Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative price increase of over 20% compared to the benchmark index within the next six months [11][17]. Core Insights - The company reported a revenue of $2.787 billion in Q2 2025, a year-on-year increase of 4%, with operating profit reaching $304 million, up 14% year-on-year. The net profit attributable to shareholders was $215 million, with an operating profit margin of 10.9%, an increase of 1 percentage point year-on-year [5][11]. Company Overview - The latest closing price is HKD 349.20, with a total market capitalization of HKD 1,289.24 billion. The company has a total share capital of 3.69 billion shares and a debt-to-asset ratio of 42.21% [4][11]. Sales Performance - Same-store sales turned positive for the first time, with a 1% year-on-year increase. The company opened 336 new stores in Q2 2025, contributing 4% to revenue growth. The total number of stores reached 16,978 by the end of H1 2025 [6][10]. - The company’s takeout sales grew by 22% year-on-year, accounting for 45% of total restaurant revenue [7][9]. Profitability - The restaurant profit margin improved to 16.1%, a year-on-year increase of 60 basis points, while the operating profit margin reached a new high of 10.9%, up 100 basis points year-on-year. This improvement is attributed to lower raw material costs and enhanced operational efficiency [7][9]. Future Outlook - The company plans to open 1,600 to 1,800 new stores in 2025, with capital expenditures estimated at $600 to $700 million. The goal is to reach 20,000 stores by 2026, with an increasing proportion of franchise stores [10][11]. - The company is committed to innovation, including menu updates and new business models, to expand market share [10][11]. Financial Projections - Revenue growth is projected at 4.6%, 6.3%, and 5.7% for 2025, 2026, and 2027, respectively. Net profit growth is expected to be 2.2%, 11.1%, and 12.4% over the same period. The earnings per share (EPS) are forecasted to be $2.52, $2.80, and $3.15 for 2025, 2026, and 2027, respectively [11][13].

Investment Rating - The investment rating for the company is "Outperform the Market" [5][23]. Core Viewpoints - The company is experiencing rapid growth in overseas sales, particularly for its main product, furmonertinib, which saw overseas sales of $163 million (+25%). However, domestic sales are under pressure, with a total tumor product sales of $234 million (-4%) in the first half of 2025 [1][7]. - The company has adjusted its revenue guidance for its oncology business to $270-350 million, down from a previous estimate of $350-450 million, due to delays in milestone revenues from partners and the expected delay in the launch of another product in China [1][7]. - The ATTC platform is expected to produce its first clinical candidate in the second half of the year, with plans to present preclinical data at academic conferences [2][21]. Summary by Sections Sales Performance - In the first half of 2025, the total sales for oncology products reached $234 million, with furmonertinib contributing $163 million from overseas (+25%) and $43 million from domestic sales (-29%). Other products like savolitinib and sugemalimab also faced declines in sales [1][7]. - The overall revenue from the tumor immunotherapy business was $144 million (-14.9%), indicating competitive pressure in the domestic market [1][7]. Revenue and Profit Forecast - The revenue forecast for 2025-2027 has been revised to $604 million, $718 million, and $829 million, respectively, down from previous estimates. The net profit forecast for the same period is adjusted to $43 million, $6.8 million, and $10.8 million, respectively [3][23]. - The company confirmed a net profit of $455 million in the first half of 2025, a significant increase of 1649.8%, primarily due to sales revenue from core products and the sale of assets [11]. Clinical Development and Pipeline - The company is advancing its clinical development, with savolitinib receiving approval for new indications and expected to participate in this year's medical insurance negotiations. The global registration clinical study SAFFRON is anticipated to complete patient recruitment in the second half of the year [2][18]. - The ATTC platform is positioned to generate innovative molecules that could lead to collaboration and licensing opportunities, enhancing the company's pipeline [2][21]. Financial Metrics - The company reported a decrease in R&D expenses to $72 million (-24.2%) and a reduction in sales and administrative expenses to $42 million (-28.0%), reflecting effective cost control measures [11][24]. - The financial outlook includes a projected EBIT margin improvement, with net profit margins expected to fluctuate significantly over the forecast period [4][24].

