Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company reported a revenue of 328 million RMB in Q1 2025, a year-on-year decline of 9.2%, primarily due to reduced orders from new energy vehicle clients [1] - The company achieved a record high gross margin of 23.5% in Q1, the highest in three years [1] - A significant order was signed with Kuka Technology for the delivery of 1.2 million laser radars from 2025 to 2027, which is expected to boost the robotics business [1] - The company is expected to benefit from increasing demand for laser radars in intelligent driving and robotics, with revenue growth anticipated to accelerate starting in Q2 [1] Summary by Sections Laser Radar Business - In Q1 2025, the company shipped 96,700 ADAS laser radars, down from 116,000 in the same period last year, mainly due to order declines from major clients [2] - The company has secured contracts with 30 OEMs and over 100 vehicle models, with the EM4/EMX platforms launched in early 2025 gaining traction [2] - The improvement in semiconductor processes is expected to enhance ADAS gross margins [2] Robotics Business - The company shipped 11,900 units of robotic laser radars in Q1 2025, a significant increase from 4,000 units in the same period last year, driven by price reductions and broader applications [3] - Key clients in the Robotaxi sector include six major companies, and exclusive orders have been signed with leading clients in the lawnmower sector [3] - The company is focusing on humanoid robots and aims to enter mass production soon [3] Profit Forecast and Valuation - The revenue forecast for 2025, 2026, and 2027 is adjusted to 2.5 billion, 3.7 billion, and 4.9 billion RMB respectively, reflecting slight downward revisions of 4%, 5%, and 5% [4] - The target price is set at 47.58 HKD, based on a comparable company average of 8.5X PS for 2025 [4] - The company is expected to see continuous improvement in gross margins due to the increasing share of higher-margin robotics business [4]

Investment Rating - The report assigns a "Buy" rating for China Heart Heart Fertilizer (1866.HK) for the first time [1]. Core Views - The company has demonstrated stable expansion in its main business, with significant investment value highlighted [1]. - The sale of coal mine assets has led to a notable increase in net profit, with a reported increase of approximately 740 million RMB in investment income from the disposal of stakes in coal mining companies [5]. - The urea business has shown resilient growth despite a decrease in product prices, with production volume increasing by 21% and sales volume by 29%, resulting in a revenue of approximately 7.306 billion RMB, a year-on-year growth of about 6.3% [6]. - The company has prioritized shareholder returns, achieving a record high dividend of 0.25 RMB per share for the fiscal year 2024, with a dividend payout ratio of 22.14% and a dividend yield of 6.7% [7]. - The earnings forecast for 2025-2027 indicates revenues of 24.767 billion, 29.502 billion, and 34.578 billion RMB respectively, with corresponding EPS of 0.9, 1.5, and 2.1 RMB, suggesting a low PE ratio of 4.5, 2.9, and 2.1 times [8]. Summary by Sections Market Performance - The company’s stock price is currently at 4.52 HKD, with a total market capitalization of 5.8 billion HKD and a 52-week price range of 3.36-4.79 HKD [1]. Financial Performance - In 2024, the company reported a total revenue of 23.128 billion RMB, a slight decline of 1.48% year-on-year, while net profit attributable to shareholders increased by 22.96% to 1.459 billion RMB [4]. - The financial projections indicate a gradual increase in revenue and net profit over the next three years, with a significant expected growth rate in 2026 and 2027 [10][11]. Dividend Policy - The company plans to maintain a dividend payout ratio of no less than 25% from 2025 to 2027, reinforcing its commitment to shareholder returns [7].

Investment Rating - The report maintains a "Buy" rating for CGN Mining (1164 HK) with a target price of HKD 2.43 [5][6] 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 USD 94.22, 98.08, and 102.1 per pound of 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% enhances the company's profit elasticity, allowing it to benefit more from potential increases in spot market prices [9] Financial Forecasts and Valuation - The report projects the company's revenue and net profit for 2026 and 2027 to be HKD 10.28 billion and HKD 11.35 billion, respectively, reflecting an increase of 15% and 10% from previous estimates [2][11] - The earnings per share (EPS) for 2026 and 2027 are forecasted to be HKD 0.14 and HKD 0.15, respectively [2][11] - The report adjusts the target price to HKD 2.43 based on the improved clarity in sales volume and price expectations for 2026, switching the valuation year from 2025 to 2026 [2][11] Revenue and Profitability Metrics - The projected revenue for the fiscal years 2023 to 2027 is as follows: HKD 7,363 million, HKD 8,624 million, HKD 7,838 million, HKD 8,724 million, and HKD 9,701 million, respectively [4][12] - The projected net profit attributable to the parent company for the same period is HKD 497.10 million, HKD 341.98 million, HKD 638.11 million, HKD 1,028 million, and HKD 1,135 million, respectively [4][12] - The report indicates a significant increase in profitability metrics, with a projected return on equity (ROE) of 20.97% in 2026 [4][12]

