Investment Rating - The report gives a strong buy rating for the company with a target price of HKD 4.40, while the current price is HKD 0.60 [1]. Core Insights - The company is positioned as a high-quality biopharmaceutical enterprise with global clinical R&D capabilities, focusing on innovative drug development for various diseases and providing CDMO services [3][4]. - The core product, Osemitamab (TST001), shows promising clinical data, with a confirmed objective response rate (ORR) of 68% and a median progression-free survival (mPFS) of 14.2 months in patients expressing Claudin18.2 [3][26]. - The company has a rich pipeline with 14 innovative molecules targeting various diseases, including cancer and osteoporosis, and is exploring combination therapies [3][10]. Financial Data and Valuation - Revenue projections show significant growth from RMB 9.1 million in 2024 to RMB 355.8 million in 2028, with a peak sales estimate of RMB 12 billion for gastric cancer indications in China [3]. - The company’s market capitalization is approximately HKD 2.6 billion [1]. Company Overview and Key Products - The company, formerly known as Mabspace International Limited, has a comprehensive capability in drug discovery, research, development, and manufacturing, with a focus on Claudin18.2-targeted therapies [4][10]. - TST001 is the first Claudin18.2 monoclonal antibody in China to enter Phase III trials, demonstrating enhanced ADCC activity compared to competitors [24][34]. Industry Overview - Claudin18.2 is identified as a promising target for cancer therapy, with a high expression rate in gastric cancer, making it a significant market opportunity [13][14]. - The gastric cancer drug market in China is projected to reach RMB 148.6 billion by 2028, highlighting the potential for TST001 and similar therapies [17].

Investment Rating - The report assigns a positive investment rating to the company, indicating a favorable outlook for future performance [1]. Core Insights - The company is a leading player in the communication backup lead-acid battery market, with a diverse product range and significant market share in various downstream sectors [4][6]. - The company plans to split and list in the US, which is expected to enhance operational efficiency and unlock value for both the parent and the spun-off company [2]. - The company has established strategic partnerships, including one with Amazon, to meet the growing demand for backup batteries in data centers, particularly driven by AI [9]. Company Overview - The company was founded in 1999 and operates over 80 factories globally, employing around 14,000 people [4]. - It offers more than 3,000 battery models, with revenue composition as follows: backup batteries (42%), start-stop batteries (38%), power batteries (9%), and lead recycling (10%) as of mid-2024 [4]. - Geographically, the revenue distribution is: China (58%), EMEA (15%), Americas (18%), and Asia-Pacific (8.8%) excluding mainland China [4]. Financial Performance - For the first half of 2024, the company reported revenue of 7.543 billion yuan, a year-on-year increase of 25.6%, with a gross profit of 1.062 billion yuan, up 29.8% [17]. - The net profit attributable to the parent company was 245 million yuan, reflecting a growth of 5.6% [17]. - The start-stop battery segment saw a remarkable revenue growth of 93.4%, with an organic growth rate of 57.1% [17]. Market Position - The company holds a significant position in the lead-acid battery market, ranking first in the shipment volume of communication base station storage batteries in China as of 2022 [12]. - The company is actively expanding its lithium battery segment, which currently accounts for less than 10% of total revenue, indicating substantial growth potential [11]. Strategic Initiatives - The company aims to enhance its market share in both original equipment manufacturers (OEM) and aftermarket channels, targeting a shift from a 3:1 ratio to an industry average of 1:3 [11]. - It is also exploring new battery technologies, including sodium batteries, vanadium flow batteries, and lithium-sulfur batteries, to align with market trends [11].

