Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The report emphasizes the value of the ATTC platform and the continuous development of potential pipelines [5][7] - The company is advancing innovative treatments for cancer and immune diseases, showcasing its proprietary ATTC platform and the latest progress in late-stage pipeline candidates [7] Financial Performance and Forecast - The company’s projected revenues for 2025, 2026, and 2027 are $567 million, $676 million, and $816 million respectively, with growth rates of -10.0%, 19.2%, and 20.7% [6][8] - The expected net profit for 2025, 2026, and 2027 is $426 million, $94 million, and $138 million respectively, with growth rates of 1029.3%, -78.0%, and 46.7% [6][8] - The report anticipates a reasonable equity value of HKD 26.9 billion based on DCF calculations, assuming a perpetual growth rate of 2% and a WACC of 9.43% [7] Pipeline Development - The ATTC platform is a novel cancer precision therapy development platform that combines monoclonal antibodies with proprietary targeted small molecule inhibitors, aiming for superior anti-tumor activity and safety [7] - The first potential pipeline candidate from this platform is HMPL-A251, which has shown promising anti-tumor efficacy and tolerability in preclinical studies, with plans to enter clinical development by the end of 2025 [7] - Ongoing projects include: 1. FRUSICA-2 study for fruquintinib combined with sintilimab in renal cell carcinoma [7] 2. SANOVO study for savolitinib in non-small cell lung cancer [7] 3. Ongoing studies for surufatinib in pancreatic cancer [7] 4. HMPL-453 for intrahepatic cholangiocarcinoma, with plans for a new drug application in mid-2026 [7]

Investment Rating - The report assigns a "Buy" rating for the company with a target price of HKD 105, representing a potential upside of 32.16% from the current price of HKD 79.45 [4]. Core Insights - The company's revenue is projected to recover significantly, with a forecasted increase of 40.5% in 2025 and 22.5% in 2026, following a decline in the previous years [3]. - Gross margin is expected to improve, reaching 20.6% by 2027, up from 10.2% in 2023 [3]. - The company is benefiting from a strong demand for its products, particularly in the embedded non-volatile memory and power device segments, with notable growth rates of 20.4% and 3.5% year-on-year, respectively [5]. - The production capacity utilization rate remains high at 109.5%, indicating efficient operations and potential for further revenue growth [5]. - The report anticipates continued positive performance in the semiconductor industry, positioning the company as a key beneficiary of domestic substitution trends [5]. Financial Summary - Total revenue for the fiscal year ending December 31, 2022, was USD 2,286.1 million, with a projected increase to USD 3,459.3 million by 2025 [3]. - Shareholder net profit is expected to rise from USD 80.3 million in 2025 to USD 322.7 million by 2027, reflecting a strong recovery trajectory [3]. - The earnings per share (EPS) is forecasted to increase from USD 0.05 in 2025 to USD 0.18 in 2027 [3]. - The company’s market capitalization is currently HKD 105.49 billion, with a price-to-earnings (P/E) ratio of 218.0 for 2025, which is expected to decrease to 57.0 by 2027 [4][6]. Operational Highlights - The company has optimized its product mix, with all process platforms showing positive revenue growth [5]. - The average selling price (ASP) for wafer foundry services is projected to reach approximately USD 500 by 2027, indicating a robust pricing strategy [5]. - The company is also expanding its production capabilities, with the FAB5 facility expected to contribute an additional USD 600-700 million in revenue once operational [5].

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company has experienced a rebound in sales volume for the first time this year, with a quarterly performance showing signs of recovery [2][6]. - The company's installed capacity has expanded, leading to a 9.2% year-on-year increase in controlled power generation, reaching 2.518 billion kWh in the third quarter [6]. - Despite a 3.03% year-on-year decrease in revenue to 3.541 billion yuan, the net profit attributable to shareholders surged by 122.97% to 147 million yuan due to cost control and increased investment income [2][6]. Summary by Sections Revenue and Sales Volume - The company reported a total sales volume of 944 million cubic meters in the third quarter, marking a 0.94% year-on-year increase, reversing the downward trend observed since the end of last year [6]. - The wholesale gas volume increased by 27.66% to 334 million cubic meters, while retail gas volume decreased by 21.99% to 308 million cubic meters [6]. Cost Management and Profitability - The company effectively controlled costs, resulting in a gross profit of 425 million yuan, a decline of 7.77% year-on-year, while financial expenses decreased by 15.70% to 255 million yuan [6]. - Investment income rose by 130.13% to 57 million yuan, contributing to the significant increase in net profit [6]. Future Outlook - The La Niña phenomenon is expected to lead to a colder winter, which may increase heating demand and positively impact gas sales and wind power generation [6]. - The company has adjusted its earnings forecast for 2025-2027, expecting profits of 2.038 billion yuan, 2.248 billion yuan, and 2.480 billion yuan, with corresponding EPS of 0.48 yuan, 0.53 yuan, and 0.59 yuan [6].

