Investment Rating - The investment rating for Alibaba-W (09988.HK) is "Outperform the Market" (maintained) [1][6][20] Core Views - The report anticipates a 4% year-on-year revenue growth for 2QFY26, with adjusted EBITA margin at 3.5%. Revenue is expected to reach 245.6 billion yuan, driven by a 17% increase in international digital commerce and a 30% increase in cloud intelligence revenue, while the Chinese e-commerce group is projected to decline by 13% quarter-on-quarter [3][5][20] - The cloud segment is expected to continue accelerating growth with a 30% year-on-year revenue increase, while maintaining stable EBITA margins. The company is actively advancing its AI infrastructure with a planned investment of 380 billion yuan [3][11][20] - The Chinese e-commerce group is projected to achieve a GMV growth of 5% year-on-year, with a take rate increase. However, the report notes that the profit margin is expected to continue declining due to competitive pressures [3][18][20] Summary by Sections Financial Forecasts - Revenue for FY2026 is adjusted to 1,050.3 billion yuan, with a slight decrease of 1.5%. The adjusted net profit forecast for FY2026 is revised to 108.4 billion yuan, reflecting a 14% decrease due to higher-than-expected investments in flash sales and AI-related costs [4][20][23] Cloud Intelligence Group - The cloud segment is projected to achieve a revenue growth of 30% year-on-year in FY26Q2, with stable EBITA margins. The company has launched several AI models and upgraded its AI infrastructure significantly [11][12][13] Chinese E-commerce Group - The report estimates a 5% year-on-year GMV growth for FY26Q2, with a focus on maintaining market share despite competitive pressures. The adjusted EBITA loss for instant retail is expected to be 36.5 billion yuan, with a peak in losses observed in August [18][19][20] Other Segments - The AIDC segment is expected to see a slowdown in revenue growth, maintaining a near breakeven performance. Other segments are projected to incur losses of around 5 billion yuan due to increased AI application costs and investments in delivery services [19][20]

Investment Rating - The report assigns a "Buy" rating for the stock, indicating a positive outlook for the company's performance [1][7]. Core Insights - The company reported a stable revenue of 4.36 billion yuan for the first half of 2025, with a net profit of 1.36 billion yuan, reflecting a year-on-year increase of 24.6% [4][5]. - The core products and subsidiary revenues are performing steadily, with significant contributions from various product lines [5]. - The licensing agreement for the 707 product with Pfizer is expected to enhance profits and reduce risks associated with global market expansion [6][7]. Company Overview - Latest closing price: HKD 30.94 - Total shares: 2.432 billion, with a market capitalization of HKD 75.2 billion - 52-week high/low: HKD 36.80 / HKD 5.43 - Debt-to-asset ratio: 25.51% - Price-to-earnings ratio: 27.4 [3]. Financial Projections - Revenue projections for 2024A, 2025E, 2026E, and 2027E are 9.108 billion, 19.723 billion, 10.840 billion, and 12.075 billion yuan respectively, with growth rates of 17%, 117%, -45%, and 11% [9]. - The net profit attributable to the parent company is projected to be 2.090 billion, 9.693 billion, 2.405 billion, and 2.762 billion yuan for the same years, with growth rates of 35%, 364%, -75%, and 15% [9]. - The expected earnings per share (EPS) for 2025 is 3.99 yuan, with a corresponding price-to-earnings ratio of 6.96 [9]. Product Development and Market Potential - The 707 product, a dual antibody targeting PD-1/VEGF, has shown promising clinical data and is expected to be a cornerstone in global oncology treatment [6][7]. - The product has received breakthrough therapy designation in China and is undergoing multiple clinical trials for various cancers [7].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company has demonstrated significant revenue growth, with a 50.6% year-on-year increase in revenue for the first half of 2025, reaching 5.95 billion yuan, driven by strong performance in its oncology and chronic disease product lines [4][5]. - The company is focusing on a global strategy, with the approval of IBI363 for a pivotal Phase III clinical trial, indicating its commitment to innovation and market expansion [6][8]. - The financial outlook is positive, with projected net profits increasing significantly from 979 million yuan in 2025 to 3.25 billion yuan by 2027, reflecting a robust growth trajectory [10][11]. Company Overview - The latest closing price is 104.70 HKD, with a total market capitalization of 179.4 billion HKD [3]. - The company has a debt-to-asset ratio of 38.88% and a price-to-earnings ratio of 144.43, indicating a relatively high valuation compared to its earnings [3]. Financial Projections - Revenue is expected to grow from 9.42 billion yuan in 2024 to 21.16 billion yuan by 2027, with a compound annual growth rate of approximately 34% [10]. - EBITDA is projected to increase from 409 million yuan in 2024 to 4.83 billion yuan in 2027, showcasing improved operational efficiency [10]. - The company anticipates a significant turnaround in net profit, moving from a loss of 95 million yuan in 2024 to a profit of 3.25 billion yuan in 2027 [10][11]. Investment Thesis - The company is well-positioned in the domestic oncology market, with a diverse product pipeline that is expected to drive sustained high growth [8]. - The focus on innovation and the development of first-in-class and best-in-class products provide a strong foundation for long-term growth [8].