Investment Rating - The report maintains a "Buy" rating for Tencent with a target price of 742.19 HKD, up from the previous 614.34 HKD [6][28]. Core Insights - Tencent's Q2 revenue grew by 14.5% year-on-year, exceeding consensus expectations by 3%. Key business segments such as value-added services, advertising, and fintech saw year-on-year growth of 16%, 20%, and 10% respectively, with corresponding improvements in gross margins [1][5][28]. - The company is positioned as a leading developer in the shooting game sector, with significant upcoming titles like "Delta Action" and "Valorant Mobile" expected to drive player engagement and monetization [1][12][15]. - Advertising revenue increased by 20% year-on-year, driven by strong performance in video accounts and mini-programs, with management indicating a low impact from the recently implemented advertising tax [3][5]. - Financial technology revenue exceeded expectations by 3%, with notable growth in consumer loans and payment services, while cloud business is expected to expand as AI demand increases [4][5]. Summary by Sections Q2 Performance - Tencent's Q2 adjusted net profit increased by 10% year-on-year, surpassing expectations by 3%, and a 22% increase when excluding the impact of joint ventures [1][10]. - The company reported a cash capital expenditure of 229 billion for AI-related investments, remaining stable quarter-on-quarter [1][10]. Gaming Sector - The value-added services revenue grew by 16%, with self-developed games contributing significantly to this growth. Domestic and overseas game revenues increased by 17% and 35% respectively, exceeding consensus expectations [2][11]. - "Delta Action" has become a top game, with its daily active users surpassing 20 million in July, indicating strong market performance [11][15]. Advertising and Fintech - Advertising revenue growth of 20% was driven by video accounts and mini-programs, with management noting that AI has improved click-through rates and overall advertising effectiveness [3][5]. - Fintech revenue grew by 10%, with a gross margin of 52.1%, attributed to an increase in consumer loans and cost efficiencies in cloud services [4][5]. Future Outlook - Revenue forecasts for Tencent have been adjusted upward for 2025-2027, with expected growth rates of 2.7%, 4.7%, and 4.8% respectively, driven by the continued expansion of WeChat mini-stores and AI product integration [5][28]. - The adjusted net profit estimates for 2025, 2026, and 2027 are projected to be 255.7 billion, 289 billion, and 330.4 billion RMB respectively [5][28].

Investment Rating - The investment rating for the company is "Outperform the Market" [4][6][18]. Core Views - The company achieved a revenue growth of 11% year-on-year in the first half of 2025, reaching 5.7 billion yuan, with a net profit growth of 8.6% to 860 million yuan. The gross profit margin increased by 0.1 percentage points to 41.5% [1][4]. - The company is focusing on children's products and e-commerce channels, which are driving growth despite a challenging consumption environment. The operating cash flow significantly improved, with a net inflow of 520 million yuan, up 227.2% year-on-year [1][4][18]. - The company plans to distribute an interim dividend of 20.4 Hong Kong cents per share, corresponding to a payout ratio of 45% [1][4]. Revenue and Profit Analysis - The adult footwear and apparel segments saw revenue growth of 12.8% and 1.6% respectively, while children's footwear grew by 27.8% and apparel declined by 7.6%. The increase in footwear revenue was attributed to strong sales growth and moderate price adjustments [2][4]. - The average wholesale price for adult and children's apparel decreased by 4.5% and 6.3% respectively, enhancing cost performance in response to market demand [2][4]. Channel Performance - E-commerce sales for the company grew by 45% year-on-year, reaching 1.82 billion yuan, accounting for 31.8% of total revenue. Online exclusive products now represent 85% of sales, providing a differentiated experience [3][4]. - The company is expanding its offline store model, with the number of super stores increasing to 49, and plans to exceed 100 by year-end. The fifth-generation children's stores have reached 222 locations, a growth of 5.7 percentage points from the end of 2024 [3][4]. Financial Forecasts - The company expects net profits for 2025-2027 to be 1.25 billion, 1.35 billion, and 1.48 billion yuan respectively, reflecting a year-on-year growth of 8.5%, 8.7%, and 9.4% [4][19]. - Revenue projections for 2023-2027 are 8.423 billion, 10.074 billion, 11.186 billion, 12.335 billion, and 13.486 billion yuan, with growth rates of 21.0%, 19.6%, 11.0%, 10.3%, and 9.3% respectively [5][19].