Investment Rating - The report assigns a "Buy" rating for China Taiping (00966.HK) with a target price of HKD 22.6 [1][6][9] Core Views - China Taiping is positioned as a leader in the transformation towards participating insurance, with a strong potential for valuation recovery. The company is actively pushing for this transformation, which is expected to reduce rigid costs from new policies and alleviate the pressure from declining interest rates [8][9][10] Financial Performance - The projected insurance service revenue for 2024 is HKD 22,024 million, with a year-on-year growth of 18.8%. The net profit attributable to shareholders is expected to reach HKD 8,432 million, reflecting a significant year-on-year increase of 36.2% [2][3] - The earnings per share (EPS) for 2024 is forecasted at HKD 2.35, with a price-to-earnings (P/E) ratio of 7.8 [2][3] Business Segments Life Insurance - China Taiping's life insurance segment is a key driver, contributing approximately 80% of the net profit. The new business value (NBV) has started to recover in 2023, with a year-on-year increase of 23% to HKD 6.8 billion in 2025H1 [6][32] - The company has a robust channel structure, primarily through individual agents, with a significant shift towards participating insurance, which accounted for 29% of the new business in 2025H1 [32][52] Property and Casualty Insurance - The domestic property and casualty insurance business is gradually improving, with a combined ratio (COR) of 95.5% in 2025H1, indicating a year-on-year improvement [59][60] - The overseas property and casualty insurance segment, primarily in Hong Kong and Macau, has shown slower growth, contributing 14% to the overall property and casualty business [67] Asset Management - The asset management segment has seen steady growth, with total managed assets exceeding HKD 2.65 trillion as of 2025H1. The investment performance has been influenced by interest rates, with a focus on equity allocations expected to yield strong beta opportunities [6][9][10] Valuation and Estimates - The report utilizes the Present Value of Embedded Value (PEV) method for valuation, predicting an embedded value per share (EVPS) of HKD 56, 64.6, and 74.1 for 2025, 2026, and 2027 respectively. The current dynamic PEV is estimated at 0.33x for 2025 and 0.28x for 2026, with a target PEV of 0.35x for 2026 [9][10]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company is expected to accelerate growth in its K12 business in FY2026Q2, with a projected revenue increase of 9% to 12% year-over-year [4] - The company plans to return $490 million to shareholders through dividends and share buybacks, with a dividend of $0.12 per share [3] - Despite a slowdown in overseas business and revenue growth, the company achieved a revenue of $1.52 billion in FY2026Q1, exceeding previous guidance by 1% [2][4] Financial Performance - For FY2026Q1, the company reported a Non-GAAP operating profit of $340 million, a year-over-year increase of 11.8%, with an operating profit margin of 22% [2] - The company expects FY2026-2028 revenues of $5.36 billion, $5.98 billion, and $6.50 billion, respectively, with corresponding net profits of $461 million, $542 million, and $619 million [4][8] - The company has cash and cash equivalents of $1.28 billion, with short-term investments totaling $2.18 billion as of FY2026Q1 [3] Market Performance - The company's stock has outperformed the Hang Seng Index by 2.6% over the past month, while the Hang Seng Index has seen a decline of 2.7% [5] - The current stock price is HKD 41.86, with a market capitalization of approximately HKD 66.62 billion [5] Future Outlook - The company anticipates improved profit margins in FY2026Q2, driven by enhanced K12 teaching quality and increased student retention rates [4] - The report indicates a cautious outlook on revenue and profit forecasts due to the impact of international economic conditions on traditional study abroad and new cultural tourism businesses [4]

