Investment Rating - The report assigns a "Buy" rating for Black Sesame Intelligence (02533.HK) as a first-time coverage [1]. Core Views - Black Sesame Intelligence is a leading supplier of automotive-grade intelligent vehicle computing chips and solutions, focusing on autonomous driving products and solutions. The company benefits from the expanding market for autonomous driving solutions driven by the trend of "intelligent driving equality" [5][6]. - Revenue projections for the company are estimated at 792 million, 1.253 billion, and 1.942 billion CNY for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 66.9%, 58.3%, and 55.0% [5][8]. Summary by Sections Company Overview - Black Sesame Intelligence began with high-performance chips for autonomous driving and has expanded into cross-domain computing chips, opening new market opportunities [16]. - The founder holds significant control over the company, and the management team possesses strong technical expertise [18][22]. Main Products - The company offers the Huashan and Wudang series of SoC hardware, focusing on autonomous driving and intelligent imaging solutions. The Huashan series includes the A1000 and A2000 chips, which support various levels of autonomous driving functions [25][26]. - The Wudang series, particularly the C1200 chip, is a pioneer in cross-domain computing, integrating multiple functionalities for smart vehicle control [26]. Financial Analysis - The autonomous driving products and solutions are the primary revenue source, with a projected revenue of 4.38 billion CNY in 2024, accounting for 92.35% of total revenue [38]. - The company has experienced rapid revenue growth due to the mass production of the Huashan A1000 series, with further growth expected from the Wudang C1200 and Huashan A2000 series [39][40]. Market Potential - The global and Chinese markets for ADAS applications are expected to grow significantly, with projected CAGRs of 27.5% and 28.6% from 2023 to 2028 [6][60]. - The company holds a 2.2% market share in the Chinese autonomous driving chip and solution market, ranking fifth, indicating substantial room for growth [67].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [2][7]. Core Insights - The company is rapidly leading the global LiDAR industry and aims to become a robotics technology platform company, focusing on providing high-quality solutions in the field of embodied intelligence [6][18]. - The company's LiDAR sales are experiencing non-linear high growth, with a projected total sales volume of approximately 544,000 units in 2024, representing a significant year-on-year increase of 109.6% [6][25]. - The company holds a leading market share of 26% in the global passenger vehicle LiDAR market in 2024, benefiting from the widespread application of advanced driver-assistance systems (ADAS) in the Chinese market [6][25][26]. Financial Data and Profit Forecast - The projected revenue for the company from 2025 to 2027 is estimated at 26.2 billion, 36.6 billion, and 47.0 billion RMB, respectively, with net profits expected to be -2.38 billion, 1.06 billion, and 3.20 billion RMB [5][7]. - The company is not yet profitable, and a price-to-sales (P/S) valuation method is used, with a target market value of approximately 19.4 billion RMB based on a P/S ratio of 7.4 for 2025 [7]. Market Dynamics - The report highlights two main drivers for growth: the end-to-end integration of LiDAR in vehicles and the strategic positioning as a robotics technology platform [6][8]. - The global passenger vehicle LiDAR market is expected to reach approximately 7 billion USD in 2025, with the Chinese market accounting for about 6.3 billion USD [6][8]. Product Development and Technology - The company has a comprehensive product matrix that includes mechanical, semi-solid, and solid-state LiDAR technologies, catering to various performance and application needs [6][41]. - The company is focusing on the development of incremental components for robotics, including solutions for robot vision and dexterous hands, with a projected demand for over 400,000 units of LiDAR products for lawnmowers by 2025 [6][9]. Competitive Landscape - The company has established partnerships with over 30 global automakers and Tier 1 suppliers, with more than 100 designated models, while also expanding its presence in overseas markets [6][29]. - The report notes that the company is well-positioned against competitors due to its strong design capabilities, software technology, and mass production capabilities [54].

