Investment Rating - The investment rating for the company is "Hold" based on the analysis of its performance and market conditions [1]. Core Insights - The company reported a retail value growth of 13% year-on-year for FY26Q1, with same-store sales increasing by 5%. The proportion of retail value from priced gold increased from 12% to 17% compared to the same period last year, with same-store growth of 73% [1][2]. - The recovery in sales growth in mainland China reached nearly 20%, with retail value growth of 14% in FY26Q1. Self-operated stores outperformed brand stores, with self-operated retail income growing by 31% and same-store growth of 19% [2][3]. - The company aims for a net increase of 72 stores globally in FY2026, with a target of 50 new stores in mainland China, primarily expected to be achieved in the second half of the fiscal year [3]. Financial Performance Summary - Revenue projections for FY2026 to FY2028 are estimated at HKD 15,284 million, HKD 17,180 million, and HKD 18,740 million, representing year-on-year growth of 15%, 12%, and 9% respectively. Net profit attributable to the parent company is projected to be HKD 1,505 million, HKD 1,731 million, and HKD 1,980 million, with growth rates of 37%, 15%, and 14% respectively [3][6]. - Earnings per share (EPS) are forecasted to be HKD 2.56, HKD 2.95, and HKD 3.37 for FY2026, FY2027, and FY2028, respectively, with corresponding price-to-earnings (P/E) ratios of 8, 7, and 6 [3][6].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside in the stock price [7]. Core Insights - The company aims to become a leading international biopharmaceutical firm, with significant achievements in commercialization and a robust pipeline in oncology and other therapeutic areas [7]. - The company has 16 products approved for sale, with projected sales revenue of RMB 8.2 billion in 2024, reflecting a year-over-year growth of 44% [7]. - The company has achieved positive Non-IFRS profit and EBITDA for the first time, with figures of RMB 330 million and RMB 410 million respectively for 2024 [7]. - The company expects to maintain positive EBITDA in 2025 and aims to launch 20 commercialized products by 2027, targeting revenue of RMB 20 billion [7]. Summary by Sections Company Overview - The company operates in the pharmaceutical and biotechnology sector, with a current H-share price of HKD 88.00 and a target price of HKD 107 [4]. - The company has a market capitalization of RMB 65.35 billion and a price-to-book ratio of 10.99 [4]. Product Portfolio - The revenue breakdown shows that 87% comes from drug sales, 12% from licensed products, and 1% from R&D income [5]. Financial Projections - The company is projected to achieve net profits of RMB 373 million, RMB 1.43 billion, and RMB 2.40 billion for the years 2025, 2026, and 2027 respectively, with year-over-year growth rates of 282% and 68.4% [9]. - The earnings per share (EPS) are expected to be RMB 0.22, RMB 0.84, and RMB 1.41 for the same years [9]. Market Position and Competitive Advantage - The company is recognized for its innovative drug pipeline, particularly in immune-oncology (IO) and antibody-drug conjugates (ADC), with promising clinical results for its PD-1/IL-2 dual-target drug [7]. - The recent launch of the weight-loss drug, Ma Shidu Peptide, is expected to significantly contribute to revenue growth, showing a weight loss of 18.6% over 48 weeks, outperforming existing competitors [7].

Investment Rating - The report assigns a "Buy" investment rating for the company, marking its first coverage [4][8]. Core Insights - The company, Saint Bella, is positioned in the female-focused market, aiming to create a comprehensive service ecosystem covering "pre-pregnancy, post-pregnancy, childcare, and elderly care" [4]. - Revenue is projected to grow from 472 million yuan in 2022 to 799 million yuan in 2024, with a compound annual growth rate (CAGR) of 30% [4]. - The adjusted net profit is expected to turn from a loss in 2022 to a profit of 208 million yuan in 2023, and further increase to 423 million yuan in 2024, representing a year-on-year growth of 103.4% [4]. - The postpartum care service is the core pillar of the company's ecosystem, with revenue from maternity centers expected to account for 85% of total revenue in 2024 [4]. Summary by Sections Company Overview - Established in 2017, Saint Bella has a market share of 1.2% in the maternity center sector as of 2024 [4]. - The company targets the mid-to-high-end market and has developed a multi-brand matrix to cater to different consumer segments [4]. Business Model - Saint Bella employs a light-asset high-end cooperation model by setting up maternity centers in existing luxury hotels, which reduces initial investment costs and leverages hotel brand equity to attract high-net-worth clients [5]. - The company has established 96 high-end maternity centers, with 62 self-operated and 34 managed centers as of 2024 [5]. Market Potential - The family care market in China is projected to grow from 392.8 billion yuan in 2019 to 711.3 billion yuan in 2024, with a CAGR of 12.6% [4]. - The elderly care market is expected to provide a dual growth engine for the company, driven by an aging population and evolving family structures [8]. Financial Projections - Revenue forecasts for 2025 to 2027 are 1.1 billion yuan, 1.48 billion yuan, and 1.96 billion yuan, respectively, with corresponding net profits of 94 million yuan, 200 million yuan, and 319 million yuan [8][10]. - The company is expected to achieve a price-to-earnings (P/E) ratio of 43.1, 20.1, and 12.6 for the years 2025, 2026, and 2027, respectively [8].

