Investment Rating - The report gives a "Buy" rating for the company with a target price of 86 HKD, compared to the current price of 66.3 HKD [6][14]. Core Insights - The company, Up Beauty Co., Ltd. (2145.HK), is transforming from a single-brand platform to a multi-brand, omnichannel group, with significant growth driven by its main brand, KANS, which ranks second among domestic beauty brands in online GMV for 2024 [2][3]. - The company has experienced rapid revenue growth, with a projected revenue of 6.793 billion CNY in 2024, representing a year-on-year increase of 62.1%, and a net profit of 781 million CNY, up 69.4% [2][4]. Company Overview - Up Beauty Co., Ltd. was established in 2004 and went public in 2022. It operates multiple brands, including KANS, One Leaf, Red Elephant, and New Page, covering skincare, maternal and child care, personal care, and makeup products [2][23]. - KANS, the main brand, has become a leading player in the domestic beauty market, achieving significant online sales growth, particularly on platforms like Douyin [2][3][35]. Industry Analysis - The Chinese cosmetics industry has shown fluctuating growth since 2020, with a projected market size of 537.2 billion CNY in 2024, reflecting a 2.0% year-on-year decline. However, mass-market cosmetics are performing better than high-end products, indicating a shift in consumer preference towards cost-effectiveness [3][72]. - The report highlights that the segments of color cosmetics and infant care are performing relatively well compared to the overall market [3][72]. Growth Highlights - KANS is positioned as a mass-market brand focusing on scientific anti-aging, with plans for product innovation and channel diversification to enhance profitability [4][10]. - The New Page brand is capitalizing on the infant care market, with expected triple-digit growth in revenue for 2023 and 2024 [4][10]. - Other potential brands, such as Jifang and NAN beauty, are also being developed to create multiple growth avenues for the company [4][12]. Financial Projections - The company forecasts net profits of 1.057 billion CNY, 1.381 billion CNY, and 1.738 billion CNY for 2025, 2026, and 2027, respectively, with corresponding EPS of 2.65, 3.47, and 4.37 CNY [4][14]. - Revenue is expected to grow at a compound annual growth rate (CAGR) of 23.6%, 20.9%, and 16.2% from 2025 to 2027 [4][11]. Competitive Positioning - The company has successfully leveraged online channels, particularly Douyin, to drive sales, with KANS achieving significant growth in this space [3][35]. - Compared to peers, Up Beauty Co., Ltd. ranks second in revenue and fourth in net profit among domestic cosmetics companies for 2024 [56][58].

Investment Rating - The report assigns an "Accumulate" rating to the company [7] Core Views - The company is transitioning from a financial investment strategy to an industrial investment holding group, focusing on new energy and new technology sectors, aligning with national policy directions and market trends [4][12][15] - The company has successfully restructured its capital and improved its financial health, with a significant reduction in debt-to-asset ratio from approximately 78% in 2021 to about 65% in 2023, and projected to further decrease to around 60% in 2024 [4][6][24] - The company has established a strong synergy between its green energy and data center businesses, aiming to create a digital economy ecosystem that integrates AI computing power, data assets, and application scenarios [7][15][23] Summary by Sections 1. Transition to Industrial Investment Holding Group - The company has shifted its focus from short-term financial investments to long-term industrial investments, particularly in new energy and technology sectors, which are expected to drive future growth [4][12] - The company has increased its stake in Shandong High-speed New Energy to 60.66%, enhancing its control and position in the renewable energy market [12][15] 2. New Energy Sector - The company has received significant funding, including approximately HKD 47 billion from its own group and additional support from national clean energy subsidies, which has improved the capital structure of its subsidiary, Shandong High-speed New Energy [4][12] - The company is actively involved in various renewable energy projects, including wind and solar initiatives, with a total capacity exceeding 1GW planned for the next two years [4][5] 3. New Infrastructure and Data Center Development - The company has strategically invested in Century Internet, a leading digital infrastructure provider, to enhance its capabilities in the data center sector [4][12] - A significant project in Ulanqab City aims to integrate green power with intelligent computing, with a total investment of approximately CNY 21 billion [5][12] 4. Financial Performance and Projections - The company has shown a strong revenue growth trajectory, with projected revenues of CNY 58.84 billion, CNY 67.85 billion, and CNY 74.99 billion for 2025 to 2027, respectively [7][27] - The net profit is expected to grow significantly, with projections of CNY 1.38 billion, CNY 2.24 billion, and CNY 3.47 billion for the same period, reflecting a robust growth rate [7][27]

