Investment Rating - The report maintains a "Neutral" rating for Budweiser Brewing Co APAC with a target price of HK$7.90, while the current price is HK$8.09 [2][6]. Core Insights - The company is experiencing marginal improvements, but the recovery process is slower than expected, with total sales volume in 25H1 declining by 6.1% year-on-year and revenue decreasing by 5.6% year-on-year [3][10]. - The Chinese market continues to face challenges, with sales volume and revenue down by 8.2% and 9.5% respectively in 25H1, although there are signs of marginal improvement in Q2 [4][11]. - The South Korean market is undergoing structural adjustments, while the Indian market shows resilience with double-digit revenue growth in Q2 [5][12]. Financial Performance Summary - For 2024A, the company expects revenue of US$6.246 billion, with a projected decline of 8.9% year-on-year. The net profit is estimated at US$726 million, reflecting a decrease of 14.8% [2][9]. - The gross profit margin is projected to be 50.4% for 2024A, with a gradual increase to 51.1% by 2027E [2][9]. - The earnings per share (EPS) for 2025-2027 are estimated to be USD 0.05, USD 0.05, and USD 0.06 respectively [6][13]. Market Analysis - In the Chinese market, the on-premise channel remains weak, and the transformation is still in its early stages, with a focus on premium products in non-on-premise channels [4][11]. - The company has been actively managing inventory, achieving better-than-historical inventory levels by the end of Q2 2025, which supports future sales growth [4][11]. - In South Korea, the company implemented a price increase of 2.9% for core brands, but the market response was neutral, and overall performance remains under pressure [5][12]. Investment Recommendations - The report suggests that if the company can overcome challenges related to channel transformation and expense control, it may reverse the decline in market share in China, laying the groundwork for medium- to long-term recovery [6][13].

Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Insights - The new tobacco products from British American Tobacco (BAT) contributed significantly to profits in the first half of 2025, with revenues of £1.651 billion, a year-on-year increase of 2.4%, and an adjusted gross profit of £1.006 billion, up 6.8% [1] - BAT expects accelerated growth in its new tobacco business in the second half of 2025, projecting a mid-single-digit revenue growth for the full year [1] - The Glo Hilo product received positive feedback from its trial in Sendai, Japan, and there are plans for further promotion in Europe [2] - The heated tobacco segment saw a slight revenue increase of 0.8% in the first half of 2025, although market share declined due to increased competition [2] - The vaping segment faced challenges, with Vuse sales down 12.9% and revenues down 15.3% due to the proliferation of illegal products [3] - The oral tobacco segment, particularly Velo, experienced significant growth, with sales up 42.2% and revenues up 38.1% in the first half of 2025 [4] - The company is optimistic about the future growth of Glo Hilo and the oral tobacco segment, while the vaping segment may recover due to regulatory actions against illegal products [5] Financial Summary - Projected revenues for the company from 2025 to 2027 are £13.161 billion, £15.590 billion, and £18.633 billion, representing year-on-year growth rates of 11.55%, 18.45%, and 19.52% respectively [5] - Projected net profits for the same period are £1.311 billion, £2.040 billion, and £2.763 billion, with growth rates of 0.57%, 55.68%, and 35.40% respectively [5] - The current market capitalization is approximately HK$131.19 billion [6]

Investment Rating - The report assigns a "Buy" rating to the company, Modern Dairy, with a target price of HKD 1.59 per share, corresponding to a 1.09 times P/B ratio for 2025 [7][11][17]. Core Insights - The company is positioned as a leader in the dairy industry, benefiting from a cyclical recovery and demonstrating strong earnings elasticity. The report anticipates a rebound in raw milk prices and a return to supply-demand balance in the second half of 2025 [3][11][53]. - The company has implemented a cost leadership strategy across its entire supply chain, which includes feed production, dairy farming, and processing, aiming to reduce procurement costs and enhance operational efficiency [11][20][45]. Financial Summary - Total revenue projections for 2025-2027 are estimated at RMB 133.50 billion, RMB 145.99 billion, and RMB 163.47 billion, reflecting growth rates of 0.7%, 9.4%, and 12.0% respectively. The net profit for the same period is expected to be -RMB 5.80 billion, RMB 4.38 billion, and RMB 15.84 billion, with EPS of -0.07, 0.06, and 0.20 yuan per share [5][16][19]. - The gross margin is projected to improve from 26.0% in 2024 to 33.6% by 2027, driven by cost reductions and increased milk prices [5][19]. Industry Position - Modern Dairy holds a 7% market share in the dairy industry as of 2024, with a significant portion of its raw milk sales being secured by its major shareholder, Mengniu Dairy, which has consistently purchased over 90% of the company's raw milk [11][32][20]. - The company has expanded its operations through acquisitions and innovative leasing models, allowing for low-cost expansion and increased production capacity [20][32]. Operational Efficiency - The company has focused on optimizing its herd structure, increasing the proportion of productive cows, and enhancing milk yield through digital management systems. The average milk yield per cow is expected to exceed 13 tons in the first half of 2025 [60][11]. - Cost control measures have led to a significant reduction in feed costs, with the cost per kilogram of milk dropping by 16.7% year-on-year to RMB 1.95 in 2024 [45][46].