Investment Rating - The investment rating for Lenovo Group is "Buy" [5] Core Insights - Lenovo Group continues to experience high revenue growth, with all main business segments showing double-digit year-on-year growth. The demand for hybrid artificial intelligence is expected to accelerate the company's growth [2][5] - In FY25 Q4, Lenovo achieved revenue of $17 billion, a year-on-year increase of 23%. The operating profit was $331 million, down 32% year-on-year, while the net profit attributable to shareholders was $90 million, down 64% year-on-year [5] - The company has adjusted its revenue forecasts for FY2026E-FY2028E to $75.1 billion, $79.7 billion, and $83.7 billion, respectively, with corresponding net profits of $1.58 billion, $1.94 billion, and $2.35 billion [5][7] Financial Summary - Revenue for FY2025 is projected at $69,077 million, with a year-on-year growth of 21.5%. The gross profit is expected to be $11,098 million, and the net profit attributable to shareholders is projected at $1,384 million, reflecting a year-on-year growth of 37% [4][9] - The company’s PE ratio for FY2026 is adjusted to 15x, with a target price for Lenovo's stock set at HKD 14.7 [5][7] - The revenue breakdown shows that the IDG segment generated $11.8 billion, ISG generated $4.1 billion, and SSG generated $2.2 billion in FY25 Q4, with respective year-on-year growth rates of 13%, 63%, and 18% [5][9] Business Segment Performance - The IDG business continues to lead, with an AI PC penetration rate increasing. Lenovo holds a market share of 23.7% in the personal computer segment, leading the second competitor by 3.6 percentage points [5] - The ISG business has turned profitable for two consecutive quarters, benefiting from both traditional and AI computing. The cloud infrastructure business revenue exceeded $10 billion, with a year-on-year increase of 92% [5][9] - The SSG business achieved an operating profit of $1.8 billion, up 15% year-on-year, driven by digital workplace solutions and hybrid cloud services [5]

Investment Rating - The investment rating for Xiaomi Group-W (01810.HK) is "Outperform the Market" [6][29]. Core Views - In Q1 2025, the company achieved record high revenue and profit, with total revenue reaching 111.3 billion yuan (YoY +47%) and adjusted net profit of 10.7 billion yuan (YoY +65%), marking a historical high for a single quarter [1]. - The company continues to see strong growth across its business segments, with smartphone, IoT and lifestyle products, internet services, and smart electric vehicles contributing 46%, 29%, 8%, and 17% to revenue, respectively [1]. - The smart electric vehicle and AI innovation business saw revenue of 18.6 billion yuan, with a narrowing loss of 500 million yuan [3]. - The company is focused on cost reduction and efficiency improvement, achieving an operating expense ratio of 13.9% (YoY -2.2pct) [1]. Summary by Sections Revenue and Profit Performance - Q1 2025 total revenue was 111.3 billion yuan, with a gross margin of 22.8% (YoY +0.5pct) [1]. - The smartphone business generated 50.6 billion yuan (YoY +8.9%) with a gross margin of 12.4% [2]. - IoT business revenue reached 32.3 billion yuan (YoY +59%) with a gross margin of 25.2% [2]. - Internet services revenue was 9.1 billion yuan (YoY +13%) with a gross margin of 76.9% [2]. Smart Electric Vehicle and AI Business - Revenue from smart electric vehicles was 18.1 billion yuan, with an average selling price (ASP) of 238,000 yuan [3]. - The company delivered 76,000 units of the Xiaomi SU7 series in Q1 2025, with cumulative deliveries exceeding 258,000 units [3]. - The company is expanding its sales service network, with 235 automotive sales stores opened by March 31 [3]. Financial Forecasts - The profit forecast for 2025-2027 has been raised, with expected net profits of 36.2 billion yuan, 46.4 billion yuan, and 66 billion yuan, representing YoY growth rates of 53%, 28%, and 42% respectively [4]. - Revenue projections for 2025-2027 are 484.2 billion yuan, 611 billion yuan, and 721.9 billion yuan, with growth rates of 32.3%, 26.2%, and 18.2% [5].