Investment Rating - The report gives a "Strong Buy" investment rating for the company [4]. Core Views - The company is positioned as a leading provider of integrated smart services in the telecommunications sector, leveraging the AI model wave to ignite new growth engines [1][8]. - The company has a strong focus on shareholder returns, with a dividend payout ratio increasing from 36% to 42% over the past five years, and a significant cash reserve of 38.11 billion yuan as of the end of 2024 [8][24]. - The strategic focus on emerging industries, particularly in digital infrastructure, green low-carbon initiatives, smart cities, and emergency safety, has resulted in substantial growth, with new contracts in these areas exceeding 78 billion yuan in 2024, marking a 30% year-on-year increase [8][28]. - The company's profitability is on the rise, with a projected revenue of over 150 billion yuan in 2024 and a continuous improvement in gross margin from 11.03% in 2021 to 11.73% in 2024 [8][28]. Company Overview - The company is a major player in the telecommunications infrastructure sector, providing comprehensive services including planning, construction, and operational support [12]. - It operates under a diversified ownership structure, with significant stakes held by major telecommunications operators, ensuring stable governance and strategic alignment [22][24]. Business and Market - The company operates three main business segments: Telecommunications Infrastructure Services (TIS), Business Process Outsourcing (BPO), and Applications, Content, and Other Services (ACO) [28]. - In 2024, TIS is expected to contribute 75.17 billion yuan, accounting for 50.1% of total revenue, while BPO and ACO are projected to contribute 43.46 billion yuan and 31.37 billion yuan, respectively [28][31]. - The company serves various markets, including domestic telecommunications operators, enterprise customers, and international markets across Asia-Pacific, the Middle East, Africa, and Latin America [29]. Financial Analysis - The financial forecast indicates a steady increase in total revenue from 149.14 billion yuan in 2023 to 166.01 billion yuan by 2027, with a compound annual growth rate (CAGR) of approximately 4% [3]. - The net profit is projected to grow from 3.58 billion yuan in 2023 to 4.10 billion yuan in 2027, reflecting a consistent upward trend in profitability [3][8]. Emerging Strategic Industries - The company is actively expanding into strategic emerging industries, with a focus on digital infrastructure, which is expected to be a primary growth driver, particularly benefiting from the AI model wave [8][18]. - The company has secured 21 major projects in the digital infrastructure sector, which represents 51% of its new large-scale contracts [8].

Investment Rating - The report assigns an "Accumulate" rating to the company [7] Core Views - The company is transitioning from a financial investment strategy to an industrial investment holding group, focusing on new energy and new technology sectors, aligning with national policy directions and market trends [4][12][15] - The company has successfully restructured its capital and improved its financial health, with a significant reduction in debt-to-asset ratio from approximately 78% in 2021 to about 65% in 2023, and further projected to decrease to around 60% in 2024 [4][6][24] - The company has established a strong synergy between its green energy and data center businesses, enhancing operational efficiency and reducing costs [7][15] Summary by Sections 1. Transition to Industrial Investment Holding Group - The company has shifted its focus from short-term financial investments to long-term industrial investments, particularly in new energy and technology sectors, which are expected to drive future growth [4][12] - The company has increased its stake in Shandong High-speed New Energy to 60.66% by 2025, reinforcing its control and commitment to the renewable energy market [12][23] 2. New Energy Sector - The company has received significant funding, including approximately HKD 47 billion from its parent group and additional government subsidies, which have improved the capital structure of its subsidiary, Shandong High-speed New Energy [4][5] - The company is actively involved in various renewable energy projects, including wind and solar initiatives, with a total capacity exceeding 1GW planned for the next two years [4][5] 3. New Infrastructure and Data Center Development - The company has strategically invested in Century Internet, a leading digital infrastructure provider, to enhance its capabilities in the data center sector [4][7] - A significant project in collaboration with Ulanqab City aims to integrate green energy and data computing, with a total investment of approximately CNY 21 billion [5][7] 4. Financial Performance and Forecast - The company has shown a robust growth trajectory, with projected revenues of CNY 58.84 billion in 2025, and net profits expected to reach CNY 1.38 billion, reflecting a year-on-year growth rate of 155% [7][27] - The company’s net profit margin has improved significantly, with a forecasted net profit of CNY 3.47 billion by 2027, indicating strong operational efficiency [7][32]