Investment Rating - The investment rating for Tencent Holdings is "Buy" and is maintained [7]. Core Insights - Tencent achieved revenue of 184.5 billion yuan in Q2 2025, representing a year-on-year increase of 15% and a quarter-on-quarter increase of 2%. Operating profit reached 60.1 billion yuan, up 18% year-on-year, while Non-IFRS net profit attributable to shareholders was 63.1 billion yuan, reflecting a 10% year-on-year growth. Both revenue and adjusted net profit exceeded market expectations [2][4]. Revenue Breakdown - The strong performance in revenue is attributed to several factors: 1. The game "Delta Action" and evergreen games performed robustly, with overseas games achieving record highs. The average daily active users (DAU) for "Delta Action" reached over 20 million in July, significantly up from 12 million in April. Domestic game revenue increased by 17% year-on-year to 40.4 billion yuan [7]. 2. AI significantly improved advertising efficiency, enhancing click-through rates and conversion rates, leading to a strong long-term growth momentum in advertising. Marketing service revenue grew by 20% year-on-year to 35.8 billion yuan [7]. 3. The payment business showed signs of recovery, with AI driving accelerated growth in enterprise services, resulting in a year-on-year increase of 10% in financial technology and enterprise service revenue to 55.5 billion yuan [7]. Profitability and Margins - Tencent's gross margin reached a record high of 56.9% in Q2 2025, up 3.6 percentage points year-on-year and 1.1 percentage points quarter-on-quarter. The gross margins for value-added services, marketing services, and financial technology & enterprise services also saw improvements [7]. Capital Expenditure - Capital expenditure in Q2 2025 increased by 118.89% year-on-year to 19.1 billion yuan, accounting for approximately 10.4% of revenue [7].

Investment Rating - The report initiates coverage with a "Buy" rating for Hong Kong and China Gas Company Limited [5] Core Views - The company has a robust profit and cash flow base from its Hong Kong gas business, while its growth-oriented businesses provide new momentum for expansion [2][18] - The flexible pricing adjustment mechanism is a key reason for the high profit margins in the Hong Kong gas business [2][34] - The company is expanding its gas business in mainland China, with significant growth in sales volume and recovery of profit margins [4][57] Summary by Sections Hong Kong Gas Business - The gas tariff consists of an effective charging table and fuel adjustment fee, with a tiered pricing model that encourages higher consumption [2][28] - Hong Kong's natural gas consumption has remained stable, with a projected consumption of 27,159 TJ (approximately 730 million cubic meters) in 2024, reflecting a year-on-year increase of 0.1% [3][35] - The EBIT for the Hong Kong utility business has been stable, with a projected increase to nearly HKD 50 billion in 2024, resulting in an EBIT margin of 46.3% [3][48] Mainland Gas Business - The company has expanded its mainland gas business since 1994, with sales volume increasing from 19.5 billion cubic meters in 2017 to 36.36 billion cubic meters in 2024, representing a CAGR of 9.3% [4][51] - The unit sales price difference in the mainland gas business has improved to HKD 0.52 per cubic meter by the end of 2024 [4][60] Growth-Oriented Businesses - The renewable energy business, primarily through the subsidiary Honghua Smart Energy, has seen rapid growth, with a compound annual growth rate of 154% in distributed photovoltaic installations from 2021 to 2024 [74] - The company is actively developing green methanol and hydrogen fuel supply, with significant production targets set for 2028 [81][84] Financial Projections - The company is expected to achieve revenues of HKD 578.1 billion, HKD 605.6 billion, and HKD 632.8 billion from 2025 to 2027, with respective year-on-year growth rates of 4.2%, 4.7%, and 4.5% [5][92] - The net profit forecast for the same period is HKD 61.6 billion, HKD 65.9 billion, and HKD 69.4 billion, with year-on-year growth rates of 7.9%, 6.9%, and 5.4% [5][92]

证券研究报告 | 2025年08月13日 投资建议：我们看好公司短期价格修复、稼动率满载，中长期特色工艺代工 拥有全球头部客户及领先工艺的龙头竞争力，根据公司指引，略调整费用率 与毛利率，我们预计 25-27 年净利润 0.90/1.52/2.02 亿美元（前值 25-27 年 0.92/1.66/2.01 亿美元)，当前股价对应 25-27 年 PB 1.56/1.52/1.48 为 倍，维持"优于大市"评级。 风险提示：下游需求放缓；新工艺导入不及预期；扩产不及预期。 华虹半导体（01347.HK） 优于大市 2Q25 毛利率超指引，稼动率保持满载 2Q25 毛利率超指引，3Q25 预期稳步增长。公司发布未经审核业绩：2Q25 实 现 销 售 收 入 5.661 亿 美 元 (YoY+18.3% ， QoQ +4.6%) ， 毛 利 率 10.9% (YoY+0.4pct，QoQ+1.7pct)，此前指引区间营收 5.5-5.7 亿美元，毛利率 7%-9%，毛利率超指引。预计 3Q25 销售收入约 6.2-6.4 亿美元；毛利率约 10%-12%。随着价格修复在下半年逐步体现，9 厂产能进一步释放，公司有 ...