Investment Rating - The report initiates coverage on LianLian Digital with a "Buy" rating and a target price of HKD 17.3, representing a potential upside of 40% from the latest closing price of HKD 12.42 [6]. Core Insights - LianLian Digital is positioned as a leading 2B digital payment service provider, focusing on cross-border payment solutions for e-commerce merchants. The company has a strong potential for market share growth due to its established brand and merchant base [2][11]. - The company has obtained a Virtual Asset Trading Platform (VATP) license, which may open up future business opportunities in virtual asset trading and stablecoin issuance [3][12]. - The financial outlook is positive, with projected total revenue of HKD 16.3 billion in 2025, reflecting a year-on-year growth of 24% [3][5]. Company Overview - LianLian Digital primarily offers digital payment solutions, including global and domestic payment services. The company has served over 5.9 million merchants and achieved a total payment volume (TPV) of approximately HKD 3.3 trillion in 2024, with a year-on-year growth of 65% [11][45]. - The company has a diversified revenue stream, with digital payment services contributing 88% of total revenue in 2024 [18]. Financial Performance - In 2024, LianLian Digital reported total revenue of HKD 13.1 billion, a 28% increase from the previous year. The global payment segment contributed 70% of the digital payment revenue [2][18]. - The company achieved an adjusted net profit of HKD 79 million in 2024, marking its first profitable year [24][30]. Market Position and Competitive Landscape - LianLian Digital holds a significant market share in the cross-border payment sector, with its global payment TPV accounting for approximately 13.1% of China's cross-border e-commerce export value in 2024 [2][45]. - The competitive landscape in the cross-border payment industry is fragmented, with key players including Payoneer, PingPong, and others [2][11]. Future Opportunities - The company is well-positioned to capitalize on the growing demand for digital payment solutions in the cross-border e-commerce market, which is projected to reach USD 1.2 trillion by 2024 [46]. - The potential issuance of stablecoins could provide additional revenue streams, particularly in cross-border trade scenarios where traditional payment methods face challenges [3][12].

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [2][3][5] Core Views - The company reported a 1.9% year-on-year decline in overall retail value for the period from April to June 2025, showing improvement compared to a 11.6% decline in the previous quarter [4][6] - In the Chinese market (excluding Hong Kong, Macau, and Taiwan), retail value decreased by 3.3%, while Hong Kong, Macau, and other markets saw a 7.8% increase [4][6] - Same-store sales in the Chinese market (excluding Hong Kong, Macau, and Taiwan) fell by 3.3%, a narrowing of 9.9 percentage points from the previous quarter, while same-store sales in Hong Kong, Macau, and other markets grew by 2.2%, a significant improvement from a 22.5% decline [4][6] - The company continues to focus on enhancing single-store efficiency, resulting in the closure of 307 underperforming stores, with a total of 6,337 stores remaining at the end of the quarter [4][9] Summary by Sections Retail Performance - The company experienced a notable improvement in same-store sales, particularly in high-margin priced products, with a 20.8% year-on-year increase in sales of priced gold products in the Chinese market (excluding Hong Kong, Macau, and Taiwan) [4][6] - The proportion of retail value from priced products increased from 15.8% in the same period last year to 19.8% this year [6] Product Development and Strategy - The company is investing further in research and design to strengthen its portfolio of high-margin priced products and is optimizing its store structure to boost single-store sales [5][11] - A new high-end jewelry series has been launched, designed with Eastern aesthetics, aiming to enhance the brand's influence in the global high-end jewelry market [6] Financial Forecast - The company forecasts net profits for the fiscal years 2026-2028 to be HKD 74.25 billion, HKD 84.14 billion, and HKD 93.28 billion, respectively, with corresponding P/E ratios of 17.7, 15.6, and 14.1 [5][11]