Investment Rating - The report maintains a "Buy" rating for NIO Inc. (9866 HK) [6][7]. Core Views - The pricing strategy for the new L90 model is aggressive, with the top configuration priced under 300,000 RMB, which is expected to significantly boost sales [1]. - The successful launch of the L90 is anticipated to pave the way for the upcoming L80 model, aiding NIO in reversing its sales trajectory [1]. - The report highlights that despite a 50% rebound from lower price levels, NIO's 2025 price-to-sales ratio remains at 0.85 times, which is lower than peers valued at 1-2 times, indicating potential for further price recovery [1]. Summary by Relevant Sections Pricing Strategy - The L90 model's starting price is set at 265,800 RMB for the Pro version, with Max and Ultra versions priced at 279,800 RMB and 299,800 RMB respectively. The seven-seat variant starts at 271,800 RMB [1]. - The Battery as a Service (BaaS) pricing starts at 179,800 RMB for the Pro version, with Max and Ultra versions priced at 193,800 RMB and 213,800 RMB respectively [1][2]. Product Features - All versions of the L90 come standard with an 85 kWh battery, L2 level intelligent driving assistance, and Orin-X chip [1]. - The Ultra version features dual-motor all-wheel drive, a 0-100 km/h acceleration time of 4.7 seconds, and unique seating configurations for enhanced comfort [2]. Sales Expectations - The report anticipates that monthly sales will exceed the market expectation of 5,000 units due to the favorable pricing and product features [1]. - The management's commitment to aggressive pricing reflects a strategic move to regain market share and improve sales performance [1].

Investment Rating - The report assigns a rating of "Accumulate" to the company, reflecting a downward adjustment in expectations [5]. Core Views - The company experienced significant pressure on revenue and profit in the first half of 2025, with revenue declining by 10.8% year-on-year to 4.35 billion, EBITDA down by 2% to 1.97 billion, and net profit plummeting by 86.8% to 0.035 billion, primarily due to increased depreciation and financial interest expenses [1][2]. - The report highlights the company's strategic shift towards overseas expansion, which has become a new growth driver, with overseas revenue soaring by 719.8% to 0.6 billion, now accounting for approximately 14% of total revenue [3]. - The company is adjusting its performance expectations for 2025-2027, forecasting net profit of 0.53 billion, 0.63 billion, and 0.75 billion respectively, with corresponding PE ratios of 6.4, 5.5, and 4.6 [1]. Revenue and Profit Analysis - The company's revenue from various segments showed mixed results: operating leasing increased by 19.5% to 2.27 billion, while engineering technology and asset management services saw declines of 41.5% to 1.14 billion and 8.2% to 0.95 billion respectively [2]. - The overall gross margin decreased by 10.4 percentage points to 21.6%, primarily due to fluctuations in rental prices affecting the operating leasing segment [2]. Cost and Financial Metrics - The report notes a slight increase in expense ratios, with sales, management, and financial expense ratios at 5.57%, 11.95%, and 9.22% respectively, showing year-on-year increases [4]. - The company reported a net profit margin of 0.8%, down by 4.7 percentage points, while the asset-liability ratio increased slightly to 69% [4]. Strategic Initiatives - The company is actively pursuing overseas market expansion, with plans to enter 3 to 5 new countries in the second half of 2025, and has completed an 80% acquisition of Dongqing Company, enhancing its market position in Malaysia [3].