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company reported Q1 2025 revenue and net profit attributable to shareholders of $202.9 million and $7.6 million, respectively, showing a year-on-year growth of 1.3% and a decline of 24.2%, which was below market expectations [2] - The decline in net profit was primarily due to uneven capacity utilization across manufacturing plants, inefficiencies in production, and rising labor costs due to increased hiring and wage inflation [2] - The manufacturing ASP (Average Selling Price) turned positive after five consecutive quarters of decline, driven by a favorable order mix [3] - The retail business saw a further decline in revenue in April 2025, with a year-on-year decrease of 7.7% [4] - The company is positioned as a global leader in athletic shoe manufacturing, benefiting from a strong market share among top sports brands and a vertically integrated supply chain [5] Summary by Sections Financial Performance - Q1 2025 manufacturing revenue and net profit were $132.8 million and $6.4 million, respectively, with year-on-year changes of +5.9% and -24.6% [3] - The gross margin for Q1 2025 was 17.7%, a decrease of 2.6 percentage points year-on-year, attributed to uneven capacity utilization and rising labor costs [3] - The company forecasts revenue for 2025-2027 to be $8.69 billion, $9.09 billion, and $9.43 billion, respectively, with a downward adjustment in net profit estimates to $460 million, $520 million, and $560 million [5][7] Retail Business - The retail segment reported Q1 2025 revenue and net profit of $51.07 million and $1.38 million, respectively, reflecting a year-on-year decline of 5.4% and 20.7% [4] - The number of direct-operated stores decreased by 1.3% year-on-year to 3,437, with 11 stores closed compared to the end of 2024 [4] Investment Outlook - Short-term challenges include potential impacts from tariffs and inflation on consumer confidence, particularly affecting Q3 orders [5] - The company is expected to maintain low to mid-single-digit growth in orders for the year, supported by capacity expansion and positive price growth [5] - Long-term, the company has room for improvement in net profit margins compared to peers [5]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 21 HKD, representing a potential upside of over 20% from the current price of 13.42 HKD [5][14]. Core Insights - The company is raising up to 210 million HKD through a placement of shares at 11.99 HKD each, which is a discount of approximately 6.91% from the last closing price [1]. - The funds raised will be used to enhance collaboration with leading companies in AI and e-commerce, aiming to expand technology revenue and improve AI research capabilities [1][4]. - The strategic partnerships with Jingtai Holdings and Jiaoge Friends Holdings are expected to leverage AI research and e-commerce strengths, respectively, to enhance the company's market position [3][4]. Financial Projections - Revenue forecasts for FY2025, FY2026, and FY2027 are projected at 1.111 billion HKD, 1.346 billion HKD, and 1.615 billion HKD, respectively, with net profit estimates of 498 million HKD, 653 million HKD, and 836 million HKD [4]. - The company’s total market capitalization is approximately 13.29 billion HKD, with a total share capital of 990.26 million shares [6]. - The company has a net asset value per share of 4.45 HKD and a debt-to-asset ratio of 61.18% [6].

Investment Rating - The report assigns a "Buy" rating to China Unicom (0762.HK) [4][6] Core Viewpoints - China Unicom is positioned as a leading integrated information service operator, with a focus on digital information services and cloud business as a second growth curve [1][3] - The company achieved revenue of 389.6 billion RMB in 2024, a year-on-year increase of 4.6%, and a net profit of 20.6 billion RMB, up 10.1% year-on-year [1][5] - The company has a robust dividend yield averaging over 6% over the past five years, indicating strong defensive attributes [4] Summary by Sections Company Overview - China Unicom was established in 1994 and operates in 31 provinces in China and several countries worldwide, ranking 279th in the 2024 Fortune Global 500 [1][13] Business Segments - The company focuses on two core business areas: "Connected Communication" and "Intelligent Computing" [2][3] - The Connected Communication segment generated revenue of 261.3 billion RMB in 2024, growing by 1.5% year-on-year, with mobile and broadband user numbers reaching 470 million [2][45] - The Intelligent Computing segment, which includes Unicom Cloud, generated revenue of 68.6 billion RMB in 2024, a 17.1% increase year-on-year, and is expected to become a key growth driver [2][3] Financial Performance - The company forecasts net profits of 21.7 billion RMB, 23.2 billion RMB, and 25.1 billion RMB for 2025, 2026, and 2027 respectively [4][5] - The average P/E ratios for 2025 and 2026 are projected at 12x and 11x, respectively, which are below the average for comparable companies [4] Industry Environment - The telecommunications industry in China is experiencing a slowdown, with overall revenue growth of 3.2% in 2024, but emerging businesses like cloud computing and big data are growing steadily [26][29] - New business revenue accounted for 25% of total telecommunications revenue in 2024, with cloud computing and big data revenues increasing by 13.2% and 69.2% respectively [29][40] Strategic Initiatives - China Unicom is enhancing its cloud capabilities through the integration of AI technologies, aiming to transform its business model from resource leasing to AI-enabled services [40][41] - The company has established over 300 integrated training and inference computing resource pools, with a total computing power exceeding 17 EFLOPS [47]