Investment Rating - The report maintains a "Buy" rating for Huahong Semiconductor (1347.HK) and Huahong Company (688347.CH) [1][2] Core Insights - Huahong's third-quarter gross margin exceeded market expectations, with a gross margin of 13.5%, up 2.1 percentage points year-on-year and 2.3 percentage points quarter-on-quarter [2] - The company expects fourth-quarter gross margins to remain stable compared to the third quarter, driven by tight capacity and rising wafer prices [1][2] - The revenue for the third quarter was $635 million, a 21% year-on-year increase and a 12% quarter-on-quarter increase, aligning with market expectations [2] - The report projects a target price of HKD 94.0 for Huahong Semiconductor, representing a potential upside of 17%, and a target price of RMB 150.0 for Huahong Company, representing a potential upside of 18% [1][2] Financial Performance Summary - Third-quarter revenue was $635 million, with a net profit of $25.72 million, down 43% year-on-year but up 224% quarter-on-quarter [9] - The company’s EBITDA for 2025 is projected at $758 million, with a net profit forecast of $89 million, reflecting a 53% increase from previous estimates [11] - The report provides a detailed financial forecast for 2023-2027, indicating a revenue growth rate of 19% for 2025 and 2026 [4][11] Valuation Metrics - The current EV/EBITDA and price-to-book ratios for Huahong are 24.4x and 2.7x, respectively, indicating attractive valuation levels [1][2] - The report assigns a target EV/EBITDA of 31.0x for 2025, supporting the target price of HKD 94.0 [2][12]

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Insights - The insurance business model is not affected by interest margin losses, and the implementation of a unified pricing model for non-auto insurance is beneficial for the overall profitability of the industry. The company has a solid fundamental and profitability outlook, with expectations for improved asset-liability dynamics and valuation upside due to increased regulatory oversight on market competition [2][6]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved a net profit of 40.27 billion yuan, a year-on-year increase of 50.5%. The comprehensive cost ratio was 96.1%, a decrease of 2.1 percentage points year-on-year [6][9]. - Total investment income was 35.9 billion yuan, up 33% year-on-year, with an annualized total investment return rate of 5.4%, an increase of 0.8 percentage points [9]. Premium Income - The company reported stable growth in premium income, with property insurance premiums reaching 443.18 billion yuan, a year-on-year increase of 3.5%. Auto insurance premiums were 220.12 billion yuan, up 3.1%, while non-auto insurance premiums showed mixed results, with agricultural insurance premiums declining by 3.1% and health insurance premiums increasing by 8.4% [6][9]. Underwriting Profitability - The underwriting profitability has significantly improved, with a comprehensive cost ratio of 96.1%, down 2.1 percentage points year-on-year. The auto insurance cost ratio was 94.8%, a decrease of 2.0 percentage points, while the non-auto insurance cost ratio was 98%, down 2.5 percentage points [9]. Investment Strategy - The company has increased its allocation to equities, resulting in strong investment performance. The total investment income for the first three quarters was 35.9 billion yuan, with a notable investment return rate [9]. Solvency and Dividend Capacity - As of the third quarter, the company's core solvency adequacy ratio was 222.4%, an increase of 11.4 percentage points compared to 2024, significantly exceeding regulatory requirements. This high solvency ratio provides greater operational flexibility and supports future dividend distributions [9]. Market Outlook - The company is optimistic about the future asset-liability dynamics, as the insurance business model is insulated from interest margin losses, and the unified pricing model for non-auto insurance is expected to enhance industry profitability. The company is well-positioned with a robust fundamental outlook and potential for valuation improvement [2][6].

Investment Rating - The report maintains a "Buy" rating for the company [3][6]. Core Insights - The company has introduced a new ATTC platform that enhances innovation in drug development, particularly in cancer and immune disease treatments [10]. - The first candidate drug from the ATTC platform, HMPL-A251, shows promising anti-tumor activity and is expected to enter clinical development by the end of the year [10]. - The company's core pipeline is progressing steadily, with key data readouts for the drug Savolitinib anticipated soon, which could lead to market expansion [10]. Financial Forecasts and Investment Recommendations - Projected revenues for the company from 2025 to 2027 are $600.43 million, $705.84 million, and $796.91 million respectively, with a target price of HKD 33.29 for 2026 [3][5]. - The company is expected to see significant growth in net profit, with a forecasted increase of 1110.15% in 2026 [5]. - The report highlights a projected net profit margin of 76.12% in 2026, indicating strong profitability potential [5].