Investment Rating - The report assigns a "Buy-A" investment rating to the company with a 6-month target price of HKD 20.71 [4][7]. Core Insights - The report highlights the overseas licensing of UBT251 as a demonstration of the company's R&D capabilities, with an innovative drug pipeline expected to yield results [2][3]. - UBT251 is the first three-target weight loss drug authorized to a multinational corporation (MNC) in China, with significant clinical progress anticipated by 2025 and potential market peaks in both domestic and overseas sales [3][4]. - The company has a robust antibiotic and insulin segment, with a comprehensive supply chain from upstream intermediates to finished products, and is expanding into animal health, which is expected to drive new growth [4][6]. Summary by Sections 1. Company Overview - The company has established itself as a leader in the penicillin industry, with a fully integrated supply chain from intermediates to finished products, and is expanding into new therapeutic areas such as autoimmune diseases and metabolism [13][14]. - Historical performance shows a strong revenue growth trajectory, with a CAGR of 11.55% from 2005 to 2023, although recent performance has been impacted by production adjustments and increased R&D investments [25][29]. 2. UBT251 Development - UBT251 has commenced multiple clinical trials in China, with significant milestones expected in the coming years, including potential market approval by 2028 [3][37]. - The competitive landscape for three-target weight loss drugs is favorable, with UBT251 currently positioned second in clinical progress among domestic competitors [39][40]. 3. Antibiotic and Insulin Segments - The antibiotic market is expected to grow steadily, driven by the rigid demand for penicillin formulations, while the insulin segment has shown resilience with a significant increase in procurement volumes [4][6]. - The company has successfully navigated the challenges posed by antibiotic procurement policies, maintaining a competitive edge in the market [4][6]. 4. Financial Projections - Revenue growth is projected at 0.89% for 2025, with net profits expected to reach approximately CNY 2.86 billion [7][8]. - The report anticipates a peak sales potential of CNY 7.7 billion domestically and USD 6 billion overseas for UBT251, assuming a 50% success rate for market entry [3][4].

Investment Rating - The report maintains a "Buy" rating for Budweiser APAC (1876.HK) [5] Core Views - Budweiser APAC's Q2 2025 revenue was $1.675 billion, with a year-on-year decline of 3.9% [1] - Normalized EBITDA for Q2 2025 was $498 million, down 4.5% year-on-year, while net profit attributable to shareholders was $175 million, reflecting a 31.1% decrease [1] - The company is focusing on optimizing product structure, which has led to an increase in ton price and gross margin despite pressure on sales volume [2][3] Summary by Sections Sales Performance - Q2 2025 sales volume was 23.887 million kiloliters, down 6.2% year-on-year, while revenue per hectoliter increased by 2.4% [2] - Gross margin for Q2 2025 was 51.8%, up 0.71 percentage points year-on-year [2] - The company experienced a decline in sales across both eastern and western regions of Asia-Pacific, with notable performance in high-end products in India [2] Regional Analysis - In the western Asia-Pacific region, revenue and normalized EBITDA saw a year-on-year decline of 2.7% and an increase of 1.4%, respectively, with sales volume down 5.6% [2] - The eastern Asia-Pacific region faced a more significant decline, with revenue and normalized EBITDA down 8.4% and 26.5%, respectively, and sales volume down 10.4% [2] Inventory Management - The company has been actively managing inventory, with Q2 2025 inventory levels lower than the previous year and significantly below the industry average [3] - The focus on non-immediate consumption channels has contributed to growth in high-end product sales [3] Financial Forecasts - The net profit forecasts for 2025-2027 have been revised down to $690 million, $737 million, and $782 million, respectively, reflecting a decrease of 8% for 2025 and 2026 [3] - The current stock price corresponds to a PE ratio of 20x for 2025, 19x for 2026, and 18x for 2027, indicating a favorable outlook in the high-end market segment [3]

Investment Rating - The investment rating for Huaneng International is suggested as a "buy" due to its high dividend yield and strong profit growth potential [1][5]. Core Insights - Huaneng International reported a 23.19% year-on-year increase in net profit for H1 2025, exceeding market expectations, despite a slight revenue decline of 5.7% [2][4]. - The company effectively controlled costs, with fuel costs decreasing by 14.4% year-on-year, contributing to the significant profit growth [3][4]. - The company has accelerated the integration of renewable energy, with a total controllable installed capacity of 153 GW, of which low-carbon clean energy accounts for 39% [5][4]. Summary by Sections Financial Performance - Huaneng International's revenue for H1 2025 was RMB 1120.32 billion, a decrease of 5.7% year-on-year, while net profit reached RMB 95.78 billion, reflecting a 23.19% increase [2][5]. - The earnings per share (EPS) for H1 was RMB 0.52, with a book value per share (BSP) of RMB 4.35 [2]. Cost Management - The total operating costs decreased by 9.8% to RMB 933 billion, with fuel costs down by 14.4% to RMB 583 billion, saving nearly RMB 10 billion [3][4]. - The company managed to reduce coal procurement costs by optimizing the structure of coal purchases and increasing the share of low-cost spot coal [3][4]. Energy Generation - The total electricity generated by Huaneng's domestic power plants was 2056.8 billion kWh, a decrease of 2.4% year-on-year, but there was a 1.4% increase in Q2 [4]. - Renewable energy generation saw significant growth, with wind power generation up 11.4% to 210 billion kWh and solar power generation up 49.3% to 122 billion kWh [4][5]. Renewable Energy Expansion - The company added over 6 GW of renewable energy capacity in H1, with a total controllable installed capacity of 152,992 MW, of which wind and solar accounted for significant portions [5][4]. - The share of low-carbon clean energy in the total installed capacity reached 39.12%, with expectations to complete an additional 10 GW of new energy installations by year-end [5][4].