Investment Rating - The investment rating for Xiaomi Group-W (1810.HK) is "Buy" and is maintained [7]. Core Insights - Xiaomi's moat is built on its core model, focusing on high-end strategies and new retail formats. The company aims to strengthen its foundation in "chips, AI, and OS" while continuing to delve into core technology sectors. The integration of software and hardware will empower the entire ecosystem of people, vehicles, and homes [2][4]. Summary by Sections Event Description - On June 3, Xiaomi held its 2025 Investor Day, where the founder Lei Jun and President Lu Weibing discussed the company's high-end strategy and new retail formats. Xiaomi's moat is attributed to its core model, with a focus on "chips, AI, and OS" as the three foundational pillars of hard technology [2][4]. Smartphone and Consumer Electronics - Xiaomi is entering a balanced development year, with a projected net user inflow of over 13 million in China for 2024. From 2020 to 2024, the market share is expected to increase by 5.3 percentage points. In Q1 2025, global smartphone sales reached 41.8 million units, a year-on-year increase of 3.0%, with a global market share of 14.1% [8]. - In mainland China, sales reached 13.3 million units, a year-on-year increase of 40.0%, reclaiming the top position after 10 years. The average selling price of Xiaomi smartphones in Q1 2025 was 1,210.5 yuan, up 5.7% year-on-year, with a market share of 24.4% in the 4k-5k price range [8]. IoT Business - In Q1 2025, the IoT and lifestyle consumer products segment generated revenue of 32.3 billion yuan, a year-on-year increase of 58.7%, with a gross margin of 25.2%, up 5.4 percentage points. The revenue from major appliances doubled, indicating the initial success of the high-end strategy [8]. Automotive Business - The automotive segment's losses narrowed significantly, with a loss of 500 million yuan in Q1 2025, a reduction of 50.2% quarter-on-quarter. The new YU7 model is expected to launch in July, continuing the product positioning logic of the SU7 series. The automotive business is anticipated to achieve profitability in Q3 to Q4 of this year [8]. Overall Outlook - Xiaomi's comprehensive ecosystem is advancing, with steady growth in smartphones, rapid growth in IoT appliances, and the automotive business. The projected net profits for Xiaomi Group from 2025 to 2027 are 42.39 billion, 55.75 billion, and 70.08 billion yuan, respectively, maintaining a "Buy" rating [8].

Investment Rating - The report initiates coverage with a "Strong Buy" rating for Tencent Music [1][7]. Core Insights - Tencent Music, backed by Tencent, has a solid content copyright advantage and is leveraging innovative technologies like AIGC to enhance member benefits, which is expected to further increase the paid user rate and ARPU [1][7]. - The company is projected to achieve revenue growth from 310 billion to 376 billion CNY from 2025 to 2027, with adjusted net profits expected to rise from 89 billion to 110 billion CNY during the same period [7][8]. Company Overview - Tencent Music Entertainment Group was established in 2016 through the merger of Tencent and China Music Corporation (CMC), which had long-term agency agreements with nearly 100 record companies, holding a vast library of over 20 million licensed songs [7][13]. - The company has built a strong content barrier by integrating QQ Music and CMC, covering most core copyright resources and maintaining deep collaborations with major labels [7][13]. Core Business - The core business is divided into online music services and social entertainment services, with online music becoming the main growth driver, accounting for over 54% of total revenue in 2024 [7][24]. - Online music service revenue is expected to reach 217.4 billion CNY in 2024, with a year-on-year growth of 25.5%, driven by an increase in paid users and average revenue per user (ARPU) [24][30]. Industry Analysis - Tencent Music is positioned as a leader in the online music market, holding approximately 70% market share, and is compared to global leaders like Spotify and Apple Music, with significant room for growth in paid user rates [7][49]. - The report highlights the increasing maturity of domestic users' willingness to pay, which, combined with diversified member benefits, is expected to drive further growth in paid user rates and ARPU [7][62]. Financial Projections - The report forecasts total revenue for Tencent Music to reach 30,957 million CNY in 2025, with a year-on-year growth of 9%, and adjusted net profit to reach 8,897 million CNY, reflecting a 16% increase [8][24]. - The PE ratio is projected to decrease from 22.8 in 2025 to 18.4 by 2027, indicating a favorable valuation trend [8][24].