Investment Rating - The investment rating for Meituan-W (03690) is "Buy" (maintained) [1] Core Views - In Q1 2025, Meituan's total revenue reached 86.6 billion yuan, representing a year-over-year increase of 18%, slightly above Bloomberg consensus expectations by 1.3% [4] - Adjusted EBITDA for the same period was 12.3 billion yuan, up 52% year-over-year, exceeding Bloomberg consensus expectations by 6.2% [4] - Adjusted net profit was 10.9 billion yuan, a 46% increase year-over-year, significantly surpassing Bloomberg consensus expectations by 12.6% [4] - Core local business revenue was 64.3 billion yuan, also up 18% year-over-year, exceeding expectations by 1.5% [4] - New business revenue was 22.2 billion yuan, a 19% increase year-over-year, also above expectations by 1.4% [4] Summary by Sections Business Performance - Meituan's food delivery and flash purchase businesses have improved user engagement and purchase frequency through refined operations [5] - The food delivery segment has introduced differentiated products to meet diverse consumer needs and has implemented safety measures to enhance food safety transparency [5] - Flash purchase services have seen significant growth across various consumer categories, with transaction volumes tripling in certain areas [5] International Expansion - Keeta, a subsidiary, is expanding internationally, having entered the Saudi Arabian market and recently announced plans to enter Brazil with a commitment to invest 1 billion USD over the next five years [6] Financial Projections - Revenue projections for 2025-2027 are estimated at 386.3 billion, 454.3 billion, and 526.7 billion yuan, with growth rates of 14%, 18%, and 16% respectively [7] - Adjusted net profit forecasts for the same period are 38.4 billion, 49.9 billion, and 60.8 billion yuan, with growth rates of -12%, 30%, and 22% respectively [7] Long-term Outlook - The report maintains a positive long-term outlook on Meituan's operational capabilities and business barriers, emphasizing the company's strong execution in the retail sector [7]

Investment Rating - The investment rating for Meituan-W (03690) is "Buy" (maintained) [1] Core Views - In Q1 2025, Meituan's total revenue reached 86.6 billion yuan, representing a year-over-year increase of 18%, slightly above Bloomberg consensus expectations by 1.3% [4] - Adjusted EBITDA was 12.3 billion yuan, up 52% year-over-year, exceeding Bloomberg consensus expectations by 6.2% [4] - Adjusted net profit was 10.9 billion yuan, a 46% increase year-over-year, significantly surpassing Bloomberg consensus expectations by 12.6% [4] - Core local business revenue was 64.3 billion yuan, also up 18% year-over-year, exceeding Bloomberg consensus expectations by 1.5% [4] - New business revenue was 22.2 billion yuan, a 19% year-over-year increase, also above Bloomberg consensus expectations by 1.4% [4] Summary by Sections Business Performance - Meituan's food delivery and flash purchase businesses have improved user stickiness and purchase frequency through refined operations [5] - The food delivery segment has introduced differentiated products to meet diverse consumer needs and has implemented measures to enhance food safety [5] - Flash purchase has seen significant growth across various consumer categories, with transaction volume increasing nearly threefold in recent months [5] International Expansion - Keeta, a subsidiary, is expanding internationally, having entered the Brazilian market with a commitment to invest 1 billion USD over the next five years [6] Financial Projections - Revenue projections for 2025-2027 are estimated at 386.3 billion, 454.3 billion, and 526.7 billion yuan, with growth rates of 14%, 18%, and 16% respectively [7] - Adjusted net profit projections for the same period are 38.4 billion, 49.9 billion, and 60.8 billion yuan, with growth rates of -12%, 30%, and 22% respectively [7] Long-term Outlook - The report maintains a positive long-term outlook on Meituan's operational capabilities and business barriers, emphasizing its "extreme execution" in retail exploration [7]