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company's revenue for the first three quarters is 77.7 billion HKD, a year-on-year decline of 4.7%, while the net profit attributable to shareholders is 7.24 billion HKD, an increase of 6% year-on-year. In the third quarter alone, the net profit attributable to shareholders is 1.98 billion HKD, reflecting a year-on-year growth of 8.4% [2][6]. - The revenue structure is further optimized, with technology-driven businesses becoming a new growth engine. The revenue from technology-driven operations increased by 53.2% year-on-year, accounting for 34.9% of total revenue, an increase of approximately 13.2 percentage points [9]. - The company signed new contracts worth 128.01 billion HKD in the first three quarters, with technology-driven contracts accounting for 48.5% of the total, moving steadily towards the target of 50% [9]. - The gross profit margin in Hong Kong remains under pressure but is expected to stabilize and recover. The gross profit margin in Hong Kong is 5.2%, down 1.9 percentage points year-on-year, primarily due to a sluggish property market [9]. - The company's MiC (Modular Integrated Construction) business is making further breakthroughs, with projects in major cities like Beijing and Guangzhou. The Hong Kong government has increased its average annual infrastructure spending forecast from approximately 90 billion HKD to 120 billion HKD [9]. - The company is actively expanding its operational business through acquisitions, enhancing cash flow and highlighting its dividend attributes. If the company achieves a 10% growth rate in 2025, the projected dividend yield is approximately 6.5% based on a 33% payout ratio [9].

Investment Rating - The report does not explicitly state an investment rating for Melco International Development Core Insights - Melco International Development's subsidiary, Melco Resorts & Entertainment, reported a net revenue of USD 1.31 billion for Q3 2025, representing an 11.4% year-over-year increase. The adjusted EBITDA reached USD 0.352 billion, up 16.3% year-over-year, with an adjusted EBITDA margin of 26.9%, an increase of 1.13 percentage points year-over-year [1][9] - The company's total betting amount in Macau reached USD 10.9 billion, a 24.3% year-over-year increase, with VIP betting amounting to USD 5.58 billion, reflecting a 47.0% year-over-year growth [3][11] - The company's market share in Q3 2025 was 14.6%, down from 15.8% in Q2 2025, indicating a decline in market position [6][14] Summary by Sections Financial Performance - In Q3 2025, Melco International Development achieved operating revenue of USD 1.31 billion, a year-over-year increase of 11.4%. The adjusted EBITDA was USD 0.352 billion, up 16.3%, with an adjusted EBITDA margin of 26.9%, an increase of 1.13 percentage points year-over-year. For the year-to-date, the operating revenue reached USD 3.87 billion, up 12.3%, and adjusted EBITDA was USD 1.017 billion, up 16.9% [1][9] - The company's gaming gross revenue (GGR) in Macau was USD 1.13 billion, up 11.8% year-over-year, but this growth rate was lower than the industry average of 12.5% [4][12] Business Segments - In Macau, the company's operating revenue was USD 1.1 billion, with gaming and non-gaming segments contributing USD 0.92 billion and USD 0.19 billion, respectively. The gaming segment grew by 12.3% year-over-year, while the non-gaming segment grew by 7.2% [2][10] - The adjusted property EBITDA for the company in Macau was USD 0.317 billion, reflecting a year-over-year increase of 21.1% and an adjusted EBITDA margin of 28.7%, up 2.3 percentage points year-over-year [5][13] Market Dynamics - The total betting amount in Macau increased significantly, with VIP betting showing the highest growth at 47.0% year-over-year. The VIP win rate for the City of Dreams was reported at 3.68%, exceeding the expected range [3][11] - The company's market share has declined, with a noted decrease from 15.8% in Q2 2025 to 14.6% in Q3 2025, indicating competitive pressures in the market [6][14]