Investment Rating - The report maintains an "OUTPERFORM" rating for CSPC Pharmaceutical Group with a target price of HKD 8.82, representing a potential upside of 48% from the current price of HKD 7.83 [2]. Core Views - The report indicates that CSPC's fundamentals have bottomed out, with major deal catalysts expected to materialize within the year. The company is anticipated to benefit from innovative drug launches and potential licensing agreements [4][16][17]. Financial Performance Summary - In 1Q25, CSPC achieved revenue of CNY 7.0 billion, a year-on-year decrease of 22%. Finished drug revenue was CNY 5.5 billion (down 27% y-o-y), while API revenue increased by 15% to CNY 1.1 billion. The gross profit margin was 67.1%, down 5.2 percentage points year-on-year [3][14][15]. - The net profit attributable to shareholders was CNY 1.5 billion, reflecting an 8% decline year-on-year. R&D expenses rose by 11% to CNY 1.3 billion, with an R&D expense ratio of 18.6% [3][14][15]. Segment Performance - The finished drug segment faced declines due to volume-based procurement (VBP) and National Reimbursement Drug List (NRDL) negotiations, with varying impacts across different therapeutic areas. Notably, the oncology segment saw a significant decline of 66% year-on-year [4][21]. - The API segment benefited from increased sales of vitamin C products, which saw a 25% year-on-year increase [4][15]. Future Prospects - Management is in discussions for multiple potential licensing deals, including the promising SYS6010 (EGFR ADC), with expectations of significant upfront payments and milestone payments totaling approximately USD 5 billion [5][17][18]. - The report highlights that SYS6010 is expected to be the largest out-licensing transaction in the second half of 2025, with anticipated upfront payments between USD 500 million and USD 1 billion [5][18]. Valuation - The revenue forecasts for FY25 and FY26 have been adjusted to CNY 31.3 billion and CNY 32.5 billion, respectively, reflecting the impacts of VBP and NRDL negotiations. The net profit forecasts for the same periods are CNY 5.6 billion and CNY 5.7 billion [8][19]. - The report assigns a P/E ratio of 18.2x for FY26, based on peer comparisons, leading to a target price of HKD 8.82 [8][19].

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1][4][22]. Core Viewpoints - The HARMONi clinical trial has achieved its primary endpoint of progression-free survival (PFS), demonstrating statistically significant efficacy in both Asian and non-Asian populations [3][5]. - The company’s partner, Summit, announced that the HARMONi trial reached its primary clinical endpoint, indicating strong potential for the drug Ivonescimab in treating EGFRm NSCLC [2][5]. - The clinical data from HARMONi shows that Ivonescimab combined with chemotherapy has a significant PFS benefit (HR=0.52) and a positive trend in overall survival (OS) (HR=0.79) [3][5][6]. - The company has initiated multiple phase 3 clinical trials across various cancer types, including NSCLC, TNBC, BTC, CRC, and SCLC, indicating a robust pipeline [3][19]. Summary by Sections Clinical Trial Results - The HARMONi trial included approximately 38% of patients from Europe and the US, aligning with other recent international trials for EGFRm NSCLC [5][6]. - The trial results showed a median PFS of 7.06 months for the experimental group compared to 4.80 months for the control group, with a hazard ratio (HR) of 0.46 [11][18]. - The trial also reported an overall response rate (ORR) of 50.6% in the experimental group versus 35.4% in the control group [11][18]. Financial Projections - The company is expected to generate revenues of 33.0 billion, 52.0 billion, and 79.0 billion yuan for the years 2025, 2026, and 2027, respectively, with net profits of 0.29 billion, 7.30 billion, and 17.93 billion yuan [4][22][26]. Competitive Landscape - Ivonescimab has shown superior efficacy compared to PD-1 monoclonal antibodies in head-to-head trials, positioning it as a potential cornerstone in immunotherapy [19][20]. - The clinical data indicates that Ivonescimab has a favorable safety profile compared to other treatments, with a lower incidence of grade 3 or higher adverse events [16][18].

Investment Rating - The investment rating for the company is "Buy-A" with a target price of HKD 135.84 for the next six months [6]. Core Views - The company achieved a May delivery volume of 41,000 units, representing a year-on-year increase of 16.7% and a month-on-month increase of 20.4%, driven by the launch of the new Mega and L series [1][2]. - The new Mega model has seen significant order volume exceeding expectations, with projected deliveries of 2,500-3,000 units in July, indicating a growth of 150-200% compared to stable monthly deliveries in 2024 [1][2]. - The L series has enhanced product capabilities, with the L9 featuring advanced suspension systems and upgraded chips for improved safety and performance, with expectations for monthly deliveries to exceed 50,000 units as demand recovers [2][3]. - The company is expanding its sales and service network, with 506 retail centers and 502 service centers established by the end of May [2]. - The company anticipates delivering 123,000 to 128,000 vehicles in Q2 2025, generating revenue between CNY 32.5 billion and 33.8 billion [2]. - The next-generation smart driving architecture is set to launch with the pure electric i8 in July, enhancing the company's competitive edge in the market [2][3]. - The company has a solid order backlog for the MEGA model and is expanding its charging infrastructure, with over 2,414 supercharging stations as of May 31 [3]. Financial Summary - The company forecasts net profits of CNY 10.3 billion, CNY 16.0 billion, and CNY 17.7 billion for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 22.6, 14.6, and 13.2 [3][10]. - Revenue projections for the company are CNY 167.3 billion in 2025, CNY 234.9 billion in 2026, and CNY 281.9 billion in 2027, reflecting a growth trajectory [10][12]. - The company’s net profit margin is expected to stabilize around 6.2% in 2025, with a return on equity (ROE) of 12.8% [10][12].