Investment Rating - Maintain BUY with a target price of HK$58.78, reflecting a potential upside of 61.3% from the current price of HK$36.65 [3][12]. Core Insights - The company is expected to achieve revenue growth of 10-15% YoY in 2025, driven by multiple growth drivers across various segments including optics, precision mechanics, electromagnetic drive, and automotive acoustics [1][9]. - Key growth drivers for 2025 include upgrades in optics specifications, increased adoption of VC in high-end models, expansion in automotive acoustics, and advancements in MEMS microphones for AI smartphones [9]. - The company has a solid product roadmap and is expanding into strategic markets such as robotics and AI glasses, with plans to acquire a stake in a Chinese automotive microphone module company to enhance its offerings [9]. Revenue and Earnings Forecast - Revenue is projected to grow from RMB 20,419 million in FY23 to RMB 32,566 million in FY25, representing a YoY growth of 19.2% [2][11]. - Net profit is expected to increase significantly from RMB 740.4 million in FY23 to RMB 2,488.6 million in FY25, with a YoY growth of 38.5% [2][11]. - The company’s EPS is forecasted to rise from RMB 0.63 in FY23 to RMB 2.12 in FY25, indicating a growth of 38.5% [2][11]. Segment Performance - The revenue breakdown indicates that acoustics will contribute RMB 9,466 million in FY25, while optics is expected to generate RMB 5,672 million [10]. - The gross profit margin is anticipated to improve from 16.9% in FY23 to 23.1% in FY25, reflecting operational efficiency and product mix enhancement [11][18]. Valuation Metrics - The stock is currently trading at a P/E ratio of 15.8x for FY25, which is attractive compared to the expected EPS growth of 39% [12][18]. - The target price is based on a sum-of-the-parts (SOTP) valuation methodology, assigning different P/E multiples to various business segments [12][13].

Investment Rating - The report gives a "Strong Buy" investment rating for the company [4]. Core Viewpoints - The company is positioned as a leading provider of integrated smart services in the telecommunications sector, focusing on digital infrastructure and emerging strategic industries driven by AI [8]. - The company has shown a commitment to shareholder returns, with a dividend payout ratio increasing from 36% to 42% over the past five years [8]. - The strategic focus on emerging industries has resulted in significant growth, with new contracts in strategic sectors exceeding 78 billion yuan in 2024, marking a 30% year-on-year increase [8]. - The company's profitability is on the rise, with a projected revenue of over 150 billion yuan in 2024 and a continuous improvement in gross margin [8]. Financial Data and Valuation - Total revenue is projected to grow from 149.139 billion yuan in 2023 to 166.007 billion yuan by 2027, with a compound annual growth rate (CAGR) of approximately 4% [3]. - Operating profit is expected to increase from 2.849 billion yuan in 2023 to 3.553 billion yuan in 2027, reflecting a growth rate of 16% in 2023 [3]. - Net profit attributable to shareholders is forecasted to rise from 3.584 billion yuan in 2023 to 4.105 billion yuan in 2027, with a steady growth rate of around 5% [3]. - The company’s price-to-earnings (PE) ratio is projected to decrease from 7.9 in 2023 to 6.9 by 2027, indicating potential undervaluation [3]. Company Overview - The company is a major player in the telecommunications infrastructure sector, providing a comprehensive range of services including planning, construction, and operational support [12]. - It operates under a diversified ownership structure, with significant stakes held by major telecommunications operators [22]. - The company has evolved from being a service provider for telecom operators to a comprehensive smart service provider, focusing on digital transformation and innovation [21]. Business and Market Segmentation - The company’s business is divided into three main segments: Telecommunications Infrastructure Services (TIS), Business Process Outsourcing (BPO), and Applications, Content, and Other Services (ACO) [28]. - TIS is the largest segment, expected to generate approximately 75.172 billion yuan in revenue in 2024, accounting for 50.1% of total revenue [28]. - BPO and ACO segments are also significant, contributing 29.0% and 20.9% to total revenue, respectively [28]. Strategic Emerging Industries - The company is actively expanding into strategic emerging industries such as digital infrastructure, green low-carbon solutions, smart cities, and emergency safety [8]. - In 2024, new contracts in these strategic sectors are expected to account for 37% of total new contracts, highlighting their importance as a growth engine [8]. Profitability and R&D Investment - The company’s gross margin has improved from 11.03% in 2021 to 11.73% in 2024, indicating enhanced profitability [8]. - R&D investment is projected to exceed 5.5 billion yuan in 2024, reflecting the company’s commitment to innovation and technology advancement [8].

