Investment Rating - The report maintains a "Strong Buy" investment rating for Tencent Music [2][5] Core Insights - The company achieved total revenue of 8.46 billion RMB in Q3 2025, representing a year-on-year growth of 20.6%, with adjusted net profit increasing by 32.6% to 2.41 billion RMB [1][5] - Online music revenue continues to grow steadily, with a 27.2% year-on-year increase to 6.97 billion RMB, driven by subscription and advertising services [5][6] - The company is actively expanding into the fan economy and concert business, enhancing its competitive advantages through collaborations and content diversification [5][6] Financial Performance - Revenue and profit growth are supported by effective cost control, with gross margin improving from 42.6% in Q3 2024 to 43.5% in Q3 2025 [5][6] - The online music subscription revenue reached 4.5 billion RMB, up 17.2% year-on-year, driven by an increase in ARPPU from 10.8 RMB to 11.9 RMB [5][6] - The company expects revenues to reach 32.66 billion RMB, 36.98 billion RMB, and 41.30 billion RMB for the years 2025, 2026, and 2027 respectively, with adjusted net profits projected at 9.60 billion RMB, 10.85 billion RMB, and 12.18 billion RMB [6][8] Market Position and Strategy - Tencent Music holds a strong position in content copyright, with a focus on enhancing user willingness to pay and optimizing membership benefits [5][6] - The company is expanding its concert business, having successfully hosted multiple performances in various cities, attracting over 150,000 attendees [5][6] - The introduction of interactive fan communities and exclusive artist-related benefits is expected to drive further growth in subscription rates and user engagement [5][6]

Investment Rating - The report maintains an "OUTPERFORM" rating for Leapmotor [1][2][20]. Core Insights - Leapmotor has entered a clear margin-improvement cycle, with sustained profitability and enhanced gross margins driven by scale benefits and cost optimization [3][14]. - The company is on track to achieve its annual sales target of 580,000 to 650,000 units, with a revised forecast of 633,000 units for 2025 [4][15]. - Leapmotor's overseas expansion strategy is taking shape, with significant order growth and localization projects planned for 2026 [5][16][17]. - The company has established a comprehensive product matrix with four major series, enhancing its market positioning [6][18][19]. - Revenue forecasts for 2025-2027 have been updated, reflecting a strong model pipeline and expected market share growth [7][20]. Summary by Sections Financial Performance - In Q3 2025, Leapmotor reported revenue of Rmb19.45 billion, a 97% year-on-year increase, with a gross margin of 14.5% [3][14]. - The net profit for Q3 was Rmb150 million, marking a significant improvement from a loss of Rmb690 million in the same period last year [3][14]. - The company had cash reserves of Rmb33.92 billion at the end of Q3, indicating a strong liquidity position [3][14]. Sales and Delivery - Year-to-date deliveries reached 466,000 units through October, with management confident in achieving the full-year target [4][15]. - October saw single-month deliveries surpassing 70,000 units for the first time, reflecting strong demand [3][14]. Overseas Expansion - Leapmotor's overseas orders reached approximately 12,000 in October, with expectations to exceed 15,000 in November [5][16]. - The company aims for overseas sales of 100,000 to 150,000 units by 2026, maintaining a low-margin strategy for market penetration [5][16][17]. Product Development - Leapmotor has completed its ABCD product series, with new models set to launch in the coming months [6][18][19]. - The company is also developing a new category-creating product expected to launch in 2027 or 2028 [6][19]. Valuation - The updated revenue forecast for 2025-2027 is Rmb64.9 billion, Rmb94.6 billion, and Rmb127.6 billion, respectively [7][20]. - A target price of HK$73.51 is assigned based on a 1.0x price-to-sales ratio for 2026 [7][20].