Investment Rating - The report maintains a "Buy" rating for China Power (02380) and raises the target price by 7.4% from HKD 3.51 to HKD 3.77 [1] Core Insights - The report indicates an increase in the earnings forecast for 2025 and 2026 by 1% and 1.4% respectively, highlighting an attractive dividend yield of 6% and 7% for these years [1] - Total power generation from January to April showed a slight year-on-year increase of 0.3%, with wind and solar power generation rising significantly by 32.1% and 13.6% respectively [1] - The report notes a decline of over 7% in domestic coal prices (both at ports and inland) compared to the end of March this year, suggesting that the company's thermal power price differential for the first half of the year may exceed the analyst's expectations by approximately 2% [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights the focus on the upcoming launch of the game "解限机" and the company's emphasis on AI, collaboration, and internationalization in its office software business [1][8] - The company achieved a total revenue of 2.338 billion yuan in Q1 2025, representing a year-on-year increase of 9.41% but a quarter-on-quarter decrease of 16.28% [8] - The gaming segment showed stable operations with expectations for the performance of "解限机" upon its launch, while the office software segment is seeing growth driven by WPS personal and WPS 365 services [8] Financial Performance Summary - Total revenue projections for the company are as follows: - 2023: 8.547 billion yuan - 2024: 10.318 billion yuan (up 20.91% YoY) - 2025: 11.669 billion yuan (up 13.09% YoY) - 2026: 13.149 billion yuan (up 12.68% YoY) - 2027: 14.721 billion yuan (up 11.96% YoY) [1] - Net profit attributable to the parent company is projected as follows: - 2023: 483.46 million yuan - 2024: 1,551.61 million yuan (up 220.94% YoY) - 2025: 1,866.88 million yuan (up 20.32% YoY) - 2026: 2,303.83 million yuan (up 23.41% YoY) - 2027: 2,734.62 million yuan (up 18.70% YoY) [1] - The report maintains previous earnings forecasts, with expected EPS for 2025-2027 being 1.33, 1.65, and 1.95 yuan respectively, corresponding to current P/E ratios of 25, 20, and 17 times [1][8]

Investment Rating - The report maintains a "Buy" rating for Kuaishou-W (01024) with a target price of HKD 64, indicating a potential upside of 31% from the current price [1]. Core Insights - Kuaishou's Q1 performance met expectations with total revenue and adjusted net profit of RMB 32.6 billion and RMB 4.6 billion respectively, reflecting year-on-year growth of 11% and 4% [1]. - The report highlights the impact of increased AI computing power investments offsetting cost optimizations, maintaining the 2025 profit forecast at RMB 20.3 billion, with an adjusted net profit margin of 14%, stable compared to 2024 [1]. - The report emphasizes the commercial potential of Kuaishou's AI capabilities, particularly in video generation, warranting a valuation premium based on a 13x P/E ratio for 2025 [1]. Segment Overview - E-commerce GMV grew by 15% year-on-year, with MAU penetration at 19% and average spending per user also up by 7% [2]. - Online marketing revenue increased by 8% year-on-year, with content consumption and local life sectors showing strong growth [2]. - Live streaming revenue rebounded with a 14% year-on-year increase, alongside significant growth in the number of signed agencies and streamers [2]. - Local life services saw substantial growth in active merchants and product offerings, with monthly paid users increasing by 73% year-on-year [2]. - Internationally, revenue grew by 33% year-on-year, achieving positive operational profit for the first time [2]. - The report anticipates continued growth in Q2, with e-commerce GMV expected to rise by 14% and advertising revenue projected to recover with a double-digit growth rate [2].

