Investment Rating - The report initiates coverage with a "Buy" rating for the company [5]. Core Views - The company is positioned as a platform in the hair and skin care sectors, focusing on unmet consumer needs and avoiding highly competitive domestic markets. It aims to commercialize products in localized fat management, hair diseases and care, skin diseases and care, and epidermal anesthesia [1][16]. - The company has a robust product pipeline, with significant growth expected from the commercialization of key products starting in 2025, including external minoxidil and finasteride [2][3]. Summary by Sections Company Overview - The company was founded in 2019 and has progressed through stages of product agency, introduction of differentiated products, and self-developed drugs. It focuses on four main areas: hair disease and care, skin disease and care, epidermal anesthesia, and localized fat management [16][22]. Financial Analysis - The company has shown rapid revenue growth, with a projected increase from 0.02 billion in 2021 to 2.80 billion in 2024, reflecting a CAGR of 415.8%. The hair care segment is a significant contributor, with revenue expected to exceed 1.6 billion in 2024 [22][24]. - The gross margin reached 51% in 2024, with a significant reduction in losses, indicating a trend towards profitability as revenues continue to grow [24][30]. Business Segments - The company is focused on addressing consumer pain points through a commercialized approach, with a product lineup that includes treatments for hair loss, skin conditions, and localized fat management. The first tier of products is primarily agency-based, while the second tier, including external minoxidil and finasteride, is set to launch in 2025 [32][33]. Hair Care Market - The hair care market in China is experiencing strong growth, with the number of individuals suffering from androgenetic alopecia reaching approximately 135.5 million in 2021. The market for hair loss treatments is projected to grow from 76.2 billion in 2017 to 144.3 billion by 2025, with a CAGR of 7.8% [36][39][40]. Skin Care Products - The company has secured approval for the world's first external minocycline foam, which is expected to be commercialized in 2025. This product addresses the growing demand in the acne treatment market, which is expanding significantly [3][4]. Epidermal Anesthesia - The company is developing a novel lidocaine-dinoprost combination product, which is anticipated to be the first approved in its category in China. This product aims to capture a significant share of the competitive market for epidermal anesthesia [3][4]. Localized Fat Management - The localized fat management segment is in its early development stages, with the company leveraging patented technology to create safer and more effective products for fat reduction [3][4].

Investment Rating - The investment rating for Tencent Holdings is "Outperform the Market" [4][34]. Core Insights - Tencent's revenue grew by 15% year-on-year, with adjusted profit increasing by 10%. In Q2 2025, Tencent achieved revenue of 184.5 billion yuan, a year-on-year increase of 14.5%, primarily driven by advertising and gaming businesses. The adjusted operating profit for Q2 2025 was 69.2 billion yuan, up 18% year-on-year [1][10]. - The company is optimistic about the integration of AI applications within its ecosystem, enhancing user experience and driving growth in social e-commerce [2][19]. - The gaming segment saw a 22% year-on-year increase in revenue, with domestic game revenue rising by 17% to 40.4 billion yuan, supported by strong contributions from self-developed games [3][22][26]. - Advertising revenue reached 35.8 billion yuan, reflecting a 20% year-on-year growth, attributed to higher click-through rates from AI deployment and improved transaction activities [4][31]. - Financial technology and enterprise services returned to double-digit growth, with revenue increasing by 10% to 55.5 billion yuan, driven by commercial payment services and consumer credit services [4][32]. Summary by Sections Financial Performance - In Q2 2025, Tencent's total revenue was 184.5 billion yuan, a 14.5% increase year-on-year, with adjusted operating profit at 69.2 billion yuan, up 18% year-on-year. The non-IFRS net profit was 63 billion yuan, reflecting a 10% increase [1][10][11]. - The overall gross margin improved to 57%, up 4 percentage points year-on-year, with specific segments like value-added services and financial technology showing significant margin improvements [11][34]. Gaming Business - The gaming revenue for Q2 2025 was 59.2 billion yuan, a 22% increase year-on-year. Domestic market revenue rose by 17% to 40.4 billion yuan, driven by popular titles like "Delta Action" and "Honor of Kings" [3][22][26]. - International gaming revenue grew by 35% to 18.8 billion yuan, with strong performances from titles like "VALORANT" and "PUBG MOBILE" [3][22][27]. Advertising and Marketing Services - The advertising revenue for Q2 2025 was 35.8 billion yuan, a 20% increase year-on-year, primarily due to enhanced click rates from AI and improved transaction activities through WeChat [4][31]. - The company noted that the current loading rate for video accounts is relatively low, indicating potential for future growth in advertising monetization [31]. Financial Technology and Enterprise Services - Financial technology and enterprise services revenue grew by 10% to 55.5 billion yuan, with a notable recovery in growth rates. The cloud service revenue is estimated to have increased by 17% in Q2 2025 [4][32][34].

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].