Investment Rating - The report maintains a "BUY" rating for NetEase Cloud Music, with a target price raised to HK$202.5 from the previous HK$115.0, indicating an upside potential of 18.6% from the current price of HK$170.70 [1][3][8]. Core Insights - NetEase Cloud Music reported a total revenue of RMB7.95 billion for FY24, reflecting a 1% year-over-year increase, which aligns with consensus estimates. Adjusted net profit surged by 108% year-over-year to RMB1.70 billion, exceeding consensus by 20%, primarily due to enhanced profitability in the online music segment and effective operational expense control [1][2]. - The company plans to focus on improving user experience to unlock long-term growth opportunities in FY25E, with expectations of a 15% year-over-year growth in online music services revenue driven by subscriber growth [1][5]. - The gross profit margin (GPM) improved significantly, rising by 3.6 percentage points year-over-year to 32.4% in the second half of FY24, with forecasts indicating further GPM expansion to 35.4% in FY25 [5][6]. Financial Performance Summary - **Revenue Growth**: FY24 revenue was RMB7.95 billion, with projections of RMB8.08 billion for FY25E and RMB8.77 billion for FY26E, indicating a gradual recovery and growth trajectory [2][11]. - **Profitability Metrics**: Adjusted net profit is expected to grow from RMB1.70 billion in FY24 to RMB1.88 billion in FY25E, with adjusted net margins improving from 21.1% in 2H24 to 23.3% in FY25E [2][6][11]. - **Valuation Metrics**: The report values NetEase Cloud Music at a P/E of 21x for FY25E, which is at a discount compared to global peers, reflecting the competitive landscape in China's online content sector [8][9]. User Engagement and Market Strategy - The company has seen steady growth in monthly active users (MAUs) and user engagement, attributed to a distinctive content ecosystem and improved personalized recommendations [5]. - Key initiatives for FY25E include enriching the content library, fostering community development, enhancing user experience to drive payment willingness, and improving operational efficiency [5][6]. Market Position and Competitive Landscape - NetEase Cloud Music's online music services revenue increased by 20% year-over-year in the second half of FY24, with membership subscriptions growing by 19% year-over-year [5][6]. - The company has adopted a more prudent operational approach, particularly in social entertainment, leading to a 33% year-over-year decline in related revenue as it focuses on its core music business [5].

Investment Rating - The report does not provide a specific investment rating for the company [1] Core Insights - The company is implementing a multi-brand strategy to drive revenue growth and diversify dining experiences in response to changing consumer patterns in Hong Kong [2][4] - The current valuation reflects a 50% discount compared to peers, indicating that past earnings declines are already priced in [4] - The company has no bank loans and holds cash of HKD 1.35 billion, which is higher than its market capitalization of HKD 1.091 billion [4] Financial Performance - For the first half of the 2025 fiscal year, revenue increased by 1.2% year-on-year to HKD 1.4 billion, while same-store sales declined by approximately 4% [4] - The company reported a 55.8% year-on-year decrease in net profit attributable to shareholders, amounting to HKD 36.068 million [4] - The company’s restaurant network in Hong Kong increased by nine locations, totaling 198 self-operated restaurants [4] Business Operations - The company operates two flagship brands, "Tan Zai" and "San Ge," with a total of 235 restaurants across Hong Kong, mainland China, Singapore, and Japan [2][5] - The company is expanding its overseas operations through franchising to mitigate investment risks, with plans to open new locations in Australia and Malaysia [4] - The company aims to open four new restaurants under the "Marugame Seimen" and "Yam牛" brands in Hong Kong in the second half of the 2025 fiscal year [4] Valuation Metrics - The company’s price-to-earnings ratio for the 2024 fiscal year is projected at 9 times, with a dividend payout ratio target of 30% [4][5] - The dividend yield is currently at 11%, with a historical payout ratio of 100% over the past two fiscal years [4][5]

Investment Rating - The report maintains a "Buy" rating for Baidu Group-SW (09888.HK) [1] Core Insights - The report highlights a significant acceleration in Baidu's cloud business, projecting strong growth in AI-related services for 2025. The intelligent cloud revenue grew by 26% year-on-year in Q4 2024, up from 12% in Q1, 14% in Q2, and 11% in Q3 [3] - The report notes that Baidu's core operating profit margin declined by 4 percentage points year-on-year, primarily due to a one-time loss of RMB 1 billion, which included provisions for expected credit losses and inventory impairments [4] - The report anticipates gradual improvement in Baidu's advertising business in 2025, driven by economic policy changes and the long-term benefits of generative AI on search services [8] Financial Performance Summary - For 2023, Baidu's total revenue was RMB 134.6 billion, with a year-on-year growth of 8.83%. The net profit attributable to shareholders was RMB 20.3 billion, reflecting a significant increase of 168.75% [1] - The forecast for 2024 shows a slight decline in total revenue to RMB 133.1 billion, with a projected net profit of RMB 23.8 billion, a 16.96% increase [1] - Non-GAAP net profit is expected to decrease from RMB 27 billion in 2023 to RMB 25.4 billion in 2025, with a corresponding Non-GAAP PE of 9 times [9]

