 billion [3] Future Projections - The company projects net profit growth of 1.7% year-over-year in 2024, which is 4% below consensus estimates [8] - The price target for the stock is set at Rmb122.00, indicating a downside of 3% from the closing price of Rmb125.36 on April 25, 2025 [5] - Earnings per share (EPS) estimates for the fiscal years ending in 2024, 2025, and 2026 are Rmb9.58, Rmb10.10, and Rmb10.74 respectively [5]

J P M O R G A N Asia Pacific Equity Research 27 April 2025 This material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the territory of Mainland China. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan. Wuliangye - A 2024 sales up 7.1% yoy at expense of relaxing credit & rising rebates to distributors; 2025 sales target of c5% (in line with GDP growth) ...

Investment Rating - The report rates Yonyou Network as Neutral with a price target of Rmb12.00 for December 2025, down from a previous target of Rmb13.00, indicating a potential downside of 12% from the current share price [2][12][13]. Core Insights - Yonyou experienced another earnings shock in Q1 2025, reporting a 21% year-over-year revenue decline, the worst in over 30 years, and a net loss of Rmb736 million, resulting in a net profit margin of -53% [8][11]. - Despite the poor financial results, Yonyou's share price has increased by 35% year-to-date and 17% over the past 12 months, contrasting with the SHCOMP index performance [8]. - The company has been adjusting its workforce, reducing staff by 25% over two years, with current employment at 19,600 [8]. - The report suggests that Yonyou's aggressive R&D capitalization policy, which exceeds 50% of total spending, raises concerns about the quality of its earnings [11]. Summary by Sections Financial Estimates - Adjusted EPS for FY25 is revised down to -Rmb0.34 from -Rmb0.22, and for FY26 to -Rmb0.12 from Rmb0.01 [3]. - Revenue forecasts for FY25-26 have been reduced by approximately 4% [8]. Quarterly Forecasts - The adjusted EPS for FY24 is projected at -Rmb0.62, with expectations of gradual improvement leading to a positive EPS of Rmb0.07 by FY27 [4][10]. Performance Metrics - Yonyou's revenue for FY24 is estimated at Rmb9,153 million, with a projected growth of 2.9% in FY25 and 7.5% in FY26 [10]. - The company reported a significant decline in gross profit margin to 39.1% in Q1 2025, down from 41.5% in the previous year [18]. Market Position - Yonyou holds a mid-30% market share in the ERP sector in China, primarily serving state-owned enterprises and government organizations [11]. - The report recommends considering rival Kingdee for ERP investments due to better execution and growth metrics [12].