Investment Rating - The report gives a "Buy" rating for the company, Guming (1364.HK) [5][13]. Core Viewpoints - Guming is a leading affordable fresh tea beverage brand with multiple advantages, having expanded from Zhejiang to nationwide coverage with over 9,914 stores across 200 cities by the end of 2024 [1][25]. - The company has a strong supply chain and unique channel strategies that support rapid growth, particularly in lower-tier cities, where the market potential is significant [2][11]. - Guming's average quarterly repurchase rate reached 53% in 2023, significantly higher than the industry average of less than 30% [25][60]. Summary by Relevant Sections Company Overview - Guming has been deeply involved in the fresh tea beverage market for over a decade, establishing a strong presence in lower-tier cities and towns, which are expected to see a CAGR of over 20% from 2024 to 2028 [1][2]. - The company operates a franchise model that has attracted many franchisees due to high single-store profitability, facilitating rapid store expansion [2][11]. Market Potential - The fresh beverage market in China is projected to exceed 600 billion yuan in 2024, with the fresh tea beverage segment being the largest, estimated at over 300 billion yuan [1][52]. - The report highlights that the affordable price segment is expected to grow at a CAGR of 20.8% from 2024 to 2028, indicating strong demand for Guming's offerings [1][55]. Financial Projections - The company is expected to achieve net profits of 1.96 billion yuan, 2.36 billion yuan, and 2.76 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding EPS of 0.82, 0.99, and 1.16 yuan [3][4]. - Guming's revenue is projected to grow from 7.68 billion yuan in 2023 to 15.26 billion yuan by 2027, reflecting a robust growth trajectory [4][8]. Competitive Advantages - Guming's supply chain is identified as a core competitive advantage, enabling the company to offer high-quality products at competitive prices while quickly responding to market demands [2][11]. - The company has implemented a regional density strategy that enhances brand recognition and customer loyalty, further driving sales growth [25][60]. Expansion Plans - Guming plans to increase its store count by 2,000 in 2025, focusing on regions such as Anhui, Hubei, Hunan, Guangdong, and Guangxi, with a long-term goal of reaching 20,000 stores [2][11]. - The introduction of coffee products is expected to contribute positively to store revenues, with sales growth of approximately 10% per store [2][11].

Investment Rating - The report initiates coverage with an "Outperform" rating for CATL, with a target price of HK$382 [2][6]. Core Insights - CATL has maintained its position as the global leader in power lithium batteries since 2017, achieving an installed power battery capacity of 339.3 GWh in 2024, with a market share of 37.9% [3][51]. - The company has a comprehensive supply chain layout that mitigates risks associated with raw material price volatility, securing control over critical mineral resources through various investment strategies [4][52]. - Heavy investment in R&D has led to the continuous development of competitive products, including the Kirin Battery and Tianheng Energy Storage System, enhancing the company's market leadership [5][53]. - Revenue forecasts for 2025-2027 are projected at RMB 460.9 billion, RMB 570.9 billion, and RMB 676.9 billion, with net profits of RMB 55.8 billion, RMB 73.1 billion, and RMB 87.3 billion respectively [6][54]. Summary by Sections Company Overview - CATL was established in 2011 and became the global leader in power lithium batteries in 2017, with significant milestones including its listing on the Hong Kong Stock Exchange in 2025 [10][12]. Financial Performance - The company experienced rapid revenue growth from RMB 29.61 billion in 2018 to RMB 328.59 billion in 2022, with a CAGR of approximately 82.52% [12][15]. - In Q1 2025, CATL reported revenue of RMB 84.705 billion, a year-on-year increase of 6.18% [12]. Industry Landscape - The global demand for lithium batteries is driven by the increasing penetration of electric vehicles, with global sales of new energy vehicles expected to reach 22.4 million units by 2025 [23][24]. Supply Chain and Innovation - CATL's integrated supply chain strategy includes investments in upstream resources and partnerships for battery materials, enhancing its competitive edge [4][39]. - The company has established a circular economy model through its Brunp Integration Park, focusing on resource recycling and sustainability [4][42]. Valuation and Forecast - The DCF valuation model supports a target price of HK$382 for CATL, reflecting strong growth potential in the renewable energy sector [6][54].

Investment Rating - The report maintains a "Outperform" rating for Kangfang Biopharma (09926) with a target price of HKD 112.6 [1] Core Insights - Kangfang Biopharma and its partner Summit Therapeutics released global Phase III clinical trial data for Ivonescimab, used for second-line treatment of EGFR+ non-small cell lung cancer (NSCLC), which is consistent with last year's clinical trial data in mainland China [1] - The company plans to submit a Biologics License Application (BLA), and future consultations with the U.S. Food and Drug Administration (FDA) will be a key focus [1]

Investment Rating - The report assigns an "Overweight" rating to Kunlun Energy (00135) [1] Core Views - Morgan Stanley slightly lowered the target price for Kunlun Energy by 2.2%, from HKD 9.1 to HKD 8.9 [1] - The update includes a new model incorporating 2024 performance and introduces forecasts for 2027 [1] - The earnings forecast for the company has been reduced to reflect a more conservative outlook on overall industry growth and a decrease in natural gas sales volume growth [1] - Given the increasing concerns about the macro environment, the market is expected to place more emphasis on the stock's defensive characteristics, leading to a slight premium in valuation [1]