Investment Rating - The report assigns a "Strong Buy" rating for the company with a target price of HKD 0.330, compared to the current price of HKD 0.138 [1][5]. Core Insights - The company, Tongjing New Energy, is a leading provider of photovoltaic tracking and fixed support systems in China, with a strong focus on integrated solutions for photovoltaic power plants [5][6]. - The company has experienced significant revenue growth due to the declining prices of upstream photovoltaic products, enhancing the economic viability of photovoltaic projects [11][24]. - The global transition towards clean energy and the demand for photovoltaic systems are expected to continue growing, providing a stable development space for the photovoltaic support industry [24][25]. - The company is also exploring new energy storage technologies, including innovative compressed air storage solutions, which are anticipated to synergize with its existing photovoltaic business [37][43]. Financial Data and Valuation - The company’s revenue is projected to grow from HKD 1,029.6 million in 2025 to HKD 1,214.3 million in 2026, representing year-on-year growth of 34.4% and 17.9% respectively [3][45]. - The net profit attributable to the parent company is expected to reach HKD 79.5 million in 2025 and remain stable in 2026, with a significant increase of 142.2% in 2025 [3][45]. - The company’s earnings per share are forecasted to be HKD 0.073 in 2025 and HKD 0.065 in 2026 [3][45]. Market Performance - The company’s stock price has shown a significant increase of 55.1% over the past 12 months, despite a decline of 8.0% in the last month [4]. - The company’s market capitalization is approximately HKD 1.69 billion [1]. Industry Overview - The photovoltaic support industry is expected to maintain growth, with the global photovoltaic market projected to add over 500 GW of new installations in 2024, a year-on-year increase of about 30% [24][26]. - The domestic photovoltaic market is anticipated to see new installations between 240-260 GW in 2025, influenced by favorable policies and declining component prices [24][25]. - The market for photovoltaic supports is projected to reach RMB 862 billion in 2024 and RMB 877 billion in 2025, with year-on-year growth rates of 18.5% and 1.8% respectively [25][29].

Investment Rating - The report maintains a "BUY" rating for AIA Group Ltd. with a target price of HK$94.0, implying a potential upside of 62.1% from the current price of HK$58.0 [1][7]. Core Insights - AIA's share price fell 17.3% in FY24, underperforming key benchmarks despite resilient Value of New Business (VNB) growth and a solid financial position [1]. - The report anticipates a 20% increase in full-year VNB on a Constant Exchange Rate (CER) basis, with Group Operating Profit After Tax (OPAT) expected to grow 7% YoY in FY24 [1][7]. - Total shareholder return is projected to rise to approximately 8% in FY24, driven by a 3% dividend yield and around 5% return from buybacks [1][7]. Financial Performance - AIA's VNB is expected to reach US$4.77 billion in FY24, reflecting a 20% increase on a CER basis, with a slowdown in growth anticipated in the second half of the year [7]. - Group OPAT is projected to increase to US$6.639 billion in FY24, with a corresponding Operating EPS of US$0.59 [8]. - The report highlights a significant buyback program completion of US$12 billion, with expectations for a new buyback announcement in mid-March 2025 [1][7]. Market Position - AIA's share price performance has lagged behind major indices, with the stock trading at 1.0x FY25E Price to Embedded Value (P/EV), near historical lows [7]. - The report emphasizes the importance of sustained long-term value growth to enhance investor confidence and facilitate further buybacks [7]. Shareholder Returns - The report indicates that AIA's management remains focused on shareholder returns, with an estimated US$3.5 billion allocated for buybacks in FY24 [7]. - The underlying free surplus generation is projected to be US$6.7 billion, up 11% YoY, which could strengthen the Group's capital position for additional shareholder paybacks [7].

Investment Rating - The report maintains a "Buy" rating for NetEase Cloud Music, with a target price set at HKD 202.5, based on a 21x P/E ratio for FY2025 [1][10]. Core Insights - NetEase Cloud Music reported a total revenue of RMB 7.95 billion for FY2024, reflecting a 1% year-over-year growth, in line with expectations. Adjusted net profit surged by 108% to RMB 1.7 billion, exceeding expectations by 20%, primarily due to improved profitability in the online music segment and effective cost control [1][2]. - The company aims to enhance user experience to unlock long-term growth opportunities, focusing on content library expansion, community development, user payment willingness, and operational efficiency [2][3]. Financial Performance Summary - For FY2024, the overall gross margin increased by 3.6 percentage points to 32.4%, driven by improved revenue monetization and prudent cost management. The gross margin is projected to further increase to 35.4% in FY2025 [3][4]. - The online music service revenue for the second half of FY2024 grew by 20% year-over-year, reaching RMB 2.8 billion, with subscription revenue increasing by 19% to RMB 2.3 billion [2][4]. - The adjusted net profit margin for FY2024 was 21.1%, up by 8.8 percentage points year-over-year [3][4]. Revenue and Profit Forecast - Revenue is expected to reach RMB 8.08 billion in FY2025, with a year-over-year growth rate of 1.6%, and projected to grow to RMB 9.28 billion by FY2027 [4][14]. - The adjusted net profit is forecasted to be RMB 1.88 billion in FY2025, reflecting a 10.7% year-over-year growth [4][14]. Valuation and Market Comparison - The target price of HKD 202.5 is based on a lower P/E ratio compared to global peers, reflecting the competitive landscape in China's online content sector [10][11]. - The report highlights that the stock has shown significant price performance, with a 51.5% increase over the past month and an 82.5% increase over the past six months [5].