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][7][12] Core Views - The company is expected to see sustained performance growth driven by its AI projects and cloud transformation, with a focus on enhancing its competitive edge through strategic funding and resource integration [6][7] - The planned share placement aims to introduce diverse shareholders and relocate the company's registered office to Hong Kong, which is anticipated to improve communication with mainland investors and reduce tax burdens [5][7] - The company forecasts a significant increase in net profit from 2025 to 2027, with projected growth rates of 43%, 32%, and 22% respectively, indicating strong financial health and potential for valuation expansion [7][8] Financial Summary and Valuation Metrics - The company reported a revenue of 8,294 million in 2023, with a projected increase to 10,558 million by 2027, reflecting a compound annual growth rate [8] - Net profit is expected to rise from 202 million in 2023 to 892 million by 2027, showcasing a robust growth trajectory [8] - The projected P/E ratios for 2025, 2026, and 2027 are 15.9, 12.0, and 9.8 respectively, indicating an attractive valuation relative to earnings growth [8]

Investment Rating - The report initiates coverage with a "Buy" rating for JD Health, indicating a positive outlook for the company's stock performance in the next 12 months [5]. Core Insights - JD Health's revenue for Q3 2025 reached 17.12 billion RMB, a year-on-year increase of 28.7%, with growth accelerating from 23.7% in Q2 [1][2]. - The company's operating profit surged by 125.3% year-on-year to 1.243 billion RMB, while the Non-IFRS net profit grew by 42.4% to 1.902 billion RMB, reflecting strong profit growth momentum [1][2]. - Strategic partnerships with major pharmaceutical companies like Eli Lilly and Bayer have reinforced JD Health's position as a leading platform for new specialty drugs [2][3]. Revenue and Profitability - Revenue growth is expected to continue, with projections of 71.01 billion RMB in 2025, 82.90 billion RMB in 2026, and 95.48 billion RMB in 2027, reflecting growth rates of 22.1%, 16.7%, and 15.2% respectively [4]. - Adjusted net profit is forecasted to be 6.256 billion RMB in 2025, with a growth rate of 30% [4]. Strategic Developments - JD Health is enhancing its digital healthcare services through collaborations with hospitals to develop AI-driven patient service platforms, aiming to improve patient experience and resource utilization [3]. - The company is expanding its online medical insurance payment services, which now cover nearly 200 million people, significantly increasing from the previous year [1][2]. Financial Metrics - The report provides a detailed financial forecast, including an expected EPS of 1.95 RMB for 2025, with a P/E ratio of 32 [4]. - The company's net profit margin is projected to improve from 10.1% in the first half of 2025 to 11.1% in Q3 2025, indicating enhanced operational efficiency [2].

Investment Rating - The report initiates coverage with a "Buy" rating for JD Group [4][6]. Core Insights - JD Group's Q3 2025 revenue reached 299.1 billion RMB, a year-on-year increase of 14.9%, exceeding Bloomberg consensus expectations [1]. - The company's retail segment achieved revenue of 250.6 billion RMB, growing 11.4% year-on-year, with operating profit rising 27.6% to 14.8 billion RMB [2]. - New business, including food delivery, saw a significant revenue increase of 214% year-on-year, indicating strong growth potential [3]. - JD Logistics reported revenue of 55.1 billion RMB, up 24.1% year-on-year, with a net profit of 2.02 billion RMB [3]. Summary by Sections Financial Performance - Q3 2025 Non-GAAP net profit attributable to ordinary shareholders was 5.8 billion RMB, a decline of 56% year-on-year, with a Non-GAAP net profit margin of 1.9%, down 3.2 percentage points [1]. - The report forecasts revenues for 2025-2027 to be 1,339.9 billion RMB, 1,463.1 billion RMB, and 1,586.5 billion RMB, reflecting growth rates of 15.6%, 9.2%, and 8.4% respectively [4][5]. Business Segments - JD Retail's user base surpassed 700 million, with significant growth in shopping frequency during the "11.11" shopping festival, where the number of ordering users increased by 40% and order volume by nearly 60% [2]. - The logistics segment is expanding internationally, with new services launched in Saudi Arabia and the U.S., enhancing JD's integrated supply chain capabilities [3]. Valuation Metrics - The current stock price corresponds to a price-to-earnings (P/E) ratio of 12 for 2025, 8 for 2026, and 6 for 2027 [4][5].