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company is planning to spin off its renewable energy segment for a listing on the A-share market, which is expected to enhance its valuation significantly [5][10] - The company has demonstrated strong operational capabilities and management mechanisms, which are crucial for navigating through market cycles [10][27] - The company has a solid track record, having never reported a loss since its listing, and has maintained a stable return on equity (ROE) [7][16] Financial Performance and Valuation - The projected revenue for the company is expected to grow from 103,334 million HKD in 2023 to 131,238 million HKD by 2027, with a compound annual growth rate (CAGR) of approximately 6.48% [6] - The net profit attributable to shareholders is forecasted to increase from 11,003 million HKD in 2023 to 16,635 million HKD in 2027, reflecting a significant growth trajectory [6] - The price-to-earnings (P/E) ratio is projected to be 6.8, 6.6, and 6.3 for the years 2025, 2026, and 2027 respectively, indicating a favorable valuation compared to peers [8] Renewable Energy Segment - By the end of 2024, the company's renewable energy capacity is expected to account for nearly 50% of its total installed capacity, with significant investments planned for further expansion [7][27] - The company has a competitive edge in unit profitability for its renewable energy segment, outperforming major competitors in terms of net profit [35] - The planned IPO of the renewable energy segment is anticipated to raise 24.5 billion RMB for new projects, which could lead to a valuation exceeding 150 billion HKD post-listing [38][43] Market Position and Strategy - The company has a unique market position due to its historical roots and strategic focus on both traditional and renewable energy sectors [14][19] - The operational strategy emphasizes a balanced approach to energy generation, with a significant focus on renewable energy development in regions with higher electricity prices [27][32] - The company’s management has effectively navigated market challenges, maintaining a strong performance even during periods of industry downturns [20][24]

Investment Rating - The investment rating for the company is "Buy" [6][7]. Core Views - The company is a leading global express delivery enterprise, with a double-digit growth in parcel volume since 2025, driving rapid profit growth. The expansion of the product matrix enhances competitiveness, ensuring future development and a focus on shareholder returns [7]. - In Q1 2025, the company achieved a net profit growth of nearly 20% year-on-year, with a total of 4.876 billion parcels delivered, representing a year-on-year increase of 22.36%, outperforming the industry average [7]. - The company is expanding its presence in various supply chain segments, transitioning from sales logistics to integrated logistics solutions, which is expected to translate into increased parcel volume and revenue [7]. Summary by Sections Company Information - The target price for H shares is HKD 48, with the current price at HKD 40.20. The market capitalization is approximately RMB 164.59 billion [1]. - The company has a price-to-book ratio of 2.13 and a net asset value per share of RMB 18.87 [1]. Recent Ratings - The company has consistently received "Buy" ratings in recent evaluations, with the latest rating issued on March 31, 2025 [2]. Product Mix - The product mix consists of 70.4% express and large parcel services, 3.2% local delivery, and 26.0% supply chain and international services [3]. Financial Performance - For 2025, the company is projected to achieve a net profit of RMB 11.93 billion, with a year-on-year growth of 17%. The earnings per share (EPS) is expected to be RMB 2.39 [9]. - The company’s revenue is forecasted to reach RMB 306.1 billion in 2025, with a year-on-year increase of 7.6% [11]. Shareholder Returns - The company has initiated a share buyback program with a total amount of RMB 500 million to RMB 1 billion, indicating a commitment to shareholder returns [7].

Investment Rating - The investment rating for the company is "Buy" [6][2]. Core Insights - The company is a leading global express delivery enterprise, with a significant increase in parcel volume exceeding expectations, driving rapid profit growth. The company is focusing on shareholder returns and has a positive long-term outlook [7][6]. - In Q1 2025, the company achieved a net profit growth of nearly 20%, with a total parcel volume of 4.876 billion, representing a year-over-year increase of 22.36%, outperforming the industry average [7][9]. - The company is expanding its business into various supply chain segments, which is expected to enhance parcel volume and revenue growth [7][9]. Summary by Sections Company Information - The target price for H shares is HKD 48, with the current price at HKD 40.20. The market capitalization is approximately RMB 164.59 billion [1]. - The company has a price-to-book ratio of 2.13 and a net asset value per share of RMB 18.87 [1]. Recent Ratings - The company has consistently received "Buy" ratings in recent evaluations, with the latest rating issued on March 31, 2025 [2]. Product Mix - The company's product mix includes 70.4% from express and large parcel services, 3.2% from same-city delivery, and 26.0% from supply chain and international services [3]. Financial Performance - The company forecasts net profits of RMB 11.927 billion, RMB 13.475 billion, and RMB 15.157 billion for 2025, 2026, and 2027, respectively, with year-over-year growth rates of 17%, 12.97%, and 12.48% [9]. - The earnings per share (EPS) are projected to be RMB 2.39, RMB 2.70, and RMB 3.04 for the same years, with corresponding price-to-earnings (P/E) ratios of 15.70, 13.89, and 12.35 for H shares [9]. Cash Flow and Capital Management - The company is expected to generate a net cash flow from operating activities of RMB 27.513 billion in 2025, with a focus on maintaining shareholder returns through share buybacks [11].