Investment Rating - The investment rating for TCL Electronics is "Buy" and is maintained [8]. Core Views - The company has released a positive mid-year profit forecast for 2025, expecting an adjusted net profit attributable to shareholders of HKD 950 million to HKD 1.08 billion, representing a year-on-year growth of 45% to 65% compared to the same period in 2024 [2][5]. - The company's global strategy focusing on "globalization" and "mid-to-high-end" products is showing initial success, with a significant increase in the shipment of large-screen TVs and Mini LED TVs [5]. - TCL's TV shipments reached 13.46 million units in the first half of 2025, a year-on-year increase of 7.6%, maintaining a top-two global ranking [5]. Summary by Sections Company Overview - TCL Electronics is experiencing a structural upgrade in its product offerings, coupled with cost optimization, leading to impressive growth in net profit [5]. Financial Performance - The company anticipates a substantial increase in net profit for the first half of 2025, with projections of HKD 950 million to HKD 1.08 billion, marking a 45% to 65% increase from the previous year [2][5]. - Revenue forecasts indicate a steady growth trajectory, with expected revenues of HKD 114.65 billion in 2025, up from HKD 99.32 billion in 2024, reflecting a growth rate of 15.4% [9]. Market Position - TCL's global TV shipment volume is on the rise, with a notable 176.1% increase in Mini LED TV shipments, positioning the company as a leader in this segment [5]. - The company has strengthened its market presence in both international and domestic markets, with significant growth in large-screen TV sales [5]. Strategic Initiatives - The company is enhancing its global supply chain and brand marketing, having become a global partner of the Olympics in early 2025 [5]. - In the Chinese market, TCL is advancing its dual-brand strategy with "TCL + Thunderbird," achieving a 10.2% year-on-year increase in shipments [5]. Operational Efficiency - TCL has improved its operational efficiency through digital transformation and automation, leading to a reduction in overall expense ratios [5].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 16.00 [6][5]. Core Insights - The company's retail sales for FY26Q1 showed a year-on-year decline of 1.9%, but a quarter-on-quarter increase of 9.7 percentage points, indicating a recovery in consumer sentiment and improved sales performance in certain product categories [1][2]. - The same-store sales decline in mainland China narrowed to -3.3%, supported by the growth of priced products and a low base effect from the previous year [2][3]. - The company is focusing on optimizing its product mix and closing underperforming stores, which is expected to enhance operational efficiency and support a positive outlook for the company's fundamentals [1][4]. Summary by Sections Retail Performance - For FY26Q1, the company's retail sales in mainland China and Hong Kong/Macau showed a year-on-year decline of 3.3% and an increase of 7.8%, respectively [1][2]. - The same-store sales growth (SSSG) for mainland China was -3.3% year-on-year but improved by 2.2% quarter-on-quarter, while Hong Kong saw a growth of 0.2% year-on-year and 9.5% in Macau [2]. Product Mix and Margins - The proportion of fixed-price products is steadily increasing, which supports the resilience of the gross margin [3]. - Retail sales of high-margin priced gold products in mainland China increased by 20.8% year-on-year, contributing to the overall profitability of the company [3]. Store Optimization - The company continues to implement its channel optimization strategy, closing 347 stores while opening 40, resulting in a net reduction of 307 stores [4]. - The remaining stores are expected to effectively capture customers from closed locations, positively impacting profitability [4]. Profit Forecast and Valuation - The report forecasts the company's net profit attributable to shareholders for FY26, FY27, and FY28 to be HKD 76.3 billion, HKD 83.6 billion, and HKD 92.3 billion, respectively [5][10]. - The target price of HKD 16 corresponds to a price-to-earnings (PE) ratio of 21 times for FY26, reflecting the company's position as an industry leader with improving same-store sales and profitability [5][10].

Investment Rating - The report maintains a "Buy" rating for ASMPT with a target price of 77.2 HKD, up from the previous 69 HKD [4][6]. Core Insights - ASMPT's 2Q25 revenue reached 34.0 billion HKD, showing a year-on-year increase of 1.8% and a quarter-on-quarter increase of 8.9%, closely aligning with Bloomberg consensus expectations [1][6]. - The order amount was 37.5 billion HKD, reflecting a year-on-year growth of 20.2% and a quarter-on-quarter growth of 11.9%, exceeding Bloomberg consensus expectations by 16% [1][2]. - The gross margin was reported at 39.7%, a slight decline of 33 basis points year-on-year and 119 basis points quarter-on-quarter, which is in line with expectations [1][2]. - Net profit for the quarter was 1.343 billion HKD, down 1.7% year-on-year but up 62.6% quarter-on-quarter, falling short of Bloomberg consensus expectations [1][2]. Revenue and Orders - The SEMI business revenue increased by 21.4% year-on-year and 0.8% quarter-on-quarter, driven by strong AI-related power management demand and improved OSAT capacity utilization in the Chinese market [2]. - SMT business revenue saw a year-on-year decline of 16.7% but a quarter-on-quarter increase of 22.6%, with orders increasing by 51.6% year-on-year and 29.3% quarter-on-quarter, driven by significant orders from smartphone clients and new AI server-related orders [2]. Advanced Packaging - Orders for TCB in the advanced packaging segment increased by 50% year-on-year in the first half of 2025, with successful installations for leading HBM3E 12H customers [3]. - The company is progressing towards mass production of AOR TCB for C2W applications, with competitive advantages in alignment and bonding accuracy for the second-generation HB tools expected to be delivered in Q3 [3]. Financial Projections - The report projects net profit increases of 3% for 2025, 8% for 2026, and 7% for 2027, resulting in net profits of 6.23 billion HKD, 10.35 billion HKD, and 16.27 billion HKD respectively [4][10]. - Corresponding EPS estimates are 1.50 HKD for 2025, 2.49 HKD for 2026, and 3.91 HKD for 2027 [4][10]. Valuation Metrics - The target price adjustment to 77.2 HKD is based on a 31x PE for 2026, compared to a comparable company average of 25.2x [4][32]. - The current market capitalization is approximately 26.32 billion HKD, with a closing price of 63.20 HKD as of July 23 [7].