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [5]. Core Insights - The company is transforming into a "digital ecosystem operator" by leveraging its resources in the Guangdong-Hong Kong-Macao Greater Bay Area, focusing on residential and urban renewal projects [1][2]. - A significant acquisition of Wisdom Knight Holdings Limited for HKD 977 million positions the company strategically in the AI and green energy computing sectors [2]. - The traditional business model is now a growth driver, with a successful debt-to-equity conversion plan reducing the interest-bearing debt ratio from 45% to 7% [2]. - The integration of AI computing services and energy management is expected to enhance operational efficiency and profitability [3]. Financial Summary - The company forecasts net profits for 2025, 2026, and 2027 to be CNY 718 million, CNY 579 million, and CNY 789 million, respectively, with growth rates of +139.13%, -19.41%, and +36.41% [3][4]. - Revenue projections show a significant increase from CNY 801.54 million in 2025 to CNY 6,432.54 million in 2027, reflecting a growth rate of 470.13% [4]. - The company’s earnings per share (EPS) is expected to improve from -CNY 3.32 in 2024 to CNY 0.70 in 2027 [4]. Strategic Development - The company’s "urban ecosystem" strategy aims to convert idle factories and land into high-performance computing centers, aligning with its capabilities in urban development [3]. - The acquisition of high-value B-end resources from major cloud service providers and leading AI companies is anticipated to open new growth avenues [3]. - The dual business model of AI computing services and lifecycle management is validated commercially, enhancing the company's resilience and profitability [3].

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Insights - The company is accelerating its overseas mergers and acquisitions, with a recent agreement to acquire 100% equity of Da Zhong Tang in Singapore, which operates 14 TCM clinics [1][2] - The company is also increasing its share buyback program, indicating strong confidence in future growth [1][3] - The acquisition of Da Zhong Tang will enhance the company's operational network in Singapore, supporting its international expansion strategy [2] - The company is leveraging AI technology to create "AI avatars" of renowned TCM doctors, which is expected to improve service delivery and expand capacity [3] - The company forecasts adjusted net profits of 493 million, 594 million, and 708 million HKD for 2025, 2026, and 2027 respectively, reflecting a strong growth trajectory [3] Summary by Sections Mergers and Acquisitions - The company is actively pursuing international expansion through acquisitions, with the recent purchase of Da Zhong Tang marking a significant step in its TCM overseas strategy [1][2] AI Development - The company is developing AI models based on extensive clinical data to replicate the diagnostic capabilities of top TCM experts, which is anticipated to enhance healthcare delivery [3] Financial Projections - The company projects substantial revenue growth, with expected revenues of 3,797 million, 4,735 million, and 5,902 million HKD for 2025, 2026, and 2027 respectively, alongside increasing net profits [8][9]

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Insights - The company reported a FY26H1 revenue of HKD 8.04 billion, a year-on-year decrease of 3.1%, while the net profit attributable to shareholders was HKD 1.146 billion, reflecting a year-on-year increase of 0.6% [6][2] - The gross margin improved to 40.4%, up 0.9 percentage points year-on-year, and the net margin increased to 14.2%, up 0.5 percentage points year-on-year [6][2] - Domestic sales showed a narrowing revenue decline, with a 6.0% decrease in domestic revenue to HKD 4.67 billion, while the gross margin for domestic sales rose to 41.0% [2][6] - E-commerce sales outperformed offline sales, with e-commerce revenue increasing by 13.6% to HKD 1.14 billion, while offline sales decreased by 12.3% to HKD 3.059 billion [2][6] Summary by Sections Domestic Sales - Domestic revenue decreased by 6.0% to HKD 4.67 billion, with a gross margin of 41.0%, benefiting from lower raw material prices [2] - The company adjusted its store layout, resulting in a net reduction of 327 stores, totaling 7,040 stores by the end of FY26H1 [2] International Sales - International sales showed steady growth, with revenue from North America and Europe increasing by 0.3% and 4.3% respectively [2] - The gross margin for international sales improved to 39.3%, up 1.1 percentage