Investment Rating - The report maintains a "BUY" rating for CGN Mining, with a target price revised to HK$2.61 from HK$2.18, indicating a potential upside of 57.5% from the current price of HK$1.66 [1][3]. Core Insights - CGN Mining has introduced a new pricing mechanism for its off-take agreement with its parent company, reducing the fixed pricing proportion from 40% to 30%. The fixed price for 2026 is set at US$94.22/lb, significantly higher than the current price of US$61.78/lb for 2023, which is expected to increase by 3.5% annually [1][7]. - The new pricing is approximately 18% higher than the latest industry contract price published by Cameco, which is seen as a positive development that alleviates market concerns regarding pricing uncertainty [1]. - Following the adjustment in the pricing mechanism, the earnings forecast for 2026E and 2027E has been revised upwards by 17% and 23%, respectively [1]. Financial Summary - Revenue projections show significant growth, with FY23A at HK$7,363 million, expected to rise to HK$12,371 million by FY27E, reflecting a year-on-year growth of 101.8% in FY23A and 11.4% in FY27E [2][20]. - Adjusted net profit is forecasted to increase from HK$497.1 million in FY23A to HK$985.7 million in FY27E, with a notable growth of 71.2% in FY26E [2][20]. - The report indicates a P/E ratio decline from 25.4 in FY23A to 12.8 in FY27E, suggesting improved valuation metrics over the forecast period [2][20]. Share Performance - The market capitalization of CGN Mining is reported at HK$12,617.1 million, with a 52-week high of HK$2.94 and a low of HK$1.24 [3][4]. - The stock has shown a 1-month absolute performance of 11.4% and a 3-month performance of 16.1% [5]. Valuation Methodology - The valuation of CGN Mining is based on a Net Present Value (NPV) methodology, applying a target multiple of 3x NPV to reflect the potential conversion from resources to reserves amid rising uranium prices [18][19]. - Long-term assumptions include a 1.5% annual increase in uranium prices from US$91/lb during 2027-31, stabilizing at US$96 thereafter [18]. Shareholding Structure - The major shareholder is China General Nuclear Power Corporation, holding 56.9% of the shares, followed by China Chengtong Holding Group with 10.0% [4].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HK$41.10, representing a potential upside of 27% from the current price of HK$32.25 [1][7][13]. Core Insights - The company is experiencing a shift in product structure that is enhancing its gross margin, with a notable increase in demand for non-automotive applications, particularly in the robotics sector [5][6][11]. - The first quarter of 2025 saw a gross margin improvement to 25.5%, driven by a higher proportion of high-margin products in sales and cost reductions through self-developed technology [5][11]. - The company has established partnerships with over 90% of key global players in the Robotaxi and Robotruck sectors, indicating strong growth potential in these areas [6][11]. Summary by Sections Investment Rating - The target price is adjusted to HK$41.10 from HK$45.00, reflecting a 9% decrease, while the "Buy" rating remains unchanged [2][7]. Financial Performance - For 2025, the estimated EPS is revised to RMB (0.23), down 18% from the previous estimate, while the 2026 EPS is slightly increased to RMB 0.21 [2][12]. - Revenue projections for 2025 are set at RMB 2,211 million, a decrease of 2.7% from prior estimates, while 2026 revenue is expected to reach RMB 2,785 million [12][20]. Product and Market Analysis - The company sold 108,600 laser radars in Q1 2025, a 9.8% year-over-year decline, with a significant drop in ADAS radar sales due to reduced orders from a major automotive client [5][11]. - The demand for laser radars in non-automotive sectors, particularly robotics, is expected to be a key growth driver, with exclusive partnerships already established with leading companies in this field [6][11]. Valuation - The valuation methodology has shifted from a 2025 to a 2026 basis, applying a P/S multiple of 6x for 2026, which reflects the anticipated growth in the non-automotive laser radar market [13][18].

Investment Rating - The report initiates coverage with an "Outperform" rating for CATL [2][6]. Core Views - CATL has maintained its position as the global leader in power lithium batteries since 2017, with a market share of 37.9% in 2024, significantly outpacing competitors [3][51]. - The company has a comprehensive supply chain layout that mitigates risks associated with raw material price volatility, ensuring control over critical resources [4][52]. - Heavy investment in R&D has led to a continuous stream of innovative products, enhancing CATL's competitive edge in the market [5][53]. - The financial forecast indicates substantial revenue growth, with projected revenues of RMB 460.9 billion, RMB 570.9 billion, and RMB 676.9 billion for 2025, 2026, and 2027 respectively [6][54]. Summary by Sections Company Overview - CATL was established in 2011 and became the global leader in power lithium batteries in 2017, with significant milestones including its listing on the Hong Kong Stock Exchange in 2025 [10][12]. Market Position - The company achieved a power battery installed capacity of 339.3 GWh in 2024, with a market share increase to 37.9% [3][24]. - The global demand for electric vehicles is expected to drive further growth, with projections of 22.4 million units sold globally by 2025 [23]. Supply Chain and Risk Management - CATL has established a robust supply chain through various strategies, including investments in upstream resources and partnerships for battery materials [4][39]. - The company has developed a circular economy model through its Brunp Integration Park, enhancing its resource recycling capabilities [4][42]. Financial Performance - The report highlights a significant increase in revenue from RMB 296.11 billion in 2018 to RMB 3285.94 billion in 2022, with a projected revenue of RMB 847.05 billion in Q1 2025 [12][18]. - The net profit is expected to grow from RMB 55.8 billion in 2025 to RMB 87.3 billion in 2027, reflecting a strong profit margin [6][54]. Valuation - Based on a DCF valuation model, the target price for CATL is set at HK$382, indicating a favorable investment opportunity [6][54].

