Investment Rating - The investment rating for Zhejiang Huayou Cobalt is "Buy" with a target price of Rmb51.40, implying a potential downside of 21.7% from the current price of Rmb65.610 [6][8]. Core Insights - The lithium output for Huayou Cobalt is projected to increase from 35kt in the first nine months of 2025 to 60-80kt in 2026 due to the ramp-up of the lithium sulfate project in Zimbabwe. The comprehensive production cost for lithium is currently less than Rmb70k/t LCE and is expected to decrease by Rmb10k/t LCE post ramp-up [2][4]. - Nickel intermediate output is not expected to see significant year-over-year growth in 2026, as both Huayue and Huafei projects have achieved over 100% capacity utilization. The Pomalaa project is anticipated to commence operations by the end of 2026 [3]. - Cobalt output primarily comes from MHP projects in Indonesia, with expectations of strong cobalt prices due to quota policies in the DRC, although increased output from Indonesian projects may exert long-term price pressure [4]. - NCM cathode sales volume reached approximately 70kt in the first nine months of 2025, representing an 80% year-over-year increase, with expectations to reach around 100kt in 2025 [5]. Summary by Sections Lithium - Lithium output is expected to rise significantly in 2026 due to the lithium sulfate project ramp-up, with production costs projected to decrease [2]. Nickel - Nickel output is stable with no significant increase expected in 2026, and the Pomalaa project is set to begin operations by year-end 2026 [3]. Cobalt - Cobalt prices are expected to remain strong due to policy impacts, but increased output from Indonesia may create long-term price pressures [4]. Cathode - NCM cathode sales are on a strong upward trajectory, with significant growth expected in 2025 [5].

Investment Rating - The investment rating for Luxshare Precision Industry is "Buy" with a target price of Rmb78.00, indicating an expected share price return of 38.0% and an expected total return of 38.6% [7]. Core Insights - The report highlights multiple drivers fueling future growth for Luxshare, including strong performance in the communication and vehicle businesses, solid key customer relationships, and limited impact from memory price fluctuations [1][9]. - The communication business is expected to maintain a high growth target for 2026, with steady domestic growth and rapid overseas expansion anticipated [2]. - The vehicle business, particularly the Leoni segment, is outperforming expectations, with profitability targets likely to be achieved ahead of schedule [3]. - The wearable devices segment is projected to perform positively in 2026, while smartphone shipments are expected to remain stable with improved product mix and average selling price [4]. - The Wingtech business is focusing on operational efficiency and profitability rather than volume growth [5]. Summary by Sections Communication Business - The communication business is set for high growth in 2026, with domestic growth steady and overseas projects expected to break through in the coming quarters [2]. - Luxshare is a leader in electrical interconnect solutions, particularly in 448G connectivity, which secures strategic cooperation with upstream suppliers [2]. Vehicle Business - The Leoni business is performing better than expected, with the potential to exceed breakeven targets this year and achieve prior profit targets a year ahead [3]. - The focus for the first three years will be on operational improvement and profitability, leveraging Leoni's global exposure for North American expansion [3]. Key Customer Business - Luxshare is optimistic about the wearable devices market for 2026, including smartwatches and TWS buds, while smartphone shipments are expected to remain similar to 2025 but with an improved product mix and average selling price [4]. Wingtech Business - The priority for the Wingtech business is to enhance operational efficiency and profitability, with less emphasis on volume or market share [5].