Investment Rating - The report assigns a "Buy" rating to Huaneng International, with a target price of HKD 6.12 per share, indicating a potential upside of 24% from the current price of HKD 4.93 [6][11]. Core Views - The company is expected to benefit from declining coal prices, leading to sustained growth in thermal power performance. In Q1 2025, the company reported a net profit of RMB 4.973 billion, an increase of 8.19% year-on-year, despite a 7.70% decline in revenue [3][4][8]. - The company plans to add approximately 10GW of new renewable energy capacity in 2025, with a focus on solar and wind energy, which is expected to enhance its low-carbon energy portfolio [5][10]. Summary by Sections Financial Performance - In Q1 2025, Huaneng International's total electricity generation was 106.633 billion kWh, a decrease of 5.66% year-on-year. The average settlement price for electricity was RMB 488.19 per MWh, down 1.96% year-on-year. The company's revenue for the quarter was RMB 60.335 billion, a decrease of 7.70% year-on-year, while net profit increased to RMB 4.973 billion [3][8]. Coal Price Impact - The report highlights that the company is benefiting from lower coal prices, with the average coal price for Q1 2025 at RMB 888 per ton, down 9% year-on-year. The fuel cost was RMB 259 per MWh, a decrease of 10% year-on-year. The coal segment achieved a pre-tax profit of RMB 3.982 billion, up 41% year-on-year [4][9]. Renewable Energy Expansion - Huaneng International's renewable energy capacity is projected to grow significantly, with plans for 10GW of new installations in 2025, including approximately 7GW from solar energy. The company’s renewable energy generation in Q1 2025 saw an increase of 8.81% for wind and 51.21% for solar compared to the previous year [5][10]. Valuation Metrics - The report provides a financial forecast for the company, projecting revenues of RMB 246.931 billion for 2025, with a net profit of RMB 11.693 billion, reflecting a growth rate of 14.8% year-on-year. The price-to-earnings ratio is expected to be 6.1 times at the current share price [7][14].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 70.94 [7][21]. Core Insights - The company's Q1 performance slightly exceeded expectations, with revenue growth of 10.9% year-on-year to RMB 32.6 billion, surpassing the consensus estimate by 1.2% [1]. - The gross margin improved by 0.3 percentage points to 54.6%, and adjusted net profit increased by 4.4% year-on-year to RMB 4.58 billion, exceeding expectations by 3% [1]. - The report highlights the acceleration of commercialization for the company's AI product, Keling, which is expected to generate over RMB 1 billion in revenue by 2025 [2]. - The e-commerce segment showed robust growth with a GMV increase of 15% year-on-year, supported by a significant rise in the number of new merchants and active buyers [3]. Financial Performance - The company forecasts a revenue increase of 12.5% for 2025, with live streaming expected to grow by 8%, and advertising revenue projected to rise by 13% [1][4]. - Adjusted net profit estimates for 2025 have been slightly revised down to RMB 17.775 billion, reflecting a lower contribution from live streaming revenue [4][18]. - The report provides a detailed financial forecast for 2023 to 2027, indicating a steady growth trajectory in both revenue and adjusted net profit [6][19]. Business Segments - The Keling AI product has seen strong growth in both user scale and ARPU, contributing approximately 70% of its total revenue from professional users [2][12]. - The advertising revenue for Q1 grew by 8% year-on-year, with significant contributions from external circulation advertising [3][14]. - The overseas business achieved operational profitability for the first time, with Brazil being a key market driving growth [16]. Valuation - The report employs a Sum-of-the-Parts (SOTP) valuation method, assigning a target price of HKD 70.94, based on the expected acceleration in live streaming and Keling's future revenue contributions [4][21]. - The valuation reflects a discount compared to peers, primarily due to slower revenue growth relative to competitors [21][22].