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings with a target price of 605 HKD [6]. Core Insights - The company is expected to achieve a revenue of 1799.3 billion RMB in Q2 2025, representing a year-on-year growth of 11.7% driven by strong growth in value-added services, particularly in gaming and online advertising [1]. - The gross margin is projected to be 55.1%, with a gross profit of 990.8 billion RMB, reflecting a year-on-year increase of 15.4% [1]. - The operating profit is forecasted to reach 587.2 billion RMB, a 15.7% increase year-on-year, while the NON-IFRS net profit is expected to be 627.3 billion RMB, up 9.5% year-on-year [1]. Revenue Forecasts - For Q2 2025, the value-added services revenue is estimated at 885.1 billion RMB, with gaming revenue at 566.8 billion RMB, showing a year-on-year growth of 16.9% [2]. - Domestic gaming revenue is projected to be 402.4 billion RMB, growing at 16.3% year-on-year, supported by popular titles like "Honor of Kings" and "Peacekeeper Elite" [2]. - The overseas gaming revenue is expected to be 164.4 billion RMB, with a year-on-year growth of 18.2% [2]. Advertising and Marketing Services - Advertising revenue for Q2 2025 is anticipated to be 356.5 billion RMB, reflecting a year-on-year increase of 19.3% [3]. - The growth in advertising is attributed to the overall recovery of the macro environment and the contribution of AI technologies to enhance user engagement and optimize ROI for advertisers [3]. - Financial technology and enterprise services revenue is projected at 536.9 billion RMB, with a year-on-year growth of 6.4% [3]. Profitability and Valuation - The report forecasts a continued strong growth in core gaming and advertising revenues, with an upward revision of the NON-IFRS net profit estimates for 2025 to 2,556.8 billion RMB [4]. - The projected NON-IFRS P/E ratios for 2025-2027 are 18, 16, and 15 times, respectively [4]. - The report notes a decrease in the proportion of Tencent held by southbound funds, but anticipates a potential return of these funds due to the company's strong fundamentals and a rich product pipeline [4]. Financial Summary - The expected revenue growth rates for the years 2023 to 2027 are 9.8%, 8.4%, 11.0%, 9.3%, and 9.0% respectively [5]. - The NON-IFRS net profit is projected to grow significantly, with growth rates of 36.4%, 41.2%, 14.8%, 12.8%, and 11.7% from 2023 to 2027 [5].

Investment Rating - The report assigns a "Buy" rating for Wuling Motors with a target price of HKD 0.77, based on a current price of HKD 0.49 [6]. Core Insights - Wuling Motors is focusing on transforming its business model to enhance its presence in the automotive industry, particularly in the new energy vehicle sector, while leveraging its extensive experience in manufacturing and supply chain management [15][20]. - The company has seen a significant increase in net profit, with a 60.19% year-on-year growth in 2024, attributed to adjustments in its commercial vehicle business and an increase in high-margin component products [2][5]. - Wuling Motors aims to cultivate three national-level manufacturing champions in the automotive parts sector by 2025-2027, focusing on high-value products and expanding its international footprint [3][26]. Summary by Sections Company Overview - Wuling Motors Group Holdings Limited specializes in the automotive supply chain, focusing on components, power systems, and commercial vehicle design and development, with components contributing 69% of its main revenue in 2024 [1][15]. Business Transformation and Financial Performance - The company has adjusted its business model for commercial vehicles, leading to a 24.17% decrease in total revenue to HKD 7.949 billion in 2024, while operating costs also fell by 24.96% [2][5]. - Despite revenue declines, the company achieved a net profit of HKD 111 million in 2024, reflecting a 60.19% increase year-on-year, driven by a shift towards higher-margin products [2][5]. Focus on Components and New Energy - Wuling Motors is concentrating on its components business, enhancing product quality and expanding its customer base, including partnerships with major manufacturers like BYD and Great Wall [3][29]. - The company is actively developing new energy products, including electric vehicle engines and control systems, and has established Wuling New Energy as a key player in its strategy [4][22]. Profit Forecast and Valuation - The report forecasts Wuling Motors' total revenue to grow to HKD 88.66 billion by 2025, with a projected compound annual growth rate of 12% from 2025 to 2027 [5][26]. - The expected net profit for the same period is projected to reach HKD 0.80 billion in 2025, reflecting a 58% year-on-year increase [5][26].