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company is expected to achieve significant growth with a focus on global expansion, particularly through its Galaxy series [1] - Earnings per share (EPS) forecasts for 2025-2027 are projected at 1.36, 1.54, and 1.94 RMB respectively, with a target price set at 20.40 RMB or 22.26 HKD, based on a 15x PE ratio [2] Financial Information - Revenue is projected to grow from 179,204 million RMB in 2023 to 424,141 million RMB in 2027, reflecting a compound annual growth rate (CAGR) of approximately 18% [4] - Operating profit is expected to increase significantly from 3,806 million RMB in 2023 to 18,417 million RMB in 2027, with a notable growth rate of 100.8% in 2024 [4] - Net profit attributable to the parent company is forecasted to rise from 5,308 million RMB in 2023 to 19,553 million RMB in 2027, despite a projected decline in 2025 [4] - The company’s gross margin is expected to improve slightly from 15.3% in 2023 to 16.7% in 2027 [4] - The net profit margin is projected to stabilize around 4.5% to 4.6% from 2025 to 2027 [4] - The return on equity (ROE) is anticipated to increase from 6.6% in 2023 to 13.8% in 2027 [4] Sales Performance - In May 2025, the company’s total sales reached 235,200 units, marking a year-on-year increase of 46.4% [9] - The Galaxy series saw a remarkable sales increase of 273.2% year-on-year in May 2025, with 101,800 units sold [9] - The company is expanding its international presence, with plans to enter new markets in Southeast Asia and Europe [9]

Investment Rating - The report maintains a "Buy" rating for the company [5][7]. Core Views - The company is expected to achieve a gross margin of over 20.5% in Q1 2025, exceeding expectations despite a significant decrease in sales volume [1]. - The company anticipates delivering between 123,000 to 128,000 vehicles in Q2, representing a year-on-year growth of 13.3% to 17.9% [2]. - The launch of the first pure electric SUV, i8, is scheduled for July, with the VLA model also expected to be released [2][4]. Financial Performance - In Q1, the company sold 93,000 vehicles, with revenue reaching 25.93 billion RMB, reflecting a year-on-year increase of 1% [1]. - The Q1 net profit attributable to shareholders was 650 million RMB, with a net profit margin of 2.5% [1]. - The company projects total revenues of 155.5 billion RMB, 197.9 billion RMB, and 238.3 billion RMB for the years 2025, 2026, and 2027 respectively [5][6]. Future Outlook - The company plans to introduce more affordable MPV and sedan models based on market demand after the launch of the L series and i series [2]. - The MEGA Home model has been well-received, with over 90% of MEGA orders being for this version, indicating strong market insight and product definition capabilities [3]. - The company is expanding its supercharging network, with 2,328 supercharging stations and 12,689 supercharging piles nationwide, enhancing the appeal of its electric vehicles [4]. Sales and Production Forecast - The company expects to sell approximately 580,000, 750,000, and 870,000 vehicles in 2025, 2026, and 2027 respectively [5][6]. - The gross margin is projected to be around 19% in Q2 due to increased promotional efforts [2]. Valuation - The target market capitalization is set at 280.9 billion RMB, with a target price of approximately 131 HKD per share, corresponding to a 25x P/E ratio for 2025 [5].