Investment Rating - The report maintains a "Buy" rating for Huahong Semiconductor with a target price raised to HKD 119 from HKD 53 [1][5]. Core Views - The report expresses a long-term positive outlook on Huahong's "integrated" strategic layout, emphasizing the rapid maturation of the domestic AI chip ecosystem and its impact on wafer foundry demand [2][3]. - The report highlights the potential benefits of the BIS regulations, which may accelerate supply chain localization and enhance Huahong's technological capabilities [3][4]. Summary by Sections Demand Side - The report estimates that the advanced process foundry demand from Chinese design companies will reach USD 9.5 billion in 2024, with 70% of this demand currently met by TSMC [1]. - The acceleration of AI chip iterations, particularly from Huawei's Ascend series, is expected to significantly expand domestic foundry demand [1][2]. Supply Side - The new BIS regulations will extend restrictions to subsidiaries with over 50% ownership, which may lead to tighter policies and further localization of the supply chain [3]. - Huahong's acquisition of Huali Microelectronics is projected to enhance its core business and add 38,000 wafers per month of 65/55nm and 40nm process capacity [2]. Financial Projections - The report forecasts a 3% increase in net profit for 2025, reaching USD 60 million, followed by a 48% increase in 2026 to USD 89 million, and a 16% increase in 2027 to USD 103 million [4][8]. - Revenue is expected to decline by 12.34% in 2024 but rebound with a growth of 20.81% in 2025 and 20.98% in 2026 [8][22]. Valuation - The target price adjustment to HKD 119 corresponds to a 4.2x 2025E price-to-book ratio, compared to a peer average of 3.86x [4][10]. - The report emphasizes Huahong's unique position as a leader in domestic specialty processes amid the accelerating trend of semiconductor localization in China [10][11].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2][8]. Core Insights - The company has demonstrated rapid growth in performance, with a revenue of 2.7 billion yuan in the first half of 2025, reflecting a year-on-year increase of 62.2%, and a net profit of 750 million yuan, up 52.7% [4][5]. - The company is a leading global ADC CXO enterprise with a comprehensive R&D technology platform, a growing customer base, and an increasing number of projects [8]. Company Overview - Latest closing price: 74.50 HKD - Total shares: 1.228 billion - Total market capitalization: 91.486 billion HKD - 52-week high/low: 78.55/18.52 HKD - Debt-to-asset ratio: 29.94% - Price-to-earnings ratio: 62.9 [3]. Financial Performance - In the first half of 2025, the company achieved a gross margin of 36.1%, an increase of 4.0 percentage points year-on-year, driven by improved capacity utilization and the rapid ramp-up of new production lines [5]. - The company’s adjusted net profit margin (excluding interest income) increased by 1.2 percentage points to 27.1% compared to the same period in 2024 [5]. Project and Capacity Expansion - As of the first half of 2025, the company had a total of 225 iCMC projects, with 37 new contracts signed, marking a historical high [6]. - The company’s production lines are operating at high capacity, with significant orders in reserve, and plans for further expansion in Singapore and Wuxi [7]. Revenue and Profit Forecast - Projected revenues for 2025, 2026, and 2027 are 5.754 billion, 7.826 billion, and 10.174 billion yuan, respectively, with year-on-year growth rates of 42%, 36%, and 30% [11]. - Expected net profits for the same years are 1.601 billion, 2.259 billion, and 3.018 billion yuan, with growth rates of 50%, 41%, and 34% [11].

Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [4][17]. Core Insights - The company demonstrated impressive performance in the first half of 2025, with revenue increasing by 31.3% year-on-year to 2.59 billion and net profit rising by 36.1% to 670 million, aligning with market expectations [1][9]. - The company is expanding its product categories, particularly in the fragrance segment, and has successfully launched high-end perfume series, enhancing its brand positioning [9]. - The dual-channel strategy (online and offline) is showing robust growth, with online sales increasing by 39% and offline sales by 27%, indicating a healthy synergy between the two channels [9]. Financial Performance Summary - Revenue projections for the upcoming years are as follows: 2024A at 3.885 billion, 2025E at 5.142 billion, 2026E at 6.588 billion, and 2027E at 8.273 billion, with respective growth rates of 34.6%, 32.4%, 28.1%, and 25.6% [3][11]. - The net profit is expected to grow from 881 million in 2024A to 1.936 billion in 2027E, with growth rates of 33.0%, 35.3%, 28.2%, and 26.8% [3][11]. - The company maintains a strong gross margin of 84.2% and a net margin of 25.9% in the first half of 2025, reflecting stable profitability [9]. Business Segmentation - Revenue breakdown shows 55% from color cosmetics, 42% from skincare, 3% from makeup artistry training, and 0.4% from fragrances [9]. - The offline sales contribute 47% of total revenue, while online sales account for 50%, showcasing a balanced distribution between channels [9]. Future Growth Potential - The company has significant room for SKU expansion, currently at approximately 400 SKUs, particularly in lip, eye, and foundation products [9]. - The report highlights the potential for improved store efficiency compared to international brands, suggesting ongoing growth opportunities [9].

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Insights - The company’s PD-L1 small molecule inhibitor ABSK043 has received approval for clinical research to treat KRAS G12C mutated NSCLC in combination with the KRAS G12C inhibitor, adagrasib [1] - ABSK043 shows potential as a first-in-class (FIC) oral PD-L1 inhibitor, with no other oral PD-(L)1 drugs currently available globally [2] - The initial clinical data indicates a balance of efficacy and safety, with 87% of patients experiencing treatment-emergent adverse events (TEAEs) and no peripheral neuropathy observed [2] - ABSK043 is designed specifically for combination therapy, offering advantages such as a short half-life, reduced immunogenicity, and oral administration flexibility [3] - The market potential for ABSK043 is significant, targeting approximately 45%-60% of NSCLC cases, with ongoing clinical trials in various treatment settings [3] Financial Projections - The company is projected to achieve revenues of 630 million, 685 million, and 637 million yuan for the years 2025, 2026, and 2027 respectively [5] - Expected net profits for the same period are 45 million, 70 million, and 102 million yuan [5] - The target price for the stock is set at 22.88 HKD, with the current price at 19.62 HKD [5] Pipeline Developments - The company has several key assets nearing milestones, including: 1. KRAS-G12D inhibitor ABSK141, expected to receive IND approval in the second half of 2025 [4] 2. Pan-KRAS inhibitor ABSK211, anticipated to enter clinical stages in 2026 [4] 3. CSF-1R inhibitor ABSK021, with an NDA submission planned for the second half of 2025 [4] 4. A bispecific antibody-drug conjugate (BsADC) targeting two pan-cancer targets, expected to achieve preclinical candidate status in early 2026 [4]

Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1]. Core Insights - The company, Tehai International, serves as the overseas listing platform for Haidilao, leading the expansion of Chinese cuisine internationally. It aims to enhance its global store layout and accelerate the internationalization of Chinese dining [6][11]. - The overseas hot pot market is projected to reach a scale of $30 billion, supported by over 60 million overseas Chinese, with local consumers also contributing to brand expansion [6][41]. - Tehai International is positioned as the largest Chinese dining brand in international markets, leveraging its strong brand presence and operational capabilities [6][47]. Summary by Sections Company Overview - Tehai International operates as the overseas platform for Haidilao, with 122 stores globally as of 2024, focusing on direct operations and local product offerings [11][12]. - The company has achieved significant revenue growth, with a projected revenue of $778.31 million in 2024, reflecting a year-on-year increase of 13.07% [1][6]. Industry Overview - The report highlights that the internationalization of Chinese cuisine is timely, with Tehai International being a key player in this trend. The company is expected to benefit from the growing acceptance of hot pot among local consumers [6][37]. - The international Chinese dining market is characterized by low concentration, providing opportunities for growth, especially for standardized offerings like hot pot [6][45]. Competitive Advantages - Tehai International is recognized as the leading hot pot brand, with a robust operational framework and supply chain management that supports its international expansion [6][56]. - The company has optimized its store model, reducing the average return period to 5.1 years, and is enhancing customer engagement through localized services and cultural events [6][31]. Financial Analysis - The financial projections indicate a compound annual growth rate (CAGR) of 50.6% for net profit from 2025 to 2027, with expected profits of $49.45 million in 2025 [1][6]. - The report anticipates a steady increase in the number of overseas stores, reaching 149 by 2027, further solidifying the company's market position [6][11].

Investment Rating - The investment rating for Kuaishou-W (01024.HK) is "Outperform the Market" (maintained) [2][7]. Core Insights - OpenAI's release of the Sora 2 video generation model and the Sora App is expected to accelerate the demand for AI-generated content (AIGC) [3][6]. - Sora 2 features significant advancements in image resolution, style control, and instruction adherence, integrating audio-video synchronization technology to enhance physical simulation accuracy [4]. - The Sora App, designed similarly to TikTok, allows users to create AI-generated videos up to 10 seconds long and includes a "Cameo" feature for digital avatars, which could create new monetization opportunities for IP holders [5][6]. Financial Forecast and Valuation - The projected financials for Kuaishou include: - Revenue growth from CNY 660.26 billion in 2024 to CNY 865.93 billion in 2027, reflecting an annual growth rate of approximately 8% to 11% [19]. - Net profit is expected to increase from CNY 194.07 billion in 2024 to CNY 268.42 billion in 2027, with a net profit growth rate of 8% to 18% [19]. - The adjusted EPS is forecasted to rise from CNY 24.15 in 2024 to CNY 34.12 in 2027 [19]. - Key financial ratios include: - ROE is projected to decrease from 20% in 2024 to 17% in 2027 [19]. - The gross margin is expected to improve from 53% in 2024 to 58% in 2027 [19].

Investment Rating - The investment rating for Kuaishou-W (01024.HK) is "Outperform the Market" (maintained) [2][7]. Core Insights - OpenAI's release of the Sora 2 video generation model and the Sora App is expected to significantly boost the demand for AI-generated content, creating new opportunities in the social media landscape [3][6]. - Sora 2 features advancements in image resolution, style control, and instruction adherence, integrating audio-visual synchronization to enhance realism in generated videos [4][5]. - The Sora App, designed similarly to TikTok, allows users to create and share AI-generated videos, fostering a new social ecosystem around AI content creation [5][6]. Summary by Sections Company Overview - Kuaishou is positioned as a leader in the AI video sector, with its AI-generated video capabilities showing strong performance and continuous improvement [6]. Market Dynamics - The introduction of Sora 2 is anticipated to reshape the short video ecosystem, potentially increasing the proportion of AI-generated content and narrowing the gap with platforms like Douyin [6]. Financial Projections - The financial outlook includes projected revenues of 660,257 million in 2024, increasing to 865,930 million by 2027, with a net profit growth rate of 68% in 2024 [19].