points year-on-year [2] Financial Projections - The company expects net profits for FY26, FY27, and FY28 to be HKD 2.23 billion, HKD 2.40 billion, and HKD 2.58 billion respectively [2] - The dividend payout ratio remains stable at over 50%, with a current dividend yield of 5.19% [2]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price raised to HKD 496.89 [6][4]. Core Insights - The company is leading in the development of IO 2.0 combination therapies, with three ADC assets (DB-1303, DB-1311, and DB-1305) already initiating four global clinical studies in collaboration with BioNTech [2][12]. - The ADCs are designed to explore various cancer types, including lung cancer and breast cancer, showcasing the potential for broad application in oncology [2][21][27]. - The report highlights the safety profile of the ADCs, particularly DB-1305, which has shown low rates of overlapping toxicity and a drug discontinuation rate of only 4.5% in clinical trials [23][24]. Summary by Sections Section 1: Embracing ADC Combination IO2.0 - The company has initiated four clinical studies for its ADCs in collaboration with BioNTech, focusing on the combination of ADCs with PD-L1/VEGF bispecific antibodies [2][12]. - DB-1311 is exploring various lung cancer types, while DB-1303 is targeting different HER2 expression levels in breast cancer [17][21]. - The ADCs are positioned to expand the treatment landscape for multiple cancer types, leveraging the synergistic effects of IO 2.0 [12][14]. Section 2: DB-1419 - A Novel PD-L1 x B7-H3 ADC - DB-1419 is a newly introduced ADC utilizing a unique "2+2" antibody design, showing superior tumor suppression effects in preclinical studies compared to existing B7-H3 ADCs [27][28]. - The ADC is currently undergoing global I/II phase clinical trials, with data expected in 2026 [28]. Section 3: DB-1317 - ADAM9 ADC for Gastrointestinal Tumors - DB-1317 targets ADAM9, which is highly expressed in various gastrointestinal cancers, demonstrating significant therapeutic potential [31][32]. - The ADC's design allows for targeted delivery of cytotoxic agents, enhancing its efficacy against tumors with high ADAM9 expression [31][32]. Section 4: DUPAC Platform and New Mechanisms - The DUPAC platform introduces innovative payloads aimed at overcoming resistance to existing therapies, with DUP5 showing broad anti-tumor activity [35][40]. - DUP5 operates through a unique mechanism that inhibits mRNA translation, allowing it to target both proliferating and non-dividing cancer cells [35][40].

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [5] Core Views - The report anticipates sustained growth in gaming and advertising revenues, driven by key titles such as "Honor of Kings World" and "Little People’s Country" contributing to revenue growth in 2026 [3][9] - The estimated IFRS net profit for 2025-2027 is projected at 226 billion, 261 billion, and 297 billion RMB respectively, reflecting adjustments based on updated assumptions for gaming, advertising, and payment services [3][9] - A sum-of-the-parts (SOTP) valuation method is used, resulting in a target price of 664.22 HKD [3][5] Financial Performance Summary - For 2023, the company reported revenue of 609,015 million RMB, with a year-on-year growth of 9.82% [4] - The operating profit for 2023 was 152,784 million RMB, showing a significant year-on-year increase of 52.76% [4] - The net profit attributable to shareholders for 2023 was 115,216 million RMB, reflecting a decline of 38.79% year-on-year [4] - The earnings per share (EPS) for 2023 is reported at 12.60 RMB [4] - The gross margin is expected to improve from 48.13% in 2023 to 57.90% by 2027 [4] Revenue Breakdown - The report highlights that the revenue from value-added services reached 959 billion RMB in Q3 2025, with a year-on-year growth of 16% [9] - Gaming revenue for Q3 2025 was 636 billion RMB, marking a 23% increase year-on-year [9] - Marketing services revenue for Q3 2025 was 362 billion RMB, exceeding Bloomberg's expectations by 2% [9] Future Projections - The report projects a revenue increase to 754,344 million RMB in 2025, with a year-on-year growth rate of 14.25% [4] - The operating profit is expected to reach 247,023 million RMB in 2025, with a growth rate of 23.45% [4] - The net profit attributable to shareholders is forecasted to be 225,981 million RMB in 2025, reflecting a growth of 16.44% [4]