Investment Rating - The investment rating for the company is "Buy" [7] Core Insights - The company has entered into a significant licensing agreement with Pfizer for the PD-1/VEGF bispecific antibody (SSGJ-707), which includes an upfront payment of $1.25 billion and potential milestone payments totaling up to $4.8 billion [1][2] - The licensing agreement allows the company to retain development and commercialization rights for SSGJ-707 in mainland China, while Pfizer has the option to commercialize the product in China [1] - The company is expected to see a substantial increase in pre-tax profits due to the upfront payment, estimated at approximately $1.175 billion [2] - SSGJ-707 is currently undergoing multiple clinical studies in China, including a Phase III trial for treating PD-L1 positive locally advanced or metastatic non-small cell lung cancer (NSCLC) [3][6] Financial Projections - The company’s projected revenues for 2025, 2026, and 2027 are estimated to be 185.9 billion, 133.7 billion, and 145.9 billion CNY respectively, reflecting a year-on-year growth of 104.1%, -28.1%, and 18.5% [7][9] - The projected net profit attributable to the parent company for the same years is expected to be 95.9 billion, 53.2 billion, and 60.8 billion CNY, with year-on-year growth rates of 358.7%, -44.5%, and 14.2% [7][9] - The earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 4.00, 2.22, and 2.54 CNY respectively, with corresponding price-to-earnings (PE) ratios of 4.7, 8.4, and 7.3 [7][9] Clinical Development - SSGJ-707 has received IND approval from the FDA and is set to initiate clinical studies in the United States [6] - The product is also involved in several Phase II studies in China, targeting various indications including metastatic colorectal cancer and advanced gynecological tumors [10]

Investment Rating - The investment rating for Lenovo Group (00992.HK) is "Outperform the Market" [6][20]. Core Views - Lenovo Group's revenue for FY2025 reached $69.077 billion, a year-on-year increase of 21.41%, while net profit was $1.384 billion, up 37.01% year-on-year, indicating a positive turnaround in profit growth [1][8]. - The company is expected to benefit from three key growth drivers: AI PCs, smartphones, and servers, which are anticipated to sustain performance growth [3][17]. Financial Performance Summary - **Revenue and Profit**: For FY2025, Lenovo reported revenue of $69.077 billion and net profit of $1.384 billion. In Q4 FY2025, revenue was $16.984 billion, showing a year-on-year increase of 22.50% but a quarter-on-quarter decline of 9.64%. Net profit for Q4 was $90 million, down 63.72% year-on-year and 87.02% quarter-on-quarter, primarily due to the impact of Hong Kong financial reporting standards [1][8]. - **Margins**: The gross margin for FY2025 was 16.1%, down 1.2 percentage points year-on-year, attributed to the rapid revenue growth in lower-margin smartphone products. The net profit margin improved to 2.1%, up 0.2 percentage points year-on-year [2][12]. - **Earnings Forecast**: The forecast for net profit for FY2026 to FY2028 is $1.604 billion, $1.832 billion, and $2.019 billion, respectively, with diluted EPS projected at $0.13, $0.15, and $0.16 [20][24]. Growth Drivers Summary - **AI PCs**: Lenovo's PC shipments are projected to reach approximately 61.8 million units in 2024, maintaining a global market share of about 23.5%, which is expected to grow further due to post-pandemic demand and the discontinuation of Windows 10 [3][17]. - **Smartphones**: The global smartphone market is expected to grow by 4% in 2024, with Motorola's shipments increasing by 23%, positioning it as the seventh-largest smartphone brand globally [3][17]. - **Servers**: Lenovo's server business turned profitable in the second half of FY2025, driven by increased capital expenditures from major internet companies, which is expected to enhance demand for AI servers [3][17].