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2][10]. Core Insights - The company's game and platform business show strong growth, driven by a "self-developed + channel" flywheel effect [2][10]. - The company expects to achieve a revenue of at least 3.05 billion yuan for the first half of 2025, representing a year-on-year increase of approximately 37%, and a net profit of at least 790 million yuan, reflecting a year-on-year increase of about 215% [5][10]. - The report highlights the successful performance of self-developed games and the continuous growth of TapTap's revenue and profit due to improved advertising algorithms and user engagement [5][6]. Summary by Sections Game Business - The self-developed party game "Heart Town," launched in July 2024, has significantly contributed to revenue and profit, reaching the top 20 in the iOS game sales rankings [6]. - The classic IP new game "Ragnarok M: Beginner's Server" has achieved excellent results in the iOS game sales rankings in Southeast Asia and Hong Kong, Macau, and Taiwan [6]. Platform Business - TapTap has shown steady growth, with total game downloads increasing by 16% and daily active users (DAU) rising by 11% from July 2024 to June 2025 [8]. - The PC version of TapTap was launched in April 2025, focusing on aggregating users for self-developed PC games and addressing the current market's pain points [8][9]. Financial Projections - The company forecasts revenue growth from 5.012 billion yuan in 2024 to 9.313 billion yuan in 2027, with a compound annual growth rate (CAGR) of 16% [13][14]. - The net profit is projected to increase from 812 million yuan in 2024 to 2.456 billion yuan in 2027, with a significant growth rate of 1077% in 2024 [13][14]. - The report anticipates a rise in the company's return on equity (ROE) from 32% in 2024 to 28% in 2027 [14].

Investment Rating - The report assigns a positive outlook for Galaxy Entertainment, indicating confidence in its long-term prospects with an interim dividend of HKD0.70 per share, reflecting a dividend payout ratio of 58% [5][12]. Core Insights - Galaxy Entertainment reported a net revenue of HKD12.04 billion for Q2 2025, representing a year-on-year increase of 10.3% and a quarter-on-quarter increase of 7.5% [2][7]. - The adjusted EBITDA for Q2 2025 reached HKD3.57 billion, up 12.4% year-on-year, with an adjusted EBITDA margin of 29.6%, an increase of 0.5 percentage points year-on-year [4][11]. - The company's market share increased to 20.2% in Q2 2025, up from 19.5% in Q1 2025, indicating a strengthening position in the market [5][12]. Revenue Breakdown - In Q2 2025, gaming revenue increased by 12.3% year-on-year, contributing HKD9.66 billion, while non-gaming revenue reached HKD1.61 billion, up 8.4% year-on-year [2][8]. - The total betting amount for the company reached HKD119.45 billion, an increase of 18.4% year-on-year, with VIP betting accounting for 46.7% of the total [3][9]. Performance Metrics - The company's gross gaming revenue (GGR) for Q2 2025 was HKD12.01 billion, reflecting an 11.8% year-on-year increase, which outpaced the industry growth rate of 8.3% [10]. - The adjusted EBITDA for Galaxy Macau and StarWorld Macau was HKD3.33 billion and HKD0.3 billion respectively, with respective adjusted EBITDA margins of 33.3% and 25.9% [4][11].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 8.15 HKD based on a 12X PE valuation for 2025 [11][12]. Core Insights - The company focuses on the mass professional sports sector, achieving a revenue growth rate of 11% in H1 2025, leading the industry. The company is committed to technological innovation, continuously expanding its product matrix and enhancing cost performance. The channel structure is being optimized, with rapid expansion of new store formats [11][12]. - E-commerce revenue saw a remarkable increase of 45% year-on-year in H1 2025, reaching 1.82 billion RMB. The company is leveraging online exclusive products to strengthen its channel advantages [11][12]. - The company expects stable growth in overall performance for the year, maintaining a revenue growth guidance of 10-15% for 2025, primarily driven by same-store sales growth [11][12]. Financial Summary - Total revenue is projected to grow from 8,423 million RMB in 2023 to 14,355 million RMB by 2027, reflecting a CAGR of approximately 21.01% [5][13]. - Net profit is expected to increase from 961 million RMB in 2023 to 1,671 million RMB in 2027, with a growth rate of 28.68% in 2023 [5][13]. - The company maintains a healthy gross margin, with a slight increase to 41.5% in H1 2025, benefiting from product structure optimization [11][12]. Market Data - The stock is currently trading within a 52-week price range of 3.26 to 6.65 HKD, with a market capitalization of 13,130 million HKD [8][12]. - The company has a current PE ratio of 6.87 for 2023, projected to rise to 9.23 by 2025, indicating a favorable valuation compared to peers [5][12].