Investment Rating - The investment rating for the company is "Accumulate" [8][15]. Core Views - The company demonstrates significant growth potential, with its business in the robotic ecosystem and parking asset management achieving breakthroughs. In 2024, both segments drove high revenue growth and provided unexpected dividends to shareholders [4][8]. - The company is expected to continue focusing on "asset circulation + intelligent operation" in 2025, with anticipated earnings per share (EPS) of HKD 0.08, 0.10, and 0.12 for 2025 to 2027, respectively. A price-to-earnings (PE) ratio of 30X is applied for 2025, suggesting a target price of HKD 2.44 [8][9]. Financial Summary - Revenue for 2024 is projected at HKD 1.215 billion, a year-on-year increase of 37.5%. The revenue from asset operation is expected to be HKD 921 million, up 40%, while asset financing revenue is projected at HKD 294 million, a 30.7% increase. Gross profit is estimated at HKD 507 million, reflecting a 41% increase [7][8]. - The net profit attributable to the parent company is forecasted at HKD 410 million, a slight increase of 1.6% year-on-year, primarily due to a decline in dividend income from Shougang Resources and changes in the fair value of investment properties [8][9]. - The company maintains a strong cash reserve, with cash and cash equivalents expected to reach HKD 4.625 billion by 2025, supporting its business expansion [9]. Business Growth - The company is building a robust robotic ecosystem, planning to invest in 40 to 50 top robotic companies over the next 2 to 3 years to enhance product deployment and service offerings [8][9]. - In parking asset management, the company is expanding its "parking + charging" asset scale, with new projects at major transportation hubs, which is expected to drive dual growth in parking and charging revenues [8][9]. Dividend Policy - The total dividend payout for 2024 is projected to be approximately HKD 1.096 billion, exceeding market expectations, reflecting the company's confidence in its long-term investment value [8][9].

Investment Rating - The report assigns a "Buy" rating for the company [9]. Core Insights - The company has a solid industry leadership position, with a focus on product innovation and channel reform to drive growth. The financial performance shows a stable revenue increase and a rebound in profitability, supported by effective cost management and expansion into overseas markets [4][9]. Financial Summary - For FY2023, the company reported revenue of 23,586.33 million CNY, with a year-on-year growth of 2.87%. The net profit attributable to the parent company was 3,990.47 million CNY, reflecting an 18.36% increase from the previous year. The earnings per share (EPS) for FY2023 was 0.34 CNY, with a price-to-earnings (PE) ratio of 12.88 and a price-to-book (PB) ratio of 3.13 [2][4]. Business Performance - The company has shown a compound annual growth rate (CAGR) of 2.55% in revenue and 4.21% in net profit from FY2017 to FY2023. The gross profit margin for FY2023 was 46.60%, and the return on equity (ROE) was 25.73% [4][36]. Market Trends - The report highlights a shift towards health-oriented products, with significant growth in the health snack segment, which is expected to grow at a CAGR of 7.20%. The company is also expanding its presence in e-commerce and overseas markets, which are projected to contribute to future revenue growth [3][4]. Product and Channel Strategy - The company is focusing on product innovation, with a strong emphasis on health and wellness trends. It is also reforming its distribution channels to enhance efficiency and reach, including a significant push into e-commerce and international markets [3][4][9].