Investment Rating - The report assigns a "Buy" rating to the company, indicating an expected total return over the next 12 months that exceeds the relevant industry average [6][13]. Core Views - The target price for the company has been raised to HKD 14.30, reflecting a potential upside of 17.2% from the current closing price of HKD 12.20 [1][2]. - Recent data presented at the ASCO conference has enhanced the company's product sales and overseas potential, leading to an optimistic outlook for its innovative platform [2][6]. - The report highlights significant clinical data for key products, including Suvisertan monoclonal antibody and oral SERD, which are expected to drive more overseas transactions and improve market recognition [2][6]. Financial Forecasts - Revenue projections for 2025 have been updated to RMB 7,737 million, a 1% increase from previous estimates, with further growth expected to RMB 9,028 million in 2026 and RMB 10,311 million in 2027 [5][11]. - Gross profit for 2025 is forecasted at RMB 6,267 million, reflecting a gross margin of 81.0%, which is an improvement from previous estimates [5][11]. - Adjusted net profit for 2025 is projected to be RMB 1,291 million, representing a 6% increase from prior forecasts [5][11]. Stock Performance - The stock has shown a year-to-date increase of 71.83%, outperforming the Hang Seng Index [4]. - The stock's 52-week high is HKD 12.84, while the low is HKD 5.19, indicating significant volatility and growth potential [4]. Valuation Model - The DCF valuation model estimates the equity value of the company at RMB 32,312 million, translating to a per-share value of HKD 14.30, based on a WACC of 9.4% [7][11].

Investment Rating - The report assigns a "Buy" rating to the company, indicating an expected total return over the next 12 months that exceeds the relevant industry [6][13]. Core Views - The target price for the company has been raised to HKD 14.30, reflecting a potential upside of 17.2% from the current price of HKD 12.20 [1][2]. - Recent data presented at the ASCO conference has enhanced the company's product sales and overseas potential, leading to an optimistic outlook for its innovative platform [2][6]. - The report highlights significant clinical data for key products, including Suvisetumab and SIM0270, which are expected to drive future growth and market recognition [6]. Financial Forecasts - Revenue projections for 2025 have been updated to RMB 7,737 million, a 1% increase from previous estimates, with further growth expected in subsequent years [5][11]. - Gross profit for 2025 is forecasted at RMB 6,267 million, reflecting a gross margin of 81.0%, up from 79.3% previously [5][11]. - Adjusted net profit for 2025 is estimated at RMB 1,291 million, a 6% increase from prior forecasts, with net profit margins improving to 16.7% [5][11]. Stock Performance - The stock has shown a year-to-date increase of 71.83%, outperforming the Hang Seng Index [4]. - The stock's 52-week high is HKD 12.84, while the low is HKD 5.19, indicating significant volatility and growth potential [4]. Valuation Model - The DCF valuation model estimates the equity value of the company at RMB 32,312 million, translating to a per-share value of HKD 14.30 [7][11].

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The newly signed three-year uranium sales agreement for 2026-28 has exceeded market expectations in terms of volume, price, and annual increment rate, indicating a positive outlook for the company's profitability and valuation [1][2] - The agreement's benchmark prices for 2026, 2027, and 2028 are set at 94.22, 98.08, and 102.1 USD per pound U3O8, respectively, which are significantly higher than previous agreements [2][9] - The increase in the proportion of spot prices in the pricing formula from 60% to 70% is expected to enhance the company's profit elasticity, aligning sales prices more closely with market trends [9] Financial Forecasts and Valuation - The company’s projected net profit for 2026 and 2027 has been raised by 15% and 10% to 1.028 billion and 1.135 billion HKD, respectively, with corresponding EPS of 0.14 and 0.15 HKD [2][11] - The target price has been adjusted to 2.43 HKD, reflecting a clearer expectation for sales volume and price for 2026 [2][5] - Revenue forecasts for the years 2023 to 2027 are as follows: 7,363 million, 8,624 million, 7,838 million, 8,724 million, and 9,701 million HKD, with corresponding growth rates [4][12] Key Metrics - The company's projected EPS for 2026 is 0.14 HKD, with a PE ratio of 12.28 [4][12] - The projected ROE for 2026 is 20.97%, indicating strong profitability [4][12] - The company’s market capitalization is approximately 12,617 million HKD, with a closing price of 1.66 HKD as of June 3 [6]