Investment Rating - The investment rating for Jiangxi Copper is "Buy" with a target price of HK$27.90, indicating an expected share price decline of 12.2% from the current price of HK$31.76 [6]. Core Insights - The long-term treatment charge and refining charge (LT TC/RC) for copper concentrate is expected to be lower year-on-year in 2026, reflecting a tight supply situation as the LT TC/RC covers approximately 80% of total purchased overseas copper concentrate in 2025, down from 90% in previous years [1][2]. - The company plans to avoid large-scale maintenance work for copper smelting capacity until the LT TC/RC price for the next year is determined, with an anticipated increase in the percentage of spot TC/RC in the fourth quarter of 2025 if the LT TC/RC price remains low [3]. - Management believes that the impact of anti-involution on the copper smelting industry will primarily affect new capacity rather than existing capacity, as copper demand is expected to continue increasing, thus limiting the impact on copper prices [4]. - The copper foil business is projected to incur a net loss in 2025, but strong orders for lithium battery copper foil since September 2025 are expected to improve profitability in 2026, despite processing fees not significantly increasing [5]. Summary by Sections Valuation - Jiangxi Copper's H-shares are valued at HK$27.90 based on a combination of discounted cash flow (DCF) and price-to-book (P/B) fair values, with a DCF valuation yielding an NPV-per-share of HK$32.90 and a P/B valuation yielding HK$22.90 [8].

Investment Rating - The investment rating for Kingnet is "Buy" with a target price of Rmb31, indicating an expected share price return of 47.1% and a total expected return of 48.5% [3][8]. Core Insights - Kingnet's monetization potential through the 996 Game Center is significant, with a current daily active user (DAU) count of 450K and a target of 500K DAU by year-end. The company plans to diversify revenue streams through partnerships with larger publishers and new monetization methods such as live-streaming and cloud gaming services [2][3]. - The company is actively pursuing AI initiatives, with the EVE tool set to launch its second testing phase soon, and the AI game development tool Soon showing early customer adoption. Kingnet aims to position itself as a comprehensive game publisher and service platform [5][6]. - Kingnet's game pipeline includes innovative genres and partnerships with well-known IPs, focusing on both domestic and international markets. The company is selective in licensing new IPs to enhance market share [6][7]. Summary by Sections 1. Monetization Potential - Kingnet's 996 Game Center is expected to expand its market share and revenue through various monetization strategies, including ads, live-streaming, and secondary item trading. The management anticipates improved margins due to user base expansion and diversified revenue streams [2][3]. 2. AI Initiatives - The EVE AI tool is on track for a launch by year-end, with ongoing testing focused on technical optimizations. Kingnet's AI game development tool, Soon, is gaining traction among long-tail developers, indicating a positive outlook for future AI products [5][6]. 3. Game Pipeline - Kingnet is set to beta test new games based on popular IPs and is focusing on developing Wuxia RPGs from renowned authors. The company is strategically licensing innovative IPs to strengthen its market position [6][7].

Flash | 16 Nov 2025 18:22:27 ET │ 11 pages Zijin Mining (2899.HK) What's New from Citi 2025 China Conference: Mine Gold and Copper Output Maintain Decent Growth CITI'S TAKE We hosted meetings for Zijin Mining on Nov 13th at our China Conference in Shanghai. Ms. Krystal Chen, IR Manager, attended the meeting. Below are our key takeaways. Mine gold output – Mine gold output is 65t in 9M25, +20% YoY, mainly driven by newly acquired Akyem mine and increasing output from Sawaya'erdun gold mine. Mgmt. expects the ...

Investment Rating - The report assigns an "Overweight" rating to Huaming Equipment with a price target of Rmb33.00 for December 2026 [3][7]. Core Insights - Huaming Equipment is the largest manufacturer of tap changers for transformers in China, holding a market share of over 60% and gradually gaining market share globally. The company is expected to benefit from the increasing global demand for transformers due to its cost advantages and strong brand recognition [7]. - The company has seen a pick-up in sales in the US market, particularly from transformer manufacturers in Korea and Brazil, as well as data centers. However, management anticipates limited near-term earnings contributions from this market [4][5]. - Huaming's shorter lead times for product delivery (less than 3 months) compared to competitors (3-6 months) are a key factor driving its overseas growth [4][5]. Summary by Sections Overseas Market Opportunities - Huaming Equipment is exploring a potential major contract for transformer supply in Saudi Arabia, which could exceed Rmb10 billion. This contract may require over 50% of components to be locally manufactured, prompting Huaming to consider establishing an assembly plant in Saudi Arabia [4][5]. - The company has increased its sales in the US market, with a focus on data centers and power plants, although management notes that immediate earnings contributions will be limited [4][5]. Domestic Market Performance - Domestic growth remains modest, with management expressing caution due to weak demand from non-grid customers. Huaming's market share in domestic sales volume is already over 80% (excluding UHV) [5][7]. - The company is optimistic about growth opportunities in high-voltage products (>500kV) and has supplied tap changers for a UHV line that became operational earlier this year [5]. Valuation - The price target of Rmb33.00 per share is based on a target P/E ratio of approximately 28x, reflecting a 7.8x 2026E P/B and a yield of 1.8%. This valuation is consistent with the average of regional transformer companies, indicating a stronger outlook for Huaming's overseas growth [8].