Investment Rating - The report maintains a "Buy" rating for Huahong Semiconductor [1][30]. Core Views - The new capacity depreciation is squeezing profit margins, but localized production increases are expected [2][3]. - In Q1 2025, Huahong Semiconductor reported revenue of $541 million, a quarter-over-quarter increase of 0.3% and a year-over-year increase of 17.6% [2][6]. - The company achieved a net profit of $4 million, recovering from a net loss of $25 million in Q4 2024, although this represents a year-over-year decline of 88.2% [2][6]. - The quarterly wafer shipment volume reached 1.23 million equivalent eight-inch wafers, reflecting a quarter-over-quarter increase of 1.5% and a year-over-year increase of 20% [2][6]. - The capacity utilization rate was 102.7%, down 0.5 percentage points quarter-over-quarter but up 11 percentage points year-over-year [2][6]. Financial Performance Summary - For Q1 2025, the company guided revenue between $530 million and $550 million, with a Bloomberg consensus estimate of $548 million [6]. - The gross margin was reported at 9.2%, down 2.2 percentage points quarter-over-quarter but up 2.8 percentage points year-over-year, with guidance set between 9% and 11% [6]. - The company anticipates Q2 2025 revenue to be between $550 million and $570 million, with a gross margin forecast of 7% to 9% [6]. - The report projects revenues for 2025, 2026, and 2027 to be $2.279 billion, $2.823 billion, and $3.192 billion respectively, with net profits of $92 million, $183 million, and $271 million respectively [6][8]. Valuation Metrics - The report assigns a target price of HKD 36.84 based on a price-to-book ratio of 1.25x for the estimated book value per share in 2026 [6][30]. - The price-to-earnings ratios for 2025, 2026, and 2027 are projected to be 79.29, 40.05, and 22.47 respectively [8][30].

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - Huawei and the company signed a comprehensive cooperation agreement to advance humanoid robots and their application in various scenarios [2] - The company's group intelligence technology is crucial for the large-scale implementation of humanoid robots in industrial settings [3] - Continuous breakthroughs in key technologies such as visual navigation and motion control are enhancing the adaptability and precision of humanoid robots [4] - The partnership with Huawei is expected to leverage the company's full-stack technology advantages, accelerating the commercialization of humanoid robots [5] Financial Summary - Revenue projections for the company are as follows: 2025: 20.16 billion, 2026: 28.23 billion, 2027: 37.05 billion [5] - The company is expected to experience a revenue growth rate of 54.40% in 2025, followed by 40.08% in 2026 and 31.22% in 2027 [5] - The projected net profit for 2025 is -1.03 billion, improving to -0.75 billion in 2026 and -0.24 billion in 2027 [5] - The latest diluted EPS is projected to improve from -2.32 in 2025 to -0.55 in 2027 [5]

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - Huawei and the company signed a comprehensive cooperation agreement to advance humanoid robots and their application in various scenarios [2] - The company's group intelligence technology is crucial for the large-scale implementation of humanoid robots in industrial settings [3] - Continuous breakthroughs in key technologies such as visual navigation and motion control support the iterative upgrade of humanoid robots [4] - The partnership with Huawei is expected to leverage the company's full-stack technology advantages, accelerating the commercialization of humanoid robots [5] Financial Summary - Revenue projections for the company are as follows: 2025: 20.16 billion, 2026: 28.23 billion, 2027: 37.05 billion [5] - The company is expected to experience a revenue growth rate of 54.40% in 2025, 40.08% in 2026, and 31.22% in 2027 [5] - The projected net profit for 2025 is -1.03 billion, improving to -0.75 billion in 2026 and -0.24 billion in 2027 [5] - The latest diluted EPS is projected to improve from -2.32 in 2025 to -0.55 in 2027 [5] - The current market capitalization corresponds to a price-to-sales ratio of 18 for 2025, 13 for 2026, and 10 for 2027 [5]