Investment Rating - The report maintains a "Buy" rating for Lenovo Group (00992) with a target price based on the last closing price of HKD 13.60 [1][5]. Core Insights - Lenovo Group's performance slightly exceeded expectations, driven by strong growth in AI-related sectors and various business segments [5][7]. - The company reported a revenue of USD 52.093 billion for the first three quarters of FY24/25, representing a year-on-year increase of 21%, and a net profit of USD 1.338 billion, up 57% year-on-year [4][5]. - The gross margin for the first three quarters was 15.96%, a decrease of 1.18 percentage points compared to the same period last year, primarily due to rapid growth in the infrastructure solutions group, which has a lower margin [4][5]. Financial Performance Summary - **Revenue Growth**: The company expects revenue to grow by 18% in FY24/25, followed by 11% and 9% in the subsequent years [8]. - **Net Profit**: Projected net profit for FY24/25 is USD 1.506 billion, a 49% increase from the previous year, with further growth expected in the following years [8]. - **Earnings Per Share (EPS)**: EPS is forecasted to be USD 0.12 for FY24/25 and FY25/26, increasing to USD 0.14 by FY26/27 [8][11]. Business Segment Performance - **Intelligent Devices Group**: Achieved revenue of USD 38.720 billion, a 13% increase year-on-year, with an operating profit margin of 7.28% [7]. - **Infrastructure Solutions Group**: Revenue surged by 59% to USD 10.404 billion, marking the beginning of profitability driven by cloud demand [7]. - **Solutions and Services Group**: Generated revenue of USD 6.307 billion, an increase of 11.54% year-on-year, with an operating profit margin of 20.58% [7]. Future Outlook - The report highlights a positive outlook for Lenovo Group, particularly in the AI sector, with expectations of continued revenue and profit growth [5][8]. - The company is positioned to benefit from ongoing capital expenditures in the IT sector, which is anticipated to drive growth in the server industry [5].

Investment Rating - The report maintains a "Buy" rating for Yancoal Australia (3668 HK) with a target price adjusted to HKD 37.45, reflecting a potential upside of 30.5% based on an 8.5x FY25 target P/E ratio [4][6][22]. Core Insights - Yancoal Australia's FY24 performance slightly missed expectations, with a 33.2% year-on-year decline in net profit to AUD 122 million, primarily due to higher costs for materials, consumables, and purchased coal [1][4]. - The company's revenue for FY24 decreased by 11.8% to AUD 686 million, influenced by a 24.1% drop in average coal prices [1][4]. - The proportion of revenue from China increased significantly from 20.6% in FY23 to 29.2% in FY24, surpassing Japan as the largest single revenue source [2][4]. Summary by Sections Financial Performance - FY24 net profit was AUD 122 million, down 33.2% from the previous year, while revenue fell to AUD 686 million [1][4]. - The cash operating cost per ton of coal decreased from AUD 96 in FY23 to AUD 93 in FY24, aligning with company guidance [1][4]. - The dividend payout ratio improved from 50.5% to 56.3%, exceeding expectations [1][4]. Production and Cost Guidance - The company set FY25 operational guidance consistent with FY24, targeting coal production of 35-39 million tons and cash operating costs of AUD 89-97 per ton [3][4]. - Production is expected to grow slightly by 0.5% to 37.1 million tons in FY25, with cash operating costs projected to rise to AUD 96 per ton [3][4]. Market Outlook - The report anticipates continued weakness in coal prices, with thermal and metallurgical coal prices expected to decline by 7.1% and 3.7% respectively in FY25, with a rebound expected in FY26 [3][4]. - The sensitivity analysis indicates that a 1% change in average coal prices could lead to a 2.4% change in net profit for FY25 [4][16].