Flash | 19 Nov 2025 12:36:46 ET │ 12 pages Han's Laser Technology (002008.SZ) What's New from Citi 2025 Industrial Tour | IT Upcycle May Start from 2026 CITI'S TAKE We met with Han's Laser (HL) Board Secretary, Mr. Du Yonggang, on 19 November. In addition to the PCB business upturn driven by stronger demand from AI PCB makers, Mr. Du believes that the next upcycle of the IT business – mainly for Apple (AAPL.O) – could start from 2026 onwards driven by not only iPhone 18 in 2026 but also iPhone's 20th annive ...

Vi e w p o i n t | 23 Nov 2025 16:28:09 ET │ 12 pages China Humanoid Robot What's New from Citi 2025 Industrial Tour: Likely Exponential Production Growth in 2026 See Appendix A-1 for Analyst Certification, Important Disclosures and Research Analyst Affiliations. Citi Research is a division of Citigroup Global Markets Inc. (the "Firm"), which does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that ...

November 19, 2025 04:12 PM GMT China International Capital Corp. Ltd. | Asia Pacific Proposed Merger Could Strengthen Wealth Management Franchise and Capital Base Key Takeaways Cinda and Dongxing's smaller size and complementary business mix are opportunities to extract synergy. Combined, the two brokers's total assets were ~Rmb244bn as of September 2025 vs. CICC at Rmb765bn. The two brokers are focused primarily on retail brokerage, with ~35% of revenue from brokerage fees and margin interests and ~50% rev ...

Investment Rating - The report assigns a "Buy" rating for China Tourism Group Duty Free Corp (CTGDF) [4] Core Insights - Encouraging sales trends have emerged since the new duty-free policy took effect on November 1, with Hainan offshore duty-free sales increasing by 34.86% year-on-year during the first week of November [1][2] - The online platform in Hainan saw a significant growth in Gross Merchandise Value (GMV) of 40.4% during the Double 11 shopping festival, indicating a positive shift in consumer behavior [1][2] - The number of buyers has shown positive growth, particularly in categories such as mobile phones and gold accessories, suggesting a recovery in consumer spending [2] - Management expresses confidence in peak season performance, supported by new policies, marketing campaigns, and concert events in Hainan [2] Sales Performance - Hainan offshore duty-free sales reached Rmb506 million during the first week of November, with a notable increase in per capita spending by 30.5% year-on-year [2] - Daily sales exceeded Rmb100 million on November 11, indicating strong consumer engagement during the shopping festival [2] - The growth in sales is attributed to a combination of new policies, a wealth effect, and a low base from the previous year [1] Pricing Strategy - The company has adopted a less aggressive pricing discount strategy this year, focusing on balancing gross profit margin (GPM) and sales [2] - Over 200 popular cosmetics SKUs are offered weekly, with 80% having a price advantage compared to competitors [2] Category Performance - The cosmetics category has shown recovery, with positive growth since Q3 2025, while luxury goods performance remains mixed [3] - The watch category has lagged, whereas gold & jewelry and boutique categories have experienced growth [3] Valuation - The DCF-based target price for CTGDF is set at Rmb78, reflecting the long-term structural growth potential of its duty-free business [6]