Investment Rating - The report gives a "Buy" rating for the company, with a target price of 16.16 HKD [6]. Core Insights - The company is positioned as a leader in the antibiotic industry, with a diversified business model that includes intermediates, active pharmaceutical ingredients, and formulations, which is expected to drive a new growth cycle [1][10]. - The innovative pipeline is showing promising results, particularly with UBT251, which has successfully partnered with a global leader in diabetes treatment, Novo Nordisk, indicating strong potential for future revenue [2][23]. - The company is expected to achieve a compound annual growth rate (CAGR) of 8.0% in its formulation business from 2024 to 2027, driven by various factors including the expansion of its animal health business and the approval of new insulin products [3][4]. Summary by Sections 1. Antibiotic Industry Leadership - The company has over 30 years of experience in the pharmaceutical industry, starting with antibiotic formulations and expanding into a fully integrated business model covering intermediates, active ingredients, and formulations [10]. - The company has established a strong cash flow from its core business, which supports its innovative transformation strategy [1][14]. 2. Innovative Pipeline - UBT251, a self-developed GLP-1/GIP/GCG three-target drug, has shown significant weight loss results in clinical trials, with a 15.1% reduction in weight over 12 weeks in the highest dosage group [22][40]. - The partnership with Novo Nordisk includes a potential total income of up to 2 billion USD, with an upfront payment of 200 million USD and milestone payments [23][24]. 3. Formulation Business - The formulation business is expected to grow steadily, with a projected CAGR of 8.0% from 2024 to 2027, supported by the expansion of animal health production and new insulin product approvals [3][4]. - The company’s insulin products have achieved significant market presence, with a 52.5% growth rate in basic volume [3]. 4. Intermediates and Active Pharmaceutical Ingredients - The intermediates and active pharmaceutical ingredients business is expected to see a CAGR of -7.0% from 2024 to 2027, primarily due to price fluctuations in key products [3]. - Despite short-term price declines, the long-term outlook remains stable due to a consolidated market structure [3]. 5. Financial Forecast - The company is projected to achieve net profits of 2.78 billion, 2.13 billion, and 2.27 billion RMB from 2025 to 2027, with corresponding growth rates of 4.5%, -23.4%, and 6.9% [4][5].

Investment Rating - The investment rating for Chow Tai Fook (1929.HK) is "Hold" based on the current performance and market conditions [1]. Core Insights - Chow Tai Fook's FY26Q1 retail value decreased by 1.9% year-on-year, with mainland China and Hong Kong/Macau retail values changing by -3.3% and +7.8% respectively [1]. - The same-store sales in mainland China fell by 3.3%, while Hong Kong and Macau saw an increase of 2.2% [1]. - The company is experiencing a recovery in same-store sales, particularly in the franchise segment, which performed better than direct stores [2]. - E-commerce sales showed significant growth, increasing by 27% and accounting for 7.6% of mainland China's retail value [2]. - The company closed 307 stores in FY26Q1, accelerating channel adjustments, with a total of 6,337 stores as of June 30, 2025 [3]. Financial Projections - Revenue projections for Chow Tai Fook are estimated at HKD 91.5 billion, 95.1 billion, and 99.8 billion for FY26, FY27, and FY28 respectively, reflecting growth rates of 2%, 4%, and 5% [3][5]. - The net profit attributable to the parent company is forecasted to be HKD 8.06 billion, 8.61 billion, and 9.31 billion for FY26, FY27, and FY28, with year-on-year growth rates of 36%, 7%, and 8% [3][5]. - The price-to-earnings (P/E) ratios based on the closing price on July 22, 2025, are projected to be 17, 16, and 15 for FY26, FY27, and FY28 respectively [3][5].